The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1910-11-28
Government Attacks American
Sugar Refining Company and
Files Suit to Break Up
Corporation
ACTION IS MOST IMPORTANT
Several Michigan Companies Are
Among observation-disclosures Peti-
ton is Sweeping Arraisn-
ment Of Firms.

New York, n. Y, Nov. 2S.-Attack-
ing the American Sugar Refining
company. known as the Sugar Trust,
as lawless combination, the federal
government today filed suit for the
dissolution OF the corporation.
The suit, which is brought under
the Sherman antitrust law, is expect
ed to be one of the most important ac-
tions of the kind ever undertaken in
this country.
| The governments petition is
sweeping arraignment OF the defend
ants. The government alleges that
when the sugar combine was formed,
II. O. Havemeyer received $4,000. 900
common stock as a gift for taking the
independent refiners, these shares, the
petition alleges having been an issue
contrary bo law; that by purchase. by
cutting prices and other means of
combine secured control of other re-
fineries until they owned az per cent
of the entire sugar producing COM
panies, thus enabling them to fix
prices, restrain the output, monopolize
all the by-products of raw sugar and
sugar beets, and obtain an unfair ad-
vantage over competitors.
Michigan Companies Defendants.
Included among the defendants are
the Michigan Sugar company, Sagi-
nav, Michigan; Iowa Sugar company.
WAVerly, Iowa: Carver County Sugar
company. Sshaska, Mimi, and the
Menominee River Sugar company,
Menominee. Michigan.
The government petitions the court
to decree: that the defendants have
been engaged in an unlawful combina-
ton and conspiracy to restrain and
monopolize trade, and that the officers
and all others he perpetually enjoined
from doing any act 10 carry out the
purposes of such unlawful cornbina-
tior; that the court admdge the Am
crican Sugar Refining company OF
Refining company is each In itself an
unlawful combination in restraint of
trade, and that each of them be re-
strained from engaging I'm Interstate
or foreign commerce; that the court
adjudge that the shares of the capital
stock of each defendant corporation,
heretofore acquired by any other cor
porate defendant were unlawfully ac-
quired and each such holder be en-
joined from continuing TO hold such
shares and that the issuing corpora
tions be enjoined from permitting the
exercise OF rights incident to the
holding of such shares, and that they
he enjoined from paying dividends to
the holders; that the shares OF capital
stock of the National Sugar Refining
company, the Utah Idaho Sugar COM
pany, Great Western Sugar company
and Continental Sugar company, for
merly held 10y the late III. O. Have
meyer. were unlawfully acquired by
him and are now being unlawfully
used by the executors and trustees un-
der his will, who are made defendants
In the suit.
The Government asks that the exc
cutors and trustees be enjoined from
further using the powers incident to
the shares so held by them as to bring
about cooperation between the issu-
ing companies and other defendant
that the defendants be
enjoined from continuing to carry out
the purpose of unlawful combination
and conspiracy. and be required to
from all connection there
with; that the court grant such gem
eral relief as may be proper by way
of injunction, receivership or other
wise.
The governments petition goes into
the history Of the sugar combination
which originated in 1887. Two years
later, ii is charged, the combination
closed twelve refinerses and four phil
adclphia concerns were the only ones
outside the combine. The state OF
New York attacked the combine and
the courts held IL to be illegal. In
January. 1891. the present American
Sugar Refining company was formed
and continued the business OF the
From 1899 to 1900 several
refineries started and
others tried to. by the time the plants
were ready to begin operations the
combine had secured control of the
stock and they were never allowed to
open. the government alleges.
The Hawaii Sugar Refining COM
pany was put out Of business. II Is
alleged. by means OF an agreement
the combine was TO pay
100000 a year for tft' wears, pro-
vided Il retired from ID.
considerable por The petit
tion is devoted to IN sition oy
the combine of the be rr plants
when that Industry D 70 gro