New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-04-05
A BATTLE OVER THE BOOKS.
LIVELY SESSION OF THE SUGAR TRUST IN.
vESTIGATION.
THEODORE A. HAvEMEYER MAKES A STATE
NENT.


General Laws wouh be spirited, lively and surprising
In its results than realized. The large num-
Der Of spectators listened TO interesting battle be-
tween the dgned Senator's the members of the trust
and the opposing counsel. The bone OF contention was
again the production of the books of the constituent
companies, which the committee have so urgently de-
manded many times during the course of the IN
vestigaton.
In the midst Of important testimony by John r..
Searles IT, treasurer OF the trust and OF the present
American Sugar Refining Company, he referred to the
books of the company
"Mr searles,p asked Sidney S. Harris. "were the
these constituent companies removed in order
10 withdraw them from the jurisdiction of this COM
pany7"
@No,1 answered Mr. searles, that had nothing to
do with it. The principal offices Of the new company
were in Jersey City, 1t natural that they should
be taken there. do not know when they were taken
away. ] have been told that they were in the office
before went West did not know it personally.
have not seen the books since January !. 1t would
be proper in my estimation, TO produce those ana
10 expose them to rivals"
But, Mr. Searles we are not sugar rehnerS''
"That may be true" came the answer, " but there
have been many rival reiners in attendance upon your
investigation"
At this point OF the examination Elhu Root, one OF
the counsel for the trust asked permission to make
statement. "Mr. Chairman" he said upon receiving
permission "yOu have already before you statement
now make the suggestion that you or your counsel go
with me or Mr. Seares and see if you have not IN
these statements all that is necessary for the purposes
Of your investigation 1t is certainly not necessary TO
freight a vessel and Import those books from New
jersey
at is we'll enough TO extend that privilege to me-
Mr. Root replied Senator Erwin, "but know as
much about them after examination as do about vii
lagos in Bohemia. Are you willing for us TO 60 as a
body with the accountant"
Il am only willing that yOu 90 individually was
the answer. "There is great difference between
your sessions as a public body and what l sus
gest. As public body, 1t would be dihcuit 10
keep separate what the committee had Hght 10
see and what it had no right TO see'
But interposed Senator Cantor, ave are here in
the interests Of the public What belongs to the public
the public must have and will have. We are not
here for the qualification of our own interests"
Mr. Harris was then asked to state what the COM
mttee wished to discover by consultation of the books
He answered
al wish first to find the amount of the profits OF
the constituent companies and how they were made
Whether those profits were transferred to the persons
entitled TO them. Whether there was any means by
which the certificate holders could protect themselves
We have wanted these books for these pur
poses long tme and there is no rea
son why we should not have them inns
committee represents the sovereign power Of the state
sand right to demand what is necessary for Its
al submit to this committee" was Mr. Roots reply,
that IL has no power to demand the last two things
mentioned. They are beyond its power. II mas no
right to see whether the holders of certificates received
all of the property to which they were entitled Our
judicial system is instituted for that purpose To
assert the right of the committee TO that would be to
usurp the powers of the judiciary"
ait has not been shown that these cerifcateholders
are unable to conduct their business. The officers
Of Kidder Peabody d Co. satisfied with the in
vestgation. You have the results of that The Cen
trail Trust Company satisfied. You have the re
suits Of that. What business has the senate to go
further than that"
That question aroused the pride of Senator Erwin.
In clear voice. bringing his fist down upon the table
In emphasis of his remarks he replied;
al have always supposed that we have the right to
have those books and TO examine them 10 snow
whether you misused the property or not because IL
was the people the public, who bought the STOCK
II the stock that you have and that you gave 10 inc
nublie Eas unpaid for have a right TO know that
We have n right TO know whether this is fraud or
not You have the same company now as you
formerly had That is what we claim and that Is the
reason we claim that we have a right TO nave the
books produced. The same fraud that was upon the
public before is upon it now If we are wrong and
the committee decide that we are wrong, well ana
GOOD But so far as l concerned, l snail never
vote otherwise than that you produce those books ana
that you produce them before the committee
awe shall give to the public what belongs to the
publc That which affects your private interest is
a different matter. The decision in the Mcdonald case
shows that your organization to-day is Illegal 1t
formerly was We may not be able to make you
,roduce those books, but we can send you TO prison
for refusing to do So"
Mr.. Root said But these OBSERVATION-DISCLOSURES "rc
perfectly satisfied
senator Erwin replied "Of course they are"
Mr.. Root-They don't desire any interference
Senator Erwin-Of course they don't
AT this point Theodore A. Havemeyer sprang from
mis- seat and declared that he did not propose to be de-
nounced a fraud by the committee before the e4amna-
ion finished.
~We shall be glad to prove what you say, Mr. Have
MAYER replied senator Erwin. 81 do say that you
sra A traud But, il you wish to know it, have
been told by people that your dividends were never
earned that they made by manipulation o. the
stocks in Wall Street; that You never earned SILL
100000 in two years. as has been testified before this
committee and appears in your published accounts
That is rot cried II. o. Havemeyer
"Wells continued the Senator =" If you can show by
tbe books that you honestly earned the dividends,
there will be no justice in the allegation
Mr. Root-Senator ask the witness Just now
about that.
Senator Erwin--Oh. no. Mr.. Root, Pm not so green.
"Then,s called out II. o. IIavemcyer, eve shall
show the truth Of our statements by the books. That
IL the first time you have told me what you wanted
"well that is refreshing replied the chairman.
At his own request, Mr.. Searles then made a state
snent under oath In answer 10 Senator Erwin. Not
one dollar of the $2G, 600 which appears in our
statement Of accounts he said was placed in our
treasury from speculation in Wall Street The official
renorts of all the constituent companies came 10 me,
and they all showed that the money was earned by
legitimate business. 10 court
an investigation at the time the company WAS reOr
canized 1t will require from TO three months 10
make an examination similar to that which was made
then"
In order 20 test the professions Of willingness to al
low the books TO be examined, Senator Erwin again
asked Mr.. Searls If he would produce them before
the committee. Mr. Seares answered that 1t was be
yond his power TO do and that he declined 10 fulfil
the request OF the committee upon advice OF counsel
In continuation of his testimony Mr. Searles declared