New-York tribune., 1912-03-21
70 BARE SUGARS CAREER
Court Admits Evidence Showing
How RefinerieS Were Closed.
DEFENCE'S VAIN PROTEST
At Trial of Parsons and Others
Hand Hints David Letters
~"aJ Get to Jury.

mass OF violence, practically the
.,o,e history of the American Sugar Re-
s,,,r Company in all the aspects in which
=. night have disclosed monopolistic ten
so,cies. was offered yesterday by the gov
..,rent at the trial Of John Z. Parsons,
washington Z. Thomas and the other ofil-
tolls charged with having conspired
.csipst interstate trade. The prosecution
announced that il offered this evidence TO
,rligbten the jury as TO the motive that
i,,nelled the defendants in the Segal loan
q transaction, which gave control to their
company over the PENNSYLVANIA Sugar Re-
e,irg Company and kept a large rival re-
enerv closed for long time.
Charles L. Heike, former secretary Of
the American Sugar Refining Company,
whose conviction of underweighing frauds
4. on appeal was on the witness stand
rben Henry 4. Wise, United States Attor-
rev. disclosed his unexpected intention.
Nr Wise asked Heike how many -Igar
re6neries the American Sugar company had
,cor,'red and kept closed after their puT-
chase.
James ". Beck, counsel for the corpora
ton. and Delaney Nicon, OF counsel for
me Individual defendants, objected vigor-
opslv. Mr. Beck said that the trial would
be prolonged until next fall If this matter
vas admitted subject to proof, because the
defendant corporation would offer in re-
buttal reasons for the closing OF the re-
dneries in question. He promised that the
defence would take up each case Of a
closed refinery to show that the machin-
cry was removed to another refinery where
II could be used more adyantageously and
that the total production of sugar was not
diminished. but actually increased.
Wise Insists on the Evidence.
The government insisted on the validity
Of the evidence it offered as showing the
policy Of the company, Of which all Of the
defendants became officers or directors in
the course of time. and by continuing that
policy disclosed the motive that actuated
them in the Segal loan Of 1903.
Counsel for the defence tried every con-
ceivable argument to keep the matter out,
but their chief contention was that the
trial would be prolonged into many
months duration. Mr. Beck offered to fur
nish Mr. Wise with tabulatiOns showing
what percentage of the cOuntry's sugar
business the American company controlled
at the various periods Of time involved,
but Mr. Wise declined to accept anything
that had been described TO the jury as vol
unteered.
Finally Judge Hand sustained the prose-
cutor, and Mr.. Wise began TO interrogate
Heike about the acquisition Of nearly forty
rehneries which the government asserted
were closed as soon as the sugar trust got
hold Of them.
Despite the cry that the trial would be
dragged out over many months, counsel for
the defence appeared assured after the ses-
sion was over that the prospect of bring
ing The case to an end within the next two
weeks was Just as bright as ever, especially
II the government should finish its case on
Friday, as is generally expected.
The trial yesterday was not productive Of
much new evidence, and most Of the day
was spent In discussions of law questions
between counsel and Judge Hand. AT the
beginning Of the session Judge Hand said
that he had looked up the history Of the
statute that made privileged all testimony
given before a Congress investigating com
imittee and that he felt inclined TO recon-
slider his decision which had ruled out from
evidence letters which had passed between
Washington B. Thomas, a defendant in this
case. and his cousin, David 5. stetsOn, Of
Philadelphia.
Letters Considered important.
These letters were considered important
by the government as connecting Mr..
Thomas with the alleged conspiracy which
resulted in the closing Of the Pennsylvania
Sugar Refining Companys new plant Last
summer during the investigation Of the
sugar trust by a Congress committee, these
letters were read into the record by T. $.
Fuller. Of counsel for the defendants, and
when Nj Wise offered them in evidence
privilege was claimed for them by the de-
fence.
An attempt Of the prosecution 10 intro
duce at this time evidence concerning trans
actions between Gustav =. Kissel who acted
as agent in the Sl.Z5oOOO involved, and
Adolph Segal after the loan was made. was
stopped by Judge Hand. Mr NicOl OBJ
jected TO the offered evidence on the ground
that the government had nothing to show
that Kssel acted as agent for the defend
ants in those transactions.
Mr Wise replied with a hot attack on
the sugar trust, saying that he would show
in the defendants own handwriting that
--they had agreed TO stand together In the
matter that Kissel acted as an agent for
the trust and that he shaved Segai OF
$780, 600 and robbed and plundered him In d
dissraceful manner. Judge Hand said he
would see later whether the matter was
material or not.