Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-11
WHILE FACING DEATH
Gustav &. KisseI Makes An
sWer to Indictment.
AFFIDAVIT! READ TODAY
Testimony Before House Committee
on Sugar Inquiry.
DENIES CHARGES AGAINST HIM
Robert M. Parker, Sugar Refining
Company's Traffic Manager, Dis
cusses Freight Rates.
DENIES CHARGES AGAINST HIM

| deathbed affidavit of Gustav E. Kis-
sci Of New York. indicted Jointly with
former officers Of the American Sugar
Refining Company the charge of con-
spiracy to restrain trade through the alb
sorption Of the Pennsylvania Sugar Re-
fining Company in 1903. was introduced in
/ evidence before the House sugar trust
| committee of inquiry today.
| The affidavit, never before made pub
lie, was submitted by T. S. Fuller, coun-
| sci for the sugar trust, upon request of
William B. Guthrie, KisseFs attorney,
| and members Of Banker Kissels family
The affidavit" said Mr.: Fuller, was
taken In the hospital in New York few
days before Mr.. Kissers death last April,
| when he realized that he probably would
| not live to go to trial on the Indictment
Kisseis statement was that he had ex-
pressed desire to testify under oath be-
| fore the federal grand jury regarding his
connection with the $1.25O, 900 loan made
| by the American Sugar Refining Com
pany. through him to Adolph Segal of
Philadelphia, on which transaction Kis-
sells indictment was based, bat that he
had been indicted before he had an op-
portunity to testify.
A1SSel's declaration.
Conscious Of his dangerous" illness,
Kissel made this declarations:
THE charge made in the indictment
| that l entered into an unlawful conspir
acy with the directors of the American
| company and the defendant, Harmed, or
anybody else, in any way or form, is un-
| true, and the allegations that I deceived
Mr. Segal at any time or in any way, and
| that I wrongfully and unlawfuly endeav-
ored to injure him financially and to him
| der his paying his debts and to prevent
the Pennsylvania Sugar Refining Com
pany from engaging in business, are with
out foundation or support In the facts
| and directly In conflict with the truth
Il did everything in my power in good
| faith to assist him financially and to help
him pay off the loan and start the re-
finery, and my financial interests were at
all times with him and not with the
American company"
Kissel described Segars persistent efforts
to finance the Majestic apartment build
hundred d-fifty Thousand dollar loan he
made to Segal. He said Segal in Nos
vember, 1903, asked him for a million
dollar loan on the apartment building;
that the: Pennsylvania Sugar Refinery
bonds were unmarketable, and that final
| ly he agreed to the million-dollar loan
| when Segal offered to pay him In addf-
ton a cash commission Of 10 per cent.
Reply From Havemeyer.
Then Kissel says he took UP the mat
ter with Henry o. Havemeyer, who per-
sonally replied to him in December:
| "I was told yesterday that Segal, who
| built the Pennsylvania refinery, was In
bad financial shape. Was he the party
who wanted you to make a loan on the
bonds Of the company? My information
| Is that the real estate, which cost $160 M
| ($160,OOO), was put to the company at
| $3.50 M and that 1,25O NJ was expended
| on machinery and buildings. wharves,
etc. This makes about 1,41O NJ against
which are three millions bonds. should
be pleased to see you Monday at lit Wall
street at noon on the matter"
Havemeyer finally made the loan as
agent. Havemeyer furnishing the $1,000
| 600 on stipulation that both his name and
| the American Sugar Refining Company
must not appear. they having previously
bought Camden, N. j., refinery from
| Segal.
Kissel denied that Segal or a F. Mr..
Harmed asked him at the time If Have
| meyer or the sugar trust was making
the loan; denied that he had discaimed
| Havemeyer's Or the company's part in
the transaction, both Segal and Harmed
/ knowing he could not disclose the actual
lender. kissel said Havemeyer told him
| to look to Segal for his compensation,
and he never mentioned to Havemeyer
how much he received. He admitted
voting to close down the Pennsylvania su-
gar refinery. because it required too
deals Segal, he said. still owed him
100000.
Robert M. Parker a Witness.
Robert M. Parker, traffic manager of
the American Sugar Refining Company,
was the first witness today. former AS
sistant Attorney General Milton Purdy
having been delayed until next Thursday
Mr.. Parker discussed sugar trust"
freight rates.
He said the sugar trust has no ad-
vantage over competitors In railroad
rates in New York He was interrogated
sugar trust officials in 1905 for rebating
THAT case killed two men," said Par
ker.
"Who" asked Chairman Hardwick.
| "Guilford and Pomeroy of the New
York Central died after they were in
dicted."
Did the American sugar refining COM
pany ever receive an offer for lower rates
from the railroads."
Not to my knowledge. would tell
| them to give the same rates to ALL"
| Then you don't want concessions?"
No. We don't want to go to jail"
Company Prepaid Freights.
Mr.. Parker said the company prepaid
its freight at an anual loss of $4,000
for the purpose Of controlling the
| routing and of giving the customer
advantage of the cheapest routes.
Don't the railroads have to cut under
their published rates to meet some
low water rates?"
"They never do. You couldn't get
IN he vnyt
charge under published rate under
any conditions"
SHRINERS AT ROCHESTER,