New-York tribune., 1912-03-19
SURPRISE IN SUGAR TRIAL
District Attorney Offers Letter
Showing Trusts Hand.
WATCHED SEGAL LIKE HAWK
Joseph H. Choate Sits with John
e. Parsons, a Defendant, in
Closing Session.

closing Session.
Argument over the admssibility in evil
dence Of letters which had passed be
tween Washington b. Thomas, now presi-
dent of the American Sugar Refining Com
pany. and his cousin. Davis S. Stetson, Of
Philadelphia, was strung out over the
whole court session yesterday at the trial
of John L. Parsons, Mr. Thomas and the
other sugar men charged with having con-
spired against interstate trade.
Henry A. Wise, United States Attorney,
offered the letters in an effort to prove
that the officers of the American Sugar
Refining Company had been watching the
building of the Philadelphia plant Of the
Pennsylvania Sugar Refining Company for
more than two years, and during all that
time were closely informed not only about
the progress of the work, but also about
the financial standing of Adolph Segal, the
promoter of the new refinery, waiting for
an opportune moment TO lend him the ST.,
10000 which, the government charges, gave
them control over the refinery and enabled
them to keep it closed.
The defence was taken somewhat by sur
prise when Mr. Wise called T. S Fuller.
OF counsel for the defendants, TO take the
witness stand He handed him a record OF
the Hardwick committee Of Congress.
which investigated the sugar trust last
year. and asked him to identify letters re-
produced there which had passed between
Mr.. Thomas and Mr.. Stetson. The prose-
cutor then offered them In evidence.
Immediate objection was raised by De
Lancey Nicoll, chief counsel for the de-
PENDANTS. When his assertion that the let
ters contained personal matter and were
privileged was ovcrruled by Judge Hand,
Mr.. Nicoll argued that the letters could not
be used In court because they had formed
part of the testimony given by one Of the
defendants before Congressional commit
tee.
Mr. Wise replied that Mr.. Thomas did
not offer those letters to the Hardwick
committee. but that they were read into
the record 10y Mr.. Fuller, who had volun-
teered to do so without stating first that
he did it as counsel for Mr.. Thomas Judge
Hand reservd decision on this point.
How Trust Watched Rival.
Meanwhile the prosecutor continued his
case during the intervals In the discussion
epistlcs. and MIR Wise read a letter from
George H. Frazier, director In the Amcri-
can Sugar Refining Company and de-
fendant in this case, 10 H. .. ilavcmeEer.
the president of the corporation. IL was
dated Philadcl. hia, January 70. 1872. almos;
two years before the lean to Sega. WAS
made and said. in part:
Tho refinery being brilt here Is progrcs-
.ft4 hot .N..1H. "a
is only the contractor iI the operation. You
will recall his name iu connection with
the Camden plant. There are four princi-
pal men involved IN the undertaking. Their
names dU rot know positively. but | have
hopes of shortly learning, ana | have now
some suspicious. One Is the president Of
bank Of a city in a state not Pennsylvania
/ think the place IS Boston. ] am on the
trail, | think.
The stock is to be pooled, and the presI-
dent Of the Real Estate Trust COMPANY
here is TO be the trustee ] Will follow the
matter further and report
In another letter. dated December q. 1902.
Mr. Frazier wrote TO Mr.. Havemeyer as
follows:
] thought this had been sent you. but ;
must have omitted II in former letter; II
is a prospectus upon which the securities
of the Pennsylvania Sugar Refining Com
pany are being quietly offered. doni
know what your attitude is toward N 8
possible competition, Dut III can SERVE ~"
I'm any way. command me
! know Frank Nipple very well. and So
gal, the promoter. drops into my ofhce from
time to time, hut he is an unsafe man 10
deal with In the matter. II anything Is 70
be done IN connection with the refinery, the
condition Of the money market makes the
present time desirable. Otherwise. II would |
be best to let them get started. and per
haps they will siCken Of the venture.
Havemeyer's Hand Shown.
Then Mr. Wise read a letter from n. o. |
Havemeycr 10 Gustav +. Kissel. who acted |
as agent I'm the loan transaction. II was
dated December g. 1903. and said
was told yesterday that Scgal. who !
built the Pennsylvania refinery, was in bad !
financial shape. Was he the party who /
wanted you TO make loan on the bonds OF
his company? My Information Is that the !
real estate cost, $4,000. was put 10 the
company at $4,000 and that N,2j000O was
expended in machneTy and buildings,
Wharyes etc This makes about $lH00O
against which are 10000 bonds. ! should
be pleased to see you Monday az III Wall
street at noon, regarding this matter.
Walter \. Robinson, secretary Of the late
Gustav +. Kissel, took the witness stand
He said that Segal once refused to sign the
loan agreement because II gave control of
the Pennsylvania Sugar Refining Company
TO the lender Scsal was calm and normal
at the time. he said.
The witness identified letters and other
documents which passed through his
hands during his employment by Ksscl
Some Of those were read in an cndcavor to
show that Kissel acted as agent for the
American Sugar Refining Company despite
the assertion of the defendants that he had
acted as Scgars agent entirely. His re-
ccpts to the American company referring
to the loan as made by me as agent" a
letter from Segal to Kissel beginning with
you having obtained loan for me from
your principals" and letter from II. o.
Havemcyer 10 Kisscl, beginning with Re
fcrring 10 the loan made by YOU as agent
for us TO Mr. Segal' were then read to the
jury.
Joseph II. Choate entered the courtroom
late In the afternoon and sat with John T. !
Parsons one OF the defendants, until the !
end Of the session.
CAME FAR TO SEE HOBOKEN