New-York tribune., 1912-03-20
PARSONS LETTERS READ
IN SUGAR TRUST TRIAL
Wrote to H. O. Havemeyer as to
How to Keep Rival Plant
"Out of Competition"
NURSE THE THING ALONG"
Suggested Accepting Payment
of Loan on Plant and Getting
Kissel Out of 1t, as He
Did Not Trust Him.

Letters which passed between John Z.
Parsons as counsel for the American
Sugar Refining Company, and the late II.
O. Havemeycr. its president, dealing with
the loan Of 81. $4,000 TO AdOlph Segal. were
brought TO light yesterday upon demand
by the government, after they had been
withheld for years on the ground OF
being privileged matter Henry A. Wise,
United States Attorney, offered them in
evidence at the trial OF John +. Parsons,
Washington b Thomas and the other
sugar men charged with having conspired
10 keep the new plant of the Pennsylvania
Sugar Refinery closed by means Of stock
control acquired as collateral for the Segal
loan.
As a matter of record. neither Mr.. Wise
nor any otLer attorney for the government
knew what those letters contained. Coun-
sci for the American Sugar Refining Com
pany refused to surrender them during the
grand jury investigation which led TO the
indictment. and the plea OF privilege kept
the secrecy of the correspondence until
yesterday.
A lively debate over the matter was ex-
pected Delaney Nicoll and the other
counsel for the defence made no objection,
production of those letters. During infor-
NAL discussions with Judge Hand about the
admissibility of the letters, the govern
rnent had pointed TO a number Of decisions
holding that when counsel for a corpora
ton was also a director of that corpora
ton his communications lost the character
Of being privileged. Mr.. Parsons was not
only counsel. but also a director Of the
n fHr,v,.v
time.
The reading Of Mr.. Parsons's letters to
H o. Havemeyer created an impression
akin TO surprise. The letters were dictated
by the aged lawyer eight years ago. in
the midst Of the entanglements that re-
suited from the segal loan
To Keep Refinery Closed.
In his opening address to the jury Mr..
Wise said that after the loan had been
made to Segal at the close OF 1893 the
American Sugar Refining Company, as the
lender. was in possession Of all the collat-
ersl on which Segal could possibly obtain
a loan, and that there seemed TO be suf-
fcIent assurance that he could not repay
n on June Is, the option day, although
the loan did not expire until October
when the sugar season was over and the
opening Of a new refinery was difficult.
Now, he said, he produced the Parsons
letters In an endeavor to show how anX-
lous the American Sugar Company was to
keep the refinery in Philadelphia closed,
az least until fall, II not indefinitely
All Of the letters written by Mr. Par
sons. which the government seemed TO
consider as highly important. were signed
in his own handwriting. The first one
read was to H. o. Havemeyer and bore
the date OF May 81, 1904. 1t said:
/ return the note from Mr.. Kissel and
SeEal's letter TO him
| do not think that any papers can be
drawn which would insure the refinery be-
ing kept closed until October !. If 10 put
II in running order complete to start Will
take such q length Of time as VIII meas
uraby accomplish the purpose of keeping
II out of competition for this season, l
think that II is better TO accept repayment
Of the loan on June Is, the interest being
paid up 10 October !.
This is a matter about which Mr.. KisseI
should be very careful how he writes, and
I'm no case should he say that he viii not
accept repayment OF the loan. IL may
easily be that Segal cannot put himself in
shape to make tender. refusal is the
equivalent Of a tender.
| think that Mr. Kissel should answer,
saying that his parties do not care TO divide
tlle lTdINdN Nl'l Ols upon b0h' Va
partial amount TO release any OF the Sc
curity. that II Mr.. segal wishes TO negou-
ate in respect of the other matters men
toned i'm his note, he must come here; tnat
n will he necessary for him to see Mr..
kissel The policy Is. nurse the thing along
without a break as long as possible
To this Mr. Havemeyer answered, under
the same date, as follows
think the best way is to refer Mr.. Kis-
81 tr, WI I have dOpp
Mr. Kissel has not been authorized TO
refuse the payment of any loan; SegaIs
letter reads that way. but II is unauthor-
ted. You Will have TO watch the matter
very carefully, and look out for Kissel.
The next letter read by Mr.. Wise was
again from Mr. Parsons TO Mr.. Havemeyer,
dated June = 1904, which said:
Kissel thinks that Segal has. or thinks
that he has. an opportunity TO sell out;
wish 10 pay of the loan. ] told Kissel that
he must not refuse-smply say that II
time were fixed when a tender is TO he
made he would meantime learn from his
principals what their instructions are.
Kissell saws further that Segal tried TO
sell to Jarvie. that Jarvie offered him
s.. 600 900 and that Arbuckle went through
the refinery. My only concern Is that with
the Wall Street ideas which Kissel seems 10
by some wrong movement. Rather than
run any such risk. II may be better If
tender Is absolutely made TO accept It, /
think SO. I think, however, that the time
should be showed along as far as can safely
be done.