Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-03-06
PROBING A TARIFF TRUST.
The Sugar Trust Under Investigation-It
Great Tariff Profits.


The Sugar Trust Under Investigation-Its
Great Tariff Profits.
The sugar trust has been undergoing
investigation by committee of the New
York legislature. In this investigation
some evidence was brought out which
illustrates the stock watering operations
of the trust.
During this investigation Mr.. John
Moller, of Brooklyn, was examined. He
testified that he was stakeholder of the
Baltimore Sugar Refining company, that
the capital of this concern was $4,000,
and that the trust gave the stockholders
81 100000 in certificates when this con-
Germ was absorbed. This was in October,
1887. The trust soon after put up the
price of sugar and closed up the refinery
in Baltimore. F. o. Matthiessen, of the
F. o. Matthiessen & Wiechers refinery,
said that his company was capitalized at
$1,60O,OO0. When it went into the trust
$685. 900 of certificates were given for
the 81 100000. Claus Doscher, of the
Brooklyn Refining company, testified
that the amount of sugar trust certifi-
Gates given the Brooklyn Refining COM
pany for its $500, 900 of capital stock and
bonded Indebtedness of 81 Zoo, 900 was
So, 612, 500.
The capital stock of the trust as thus
watered is $50,000,O 900, but the actual
value of the properties of the concerns
entering the trust was $4,000, 900.
When, therefore, it is stated by Willet
d Gray, the highest authority on mat
tiers pertaining to the sugar trade, that
the profits of the trust have been s1O.-
100000 per annum the apparent profits
were equal to 90 per cent, but the actual
profits were not less than 64 per cent.
per annum.
The sugar trust is one of the best
known Of our many tariff trusts that the
people have been taxing themselves to
make rich. 1t has conducted its bust
ness with great secrecy. During the
investigation just mentioned the presi-
dent and the treasurer of the trust could
not be found. The latter, it was an
nounced by the lawyers of the trust, had
gone to New Orleans ION business" On
previous occasion when the trust was
to be investigated the treasurer disap-
peared in the same way ION business"
The people are now to have what is
called free sugar, but they have not yet
escaped from the power of the trust.
The Mckinley law leaves duty of fifty
cents per 100 pounds on refined sugar.
Even strong protectionist papers pro-
tested at the time when the tariff bill
was under discussion that there was no
need for duty on refined sugar. The
New York Tribune said, mo good rea-
son whatever can be given for retaining
any duty whatever on refined sugar if
unretined is admitted free" The New
York Press, another high tariff organ,
said, "The president of the sugar trust
once said that they could refine cheaper
than the English could anyhow, and
that they did not need any duty at all
on refined If they got raw sugar free"
Mckinley passed his tariff bill through
the house with duty of 40 cents per 100
pounds on refined sugar; the senate raised
this to go cents. In the conference COM
mlttee OF the senate and house there was
protracted fight over this duty. Here
Is one little episode in that fight as re-
ported at the time by the Washington
correspondent of The New York Tribune:
Mr.. Searles, of the sugar trust, and
other well known operators established
themselves in the senate wing of the
Capitol, and Senator Quay and other
friends of the higher rates kept up con-
slant communications with the confer
rees on the subject of restoring the duties
down to No. 49,"
The duty was fixed at so cents a 100;
and this Mr.. Searles, the treasurer of the
trust, said this duty would enable the
refiners to do IAN enormous business"