Alpena weekly argus. [volume] (Alpena, Mich.) 1871-1893, 1890-07-09
The Extortlons of a Trust.

Some of the Boston people who
have loaded themselves up with
sugar trust stock at high prices began
to believe last week that the organic
ers of the trust had been forcing down
the certificates for their own profit,
and accordingly instituted rebellion
and demanded representation in the
board of direction. Theodore Have
meyer, a leading trustee, went to Bos-
ton and tried to explain, but could
not, and at meeting in New York
Friday the men who thought they
had been plucked tried to GUST Have
meyer or secure representation in the
management. But to no purpose,
and things remain as they were.
The admitted facts seem to be that
the trust is capitalized at three times
the actual value of the property that
10 per cent. dividends on this capital
ization were paid in 1889, and an es-
timated s15,OO0,00O, or 100 per cent.
on the actual capital, or 33 per cent.
Oh the nominal, was earned" in add.
ton; that furthermore salaries of
100000 yearly each have been paid
to three officials, $4,000 yearly each
to six officials and $4,000 each to
seven officials and that, notwith.
standing the 10 per cent. dividends
and the reputed accumulation of an
enormous surplus and capacity besides
to pay such salaries to mere figure
heads, the prices of certificates have
declined in seven months from 1876 to
80 or Whereabouts. With the excep-
ton Of the statement as to the salaries
which is made by the New York Sun,
this is substantially the situation as
depicted by the trustees of the trust to
the Boston parties who begin to be-
lieve they have been sold out.
Let the 60,000,000 consumers of
sugar consider this scheme of extortion
as certified mainly by the conspirators
themselves. The 10 per cent. paid on
the nominal capital in 1889 would
equal 80 per cent. of the actual invest.
ment and in addition thereto 100
per cent. on the actual capital was
learned" according to the "perfectest
report" and laid aside as surplus !;
and in addition thereto few orna-
mental officials languidly pockcted the
mere bagtelle of 100000 and $50, 900
and $500 each as a salary" An
income of 1870 per cent. on investment
and 100000 in yearly salary is the
compensation demanded Of the poor
people of the country for organizing
this alleged plan to promote economy
in the production of sugar
But this is not all The Boston in
nocents do not complain of such as
founding profits. Why have the
prices of trust certificates declined
more than one half in the face of it
all ? This is what they are kicking
about. Well, for example, Havemey.
er is said to have accepted for his re-
fneries, which went into the trust,
certificates of face value ofS16,0 00,-
600. representing probably not more
than S6,000,000 of actual property.
He is commonly reported to have
sold out his holdings at prices above
par, and he frankly admits that he
has been selling certificates. He thus
unloaded his 100000 of property
upon these Boston investors and other
lambs for s16,000,000 at least, and
under his selling and the selling of
other trustees the market slumped,
and Havemeyer can now buy back
his property for less than half what
he got for it, or say sS,000,000-
making during the transaction cold
100000, aside from a salary Of
100000 for services in plucking the
poor. and playing investors for gudg-
cons.
And the question comes to the co..
100000 Of sugar consumers from the
secret councils ofthis trade conspiracy