New-York tribune., 1910-01-06
NEW CASE AGAINST
SUGAR TRUST"
RECEIVERSHIP NAY
BE ASKED FOR.
Investigation Begun Under
Sherman act That WM
Make Pleading Immunity
Impossible.

H HOcoeOtNs
When President Taft, in his message
to Congress on December 4 said that an
investigation of the affairs of the sugar
companies might. by giving immunity
and otherwise. prove an embarrassment.
pending the probing by the Treasury De-
partment and the Department of Justice.
arrangements were under way for a
drastic inquiry in this city
1t was begun here yesterday before
the federal grand jury. and the wit
nesses. among them Charles R. Heike.
secretary of the American Sugar REIN
ing Company. were examined by James
r. Knapp. an assistant Of Henry A.
Wise. the United States Attorney.
At the Federal Building it was given
cut that Mr.. Heike had appeared TO give
testimony in the sugar short weighing
frauds cases. but elsewhere II was
learned that the. real purpOrt OF his ap-
pearance was to give evidence regarding
the business relations between the sew
eral companies here and elsewhere. An
other witness was from one of the COM
panies supposed to be in competition
The proceedings. based on the Sher-
man antitrust act, were foretold ex-
clusively in The Tribune several weeks
ago. but at the time the report was de
MED. II was also said in The Tribune
that il conditions disclosed warranted it,
the government. as in the tobacco case.
would ask for federal receivership.
This action is now contemplated as
one of the possible results of the in
vestigation. for the government is de-
termined to enforce the law to its fullest
extent
NO IMMUNITY FOR HEADS.
No witness will be called from among
the men in active control of the sugar
companies. There will thus be no i'm
munity for those who may be included in
an indictment.
1t was said that the examination OF
the witnesses was based upon the results
of an investigation of the books that
have been in possession of the govern
ment officials ever since the raid on the
Havemeyer & Elder docks in Williams
burg.
Last autumn. when the books of all the
compilation of figures of the amounts Of
money which the government had lost
through short weighing frauds. the plans
for broader proceeding began to take
shape When the men assisting Henry
L. Stimson. the special prosecutor for
the government, laid their discoveries
before him, the Department of Justice
was informed. it was reported yesterday.
and Mr. Wise was put in immediate
charge of the new phase of the case.
Soon afterward there was a demand
for a Congressional investigation. This
was opposed by the Department OF Jus
tice, with the facts before it. Attorney
General Wickersham believing that the
possibility of a successful prosecution
would be frustrated by the immunizins
of all witnesses called before a commit
tee with judicial powers The President.
1t was said Yesterday. took the same
view, and expressed it in his message-
The grand jury action was determined
upon to forestall any other proceeding
that might be brought or begun
AMERICAN HAS so PER CENT.
A man familiar with trade conditions
said yesterday that the American Sugar
Company controlled 9O per cent of the
business in this country. The remainder
is apportioned among the Arbuckle
Brothers, the National. the Federal and
the Warner companies. Until recently
the Americans prices controlled the
Irices at which the various grades OF
sugar were quoted To the market. The
Federal Sugar Refining Company. il was
said. was never in any alleged combina-
ton, but had to follow the prices of the
leading concern owing to its handicap
in the lighterage part of the business.
From a lawyer conversant with tho
new proceedings it was learned that thu
inquiry was also hastened by the de-
cision of Judge Holt sustaining the de-
murrer to the indictment of Gustav
Kissel and Thomas B. Harmed on the
plea of the statute of limitations. this
demurrer applying to the officers and
directors of the American Sugar Rein
ing Company as WELL as they were all
indicted on the same charge, that OF con-
spiracy in restraint of trade under the
sherman act in connection with the
closing of the Pennsylvania Sugar Re-
fining Company's plant
Judge Hollis decision caused the gov
ernment TO appeal and the case will soon
be heard by the United States supreme
Court According 10 the counsel for
Kissel and Harmed, the act alleged in
restraint of trade occurred in the winter
of 1905. or more than three years before
the finding of the indictment. The new
investigation will, 1t was said yesterday.
cover a period ending less than year
ago. and government officials feel thar
their inquiry will be as drastic as any
that Compress might institute. with the
added advantage of possible prOsecu-
tions.
Mr.. StimsOn and his assistants have
not ceased their efforts TO find the man
higher up supposed TO be responsible
for the short weighing frauds. The last
witnesses before the grand jury in their
branch of the investigation were Joseph
s. McGrath and c. F. BriddOn. assistant
superintendents on the docks Cf the
Havemeyer & Elder plant in Williams
burg IL was said that their testimony
related to the condition of the scales ON
the docks.
Henry F. Cochrane. counsel for the
four former checkers employed by the
Ap,priCaO Suear Rafniuo C.On,Danv urh.,