New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-06-14
TRUST VIEWS ON TRUSTS.
MESSRs. HAvEMEYER AND SEARLES TELL
ABOUT SUGAR.

ABOUT SUGAR.
HOW THE PRICE TO CONSUMERS HAS BEEN AT
FECTED BY THE CoMBINATIoN OF REIN
ERIEs INTO ONE BIG CoNcERN-rRoFITs
or S2oocoOoo N THREE YEARS.
Washington. June 13.-Three witnesses were
examined by the Sugar Trust Investigation Com
mittee to-day. They were Ii. o. Havemeyer'
John +. Searles. the treasurer OF the American
Sugar Refining Company and II. p. B.rney'
chief clerk Of the Arlington Hotel. Mr. Have
meyers testimony was brief but interesting. His
examination began with the question OF Senator
Allen which was lef, unanswered yesterday.
This was read. follows
So far as am concerned. request Of the wit,
ness MIR IIavemeyer, to produce fu data as 10 all
money contributed by the American Sugar Refining
Company or any OF its officers; on its account or
in @ 5 ana @ for 2Son 9a of local 5S any '0
Mr. Havcmcyer-Whie l am perfectly willing to
answer any material matters, under advice OF coun-
sci I decline to answer about outside matters. |
decline 10 answer about local contributions. | know
Of nothing given to the National campaign. There
exists bargain Of any nature ana never
claimed that the company entitled to anything
except what its merits required.
O-Is that the anawcr you desire TO make 10 this
question A.-That Is the answer.
q. DRy Senator Allen)-You may state, II you can.
he difference of protecting your industry under the
Mckinley act and what 1t would be under this
act ne II IS framed In the Senate. under the
Wilson act with tho Senate amendments now being
considered? A-tnIer the Senate amendment 1t is
about onc-quarte- what II is under the Mckinley
bill
a understood YOU 10 say yesterday that owing
20 the existence OF the American Sugar Refining
Company. and your ability TO control the output Of
ff,. lag laQf
bringing to the people Of the United States three
eight. Of q cent a pound more than II would under
system of free rehncrics. Al think my testi-
mony was tina: the profits % the American Sugar
Refining Company had been threc-eightns Of
cent FOR three years
Q-Yes. and understood YOU to say that sugar
was brinein; 10 the American people a little more
under this system OF the Trust than it was under
The system II free rcrneries A.-Ycs. sir
After some further questioning. the witness said
II you ~ili allow me. | viii state that since the
with the protection granted under the Mckinney
law. as 1t IS called. the sugar rehning iniusTy
has made profit Of thrcc-eghths Of cent a
pound on It's sugar
COMPETITION FORMERLY RUGNOUS
Q dlv Senator Davs)-Do you mean to say
that three-oighihs ~ a cent pound would not
have been made In case the sugar refining Industry
was conducted by independent roincr.cs all over
The country \ Yes. sir ! mean - state that
before the formation - the Trust the competition
aroug American rcnncries was rIlnoIs.y dis
asirout
. r., whorn. A-To the owners ~ the property
and the capitalists Engaged in the business
y-Do you moan % say after thcy got together
ana combined lu Tho shape % what we call the
Trust that sugar cost ihre"-eigh'hs - cent
mound moro ,han 30 would otherwise have cost
under pr.yl conditions A-JnI"- conditions
if,uela,cl, preceding thc formation - the Trust,
Yea irre.-.. .ghihs 90 a cen; a pound But taking
,n. i'ni. of six years since the formation ~ the
Trust, the cost 20 tho purchaser has hcNn less than
u would have been three years previously
o. d}y Senator Lodge What has been tho re-
Il.tl,u u price % 'he consumer since l@"' Al
.bou.d think lt wa nearly cents pounl
% O-Ta,. has been the reduction Of price - the
consumer Ayes. SIR.
. what would you estimate ,hc increased price
p, the consumer unl~r th' proposed bhf "A
cent pound from the present price.
- ,ry senator Gra.J .Di .yoI claim yeS''fIiy'
,,. d., ,ou claim, nov by reason - the economies
fsa, have restel from ihc consoiiiaton ~ thc re-
0ncri,. that thc price of sugars has been reduced
below what u otherwise would have b'"n. win ~
reference 70 thr.n or ANYTHING "is"' A-N' sir. |
.l., ro, maxi. shat statement made statement
fh,t tn. margin between raw and refined for th"
,lx ycar---.rce ~ formation of tae Trus had been
,..- than ih. slx years prior 90 the formation ~
"a, Trust and tnlt advantage accrued to Oh" COW
.uucr ~ a certain per. there was duty ot
oyer . cents q pound on sugar NA'nrlily "hen
That vls removed under tn Mckinley bill Oh" pub
u. ,o, .ne benefit of IT, but tn refining IN
listr, is concerned merely with "a" margin between
raw arl refined sugar T. is In that margin that
,c cos, of expenses the d0erenr" IN the degree of
tolariztou Il Tho sugar and the profit o the Ameri-
can Sugar Refining Company. comes in lf That mar
s.r - larg. IL is az the eNpens" of the consumer
II that margin is small. 1t is to the beneht of the
consumer.
ABLE TO KEEP FOREIGN SUGAR OUT
o DIV senator IAndsayj-Is not this the further
r,ct thai ~. Trus.. being able 10 fix IN" price In
,m.rc, has Il not been the policy Of the Trust ~
nN II lust low enough to keep out refined sugar
made IN foreign counir.s A-rhlt Is IN" bust
ness, practically. Of the American Sugar Refining
Company.
o ANA you have SO nx~l It as 70 practically ex-
..rdc au foreign competition? Ayes sir; as pro
,.c,ion 10 .ur own business every pound Of foreign
,,icar consumed IN this country Is az the expense
~ m. American Sugar X nning Company. and any
dininution Of the meltings of the Sugar Refining
Company means an increased cost h them OF manu-
f1cture.
Some more questions about the cost OF sugar
here and abroad led Senator Lindsay 10 ask II
the German consume~ was not compelled To pay
tho German grocer one cent a pound more than
the American consumer pays the American
grocer and Mr. Havemeyer answered In the
affirmative"
O. dy Senator Gray)-Iy reason II the tax that
Germany imposes the purchaser A.-Yes Sir
Mr.. IIavemcyer said that under the Trust the
number Of rcfinerics had been reduced from
twenty to seven. and the capacity represented
had been Increased from 65 per cent to so per
cent The twenty rchneries before the existence
Of the Trust had been able 10 exist but not TO
make any money.
nose Of the formation Of the Trust. as | under
stand YOU. was 10 advance the price OF sugar to
the American consumerg'
yves sir" was the frank response.