New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-24
Mr.. HAVEMEYER TESTIFIES.
A FEW INSIDE FACTS AT LAST ABOUT THE
SUGAR TRUST.
REASONS FOR ITS FORMATION n ITS RE
MovAL TO e JERSEY-DENYING ANY
TO RAISE PRICES
THE Mkt BILL WILL

Ms ihiNIo
II M'KINLEY BILL WILL
LowER THEM
Tho members Of the Senate Committee on General
Laws. who resumed their Investigation OF the affairs
OF the Sugar Trust and the American Sugar Refining
Company at the Hotel Metropole yesterday. were con-
siderably surprised by the apparent willingness to
testify manifested by Theodore a. IIavemeyer. the
principal witness Of the day. The sergeantat-arm
, had some difficulty in finding the ex- president of tho
Sugar ReinerteS Company In the early days Of the
investigations, but he has been a faithful attendant at
the sessions of the committee for several weeks. Al
though the examination OF the witnesses brother.
ii. q. Havemeyer, was not finished on Saturday, Senator
Erwin decided not to recall him to the stand until the
Senate had passed upon his right to refuse TO respond
to certain important questions proposed by the COM
mlttee. The chairman said. In fact. that it was posi-
bic that Mr.. Havemeyer would be summoned to Albany
In consequence Of his d.sobedienceo Of The request Of the
Senators.
No such threat. however, was necessary in the case
OF Theodore A. Havemcyer. AS far as his examination
went yesterday. he answered all questions proposed by
the Senator's or by sidney s. Harris and Perry p. Coke.
counsel for the committee. He added voluntarily much
Information regarding the trust and the present com
pany, which was incorporated in New-Jerscy on JAN
uary 10. Whether he will be such a dOcile witness
next SATURDAY. when his examination is to be con-
unued. remains To be seen.
In answer to the usual Introductory questions, Mr..
~liavcmeyer said that he lived in Ncw-Jersey and had
been In the sugar business since 1853.
Why did you desire the formation of the Sugar
RcfnericS Company. commonly called the trust ~
asked Senator Erwin.
Mr.. avemeyer hesitatcd in answering. and Senator
Erwin invited him TO continue his testimony.
"Well,' came the answer, 81 am thinking. I do
not think II would interest the public to know. Be-
sides. | might say things which the committee would
not like"
"Say whatever you wish.7 replied the chairman.
" We shall be able to stand it,"
In following the advice Of the chairman. Mr.. Have
meyer said that his refinery had been burned down
In 1857. For some time he was in doubt whether 10
rebuild it. Owing to frequent changes in tie tariff
he had begun TO think that it was not safe TO be in
business In the United States. The large amount Of
money invested In the refinery. however, had induced
him TO change his mind. In eighteen months he had
spent 81 900 600 in rebuilding and improving tho
works. The worry Of that time had affected his
health. and he had been obliged 10 go to Europe.
DECIDING UPON A CORPORATION.
al made up my mind he continued, during my
absence abroad, b put my property in a different or
divlSiblc shape. if the opportunity presented itself.
In case Of my death, | did not wish to saddle my large
Interest upon the other members Of the firm. ! came
back fully decided to turn the firm Of llavcmcycr ~
Elder into a corporation. There was one obstacle to
that. however. That was the capitalization If tho
Urn. ! uu not lNlnk III proper, WHICH, le IIoIcIlN
was worth millions, 10 capitalize it for less than its
value. But II capitalized 1t at its full value, I would
be placed at a disadvantage. compared with my com
pctltOrS, owing 10 the large capital tax. For IN
stance, on a capital Of Sj.OO0.0O0 In this state our
tax would have been 100000. In Philadelphia. bust
ness could be done with no such tax. In the year
I-77. John f. Parsons, who probably knew what was
going on I'm my mind. called upon me and said that a
proposition had been made BY certain parties to pur-
chase my urupertv. After consulting my brother, We
decided 10 accept as a substitute for our interest In
the firm Of Ilavemcyer & Elder a certain number OF
certificates Of the sugar Rcfnerics Company
As TO the value Of the property Of liavemeycr &
Elder at the time the firm Joined the trust. VT. have
meyer seemed uncertain. After some questioning he
admitted that the properly consisted OF twelve blocks
II ground and the buildings. Each block was worth
about $3.50. 600. The rcfneries themselves had been
worth about $4,000 900 without the good will OF the
firm. lie would not have sold the property for
600. 600 900. The property Of the firm OF liavemeyer
d Elder was especially valuable on account Oh INC
patent processes In possession OF the company. Tho
Havcmcyer family had been In the sugar business since
100.
Al this point the witness became somewhat boaStful.
81 formerly refined - per cent Of all the sugar used
I'm the country he said. Between 1870 and loro |
drove twenty five rchnerics out Of business. | was
looked upon then as a m0nopolist. as am locked upon
TO day BY this committee Why? Because | could
do better work. When | was summoned To Washing
ton TO testify befpe the committee in Congress. l
showed why could underSell the men whom | had
d,iven ont Of business. Those men attributed my sue
cess TO cheating the Government and 10 adulteration.
They did not understand why | was the only man who
succeeded. The committee learned upon investigation
that. on account Of the situation OF my rehnerico ana
my patent processes. | secured my coal cheaper 10y
twenty two cents a ton than my coinpctIt"s' tat /
saved money on the raw sugar. etc. That was the
simple explanation. That Is the explanation why the
! American sugar Refining Company to-day. working
under our system. can produce sugar cheaper than
other firms. There was no monopoly at that time;
there is no monopoly to-day
PHILANTHROPY MOTIVE.
"But,n asked senator Erwin, "why did You wish
10 hiring other companies into the company or corpora
toni"
"Rcrausc.- came the answer, 81 believed that I
conld nut them on the same basis as our own company.
There has been considerable talk about the companies
which have been dismantled or discontinued since the
formation Of the trust. 1t is true that some Of tho
rcnnerles arc not used any longer. Tut the capacity
of those remaining has been increased. some of tho
companies were too far from the water. Others
lacked other convcnicnccr. II was for these reasons
that they were discontinued. The price of sugar has
been lowered in consequence of the formation "i the
trust. The present price of graduated sugar Is olf
cents. The price depends upon the cost OF the ia"
sugar. the cost Of the refining process and tie proht
which the IetinerS make. AS a rue' WI oNuS NV
pounds of sugar refined We wish to make l cent
Mr.. IIavemcyer was indignant at the innocent sue'
gcstion Of the senators that the triNts ana the Alherl-
can Sugar Refining Company could control the price
Of sugar.
But lie said, YOU forget that We refine only
90 per cent of the sugar used In the country. we
have the other % per cent to contend against VINO
arc they Harris Frazer and Company 'laus Sprech
els. the Delaware sugar Refining COMPANY, me baitI,
more Comuany. etc. The retncricS of SpfechcL ana
Harris Frazer 4 Go. have each a capacity Of 2,OoC,oOo
pounds OF sugar n day. >preckcl' desired to bliid q
refinery here in this city. Philadclphla oHcFcl WIh
MARI. iIndrcrncut, aud he went there. such rciin"rle,
shn1ld not be driven away from thi, city,: Moller' OF
I%rno,Iyn. ha, also built Il refinery m biltlmOrc'
secured advantages in that city. We desired to remain
In S.rA ,p.f alH"