New-York tribune., 1912-03-22
EpiStIeS to "CouSin David" and
"WaSh" Read at Sugar Trial.
GOVERNMENT WINS POINT
Prosecution Expects to Close
Case Against Parsons, Thomas
and Others Today.


letters, so strenuously opposed by the de-
fence were admitted by Judge Hand and
read to the jury
These letters, which passed between
Washington B. Thomas. now president OF
the American Sugar Refining Company, and
his cousin, David :. Stetson, Of PhladcI-
phia were offered 10y Henry \. Wise. United
States Attorney in support Of the assertion
made in his opening address to the jury
that the American Sugar Company was in
formed in all details of the financial stand
ing of Adolph Segal while he was building
the new refinery at Philadelphia for the
Pennsylvania sugar Refining Company,
which was later kept closed through the
conspiracy Of the defendants by means Of
the 81 1.25o.O0o loan to Seeal.
The prosecution seemed particularly anX-
ious to have those letters admitted in evil
dence as showing the relation of Mr.
Thomas who at the time of the loan was
vice president of the American company
and in charge of the Boston refnerics Of
the corporation. with the Segal loan trans
action.
Many Of the letters read bore marks Of
cordial relation which existed between Nj.
Thomas and his cousin. Mr.. Stetson. during
1903. until. some years after the tranSac-
tion in question. all Cordiality vanished and
the letters became formal Mr.. Stetson
was in court yesterday, anxious to go on
the witness stand To- explain some Of tn"
letters which. he said did not give a true
picture Of his part in the affair Neither
the government nor the defence desired Mr..
Stetson's testimony despite his insistence.
and he was discharged from his obligation
under the subpoena.
judge Reconsiders Decision.
Judge Hand reconsidercd his decision
which had ruled out the letters on the
ground that they formed a part Of the rec
ord made by the Congress committee which
Investigated the sugar trust last summer
and therefore were privileged. The prose
Cution had contended that the privilege did
not apply to them because they had been
offered voluntarily by counsel for the de-
PENDANTS, without an accompanying an
nouncement that ne did it in such a ca
pacity.
The first letter was written by Mr.
Thomas, under date Of November 10, 1893
asking Dear Cousin David for informa-
tion about SeEal. Mr. Stetson answered as
follows on November %:
My dear Wash: Your letter of the 18th
before me and noted. The information You
require regarding Mr. Adolph Segal 1t VIII
take me some time to gather and have the
information absolutely correct-it would be
Of no use TO YOU # OthcrwISe-some OF
which / must get from his own lips, and
not have him suspect me in any way, and
then have his statements verified by those
having big relations with him. Ana there
are several in the Manufacturers cub or
which he il a member. and | one Of the
board Of directors ] hope 10 have this IN
formation by the end Of the week. II Mr..
Segal is in the city and will write you then.
Som, days later Mr. Stetson wrote that
he had been unable to see Segal. but that
he had been able to obtain some informa-
ton which he embodied in a description
OF the construction of the refinery and Of
the other financial ventures OF Scgal To
give an adequate account Of what he had
found out Cousin David requested an in
terview.
Mi Thomas answered with thanks for
the information, but said it would be diff
cult TO arrange meeting, though all the
information MIR. StctsOn could send by mail
would he most acceptable.
on December Mr.. Stetson wrote an
other letter containing more information
about Sega and his enterprises In this let
ter he said in part:
The Pennsylvania refinery, from informa-
sources. | know will not run for months. As
wrote YOU. the cost of the refinery, ma
chinely. etc, 10 the company IS IT now
100000 with $-.O10CoJ stock; and Adolph
Sesal, the promoter. induced Mr.. Frank
Hipule president of the Real Estate Com
pany, to JndeTwrte OF finance same. Thus
far but few bonds have been placed. al
though they have been peddled around the
Philadelphia and New York markets more
The time may not be far distant when,
If the American Sugar Refining Company
desires. they can acquire possession OF a
majority of the Pennsylvania Refinery
Company. When such may be the Amcri-
can complny's desire If you Will give me
the opportunity 10 work the deal Tor your
company, ] can serve you as faithfully ana
well "a any one. and make commission
from the present owners of the plant
Samuel Untermyer, who was retained as
counsel by Adoph Segal in 1895 was called
by the government to tell the jury Of his
NEGOTIATIONS with John r. Parsons and the
American Sugar Refining Company for the
repayment by Segal of his $4,000 loan.
Mr. Intermyer said he went to Mr.. Parsons
in June. 1906 to tell him that he acted for
Segai. who wanted TO prevent the threat
ened sale OF securities which he had put up
with the American Sugar Refining Com
pany as collateral for the loan.
Urged opening OF henhery.
q suggested that if the Philadelphia re-
fnery should he opened Segal might be
able to pay the overdue loan" said Mr..
Untermyer. Il also suggested that II would
be better to limit the rehnery's output to
1850 barrels a day, when its capacity was
1900, as this would secure the lenders in
their loan by preventing Segal from incur
ring further debts
Under the loan agreement the American
Sugar Company had obtained control
through a majority Of stock put up as col
lateral for the loan, and the first act Of the
directors elected through arrangements
made by Gustav i. Kissel. who acted as
agent in the loan transaction, was to vote
the refinery closed. The government con-
tended that it was the intention Of the de-
PENDANTS to keep that refinery shut during
the life Of the loan.
Il told them that unless the refinery
We're opened Segal could not hope TO repay
the loan at ALL" said Mr.. Untermyer Il
wanted to find some way by which the re-
finery could he operated in such d way as
TO enable my client to repay the loan with
out further danger to the lenders
Mr. Parsons answered that they wanted
the money and Il Lee had been held OF
with promises long enough"
George II. Earle. jr.. Of Philadelphia. who
was receiver for the Pennsylvania Sugar
Refining Company, was in court ready to
10 on the witness stand. Mr. Earle has
fought the American Sugar Company in the
civil suit brought as Il result of the SegaI