Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1910-11-28
Federal Government Brings Pro-
ceedings Under Sherman
Antitrust Law.
ARRANGEMENT is SWEEPING
Havemeyer Alleged to Have Re-
ceiyed Millions in Stock
As a Gift.
Ills Shares In Utai,-Idnho Company
Said to Have Been Illegally
Acquired.

New York. Nov, 2S.-The federal gov,
ernment today began one of It's mos
important actions against the great
corporate lions which are said to have
violated the Sherman antitrust law
Henry Wise, United States district at.
torncy. filed in the United States dis.
trlct court for the Southern district OF
New York, petition asking for tho
dissolution of the American Sugar Re
tining company and 20 other corpora
tons which compose the so-called SUI
gar trust. The petition charges an H.
legal combination In restraint of trade
and asks for court relief in whatever
form may be necessary. including q re-
ownership, IL deemed advisable.
The 30 companies composing the
sugar combine have IN aggregate cap
itallzation OF S230OO0,000. and control
q large percentage OF tho output of
sugar In this country. This combine is
also, the government alleges, able to fix
prices arbitrarily Tho petition charges
that for years the companies have vio-
lated the law and have suppressed COM
petition and ground competitors out of
existence. Railroad rebates and Gus
toms frauds are mentioned as devices
which were employed to raise the COM
binc to the commanding position which
1t occupies today
The present suit, which It Is esti-
mated will be In the courts for two
years before final adjudication Is
reached, is the result Of many weeks
of preparation. Dist. Atty. Wise made
his Investigations under the direc-
ton of Atty. Gen Wickersham and
spent several hours in Washington
last week comforting with tho at
torney-general on the final plans.
Importance with those OF the govern
ment against the Standard Oil COM
pany and the American Tobacco COM
pany, which are now pending In the
supremecourt.
Opposed to the government in tho
struggle Will BIO some OF the most
able coronation lawyers of the coun-
try. James NJ. Beck, former assistant
United States attorney-general, and
now counsel for the American Sugar
Refining company. will lead the nt-
tack on the governments position.
The filing of the suit was n simple
process. The governments petition. In
printed form, was handed to the clerk
of the district court by the district
attorney. Mr.. Wise declined to make
any comment.
Mr.. Beck said the sugar combine was
not II monopoly but that If It appear
ed. when the supreme court interpret
ed the Sherman law, In the tobacco
and oil cases, that the sugar company.
was in any respect violating the law.
steps would be taken Immediately to
comply with the law as thus interpret
cd.
The governments petition Is n lengthy
one, occupying 22l printed pages, and ls
n sweeping arrangement of the defend
ant companies.
GIFT TO HAvENIEYER.
One of the allegations is that the late
H. Q. Haveineyer OF New York. for
long time head Of the sugar combine,
received $4,000, 900 common stock of the
National Sugar Refining company Of
New Jersey as n gift ut the time the
corporation was formed to take into
The combine four independent concerns
the National Sugar Refining company.
run by b. II. Howells Sons compuny;
Tho New York Sugar Refining company
of Long Island city, N. Y. operated by
Claus Doschcr: the Molenshauer Sugar
Refining company of Brooklyn. and the
w. j. McCahan Sugar Refining COM
pany of Philadelphia. These companies
up to 1900 We're independent and 1t Is
said the American company was de-
termined to acquire them. Under a
plan inaugurated by Mr.. FIavcmeyer,
John f. Parsons and James II. Post, the
National company was formed and took
the four plants, Mr.. Post obtained OPP
tons on them. When the new stock
was delivered. the petition sets forth,
Post delivered 100000 shares OF common
stock, the entire issue, with Il par value
OF $4,000, 900. to Mr.. Havemeyer. The
petition says the shares were issued
In the first instance contrary to law. In
of the corporations franchise
and for no consideration, as both said
Post and Hnvemeyer then well knew
Tho government alleged that when the
American company took over four Phil
adelphia companies-The Franklin SUI
gar Refining company, the Sprcckles
Sugar Refining company. the Delaware
Sugar house and the L. G. Knight COM
Havcmeyer and his brother,
Theodore Hnvcmeycr, bought 40 per
cent Of the stock OF the SprGckles COM
panN. and then sold 1t ut a large profit
to the American company of which both
were directors.
WHAT PETITION CHARGES.
In general. the petition charges thar
the defendants ''fur some time past
have been, and are now, engaged in M
unlawful combination and conspiracy-
TO restrain tho trade and commerce
among and between the several states
and territories Of the United States and
with foreign nations In raw sugar,suSar
hccts, refined sugar. molnsscs, syrups
md other big products of raw sugar
md sugar bets and to monopolzc the
'ame. Such unlawful combination and
Is the result and outgrowth
II n series Of wrongful acts extending
,vor u period of many years and par
icipatcd In by defendants, respectively.
II the manner and to the extent (. as
more fully set forth.
TN participating III tho various acts
agreements and combinations hcrcin-
'ftcr described, NIL OF the defendants
ave been actunted By wrongful intent
o restrain said interstatc and foreign
rade and commerce in raw and refined
md related articles and to nonopoliac
'nrts thereof
absSij DECREE ASKED.
The, government petitions tho court to
ecrcc.
THAT the defendants have been cn-5
aged In unlawful combination and
to restrain and monopolize
ruflC. and thnt a heir nf1I rprs fltrrr tnrs