Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-04-05
BITTER OVER SUGAR.
A Lively Tilt During the Trust
Legislative Investigation.
Mr.. HAVEMEYER DENIES CHARGE.
One Senator Tells Him the Trust People
Ought to Be in Prison.
ANOTHER REFUSAL To PRODUCE BOOKS

FestlSdtlnS the OuSar Trust met tO-uay.
John o. Havemeyer testified that the charter
was first obtained in Connecticut, but after
ward it was resolved to go to New York and
do business. The American Sugar Refining
Company had nothing to do with California
refneries. There is nothing in the report
that the reineries were going to combine
and raise prices. The cost of refining here
was greater than in any other country.
A letter was handed witness and he was
asked to read it and tell what he thought of
1t. The letter was dated March "a, and was
addressed to the chairman of the Sugar
Trust investigation. 1t stated that last
week an agreement was entered into be-
tween the Sugar Trust and all other Amer
lean rehneries on the one part, and principal
wholesale grocers on the second part, that
the American re6neries are to allow or pay
the grocers h of one cent per pound, to-
gether with per cent discount, if the bills
of sugar are paid within one week from date
of sale.
Pronounced the Story a Lie.
In return. the grocers pledged themselves
to boycott. or not to purchase any foreign re-
meyer said that the whole thing was lie.
John E. Searles, Treasurer of the old trust,
then took the stand. Witness explained
his duties. He had been in the sugar bust
ness 25 years, and had been Treasurer of
some of the constituent companies. When
he became Treasurer of the trust he gave no
bonds. Treasurer Seares was asked why
the St. Louis Sugar Refining Company was
shut down, and explained it by saying that
the refinery in that city was used to refine
Louisiana sugar, and that when it entered
the American Company it was closed to fol-
low the cheaper process BY increasing the
facilities to Louisiana. The refinery in st.
Louis was put in perfect running order,
ready to open at "a hours notice in case of
accident to the Louisiana houses. The
margin between raw and refined sugar had
been smaller since the formation of the
trust. He was of the opinion that if the
manufacture of sugar in this country was
under one management, it could be supplied
to the public at cheaper rates and with
more profit to the reiner then ne could OBJ
tain through single operations.
Why the Connecticut Charter Was Taken.
Mr.. Searles then explained why charter
was taken out in Connecticut, and why the
company was not formed there. The char
ter, he said, would have allowed the re-
fners to carry on the same business that had
been declared illegal in this State, and by
advice of counsel the plan was abandoned.
A long discussion ensued between the
witness and Senator Irwin, on one hand,
and Messrs. Havemeyer, Root, Harris and
Vedder on the other. as to the production of
the corporation books, which has hitherto
caused so much argument. Mr.. Root offered
to make an arrangement whereby one or
more, of the committee could be afforded
private examination of the books, about GER
tain points to be settled upon in advance,
and remarked that he did not see why the
committee should wish to examine the
books, anyhow. Mr.. Irwin fared up and
said he would enlighten the counsel.
"Let ME tell you what many well-in-
formed people say about this matter" he
said to Mr.. Root. sit is said that your div
ldends are made by operations in Wall
street."
Here Mr.. H. o. Havemeyer answered
sharply, well. you may tell the public
that all such talk is false-utter rot"
Ought to Go to the State Prison.
Senator Irwin-If 1 had proof of all I
have heard you all ought TO be in the State
prison-if the charges are true.
I. A. Hayemeyer then grew angry and |
said he objected to being called a fraud bv |!
the Chairman, who, he said, was acting as |
judge before the case was tried. Some |
lively speeches passed quickly then, and |
Senator Irwin intimated that they ought to
produce their books to disprove all accusa-
tions against them.
Finally Mr.. Searles, under oath, testi6ed
that no money paid into the treasury of the
trust had been the product of Wall street
nd hat
ever been INDUCED in by the trust. Mr..
Searles stated that to his knowledge there
was no arrangement Tor division of the
country between Claus Spreckels and the
American Sugar Refining Company. Mr..
he said, had made sort of an
of a personal nature with
Spreckels that did not affect the company.
Hayemeyer Can't Produce the Books.
Harry o. Havemeyer was next called
lnder a subpoena requiring him to produce
he books of the constituent companies. Mr..
Harris asked il he would produce the books,
Ind he answered that he was unable to do
10. Even the books of the Havemeyer and
Elder Company he could not produce, as
hey were not under his control nor in his
possession. The witness said they were re-
moved to New Jersey under his direction,
md, although he WAS now President of the
American Sugar Refining Company, he
:ould not have brought them over here, as
hey were the property of the corporation.
The next witness was Edward Adams, an
1pert accountant and the American repre-
entative of Lloyd. Griffith & Co., of Lon
lon. He made an examination for the pur-
,ose of learning the standing OF the Sugar
rust at the end of August, 1890. He only
aw the trial balance sheets of the various
companies, and, after testing
hem, made his report. The committee then
djourned until Monday.