The Portland daily press., 1891-03-24
THEODORE HAvEMEYER ON THE STAND.
He Describes His Great Sugar Re-
filming Business.
Says II Is Of Almost inestlma-
BILE Value.
Tells Why He and His Brothers
Joined the Trust.

NEW YORK, March 23.-Theodore L.
Hayemeyer was on the witness stand today
before the Senate Law Committee. OF the
committee only Senators Irwin and Vedder
were present. Many OF Mr. Havemeyer's
answers and the remarkable tone of frank
ness he adopted surprised the committee not
a little He was asked to give full and
frank account in his own way OF the condi-
tions under which the so-called sugar trust
was formed. Witness said that In 1883.
when his Brooklyn factory was burned
dawn, he did not think 1t safe to rebuild In
this country on account Of possible changes
in the tariff. After some consideration he
did rebuild at cost Of S7,0Oo,00o I'VE did
not capitalize the company at Its fnll value"
said the witness, "as this would have placed
us at a disadvantage as to competitors, who
were forced to pay the taxes that we were.
The capital was put at S500,0O0. After con-
sultatiOn with my brother, We decided TO
submit our interest and stock to the trustees
of the sugar refners company. We received.
therefore, a certain amount OF sugar rehners'
certifcated stock"
Senator vedder-What did you receive for
your interest?
Witness said that he considered that pri-
vate matter. which he could not answer.
~ uOW luuOh aA0 Jo0 paw shc NssaO
the plant, etc., when you joined the trust 2"
"It would be difficult to say. l would Ii
could tell you what received for 1t. The
dlant represented the experience OF genera
tlons, and private patents process. the value
to estimate"
"Can you not place value on it?"
Say $Si55.,!ooo,OOo without considering the
Witness reviewed the history Of the firm.
His grandfather and father preceded him In
the business. With the benefit Of his an
cesturs' experience and his own discoveries,
witness was enabled to manufacture more
sugar In a day than his father did In year.
cents, Of which the public received the bene-
''At this time" witness added, I'VE did
fully 25 per cent of the sugar refining in this
country"
Senator Erwin-"Now. will you tell us,
Mr.. Havemeyer, what your reasons were for
joining all these other companies?"
Witness hesitated and finally said: II
wanted to put the other organizations on the
same footing with us we were able to refine
sugar ten cents hundred cheaper than they
could. We have been repeatedly accused OF
controlling a monopoly. These people la
bored under the supp0sition that we were
conductiny our business Illegally. | had to
go to Washington and had had fight to con-
vince them OF the true state Of affairs"
Havemeyer Bros. were able to conduct their
business on such paying basis.
They were not forced to pay wharfage,
brokerage, warehouse charges, cooperage.
etc. This enabled them to save large per-
centage before they began refining imported
sugar. He explained that the sugar refining
business had come to a point In this country
where 1t was necessary to have concentra-
tlon of energy, capital and brains to make 1t
pay. Mr.. Havemeyer repeated continually
that he was anxious TO give the committee
the fullest information In his power. The
testimony given was as near as lSenator En-
win could get him to come to the real rea-
sons for joinidg the trust. He left it to be
Inferred that the reason which mainly gov
erned him was the general welfare Of the
public. He was asked a number Of Ques-
tions as to processes and methods In use by
the Havemeyers, which enabled them to re-
fine sugar cheaply. His chief objection to
making these and other ''priyate" matters
public, was that his competitors and the
public would benefit without any right by
the years OF labor, experience and money
expended In the evolution Of these processes.
The investigation was adjourned until next
SATURDAY.,