The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-07-23
ALL ONE SOURCE.
Origin of Senate Sugar
RumOrs
TRACED TO AN INDIVIDUAL
Not Resident of Washington,
but His Name Guarded.
HARTER WRITES TO HAvEMEYER
Some Very Pointed but Polite Ques-
lions Put to the President of
the Sugar Trust.

WASHINGTON, July %. - The Senate
sugar trust investment committee is de-
voting itself to the branch Office inquiry,
which it is now pursuing to ferret out the
origin of the rumors affecting Senators,
and the members of the commi ttee are of
the opinion the stories accusing the Sena-
tors OF speculation in sugar stock aud
having been Influenced in their attitude
toward the tariff bill by friendly interest
in The sugar trust have had common
origin. and they now think they have OBJ
tanned clew which will enable them TO
develop the source of all the statements.
The testimony given by the witnesses
before the committee yesterday point to a
certain individual as the party responsible
for the charges which have been set afloat.
He is not resident of Washington, and
his present whereabouts have not been
definitely ascertained, but il is understood
no effort will be spared to find him and
bring him before the committee and thus
give him an opportunity to make good the
charges.
There Is an impression among members
OF the committee that he had sought to
avoid appearing before the committee
while striving TO give 1t all the work pos
sble. The name of this man is sacredly
guarded, and it is understood that he de-
sired to prevent his identity becoming
known. The committee is not impressed
with the truth of the charges, but the
meE bers of it take the position that it is
due to Senators whose names have been
mentioned in this connection and to the
country at large that the facts should be
known.
The following letter from the House
subcommittee on Trusts to the president
of the American Sugar Refining Com papy
was mailed to-day:
81. o. Hauemeyer, Esq. President
american Sugar refining Company. Nep
YOrE-DEAR SIR: Ii you will supply to
me, as chairman of the sub Committee On
Trusts and Manufactures, the information
asked for herein l will see that il is laid
before the public.
"a free trader myself and believing no
tax should be levied on sugar (or anything
else) except for revenue; nevertheless, as
practically every article of general con-
sumption Is to retain protection, feel no
prejudice against the sugar interest as
such aud / think large number of men,
bers of the House entertain the same view.
As. however, the sugar trust demands
protection, or more properly speaking, The
taxation of the public for. its profit, it
should be put before Congress and the
public in Its real condition so an nteili-
gent opinion of the merits of its demand
may be formed. Ii, upon an actual and
necessary investment of cash capital, it
can save yourself from loss without bur-
dening the taxpayers, then it has as much
justification land more) for being fed from
the pu bic resources by taxation, as many
industries which we aid in passing the
Wilson bill are allowed to remain on the
charity list. If. however. its profits have
been excessive, when figured up on an &C
tual cash apd unwatered capital stock,
then you, as fair-minded man. will agree
with me that you should not have any
Legislative favors. In such an event tax
of / cent per pound upon 100 degree sugar
for revenue only would be fair and
equitable one, permitting reduction of
ne-hundredth of a cent for each degree of
swee tness lacking. Such tax as this,
while taking nothing to the treasury OF
your company, would pour great many
millions into the Government Golfers The
in formation asked. for is comprehended un-
per four heads.
"First-Wbat IS The present tax value
i. e., cost of replacing of its plants actually
in operation and necessary to produce
quantity OF refined sugar turned out by
your company?
'Second-What have been the actual
profits of the American Sugar Refining
Company for each full fiscal year since its
ganzation, and what are its profits so far
in the current year?
'Third-What annual salary is paid TO
| each Of its general officers?
"Fourth--What is the actual paid-in
| cash capital, including the plants turned
in at their real cash market value, and
what is the present surplus fund of the
company, including all individual profits
"The Mckinley bill gives the sugar re-
| fpers an opportunity of collecting from
| the consumer tax of one-half cent
| per pound upon all sugars above No. 16,
| Dutch standard, and the consumption OF
| all classes of sugar during the past three
| fiscal years aggregated 1856, oO2, 446
pounds, fully nine billion of which were
| above this limit. 1t follows therefore that
he sugar trusts independent retiners in
the United States must have received over
| S40.000.00O of the peoples money, while
the Government got during the three years
S470,7 5l. AS your company asked certain
favors. the proprety of supplying the
] country with the information asked herein
will not be questioned by so reasonable a
man OF business as yourself.
| You are Democrat and will, l trust,
| join me in the hope that within a few
years the present wretched system of taxing
the people (under the misleading name OF
protection) for the benefit of private inter-
est will be done away with entirely and
forever. Yours. truly,
| michael ID. HARTER."
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