The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-03-22
.UNTERMyER SHOWS
Up SUGAR TRUST
Tells How Giant Corporation
Forced Adolph Segal
to the Wall
HELD PLANT IN GRIP,
WITNESS DECLARES
He States That Trust Set
tied Suit Brought by Segal
Through Him for :.
$2,OOO.OOO

NEW YORK. March 3i.-Samuei
Untermyer was the governments
chief witness today in the trial o.
the Sugar Trust magnates under In
dictmcnt. charged with violating the
Sherman law. The big corporation
lawyer told how. as counsel for
Adolph Segal. he had striven In vain
with John K. Parsons. one OF the four
men now on trial. to secure the per-
mission OF the Sugar, Trust for the
operation OF the Philadelphia REIN
cry that had been wrcsted from Se-
gals control. Mr. Cntermyer said
he told the trusts general counsel
that this WAS the only way Sesal
could hope to pay the loan OF ST.
ESQ. 900 obtained from the sugar COM
pany.
According to the witness Scgal had
a man ready to provide nearly a
million dollars as working capital for
the refinery. This was told Ia Mr..
Parsons, said MIR. Cntermyer, but
produced no effect upon him. Neither
would he listen to suggestion that
the refinery be run at only one-third
OF It's capacity OF million pounds
Of refined sugar day. Mr.. Unt-r-
r,yer said Mr.. Parsc<s told him that
nothing short OF the immediate sat
isfaction of the note with ..ccumu-
lated interest would induce the Sugar
Trust 10 release its grip on the Segal
plant. One of the conditions Of the
loan was that the refinery should net
be operated until the note WAS paid
In full.
Forcing Sesai TO Wall.
In letter to MIR. Parsons MIR. In
terrnyer declared that the sugar COM
pany was forcing Segal to the wall;
that they had taken an unfair ad-
80 t&t, nd
not understand when the loan was
made that the money was coming
from the Sugar Trust. My client
cannot now repay the loan. but can
open tho refinery on payment OF thus
loan" the letter went on. You VIII
rather force my client 10 the wall. or
|, leave him ono alterns<tve--to fight
and Save Whist he can from the ~rce1
OF his property.
told him that he had been trapped.
The fact that Cntermyer brought
suit against tho Sugar Trust for Sc
gal. demanding triple damages, ana
that the suit was compromised by
the trust paying the lump sum o,
two million dollars to- segal. was
brought out.
Rules Out Minutes.
Judge Hand ruled against the ad-
mission OF eNluenNc Dcsl4 lin 0fNE a
resolution found In the minutes OF the
board Of directors OF the ac-
cused corporation promising TO
indemnify John Nj. Parsons
and Henry o. Havemeyer against any
action brought to hold them respon-
sible for the money spent as re-
suit OF the Segal transaction. Mr..
Wise had suggested that there might
be grounds for such an action on
behalf Of the trust stockholders.
Arthur Bonner. one Of the four de-
PENDANTS. and who for many years
was treasurer Of the Sugar Trust.
has been absent from the trial since
Tuesday. He II said to be pros
trated with illness 1t his home.
r. ". Lindabury. OF counsel for the
defense. told an International News
Service reporter today. that as soon
as the government shall have finish
ed the presentation of its case the
defense will make a motion for dis
missal. And we have cause TO be
very hopeful that Judge Hand will
grant our motion" he added, and
thus end the whole matter