The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-11-29
Action Brought in the United
States Court for the South
ern District of New York
by District Attorney Wise.
THIRTY COMPANIES
INVOLVED IN CASE
Two Utah Concerns Named
and President Joseph F.,
Smith Is One of the lndiyid-
uaIS Made Defendants.
STATEMENT OF ATTORNEY

ATEW YORK. NOV. 2s.-The federal
N government today began one OF
It's most Important actions
against the great corporations which
nre said to have violated the sherman
aufi-trmst law. Henry Wise. Fitted
states district attorney, filed Ina the
nifed states district eOuFt for the
southern district Of New York, a petit
tion asking fer the dissolution Of she
American sugar refining company and
tWeHtX-alne other corporations which
compose the sO-esiied sugar trust. The
petition charges an Illegal combination
in restraint 81 trade and asks for court
relief In WhntcEer form may he nee
essary. Including reeeiVership, if
deemed advisable.
The thirty companies composing the
sugar combine have AN aggregate capt.
talization of S230.000.o00 and control a
large percentage of the output of sugar
in this country This combine is also.
the government alleges. able 10 fix
prices arbitrarily. Ehe petition charges
that Tor years tne companies have ViO-
lated the law and have suppressed COM
petition and ground competitors out of
existence Railroad rebates ana GUS
toms frauds are mentioned as devices
which were employed 20 raise the com
pine 10 the c"umanclng position which
10 occupies today.
The present suit. which 20 is estimat-
cd VIII be in the courts for two years
before final All Indication is reached.
-
ration. District Attorney Wise made
his inYesti cations under the direction
OF Attorney General Wickersham and
spent several hours in Washington last
week comforting with the attorney gen
eral on the final plans.
The sult ls expected 10 rank in inn
portance with those of tle government
against the standard OH company and
the American Tobacco company, which
are now pending in the supreme court.
Some Of the Charges
One OF the allegations is that the
late n. %. HayemeTer of New York FOR
q long time head Of the sugar com
bine. receives S1O.000.0eO common
sIoC 1e National Sugar Refining
c0mp- New Jersey as gift az the
time the operation was formed 10
take into combine four indepeud-
ent concerns-Lhe National Sugar Re
Sons company, the New York Sugar
Refining company of Long Island city.
~ Y. operated oy Claus DOscher; the
Aollenshauer Sugar Refining company
Of Brooklyn. and the w j. McCahan
Sugar Refining company OF Philadel-
phla. These companies up 10 1900 We're
independent and il is said the American
COMPANY was determined 10 acquire
them. Under plan inaugurated by Mr..
HaVemeyer, John u. Parsons and James
IT. Post. the National company was
formed and took the four plants. Mr.
Post obtaining options on them. When
the new stock was delivered. the petit
tiOn sets forth, Post delivered 100 600
shares Of common stock. the entire Is
sue, vita a par value of $40. goo coo to
Mr. Havemeyer. The petition saws the
shares were issued i'm the first instance
contrary To law. In violation of the cor
pOration's franchise and for no Consid-
Grafton. as both said Post and Have
meyer then well knew"
Control in Philadelphia.
The government alleged that when
the American company took over four
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