New-York tribune., 1891-03-08
WHERE WERE THE BOOKS {?
THEY COULD NOT BE FOUND BY THE RE
CEIvERs OF THE SUGAR TRUST.
,ryrRA1, sLoCUM WISHED TO SUBMIT REPORT
WITHOUT THEM, BUT Ills COLLEAGUES


rent sugar Trust and its reorganization as the american
60 refining Company was resumed yesterday morn
,rc at the Hotel Metrop0lc by the COmhluee vi We"
o-al Laws of the state Senate. senator hT"i"' NV
chairman and his colleagues were oDseu 10 'c'',
IN Albany until late hour on trd'y hlh"'' 49,
consequence the examination Of the witnesses du ho'
heCp until half.past 10 O'Clock. The parlor OF ''o
bocl was filed with officers of the present company
and citizens interested in the inner WORKINGS Vi NV
trust and tho expert knowledge shown by the VIII
nesscs I'm reference to the sugar business
Julus A. stursburg, another member OF the brooh-
iyn sugar Refining Company dspaSeu III paw w
same reluctance to answer certain queSlohS d. We"
shown by his partners when on lho "''"oS' me-,
1,o rcsnec.fulv declined to say what amount OF soch
he owned in the company or what number oi ''t'na %
Gates he received in the trust for his interest 'uA
,+or rrwin urged him 10 answer the questions OF INC
counsel without reservation, but upon the ADVICE 20
Elihu Root and John e.. Parsons, counseI iot .ir
holders Of the trust he adhered TO MS o"
determinations The Senators were disposed 10 r'''''
the interference of the counsel of the trust. .
ave do not object to your discovery OF INC 'ru",
said Mr.. Parsons, but why endeavOl 10 learn "' vs.
witnesses do not know7"
ave shall learn the facts in our own way ioPi,.u
Senator Erwin, and in our own time IL Is pioD"'''
that the witnesses know what we wish to icirn' ,.,
Several other witnesses endeavored to have done WIN
the examination as possible by asserting u,''
they knew lltte or nOtnl0H dDuut tiiO "''''
trust or of the present corporation In tis' ho"e'
they were only partially successful.
"You must ask my boys" said George ii. Moiier' OF
The Moler d Serck sugar Refining Company II Know
nothing about the matter In sixteen years III be ioo
years old and do not remember so we'll as useu W
do. Ask my boys"
"But," continued the chairman "weTe you not an
active member OF the company"
"Yes,o was the answer. but lived like gentle
man. went TO the refinery looked at it and went
homo again. The boys had all the say'
Mr.. MOller professcd that he did not know what
corporation was. When informed by the counsel, ne
answered: "Oh, VIC didn't bother about presidents,
secretaries and treasurers. We did everything our
teves. Ask my boys If You want TO know"
His company, he said had gone into the trust be
cause the officers had feared that the trust would ruin
the company in they remained independent. Ihey
had also received about 100000 for their stock,
which was q good price. The company had then been
closed up and the machinery had been scattered far
and wide As TO the value of the trust Mr. Moler was
non-committal. He was Indifferent as to whether it
was good bad institution 1t did not hurt hlm."
The first witness examined was Joseph Moller sec
retary Of the North River Sugar Refining Company
lie expressed himself in favor of trusts and conIaSied
the differences in the ways of doing business at the
present time and in 1858, when lie had entered the
business He was followed by George II. Moller ana
G. Martins General IL. W. Slocum. one of the re
oevers appointed to wind up the affairs Of The Trust
was then examined. ii. O. Havemcyer and = '.
White had BEEN he sad, his colleagues Mr. searles
upon the reQuison of the receivers, lad turned over
certain certificates etc. the property of the Trust
that had amounted to 81, 100000 or Sl,0OOoOJ. lie
had subsequently tried to get possession of the books
Of the constituent companies III Oter 10 nave genuine
control of the Trust. Mr.. Havcmcyer upon advice
NJ counsel had declined to turn over these books to
the hands of the receivers General Slocum had De
licked that he had right 10 ti'e~'-books
as a receiver; that The court had @lhlenueu @
min to be receiver in reality and not only III hah.e'
and that, unless he could secure the poohs' hc nie
as well resign his place.
al waited secvral days after making the request
for the books" continued the General theh asAeu
our accountant 10 make up statement regarding 'Ne
conditions Of the company from the books ana cer
tfcates at our disposal drafted from thcm a t.
port of my own which intended to present 10 'ic
eourt sent copies Of that report to Mr.. iiavemeyer
and Mr. White At subsequent meeting Mr. Have
never said he considered my report unfair ana MI
White was of the opinion that we had Oct
ter take more time for its preparation
answered that / had right TO make icl"i'
10 the court as an individual receiver and that INTENDED
10 do so. However, before another meeting oi t'o
receivers was relieved from duty"
The General added that he had received commuil'
cation from Judge Pratt. ALSO advising him not TO
make Al, individual report the court. aud that three
LAWYERS had written him That lie mad no rgNt 10 present.
such report. All the lawyers in New-l Orh however,
tie General SAID, could not persuade MN 'hat hc ou
not have that right After he had been relieved OF
duty however, he had surrendered all OF the papers
and books IN his possession TO the new company
lie had none whatever IN Els POSSESSION az lle
present time. Mr.. lavcmeycr had toid nm t.it
made by the Trust. 1ne Gc.elal did not believe,
however, tnat any record OF 4eac contrlDu'onS hai
however he said, that there anything wrong ABOUT
the contributions. General SlCcum said that he hu no,
met Duncan Cameron, VINO brought te SUIT "o'9'
tie Trust, more than once. ,,.d
He lad believed that some one had been behind
ioweyer. Who On that Ia5 Tle suit lad been dlscon-
tinued in all probability because the members 0a te @
trust than TO have il sold out by the receivers. zen
eral slocum said that he himself had 10 interest IN
charIel H. F. iabcock who then called to the
stand, said that he had been engaged in exchanging
the certificates of the sOcalled trust for certificates
of the American sugar Refining Company. when liad
new company, he said had authorized the issue 0,
40s 5G5 shares of stock There had beea ony 492G1S
5000 shares had been exchanged up the present
time for certificates Of the Trust As Mr. l!abcock
company, he was excused from further cYamia'ti9n.
Julius ~ stuIrsbuig followed NJ Babcock lie
Prior TO the organization Of the trust ne had been
stockhoder in the Brooklyn Sugar lefnns COMPANY
iSa' osS' G as mentioned above N ior s"rsRurg SAD
OF his former company were. He had not seen them
for three years 1t was possible; however that they
Wefc IN thc possession OF the superintendent OF the com
pany. In Williamsburg. Those books would show the
profits OF the company prior 10 its entrance into the
trust. so far as he could remember he did not think
the year preceding that in which the trust formed
had been particularly profitable The dividends had
not amounted 10 more than fifteen per cent on the
capital stock. Mr. Stur~burg considered the property
Of the brooklyn sugar Refining COMPANY & exceedingly
valuable. He did not think that $3,C0O,0O0 the val
nation madc by the officers Of the trust had been too
great. The capital Of the company had been only
$500 900. The proposal To enter the trust had been
made to the company more than year before its
actual formation. Mr. SturSbuTG knew Of no special
mission of the trust The trust. 50 far as he knew,
had no liabilities Neither had its officers issued any
bonds The trust had died natural death, 50
far as he knew. II possible also that 1t stilI
existed The establishment Of the trust had not re
duccd the total output Of The decrease in tho
Production OF the smaller companies had been coun'
terbaanccd by the increased size Of the larger CON
stltuent companies
Sidney : Harris. Perry Il. Coke and senator
Coggehall questioned Mr.. Sturburg closely regarding
the reason for organizing the American sugar Ke.
fning Company In New-Jerscy. Mr. stursburG coulh
Give uaIficmlnr reasnns for III. tramsfer OF the