The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-11-28
BLOW HAS FALLEN
The Long Threatened Suit
Against the Sugar Trust
Is Filed by the Government IN
{. S. Circuit Court.
Under SHERMAN LAW
Unlawful Combination in Re
straint Of Trade Charged
Parent Company and Subsid-
iaries Are Made Defendants

New York. Nov. 28.-Attacking the
American Sugar Refining company, ia
rniliarIv known as the Sugar trust as
q 1awless combination. the federal gov
ernment today filed its long expected
sniff for the dissolution of the corpor-
alton. The petition was filed by Henry
A. Wise, district attorney in the Unlteo
states circuit court for the southern
district Of New York, and the suit
which is brought under the Sherman
antitrust law, is expected to be one OF
the most important actions of the kind
ever undertaken in this country The
governments petition is a lengthy one,
occupying 221 printed pages, and is a
sweeping arraignment of the defend
ant companies.
The thirty companies composing the
sugar combine have an aggregate cap
italization of 100000 and control
a large percentage of the output.
The present suit, which, it is esti-
mated, will be in the courts for two
years before a final adjudication is
reached, is the result of many weeks
of preparation. District Attorney Wise
made his Investigations under the d1-
rection of Attorney General Wicker
sham and spent several days in Wash
ington last week in comforting with
the attorney general on the final plans
Opposed to the government in the
struggle will be some of the most able
corporation lawyers of the country.
James NJ. Peck, former assistant
United states attorney general and
now counsel for the American Sugar
Refining company. will lead the attack
on the governments position. The i'll
ing of the suit was a simple process.
The governments petition in printed
form was handed to the clerk of the
district court by the district attorney.
NTy ~
ment
One of the allegations is that the
late H. o. Havemyer of New York, for
a long time head of the sugar COM
bine, received $10.000.O00 common
stock of the National Sugar Refining
company of New Jersey as a gift at the
time the corporation was formed to
take into the combine four indepen-
dent ccncerns-the National Sugar Re
fining company, run by B. H. Howells,
Son and Company; the New York Su-
gar Refining company of Long Island
City, New York, operated by Claus
Dosher; the Mollenhauer Sugar Rein
ing company of Brooklyn, and W. J.
McCahan Sugar Refining company of
Philadelphia.
These companies up to 1900 were
independent and, it IS said, the Ameri-
can company was determined to ac-
quire them. Under a plan inaugurated
by Mr. Havemeyer, John E. Parsons
and James H. Post the National COM
pany was formed and took over the
four plants. Mr.. Post obtaining options
on them. When the new stock was de-
livered. the petition sets forth, Post
delivered 100000 shares of common
stock, the entire issue with a par value
of S10,O0O,000 to Mr.. Havemeyer. The
petition says these shares ''Were issued
IN the first instance contrary to law,
IN violation Of the corporations fran
chise. and for no consideration, as both
said Post and Havemeyer then we'll
knew"
Sold at Large Profit.
The government also alleged that
when the company took over four
Philadelphia cOmpanies-the Franklin
Sugar Refining company. the Spreckels
Sugar Refining company, the Delaware
Sugar house and the E. c. Knight COM
pany-Mr. Havemeyer and his brother,
Theodore Havemeyer, bought As per
cent of the stock of the SpreckeIs COM
pany and then sold it at large profit
to the American company, of which
both were directors.
In general the petition charges that
the defendants 'for some time past
have been, and are now engaged in an
= unlawful combination and conspiracy
60 restrain the trade and commerce.
among and between the several states
and territories of the United States
and with foreign nations, in raw su-
gar, sugar beets, refined sugar mo-
lasses syrups and other bi-products of
raw sugar and sugar beets and to
monopOlize the same. Such unlawful
combination and conspiracy is the re-
suit and outgrowth of a series of
wrongful acts extending over a period
of many years and participated in bv
defendants, respectively, in the man
ner and to the extent hereinafter more
fully set forth In partfcfuatine in
the rfnrTE
binations hereinafter described all of
the defendants have been actuated bv
wrongful intent to restrain said inter
state and foreign trade and commerce.
In raw and refined sugar and related
articles and to monopolize parts
thereof"
The government petitions the court
to decree:
That the defendants have been
engaged in unlawful combination and
conspiracy to restrain and monopoIize
trade, and that their officers. dirac-
tors, stockholders agentsan employees
be perpetually enjoined from doing
any act to carry out the purpose Of
such unlawful combination.
That the court adjudge that the
american Sugar Refining company. he
National Sugar Refining con1nanv -
New Jersey. and the Western SI,,or
Refining company is each in itself o.,
unlawful combination in restraint -
trade, Snd each of them be restratno5
from engaging in interstate or forefen
commerce.
Stocks Unlawfully Acquired.
That the court adjudge that +bo
shares of the capital stock of aenb lte
defendant corporation heretofore a. =
quired by any other corporate defeT,
dant were unlawfully acquired, ans
ehat each such holder be enjotned
from continuing to hold such shares
and that the issuing corporatfons ba
enJoined from permitting the exercise
OF rIghts incident to the holding of