New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-02-17
THE SUGAR TRUSTS AFFAIRS
AN INVESTIGATION BEGUN BY THE SENATE
COMMITTEE.
prp11c ACCOUNTANT TELLS WHAT HE KNOWS
OF THE TRUSTS CONDITION, BCI
SAYS THERE WAS NO RECORD
OF ITS EXPENSES.

OF ITS EXPENSES
An Investigation Of the affairs Of the Sugar trust
- terun AT the Hotel MetropOle yesterday morning.
-. the senate Committee on General Laws senator
r-U,n chairman Of the committee. presided SeliA
tors Brown, Chase, Co-ce,hall, Cantor ana Ne"uoi
rere present and aided in the examination Oh 'ho
,r.nesses The examination was conducted by slahey
= harris and Percy b. Coke, counsel of the conh'o7
ava FIihu Root and Edwin NJ. shepard, who appe'tc'
Cor the sugar combination. A large audience was
attracted by the announcement Of the purpose OF tc
committee.
II was expected that General Henry W. slocum
would be in the witness chair yesterday, Dut Het'or
Erwin decided TO excuse him because of his duties !"
connection with the arrangements Tor Dehefai 'hei
mans funeral. l..
Inc first witness was william Crosby, CLERK IN
the Office Of the County Clerk. His examination
was unimportaIt as he testified only that he ha'
placed In the possession OF the committee the papers
relating to the of the people against the NoI.
River Refinery with decision of the Court OF Appears
declaring the corporation Illegal.
Mr. Crosby was followed by J. Walden, public
accountant Of No. A West Ninety fourth-St. VINO eA
amincd the books OF the Sugar Trust after 1t had
passed into the control OF stephen " White, Geneiai
slocum and H. o. Havemeyer the receivers MT'
Walden said that he had been employed on NoVeinvci
10 1890 by General Slocum to take charge Oh uo
Investigation OF the accounts lie had KNOWN no
one else connected with the trust. He had oompe'cu
his work on January TO- 1891. the books. wihch
consisted Of the stock books transfer books ca'n
books ledgers, stub books and dividend poonS'
among others, had been given to MIN Oy JONI
E. Searles IT., treasurer OF tire trust Inc
books had numbered 100 Mr.. Walden said uidl IL
was difficult TO say whether those books were snclei'
To show the condition of the trust. In ouer 10 iaAo
a thorough examination of its affairs the BOOKS OF uo
constituent companies forming the trust PROBABLY
nj ".
searles for these books but he had been unable to gel
them. He knew nothing of the affairs of the trust
prior to November II.
In regard TO the assets of the trust MI. ia'uen
answered that he had understood that certain stocAS
had been turneasover to the receivers when ana ho'
appear upon textbooks. The assets which appeared upon
the books had been loans granted to constituent com
NAMES There were no check books The witness said thai
he had applied to Mr. Searles twice for the cheek
hooks He had been obliged, however, to content
himself with the stubs The cash books contained
records of the money paid in by the constituent com
paDes as their profits for certain periods. The ONLY
means Mr. Walden said that he had of finding out
The date Of the foundation of the trust was tho
date of the first deposit recorded in the check
books deposit of $19.721 has been made in the
First National Bank April IS, 1855.
Mr. Walden admitted that he had not obtained
possession Of a number of bank accounts MI
searles had replied TO his request for them that he
had surrendered all Of the books in his control
Mr. Walden also wanted the minutes of the various
meetings of the trust Mr. Searles had replied at the
time however, that all of the meetings had been In
formal and that no minutes had been kept. Mr.
Walden, according TO his answers was also unable TO
get information from Mr.. Searles as TO the relation
of the constituent corporations to the trust.
"Were the expenses of the trust heavyf" asked
Senator Brown.
"No record of any expenses whatever was found on
the books" was the reply.
The names of the constituent corporations making
I'D the trust and the amounts of profits which they paid
into the trust between April IS, 1888, and Jnne
500 were given 10 Mr. Walden as follows:
Uayeuever & Elder Rehneres S27 436 -
Brooklyn sugar Refinery Company a0o4225 ~ ~
Plaaters' Company 200 oU3 90
St. Louis Company CO. Zoo IN
Boston Company 600 90
bay Sttt9 Company go 600 90
AnefSsa pWechcrs Company 4500O92 -
LIN "a 1Io,or,Dy .......... 100 coo Oh
These sums Mr.. Walden said. made total OF more
{1an 81 100000 in profits in two years and two
months As TO the disposition of the money, the Wit
ness said that S74, 900 had been deposited win the
Winthrop Gray receiver Of the North River Refinery.
The rest of the money had been paid 10 the certcate-
holders. There had been nothing IN the books 10
show the reason for the failure OF the Norjh RIVER
Of the trust. At times the trust had made. ne sld
loans TO certain constituent corporations Whlch hau
wished 10 make Improvements. The dividends OF me
trust had been ABOUT IL per cent quarterly. MI
Of the trust as he had nothing in the books 10
I'm reply TO Mr. Root, Mr.. Walden said that the
books Of the trust showed that all moneys which han