The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-11-29

the American Tobacco Company, which
are now pending In the Supreme Court.
Opposed TO the government in the strug-
gle win be some OF the most able eorpo-
ration lawyers OF the country. James
NJ. Beck, former Assistant United States
Attorney General, and now counsel for
the American Sugar Refining Company,
viii lead the attack on the government s
position.
Mr.. Beck said that the sugar com
bine was not Il monopoly
In effect the brief sets forth that
in 1887 there were twenty concerns en-
gagged in the manufacture Of cane sugar.
Seventeen ia that year were formed into
a trust the entire capital or the con-
eeFn being voted by a board OF trustees.
Combine Held Illegal.
The New York State Court OF Appeals
IN 1880 declared the trust an illegal one.
This was just prior 10 the passage OF the
Sherman act The corporation was or
dered dissolved.
Thereupon. in New Jersey was incorpo-
rated the American Sugar Refining Com
pany in 1891. which the government con-
tends was against the Sherman act At
that time there were seven going sugar
refining concerns. Two We're on the Call
fornia coast, four In Philadelphia, and
one in Boston The trust bought one OF
the Pacific refineries, and then combined
with Claus Spreckles. who owned the
other, and organized the Western Sugar
Refining Company
Huge Profits from One Company.
In .neteen years that company has
paid 500. 900 900 dividends on 81 .OOo, 900
capital stock.
The American Sugar Refining Com
pany then bought the four companies
in Philadelphia and it then had 90 per
cent OF the sugar sales OF the country.
A little later three independent COM
panies were started IN New York, the
Mollenhauer. the New York. and the
National. In 1900. the petition alleges,
the American got hold OF all the stock
OF these companies and formed the Ma
tional Sugar Refining Company of New
Jersey.
1t is said that whenever new cane
sugar companies have since been alb
sorbed by the trust. It has been through
purchase by the National, controlled com
pleteIy by the American Sugar Refining
Company,
Statistics OF the beet sugar business
presented I'm the petition seem 10 show
that through stock holding control of
upward OF so per cent OF the beet sugar
Industry or the country rests with the
American.
Toll on Vast Trade.
The petition shows that the sugar con-
sumption of the country is about 1900.
0O0 pounds a day, and that each Ameri-
can eats about eighty pounds year.
The petition tells how the sugar trust
acquired control one after the other OF
Independent concerns through shady stock
deals, of the dismantling and shutting up
of refneries including that of the Penn
sylyania Sugar Refining Company IN
Philadelphia, which led to a criminal In
dictment being found against Washington
3. Thomas, president John f. Parsons.
Gustav L. Kissel. and other officers and
directors Of the American Sugar Refining
Company. a New Jersey corporation, and
Thomas B. Harmed. president OF the
Champion Construction Company, q
Pennsylvania corporation.
With the petition as exhibits District
Attorney Wise and his assistant, James
r. Knapp who took part in the prepara-
ton Of it filed copies Of eight alleged ille-
| gal agreements, including the trust deed
OF the Sugar Refineries Company. the
| parent Of the present trust.