The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1894-06-14
THE SUGAR SCANDAL.
The Testimony Taken Before the Gray
Commltte-.

The Testimony Taken Before the Gray
Commltts-.
washington, June Is. = The vice
president today signed the certificate
to the district attorney OF the refusal
of Z. r. Chapman. New York broker,
to answer questions OF the sugar trust
investigating committee. Havemeyer,
who expressed a willingness yesterday
to give the amounts OF the sugar trusts
contributions to the campaign funds,
declined to do so today. As he was adj
visad under the resolution this was no
part OF the investigation, the committee
accepted this view, as witness had
sworn that no contribution had been
made to secure the election of United
States senators. Gen. John E. Searles
appeared before the committee at 3
O'Clock.
H. P. Burney, one OF the room clerks
ct the Arlington hotel. said Senator
Brice had been in the habit of calling on
Mr.. Terrell, but that he called there no
more frequently during his visits last
winter and spring than on former occa-
sions.
Mr.. Havemeyer stated that In the last
three years the profits of the trust had
been three-eighths OF a cent per pound
on refined sugar, and the increased cost
to the consumer under the proposed bill
would be a cent O pound. He admitted
that the object of the formation OF the
trust Was to increase the cost to the
American consumer.
Senator Allen--And when you did
form the trust you did advance the
price of sugar to the American con-
sumner?
Havemeyer-We did; it was an ad-
vance of about quarter OF cent net.
Allen-And the American consumer
today ia paying g Of a cent pound on
refined sugars more than he would be
compelled to pay under system OF sep
arate refneries?
"Yes. SIR"
"If the trust were wiped out the
American consumer would be benefited
to the extent of three eighths of cent
pound on his sugar."
II will admit that but anything that
will wipe out the trust, will wipe out the
industry"
John A. Searies, secretary and treas
urer of the American Sugar Refining
company, was the subject for the COM
mittee's questions from to O'Clock.
He frankly admitted he made it his
business to influence Legislation favor
ably to the sugar trust, and that for this
purpose he had called upon and
labored with many senators. The
witness stood upon his rights,
however, when asked about campaign
contributions, and declined in several
instances to answer questions on this
subject. He declined to state the
amount expended in 1892 on the ground
that it was not within the province OF
the inquiry.
''Do you not" asked Senator Allen.
decline to state simply because you
know it was disreputable and unlawful
to contribute this money!"
mo, sir, do not admit anything OF
the kind" replied Mr.. Searles.
"Do you think it is perfectly laudable
for the American Sugar Refining COM
pany to contribute large sums of money
by the thousands of dollars for the pur-
pose OF influencing elections in this
81 have always understood for many
years that it is the custom of both par
ties to solicit from corporations and |
contributions for the carry
ing on of their political cam
OF oorperationa and ludivluuals u 10.
spond to such invitations. And with
that understanding, and with what l
believe to be the general custom, the
American Sugar Refining company has
made such contributions at times"
"Do you believe it is perfectly proper
for a corporation, said Senator Allen,
1.-THE value of whose stocks may be- ef-
fected by national legislation, to con-
tribute its funds to the success or defeat
Of one political party or the other"
81 think as as parties are now man.
aged, it is proper"
sand the American Sugar Refining
company, as a company, was actuated
by high sense of patriotic duty in con-
tributing this money, / suppose ?"
THAT is pleasant way OF putting it,"
responded Mr.. Searles.