Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1910-11-28
Record as Odious as That
of Standard Oil
Company.
SAME METHODS USED
Competitors Taken Unfair Ad-
vantage of-$10,000, 900
Present for Hayemeyer.


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 expected to be one of the most
important actions of the kind ever un-
dertaken in this country. The govern
ments petition is a sweeping arraign-
ment of the defendants.
Alleges s1O,OOO,OOO Gift"
The government alleges that when
the sugar combine was formed H. o.
Havemeyer received S1O,OOO,000 com
mon stock as a gift for taking the in
dependent refineries; these snares, the
petition alleges, having been issued
contrary to law; that by purchase, by
cutting prices and other means, the
combine secured control of other refn-
cries until they owned 70 per cent of
the entire sugar producing companies,
thus enabling them to fix prices, re-
strain output, mOnopolize all by-pro-
ducts of raw sugar and sugar beets
and obtain an unfair advantage over
competitors.
Several Are Defendants.
Included among the defendants are
the Michigan Sugar company, Of Sag
inaw, Mich; Iowa Sugar company of
Waverly, Iowa; Carver County Sugar
company of Chaska, Mimi: Hienomi-
nee River Sugar company of Nenomi-
nee, Mich.
Would Enioin Operation
The government petitions the court
to decree:
That the defendants have been
engaged in an unlawful comhina-
ticn and conspiracy to restrain
and monopolize trade, and that the
Officers and all others be perpet-
ually enjoined from doing ally act
to carry out the purposes of such
unlawful combination.
That the court adjudge the
American Sugar Refining company
of New Jersey, and the Western
Sugar Refining company, is each
in itself an unlawful combination
In restrain of trade, and that each
of them be restrained from engag-
ing in interstate or foreign com
merce.
Would Recover Stock
That the court adjudge that the
shares Of the capital stock of each
defendant corporation heretofor
acquired by any other corporate
defendant were unIawfully ac-
quired and that each such holder
be enjoined from continuing to
hold such shares, and that the is
suing corporations be enioined
from permitting exercise of
rights incident to holding of such
shares, and that they be enjoined
from paying dividends to the hold
ers
To Enjoin Executors.
That shares of capital stock of
the National Sugar Refining COM
pany, the Utah-Idaho Sugar COM
pany, Great Western Sugar COM
pany, and the Continental Sugar
company, formerly held by the late
H. o. Havemeyer. were unlawfuly
acquired by him and are now be-
ing unlawfully used by the exc
cutors and trustees under his will,
who are made defendants In the
suit. The government asks that
the executors and trustees be en-
Joined from further using the
powers incident to the shares so
held by them as to bring about
cooperation between the issuing
companies and the other defend
ant corporations.
That the defendants be enjoined
from continuing to carry out the
purposes of the unlawful combina-
ton and conspiracy, and be re-
quired to withdraw from all con-
nection Herewith
That the court grant such Sener-
al relief as may be proper, by way
of injunction, receivership, or 9th
erwise.
Once Declared Illegal.
The governments petition goes into
the history of the sugar combination,
which originated in 1887. Two years
later, it is charged, the combination
closed 12 refineries, and four Fhila-
delphia concerns were the only ones
outside the combine. The state of
New York attacked. the combine and
the courts held it to be illegal
Bought Out Many Concerns.
In January, 1891, the present Amer
lean Sugar Refining company was
formed and continued the business of
the combine. From 1892 to 1900 sever
al independent refineries started and
others tried to. By the tine the
plants were ready to begin operations
the combine had secured control of
the stock and they were never allow
ed to open, the government alleges.