New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-15
PROPOSING A COMPROMISE
WILL The SUGAR TRUSTS BOOKS BE GIVEN
UP?
THEY MAY BE, IF THE INVESTIGATING shNA
TORS WILL PROMISE NOT TO MAKE

Trust and the standing of the American '"s -,
fnng Company at the Hotel Metropoe Seeue.a ..
The belief that a spirited debate between tho ,1
and the counsel for the members Of the 'ru', W..
follow an imperative demand for the books OF inc oo'
stituent companies attracted GOOD sIzeu auu''i
The question of the obligation Of the constituent WI.
panies TO produce their books. which was 80 W." 49,
opposed By Elhu Root at the former meeting Oh 'le
committee, was, however, not argued YESTERDAY -
tor Erwin. the chairman. was unable TO De pr ,o"'
owing to the funeral of his flthernla law IN fosud'''
and Senator Veddcr the acting chalrfnal' uiu '''
wish to preciptac the debate in his absence
The members of the committee have not chahgeu
their view in the least regarding their right 10 ue"u
the presentation Of any books which they de>ic l"
investigate senator CoggeshalI. prior TO the opening
of the examination, said that the committee was uc
termined to see the books and that there was no uoo
whatever regarding its legal right TO that PRIV 10
Judged from statements of Nr. Root during yeSter-
days proceedings, it i possible tldt' ue'P'to '0
earnest pr3testatlons made against the demand LOT %
books at the former session. objection VIII now pc
offered to their prescntation Mr. Root said that he
believed :. an arrangement could be made by whch
The members of the committee might see the books &c
sired. II would be- however. on condition thao 'hei'
contents remain with the members. ana that tiieS wv
not published to the business world Ia large. Although
no promise was made b. the senators as to their
actions it is possible that they will comply with inc
requests Of the membc,S Of the committee.
Before the close OF the session yesterday, Il. VI.
SHEPARD one Of the trusts counsel, asked the com
mittcc to set 2 date for the examination OF John H.
SearleS IT. the treasurer and secretary Of the trust anu
~ thc urrscnt corporation Mr. shepard sal that there
had been some criticism upon the faWc OF Mf. Sea"e'
TO appear before the committee, and nc wished 10 show
that Il had been uncaed for. Mr. Scarles had been
out 4 town. The counsel. however, had telecraphed
him to hurry home in view OF the announcement that
fine committee hoped soon TO finish It's Investigation.
He would be ready 10 be examined next week at the
pleasure Il the senators.
,lc->rs Root and Shepard again criticised the SEN
ators for examining witnesses who, they said, knew
little about the affairs of the trust of the company
Incorporated in New Jersey lat January They wished
10 have the Me>srS. avcmeycf placed upon the Stand
sidney = Harris counsel for the committee answered
however. that he not ready to examine the Have
mcvcrs at Yesterdays session. Upon this announce
mcnt permission was given them to leave the commit
tee room. They remained, however, until the end Of
the examination.
George c. Mugoun Of Kiddcr. Peabody 4 Co., and
one Of the mcoiporator, Of the American sugar Re
fnirg Company. was the iir,t witness Mr.. MaSOun
aid that hi, nm by request, had submitted the plan
reorganization TO She members OF the socalicd trust
That lad been done IN August l79O. In order to
do Mr MagOun. who acted a agent for the hrm ~
the transaction had employed accountants TO examine
the affair, Of the constituent companies. y. ). {.
Anderson auditor Of the trust, had furnished the
necessary information to the accountants What that
information had been. NJ Macoun prOfe>>ed not 10
know. lie had understood. however, that nothing hdd
been concealed by Mr. Anderson or hi, ao-oda'cs
The firm he aid. had connection whatever
with the old trust, II" could not swear thercio'T ilat
the report Of the accountants correct although
he had every reason to believe that il was 10. The
American sugar Refining Company has been "a san
lied, Mr.. Magoun said, IN NcvJcr~ev, with capital
Of 25OO0OOOU. ~ this capital $1,000 was in cash ::
~ 900 Of tha' amount had been furnished by himself
The ~ the aptal consisted 81 the prupcrti o'
lie vIrou, constituent complnc, forming the new
corporation. The property Of the constituent companies
had been transferred to the American sugar Refining
Company.
Mr.. Magoun explained that the SlO,OOO,0OO which
had borrowed by the trust had been necessary as
a working capital II had been used. he believed. t.
buy new me, ohandI,c for the constituent companies
He did know what collateral securities had been
gwen for that loan. The report Of Tire accountants
employed by K.Gder. Pcab dy CO. to examine the
financial condition Of the trust lad contained no refer
encc Mr. Mag0un admitted to the real estate possessed
by the constituent; companies. II was possible. lie
added that the report. L be- accurate. should have
contained valuation Of that real estate.
As to the advantages ~ the new corporation, Mr..
Magoun was somewhat de, ided. The cost Of produc-
ton Tor the various companie, had been 'educed con
~derably by the new coordination. Fewer salaries
were paid also. lie did not believe that the new cor
poratlon could prevent competition. Many rival cJri-
panes still nouri,h"d in various cities Of the tuion
Il was true howcvcr That competition IN general was
reduced by combnatI Of individual companies. MI
Mtsoun did not volunteer much information 10 VIZ.
Harris lie usually answered the coun>cl' questions
A, briefly a, possible He. however, refused 10 answer
no questions.
H. g. Mitchell. assistant Secptuy ~ the
Genital Tui,, COMPANY. the ncNt witness. His
testimony. however. was not important. aS u"
onlv explained the man"cr Il exchanging tie
Stock Of the trust for the certificate, Of the new cor
poration. About LOO share, -t remained oui >tlnd
ne.
Arnold g.. vcrriudcr. formerly boohkccpcr for the
finn Of Dick A. Meyer. in Brooklyn. constituent com
many of The Trust va, thea called 20 the witnc~-char
In answer to the question. Mr.. Nerriudcr said that he
va, now cmpoyod by the American sugar ErhHcu"'
COMPANY lie had kept al Of the books OF the Dick
( Never Company until the reorganization OF the Trust
Mr. Nc,indcr however. had no idea where tl~o books
were at the present time. lie had no' s'en them
Linz, Iaurafv TO- when lie mad surrendered cont:ol
~ them lie had missed them after that date. has
bo had not looked Tor them or asked any one H. -
vhero they were lie admitted that they had been
taken away lie had heard no one speak If uem
however, and did not knp" whether th"F We're IN inc
b,ildirS Of the New YORK Office At NJ. ~ N'at'
t.n,n CHASER examinations Mr.. Ncriludcr said that
rho rom, IN which the buoh> bad hcon kept had been
,,,,pi,d by himself and $50 other men. lie ccn'd
80. .,v that ANYTHING had been sand a. him by III,
,.sociatc, in regard 10 Ia" booh,. The room ia"
NOT bccn locked al al time, md VA
noslle that ;hc books had been taken away dnrinI MS
,..nr. from the room. He could remember hothn1
about them. -, . ,,
u uarr. after expressing a>toAi,hment AT lAe
answers Of the witness. You are not NerS com
he answered, Il have been accused OF having
n poor memory. , ,l.. h.. a.. ,r,LIc tn
-, INV ,uc with a good memory Al NO IL Wall
~ mi. answer caused laughter among the N'naHi ;
& II ,rurr- and Mr.. Harris excused the "l'-N' ai'r
x,rc'i,,r the hope that h. ~uud at Itd>l icHempc'
-, rrturu tn the stand on Monday. ,.
l" u,t,hic,,,u one Of the olo cr~ of the trust
,, ,hr had of the large refinery bearing NJ name
-, rcr.cv CIV was then recalled 1" lhc 'Ehr. VI
M ,r,,cr examination Mr.. MatEies,cn had icch aNNeu
w. ,r,,,r. "a statement of the profits of NJ htm uuH-
tbc few wear, preceding the formation OF tc t"' anu
Imrin,, tho r> i-teucc oI the tlh.t liScli
" . " u,tthc,scu.' asked Mr.. Harris, " nave you
~