The Birmingham age-herald., 1912-03-15
SURPRISE IS SPRUNG 1. IN THE SUGAR TRIAL Government ApprOpriates
 Defendants Witness TELLS OF MEETING Harmed Gives Details of Deal Where
 by the Philadelphia Company Was Taken Over by New York Re- finery-Jumkin Testifies
TELLS OF MEETING

New York. March 1.-The govern
 ment sprung a surprise in the sugar
 trial today by invading the camp of
 the defendants and placing one of their
 number on the stand as it's own wit
 ness.
 l United States District Attorney Wise
 obtained from Judge Hand the dismiss
 sal of the indictment of Thomas B.
 Harmed. attorney for Adolph Segal, tho
 Philadelphia capitalist. in the deal
 whereby the American Sugar Refining company obtained control of the Penn sylvania Sugar Refining company. Counsel for the defense protested but
 were overruled. After Harmed had ob- tained consent that the record show that he stood acquitted of all charges, he began testifying as government witness.
 Wise Questions Him | District Attorney Wise questioned him about his visit to Segars home in 1903 when the late Gustave E. Kis- | sel, who is alleged to have represented H o. Havemeyer in the s1,25o,O0o loan to segal, was present.
 The witness said at this meeting Kis- sel told Segal:
 T can get you enough money, but on three conditions: That you must not care where the money comes from; that it win be enough to tide you over; that the bonds and stocks of the Penn sylvania Sugar Refining company be | put up as collateral"
 | Was anything said at this meeting about closing the new Philadelphia re- fnery?" asked the attorney.
 | Yes" replied the witness. 'Mr Kis- | sel said it would be better to let the Philadelphia refinery stop operation as even with the large loan there would not be enough to supply the working capital. MT. Kissel said he was going to be one of the owners of the re- | tinery and later on more money could bo got to start the new refinery again." Voting Trust Agreement After telling something of the voting trust agreement created by the Penn sylvania Sugar Refining company stock k- holders through which, the government alleges the Sugar trust" was able to close its rivals plant, the witness was asked about meeting between Kls- sel, Segal, himself and John E. Par sons, attorney for the Sugar trust" and one of the defendants. when ar arrangements are alleged to have been completed for the loan.
 Harmed said he always was opposed to segal letting go of his 26.oo0 shares of the Pennsylvania Sugar Refining | to avoid delivering the stock. | Asked if one of the express agree
 ments in the making of the loan was
 that Segal should close the Philadel- phia refinery, Earned said he did not | remember.
 | An attempt was made to inform Se- | gal, he said, but he said "he did not care where the money came from, he had to have 1t and must have it." Earlier in the day Joseph Jumkin of Philadelphia, attorney for George II. | Earle, receiver for the Pennsylvania company, testified that the American Sugar Refining company had compro- missed Earle's $20,00o,vo0 suit to re- cover losses sustained through closing down the plant by paying s2,OO0.0O
 Segal Not Wanted | When the governments prosecution of the five defendants in the so-calleo stunned today 1t was announced that Adolph Segal of Philadelphia is wanted | by reither side as a witness. | On the other hand, 1t was said De- l lancey Nicoll, counsel for the defense | .I~ l.- l governor to place Segal on the stand | It is about Segel that the govern
 ments case is woven. Segel negotiated with Gustave Kissel loan of $1,25O,-
 coo on the ma jority stock of the Penn sylvania Sugar Refining company Through this loan, 1t Is asserted, the so-called trust gained control of the Pennsylvania's independent plants. Dis l tricI Attorney Wise said he hoped to
 prove his cage by documents without SeSels testimony regarding the loan. | One of these documents which con 1 fronted the lawyers was the deathbed | statement of Kissel, declaring that Se- gel knew in advance that the loan was | to be made by the late H. o. Have meyer, then president of the American
 Sugar Refining comp-n ny, and that the plant at Philadelphia was to be closed When seeel learned this the state
 ment continues, he replied that he was | so badly In need of money that he had to have 1t 'oven 1T il came from the devil himself"
 | MT Kissel declares in the statement
 that the closing of the Philadelphia
 plant was regarded as tho best move
 to be made as the company would have
 been unable tG pay the interest on it's bonds had it operated.
 IN EORCIRIE SPEECH