The San Francisco call., 1910-11-29
SUGAR COMBINE
PUT ON GRILL
BY GOVERNMENT
Suit Is Begun to Dissolve Cor
DoratiOn Under Sherman
Antitrust Law
individuals Are Named in Action
Which Declares Price Is
Regulated


most important actions against great
corporations which are said to have
violated the sherman antitrust law.
Henry "A. Wise. United States district
attorney. filed in the United States dis
trict court for the southern district of
New York a petition asking for the
dissolution OF the American refining
company and % other corporations
which compose the so called sugar
trust. The petition charges an. Illegal
combination ia restraint of trade and
asks for court relief in whatever form
may be necessary. including a receiv-
crship, if deemed advisable
The so companies composing the
sugar combine have an aggregate cap
talizauon of S23o.o00.oO0 and control
"A large percentage Of the output Of
sugar in this country This complne
IS also. >the government alleges, able
10 fN prices arbitrarily. The peuUon
charges that for years the companies
have violated the law and have sup
pressed competitors and ground them
out OF existence. Railroad rebates and
customs frauds are mentioned as de-
vices which We're employed TO raise
the combine TO the commanding po-
sition which ii occupies today.
TWO YEAR SUIT AHEAD
The present suit. which II is esti-
mated viii be in the courts for two
xears before a final adjudication IS
reached. is the result Of many weeks
of preparation. District Attorney " lse
made his investigation under the dlrec5
tfon Of Attorney General Wickers 1a m
r--s7 ia
LAST week c0uferrinG with the attorney
general on the Enal plans
The suit is expected to rank IN I'M
~artance with those Of the government
against the STANDARD oil company and
the American tobacco company, Wndch
are now pending i'm the supreme court
Opposed TO the government IN the
STRUGGLE viii he some of the most able
..orp0ratIon lawyers in the country
James NJ Beck. former assistant United
STATES attorney general, and now coun-
sci for the American sugar rehnlng
-ompauv. viii lead the attack on the
.-7t-err777er7r' s. position The fling or the
suit was simple process The gov
erumeut's petition in printed form
was handed to the clerk Of the district
court by the district attorney wise
declined to max any comment.
Beck said the sugar combine was
NOT meuopolS. but that If II appeared.
when the supreme court interpreted tIle
sherman law in the tobacco ana OH
cases. that the sugar company "as III
amy respect violating the law, steps
would be taken Immediately to comply
rt-+th the law rs thus interpreted
The Governments petition is
lengthy one occupying 221 printed
rsees. and IS a sweeping arraignment
or the defendant companies
onb Of the allegations is that the
N-a-r
long time head Of the sugar combine,
received S10.GO0.OA0 common stock OF
+he National sugar refining company
Of Kew Jersey as a gift at the time
The corporation was formed 10 take
into 1he combine four Indepehoeht
csncerus-the National sugar rehnlng
rornrauv. run by B H Howens Sons
& Co. the New York sugar refining
company Of Long Island City, y. Y,
onera+ed bv Claus Doscher: the Mollen-
rsuer sugar refining company OF
T2rooJz1vn and the ". J. Mccain sugar
refining company Of Philadelphia.
These companies up TO 1900 were indie
vendent and II is said the American n
oompanv was determined TO acquire
them
POST DETAINED OPTIONS
Under a plan iFaugurated by Have
rrever. John r. Parsons and James H.
md took the four plants. Post obtain
fre ontions on them. When the new
stock was delivered. the petition sets
forth. Post delivered 10000 shares of
common stock. the entire issue. with a
PAR value Of $4,000 600. TO Havemeyer-
The petition SAYS the shares were is
sued in the first instance contrary to
Jaw in violation Of the corporations
franchise and for no consideration, as
loth said Post and Havemeyer then
wei knew
The government alleges that when
tile Merriam company took over four
philadelphia ycompanies-the Franklin
sugar refining company the Spreckels
sugar refining company, the Delaware
sugar house and the F. c. Knight COM
nany- -JaVemeyer and his brother,
Theodore Havemeyer, bought - per
cent Of the stock Of the SpreckeIs com
-anv and tsen sold it at large profit
ta the American company, Of which
both were directors.
in general the petition charges that
the defendants for some. time past
nave been and are now engag ged in an
unlawful combination and conspiracy
10 restrain the trade and commerce
amongeand between the several states
and territories Of the United States and
with foreign nations in raw sugar
sugar beets, refined sugar molasses.
svreps and other byprOducts of raw
sugar and sugar beets and to monopo-
lie the same. Such unlawful combi-
n..tion and conspiracy is the result and
outgrowth Of series Of wrongful acts
extending over a period of many years
and participated in by defendants. re-
spectiveIy.
In participating in the various acts,
agreements and combinations herein
after described all of the defendants
have been actuated by wrongful intent
10 restrain said interstate and foreign
trade and commerce in raw and refined
and related articles and to monopolize
parts thereof"
CONSPIRACY Is CHARGED
The government petitions the court
TO decree:
THAT the defendants have been en-
gagged in unlawful combination and con-
spiracy TO restrain and monopolize
trade. and that their officers, directors,
stock holders. agents and employees be
perpetualIy enJoined from doing any
act to carry out the purpose of such
unlawful combination.
That the court adJudge that the
American sugar refining company, the
National sugar refining company of
New Jersey and the Western sugar re-
N