Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-03-25
THE SUGAR TRUST.
Mr.. Havemeyer Tells of Its Origin-An Al
legged Scheme.

In the investigation of the sugar trust by the
New y Ork senate law committee the other day in
New York Mr.. Havemeycr was asked to give
full and frank account in his own way of the
conditions under which the so-called trust was
formed. Witness said that in 1883. when his
Brooklyn factory was burned down. he did not
think il safe 20 rebuild in this country on ac-
count OF possible changes in the tariff. After
some consideration, however. he did rebuild ut
cost OF 81 900 600 in eighteen months. These
months Of mental labor connected with the re-
building nearly cost witness his life and he was
forced to go to Europe for two years to re-
euperate.
I'VE did not capitalize the company" he
said. lat its full value; this would have placed
US at "A disadvantage rs to competitors who
were not forced to pay the taxes ths We were.
The capital was put at 800. 00O. After consul
tatiOn with my brother We decided to submit
our interest and stock 70 the trustees of the
Sugar Rehners' Company and received
therefor certain amount OF sugar refiners
certificates of stock"
Senator Vedder-What did YOU receive for
your interests?
Witness said he considered that a private
matter which ne could not answer.
O. i understand you to say that You placed
the s500.O 900 capitalized stock with the trust?
A. do not understand the question.
Q. At how much did you place the value of
the plants. &c. when YOU joined the trust? A.
Ii would be difficult to say. / would. if I could
tell you what / received for it, The plant
Represented the experience of generations and
private patent process, the value of which it
would be utterly vain to attempt to estimate.
Q. Can you not place a value on it? A. Well
say, Sl5,0O0, 600, without considering the good
will.
The witness then reviewed the history of the
firm. His grandfather and father had preceded
rr1t hfr =. 4
ancestors experience and his own discoveries
witness had been enabled 20 manufacture more
sugar in day than his father had done in
year. He had reduced tine cost from pa cents
to q of cent, of which the public had re-
ceived the benefit. He was looked upon as a
great monopolist. but that was simply because
be did business on an immense scale and could
make sugar cheaper than his competitors He
denied that the refileries' COMPANY tried to
control production. The reason why the COM
pany was organized i'll New Jersey was that
the laws of that state gave greater powers to
corporations. the fees were cheaper and the
whole capitalized stock would not De taxed. a.
in New York. The committee adjourned till
Saturday.
SCHEME OF THE SUGAR TRUST.
The New York Herald says that the sugar
trust have mapped out fine scheme by which
they will save themselves from the losses which
it was likely 10 incur because of a big over pro-
IOr ou aDri i the price OF
graduated sugar Will abruptly go down 10 AZ
cents per pound. This is because of the
change in the tariff. Today tho Price il 81
cents The trust over estimated the March de-
mand and now find themselves overloaded
with sugars manufactured from duty paying
raw material. Ii this stock is carried beyond
April the loss to the Tefiner will amount to
considerably oyer cent Per pound. ag-
gregate loss to the combine close to half mil
lion dollars.
As outlined by we!l-informed sugar men the
scheme OF the trust seems tc be nothing short
OF deliberate move to make the government
pay over to the trust for its March sugars 2J5
cents pound This p cents is the drawback
the government allows for export sugars. ami
this Is precisely what the trust is after. II has
been noticed for some time past that the trust
has been engaging freight room for Glasgow
on a liberal scale and the popular opinion is
tEat these sUsars are going abroad 10 secure
the drawback. and furthermore that they are
COMING right back again to be sold i'll this
market at The April price.