New-York tribune., 1912-03-16
BOTH FIGHT FOR WITNESS.
Lawyer Seems to Favor Sugar
Defence Over Prosecution.
AGREEMENT IN EVIDENCE
Absolute Voting Power Of Penn
sylvania Co.. 5 Stock Vested IN
Lenders to Segal.

of Thomas p Harmed. the Philadelphia
LAWYER who was a defendants in the case
until Thursday. and was then acquitted ana
made a witness for the prosecution. con-
slmcd almost the whole day yesterday az
the trial of John +. Parsons, Washington
B. Thomas and the other sugar men
charged with having conspred TO restrain
Interstate trade.
Roth sides fought to turn Mr. Harned's
testimony To favor their assertions in the
cvos of tho Jury. and there We're several
lively discussions during the day between
De Iancey Nicoll of counsel Tor the de-
fence, and Henry y. Wise United states
Attorney Mr. Harmed was not a wilhhS
witness, though it seemed as II he were
inclined more toward the defence than the
prosecution.
Again and again he was made TO tell the
story of all the meetings and conferences ne
had attended that led to the S.2O'"p lodh
TO Adolph Segal which, the government
charged. gave control to the American
Sugar Refining Company over the Pennsyl-
vania Sugar Refining Company, ana thuS
kept a large and highly efficient new plant
OF the sugar trusts rival closed ana uI'-
productive during the life OF the l'ah' MI
Iiarned's account was mostly Il repetition
Of the story told by him on Thursday alter
noon. and was delivered IL a manner sus-
ceptible TO different Interpretations. so that
IFS value TO the prosecution or 10 the de-
fence will play an important part III 'he
final summing up Of the case.
Borrowing Capacity Exhausted.
Mr., Wise read to the jury the loan agree
mcnt. dated December 30, 1908, entered into
between SegaI and Gustav Kissei. who rep
resented the lenders. The prosecutor made
another effort 10 impress the jury with his
contention that the collateral which Seshi
was made to put up for this loan iIoih '''
American Sugar Refining Company was
practically all the collateral that Coulu
have been available TO Segal for porro"Ihs
purposes for a long time to come ana '''"t
uftcr he had accepted the much ulsCusscu
loan he was left without possipil''y 10
raise more funds. Mr.. Wise asKed hi'
Harmed again as 10 how the amount ol 'ho
loan, Sl2jOOD. was arrived AT as inc sum
that Segal needed. Mr.. Harmed sa'u '"'S
question had been discussed between hiSs'i
and Segal and that Scgal at hrst "d"''"
$4,000. but that Kisscl had advised mr." 10
take more and on long terms 80 tha' "o
would not be compelled to look io' ''''''
money within a short time.
The security which Segal put up Tor the
loan consisted Of 1859 hrst mortgage "'hhS'
face value $.ooo each, Of the MaJesuc
Apartmcnt House Company, 30 bonds race
value. 81 go each. Of the Pennsylvania sugar
Re6ning Company. and 26," shares OF
voting rights in that stock. The most I'M
portant section Of the agreement was ''''
in evidence, as follows
The borrower agrees that he VIII so a.
range that Tn" absolute Vouhs PENos ,Ta
The said % 900 shares of the STOCK OF t'e
Pannsylyania Sugar Refining company
shall be vested in the lenders 'lla' ~ w
lenders shall have the rlght lo US. SuIi SuIi
voting power AZ may he sullap." W., w. 80
or effectuate the purposes tneIe"i anu iI aG
the control thereby given ~ a MA ,t Isi
mart of the consideration Tor IN" s"Iu I'm itn
the borrower further agrees 'haI 'hh,',rs ~ -
So arrange that OF the seven directors "
no said PrunsylvanLa Sugar kehhlus
Cnmnany. four 10 be nominated uN Wy
lenders. Of whom one shall oe w 80
Gustav Kssel, shall be put IN Pid'e ..
four Of the present directors, that thry vi
a,,Lstitufes 10 be nominated by the lenders
shall be directors "a long as any P''' "a
the loan shall remain unpaid
Mr. Nicolls first question to Mr.. Harmed
under cross-oxaminatiOn led TO argument
h.,w...n opposing counsel, arousing MT
v,ise.s resentment. Mr. Nicoll wanted TO
kpov, il there had been any agreement be
,,,,..r IN. Prosecutor and Mr.. Harmed
ahou, the Iatter's being made a witness for
the government and when Mr.. Harmed said
that there had been none. Mr.. Nlcol asked
- the Prosecutors office had ever made an
approach to Harmed.
Wanted Everything Done in Court
"Ny counsel. Lcavitt j. Hunt, told me
that Mr.. Wise would like to have taIK
with me. but / answered that ! wanted
everything done in court" said Mr.. har-
ned.
"But didn't you refuse to sign statement
10 which he wanted you to testify because
II was not true?" asked Mr.. Nicoh VINO
started 10 follow up this line of question
ing as soon as Mr.. Larned had answered
yes
Mr. Wise protested, asking Mr.. Nicoll
ubatber he wanted to convey the impress
sion that the Prosecutor had tried TO sub
ornate SIR. Harmed, and Mr.. Nicoll quickly
replied. Not at all
Later Harmed was asked by the prosecu-
ton about the meeting OF directors of the
PENNSYLVANIA company on December T.
1Q02 when new directors were elected In
compliance with the terms of the loan
agreement Mr.. Wise asked whether kis-
sell was also a dummy OF Segal at TINS
meeting. at which, Mr. Harmed had SAID
only Segals dummies were present. kisSell
was somebody's dummy Harmed admitted,
though he was Segal's friend and protector
at the time.
When Mr Harneds answers seemed to
lack I'm fulness what the prosecution de-
sired Mr.. Wise produced a memorandum
dictated by Mr. Harmed several years ago
which gave an account of the conferences
now under inquiry. Judge Hand ruled that
this paper could not be introduced by MT
Wise because 1t would appear Ike an enort
10 dlscredit his own witness, ana the only
use Mr.. Wise could make OF II was to let
Mr.. Harmed refresh his memory by reading
the paper II produced no startling state
ncnt. and Mr.. Harmed was excused for the
present.
Plant Was Thoroughly Modern.
George NJ. Ncwhall, an engineer ana eN-
pert In the building of sugar reiinerieS'
was then called by the prosecution to tell
Of the manner IN which the Philadelphia
refinery in question had been put up. Mr.
Newhal described it as an absolutely mod
ern plant in It's time and equipped with all
economic and labor saving devices, when
made one of the most efficient plants known
TO him. Photographs of the plant were
produced for the benefit Of the jury These
pictures were taken I'm 1896, but, Mr.. New