Evening star. [volume] (Washington, D.C.) 1854-1972, 1888-03-09


ON MANUFACTURES BEGUN.
The investigation into the subject Of trusts and
their influence upon the price of commodities au-
thorzed BY the resolution adopted by the House at
the instance OF Representative Mason. OF Chi
cago was formally begun yesterday by the House
committee on manufactures, as stated in TEE
STAR YESTERDAY. The Investigation began
penaed to appear there were present Theo-
dore Havemyer, Henry J. Havemyer, John +.
Yors I'm N CAMP and Gee Muller Of New
answer the committees subpoena.
THE FIRST WITNESS.
John L Parsons, the attorney Of the sugar trust,
was first put upon the stand, and In answer TO a
question as tothe mode Of formation OF the sugar
trust he said. there was deed or agreement which
created board called"the sugar rehners company
lie was member OF that board by election to that
place held by one of the original members. At the
request ra OF Representative Bacon he produced a
that the part relating to the interest held by the
various members OF the board In the capitalization
that was regarded as private matter and one
which could have no bearing on the Investigation.
The board was composed OF eleven persons and
1neo Havemyer had been elected president The
agreement was read. Ii has already been printed
having been laid before the New York state senate
investigating committee. II was dated August 10,
1887, ana went into operation October "a.
IN ACCORDANCE WITH TIE AGREEMENT
each OF the members OF the board had organized
his concern into corporation. Each OF these
corporations was represented BY stock. and the
stock was transferred by those holding It to the
members OF the board, who issued certificates of
interest in the sugar-reflneries company cores
pond1ng TO the amount OF stock turned In by the
stockholders. Although the deed runs In the name
OF corporations, he said it must be OBVIOUS TO the
committee that the stock was surrendered by indi-
viduais as such. 1t might be that a few stockhold-
ers had not turned In their stock, but they had
generally done so. The agreement prohibited IN
dividuais from buying sugar without knowledge
Refinery Co. vas $50 100000. All OF the stock mad
been issued 10 the original parties of the agree
ment. with tho exception OF IL per cent, which had
been retained. OF this 10 per cent about s. coo
to the original agreement. The transfers OF stock,
he said, were In the name OF the members OF the
board individuals for the reason hat the board
was not an entity aVnll. The sugar Refinery Co
was simply
MERE NAME ADOPTED FOE CONVENIENCE
The company was not incorporated under the
laws OF any state. The agreement provided that
the corporations, when they came into the agree
meDt, should be free from liability or should pro
vide for dscharging their liability. The reason FOL
this was that the transaction amounted TO a pur.
chase BY the stockholders OF each one OF these cor
porat1ons OF stock In the Others and the value OF
the stock was, therefore, dependent or whether
each cOrp0r alton was free from deot. In order 60
prevent any inequality 1t was required that the
care OF the then existing Indebtedness, so that a
new departure might be taken from the cath OF
october.
The committee pressed the witress to tell what
companies had mortgages on their properties when
they entered the trust. The witness, prompted by
ground that IL might affect the credit OF the COM
panies.