The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1912-04-19
SUGAR TRUST CASE
tcoutluued from Page Nine)

. under the court S Chhrgc lhc charge
said that the defendants could not BE-
convicted of the conspiracy charged
against them for anything that hap.
pened wholly prior to July l, 1906;
/ that what took place before that date
must he considered only e It eX.
tended over that date The $l,25O.JOO
loan to Adulph Segal made, as al.
legged, with the purpose to keep the
/ PENNSYLVANIA refinery from compel.
/ ing. was made on January 4, 1904, and
! the negotiations leading up to it, upon
which much of the evidence bore oc.
Cured in November and December,
1903.
The loan was to run for one year,
| to January 4, 1905. 1t was not paid
then, though the defense attempted to
show that the company, through Mr..
| Parsons. tried to collect the money in
1905 The refinery remained closed
all this time, however. under the loan
agreement, and remained closed after
July J., 1906 the loan, which tied mp
the controlling stock as collateral, be-
ing still unpaid. In August 1906, the
defendants attempted to foreclose on
Segars Majestic apartment house, but
not on the refinery. The refinery
went into a receivers hands i'm Octo-
Der, 1906
Judge Hand charged the jury that
there were three purposes which might
have actuated the defendants in keep
ing the refinery closed after making
the S1,25O,O0O loan; to protect the
collateral, to prevent dishonest com
petition, or to prevent competition in
order to control the price of sugar
Only the last, the court said, came
within the meaning of the Sherman
law. There was nothing in the case
as presented continued the court,
which would justify the jury in find
ing that the defendants attempted to
compel Segal to extend the loan over
its term.
so that" said the court, the
charge as it comes to you is that they
secretly induced Segal to take the
loan, he not knowing that he had
taken it from the American Sugar Re-
tining Company, intending to get con
troll of the company through a control
of the board of directors and intend
ing to prevent any dividends being
earned by which the loan could be
paid and after acquiring the control
to maintain that control until the
company became bankrupt or had
been ruined"
Agreement between the conspira-
tors, the judge said, must have had
in view control of prices. The jury
must find that the purpose contem-
plated a direct effect upon interstate
trade, not that the effect was an Incl
dent to something else.
you must be satisfied" said the
court, that after July /, 1906, the
question whether the refinery should
be opened or remain shut rested with
the defendants or any of them whom
you find guilty; that there continued
a common purpose to keep it shut
and that the purpose was criminal"
After their return from luncheon at
the Astor House the jury were not
heard from until 4:35 o'clock, at
which time they sent in two questions
written out on a piece of yellow pa
per. Judge Hand after reading the
paper ordered that the jury be
brought in. He then read the two
questions aloud;
l. If we agree that the conception
Of the loan as arranged between Kis-
sci and Havemeyer and Kissel and
Segal and its subsequent completion
was in restraint of trade, but are in
reasonable doubt of any criminal act
or intent after July 1, 1906, are we
justified in a verdict of not guilty."
2. Assuming that we have no right
to convict on any matter or act com
mitted before July l, 1906, when the
statute of limitations prevailed, does
the fact that the sugar company al
lowed the loan to remain on account
Of repeated propositions of Segal that
he had opportunity to raise the money
and pay the loan show evidence suli-
cient to prove restraint of trade?
IN answer to the first question
Judge Hand said that the jury if it
had such doubt of criminal intent
after July J., 1906, could certainly
bring in verdict of not guilty. In
answer to the second the court said:
Although the loan could have been
paid and the payment not forced Nv
selling the collateral, if the defend
ants retained over the company until
D8VmGOt WAC mad, N control ,,.Li I'll