Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1910-12-06
BEGIN WAR ON TRUST
U. 8. FIGHT TO CRUSH AMERICAN
COMPANY STARTS WITH DIS
SOLUTION SUIT.
H. o. HAvEMEYER Is ACCUSED
Late Head of Sugar Corporation Said
to Have Pocketed SIC, 1000, ooo-Ex-
ecutors Made Defend ants-Govern-
ment Files Petition.


New York.--Attacking the American
Sugar Refining company. familiarly
known as the sugar trust. as lawless
combination, the federal government
Monday began in the United States
circuit court it's long-expected suit for
the dissolution of the corporation.
A voluminous petition was filed by
United States District Attorney Hen
ry A. Wise. Before the bill finally
was completed 1t had the approval OF
Attorney General Wickersham.
The petition. to which as yet no
company, alleges that the trust has
employed the usual means of all such
large industrial combinations In sti'
fling competition, by purchasing q
controlling interest in competing con
Germs where that method proves
necessary and by crushing out other
concerns by underselling in their .er'
ritory. To accomplish the latter re.
suit the petition refers to the sys
tematic rebating arrangement the
trust for years maintained with the
railroads.
One Of the most sensational allega
lions is that the late Henry o. Have
meyer, for many years head OF the
sugar combine, received $10,000,000 In
common stock of the National Sugar
Refining company of New Jersey as g
gilt at the time hat corporation was
formed to take into the combine -four
independent companies-the National
Sugar Refining company, run by b
H. Howells, Son and Company; the
New York Sugar Refining company Of
Long Island City, operated by Claus
.Bosher; the Molten Havre Sugar Re
.fining company of Brooklyn, and the
w. ]. McCabe Sugar Refining com
pany Of Philadelphia. Up to 1906
these companies were independent
and 1t Is claimed the American com
pany was determined to acquire them
Under a plan inaugurated by Have
meyer, John E. Parsons and James H
Post, the National company was or
ganized and took over the four plants
When the new stock was ready for
distribution, the petition sets forth
Post delivered to Havemeyer the en-
tire issue of 100000 shares with par
value of $10,000,000. The petition
asks that the Havemeyer executors
who are named among the defendants,
be enjoined from voting this stock. 1t
is the governments contention that
these shares were issued contrary to
law and in violation of the company s
charter.
In general the petition sets up that
the defendants for some time past
have been and are now engaged in an
unlawful combination and conspiracy
to restrain the trade and commerce
between the several states and with
foreign countries in raw sugar, sugar
beets, refined sugar, molasses, sirups
and other by-products Of raw sugar
and sugar beets, and to monopolize
the same. Such unlawful combina-
ton and conspiracy Is the result of q
series of wrongful acts extending
over a period of many years. In par
ticipating in these acts all Of the de.
PENDANTS have been actuated by
wrongful intent to restrain interstate
and foreign trade in raw and refined
sugar and related articles and to mo-
nopolize parts thereof"
The petition then prays for per
petual injunction against the parties
and corporations named from continu-
ing the evils practised. 1t further
more asserts in effect that within the
American Sugar Refining company
there are two other trusts-the Ma
tional Sugar Refining company of New
Jersey and the Western Sugar Rein.
ing company Of California-and that
each of these be enjoined from en-
gaging in interstate and foreign com
merce.
Another allegation is that the trust
has obtained unfair advantages over
competitors through the customs
frauds by receiving rebates from rail
roads and keeping up the prices of