Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1888-03-09
SUGAR IN TIE G0URD
THAT A HOUSE COMMITTEE is NOW
DELVlNG FOR.

The Great Trust Undergoing Another Inqui'
sition-Passage by the senate of the De,
pendent Pension Bill-The Western Mail
Service Defended-No Per Cent. foI
Kansas Capital Miscellany.
| WASHINGTON CITY, March 9-Thc house
| committee on manufactures began the inves-
| tgation of trusts Thursday. The sugar trust
was the one selected TO he first investigated
| Chairman Bacon read the list of those who
| had been subpGnaed. Answers of Present
were made by Messrs Theodore Havemeyer
Henry o. Havemeyer, George II. Moller, U.
N, Camp, and John f. Parsons. The name
of William II. Morris was called, but he was
not present, and the chairman asked that the
reporters note the fact. John L. Parsons was
the first witness. His testimony was similar
to that given in the New York investigation.
He began by saying that lie had a true copy
of the trust contract which he gave the com
mittee, and added that the members of the
| organization desired to he perfectly frank
with the committee, but did not feel like
| answering questions of an entirely private
nature. He believed this sugar company
| would reduce the price of sugar TO tue CON
sumner, aud give Il fair profit to the refiner
Representative Smith, of Wisconsin, asked
VINO regulated the price OF sugar
"LOndon."
"Well, | want you 10 understand right here
that this committee is representing the Amer
| lean people, and no foreigners whatsoever
The witness then said that there had been
no dividend or profit declared by the organi-
cation, and no books are kept. Each re-
| finery keeps its own books and attends to its
| own business The capitalization was not "A
| fictitious one. The actual cost of the sugar
| retineries which composed the trust was at
least 30 per cent. of the capitalized amount,
to say nothing of the value of the business
and good will There have been no profits to
go into any general fund up to this time
| When there are profits they will 60 into II
| general fund to he distributed to the stock
| holders There has been no formal action
| by which the production of sugar has been
| limited 10y the retineries in the organization,
| though they may probably have talked
these matters over, and by mutual consent
| arranged upon these points. Sugar has ad-
vanCed in price in London since this trust or
| gained, hut owing to the ability of this
| trust to control prices here there was only an
| advance of y a cent per pound here as they
did not think it policy to take advantage of
this temporary advance abroad. Had it not
been for the ability to control it the in
crease would have been greater The rate of
wages paid has not been changed since the
trust organized.
The sugar trust agreement reCites the OBJ
jects of the trust to he as follows:
l. To promote economy of administration and
to reduce the cost of refining, thus enabling the
price of sugar to be kept as low is consistent
with a reasonable profit.
.. To give to each refinery the benefit of all ap
pliances and processes known or used by others
and useful to improve the quality and to diminish
the cost of refined sugar.
B. To furnish protection against unlawful com
binatiOns of labor
T. To protect against inducements TO lower the
standard of refined sugar
g. Generally to promote the interests of the par
ties hereto IN ali lawful and suitable ways.
1t is declared that mo memberO of the board
shall, during the time that he holds Office buy
sell sugar or be Interested directly or indirectly,
in the purchase or sale of sugar, whether for the
purpose of speculation otherwise, without a
vote Of majority of the members of the entire
board. For any violation of this provision he may
be removed MS a member Of the board and shall
be liable TO account for all profits which shall be
realized by him to the board for the pro rata ben
eft of the certificate holders"
In regard to profits, it says: THE profits arts
ing from the business of each corporation shall
I've pnil over by it to the board hereby created,
and the aggregate of such profits, or such amount
as may he designated for dividends, shall he pro
portunately distributed by said board at such
time aS it may determine to the holders of the
certificates issued by said board for capital
stock"
The balance of the document refers to
organization, methods of transacting the bust
ness Of the trust, officers, capitalization and
its allotment etc