The evening world., 1912-03-18
.Dispfoves Theory That Finan-
dal Difficlties Forced Segal
to Sell Plant to Combine.
LETTER E A TO U r
Messages of Frazier and Have
meyer Seem to Support the
Contention.

George -. Newhau. Vresdent OF the
eewhan Engineering Company. build
Ire Of the Pennsylvania Sugar reclining
.ompany's plant In Philadelphia. was
he first witness called to-day whom the
rial Of the Sugar Trust officials was
'esumcd before Judge Hand and . jury
h the Criminal Branch Of the Federal
court. The Indictment n prosecution
" President Washington u. Thomas
John d. Parrons and the others grows
tut Of the alleged attempt Of these Of
seials 10 prevent competition by the zig
Philadelphia reansry. which dangerous
y effected their coatro, Of the sugar
lituation.
Adolph segai OF Philadelphia con-
rolled the majority OF stock In this
refinery. The Government contends that
he Sugar Trust obtained control Of the
.ssansry by lending sl.sso.ooo to Bseal.
Who gave a. collateral n majority OF
he stock In the Pennsylvnnia Sugar
Refining Company. and that through
luminy directors the Sugar Trust pre-
rented the operation OF the big refinery.
Newhali told OF various refneriss he
lad erected In which sezai was finan-
siaily represented. 1t was brought oui
hat despite the attempt Of the defense
% show that Segai was badly crippled
financially In 1909 when the loan was
aegotiated. within the mex two years
ne wa ts-piy interested in the con-
Struction OF another refinery and con.
tsmplated the erection of Q third.
lGrTeRS TO HAvEMEvER SHOW
PRooReeo OF THE SCHEME.
NJ. Wise tossed n bomb into the camp
" the defense whom he read several
etters written by George II. Frazier. q
director OF the trust under indictment,
20 Henry O. Hsvemeyer. late pres hent
~ the trust. In one OF these letters,
written from Philadelphia. Frazier said
The refinery being built here 10
progressing. feel quite sure that
Adolph Sexal 10 only the contractor
In the operation. You will recall his
name In connection with the Camden
plant. Thsrs are four principal men
Involved in the undertaking.
In another letter FRASER aiA Il
AAvemsysr:
Il thought this had beer sent you.
out I must have omitted Il In Q
former letter. II Ia a prospectus
upon which the securities Of the
Pennsylvania Sugar Refining Com
I. pany are being quietly offered. !
don't know what your attitude 10
toward this possible competition. but
II / serve you In n way. COM
mand me.
II know Frank Hipple very we'll
end SeGai. the promoter. drops In my
once from time TO time. but no y
IN unsafe man to deal with In the
= matter.
'If anything Is to be done IN this
connection with the refinery. the
condition of the money market
makes the present time desirable.
Other wise Il would bs best 20 let
n thsm set started and perhaps they
Win sicken of the venture"
~1&AvgMgveN'e LETTER TO kle
Il, oeL READ TO THE JURY.
y A letter written by Henry o. Have
meyer to Gustav +. Kissel. he r1kel
Who made the oan to segal. was rea<
70 the jury. Mr.. Havemeyer wrote:
r I was told yesterday that Sesal
~ who built the Pennsylvania Ronn-
ery, was in bad financial SHAPE.
u Was he the party who wanted you
n, to make . loan on the bonds Of his
company? Ny information 10 that
= the real estate cost $50 NJ. was
= put to the company at $3.50 NJ,
and this $3.50 NJ. was expended
IN machinery and buildings.
w~farves. &c. This makes about
$40 NJ. against which are three
. million bonds. I should be pleased
Z o see you Monday ut No. lit Wall
IL. street. at noon. RE.
D1orts were made by Wise to hay
It~eetters written between Presidsr
l,Thomas of the Sugar Trust and HI
rcousin, David 3. Stetson. admitted q
.'ev1deace. Attorneys for tho defense oil
footed on the ground hat they wei
fspsruonal. Judge Hand took the que
zion under Advisement.
Walter A. Robinson. formerly businel
,eecretary I Gustav Il. Kissel. WI
tsActed for the Sugar Trust IN loanir
! money to Segal, told Of visits paid NJ
xissel by Segal.