The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-16
SEARLES ON THE STAND AGAIN
BUT UNABLE TO ANSWER SOME OF
THE MOST IMPORTANT QUERIES.
He Thinks that buying Rival Sugar
titiOn-BOIt Trust Reported Broken.


seat he drew from his overcoat a bundle
Of documents
Are those the missing documents Sena-
tor Lexow wants?'' asked a reporter.
Does Senator Lexow himself know what
documents he wants?" Mr.. Parsons replied
with broad smile.
James II. Post, a coffee and tea broker,
was the first witness examined by the COM
mittee to-day Mr.. Post said he repre-
scented the firm of Hollenhauer and b. III.
Howell, refiners. He admitted that COM
petition between the Molenhauer and
Howell companies was carried on in his
office, though he was the recognized agent
of the companies mentioned. There are
times when those refneries do not want
20 sell and hence the competition of which
1 speak," said the witness. When asked as
TO the extent of the output of the sugar
companies he represented. witness said it
reached 1900 tons annually. Asked if the
profits of the concerns conformity reached
Sl2 900, 600 or Sli,000.0O0 annually. witness
said he doubted the accuracy of the figures
quoted and finally said that his house made
less than a quarter of cent a pound
profit last year.
Senator Lexow was evidently displeased
with the reply given by the witness and
asked the stenographer tC read the ques-
ton. This was done anC Senator Lexow
sternly said. Now Mr.. Post, answer and
don't be beating round the bush.'
Il am not beating round the bush,'' re-
torted the witness. with much heat.
Asked about the relations of Molenhauer
and Howell companies to the American
Sugar Refinery Company, Mr.. Post said he
knew absolutely nothing about the affairs
of the sugar company.
us it not a fact that you compete with
the American Sugar Refinery Company in
the matter of prices?' asked the chairman.
1T happens in some grades every day
throughout the country the witness re-
piled.
Going back to the question of profits, wit
ness said that the profits to the wholesaler
on refined sugar was three-sixteenths
of cent per pound and added that If
his company realized one-eighth
of a cent profit per pound on re-
fined sugar it would be perfectly content
with the transaction. Witness said he knew
nothing about the extent of the annual
output of the American Sugar Refinery
Company.
Don't you fix the price of the raw ma
terial?'
mo: how could we? The markets of the
whole world would nave 10 do tnat.
lis it not a fact that the factors set
three-sixteenths of cent rebate. when the
refiner does not make one-fourth OF a
cent?" Senator Lexow asked.
That is So" the witness replied
In reply TO another question ne said that
the national company's capacity was 2.sSO
was about 81 100000 The equality rate
book fixing prices and freights was the
in the management OF his concern
as in the American Sugar Refinery Com
pany.
Senator Lexow handed the witness an
equality book sent from Kentucky and Wit
ness said the book in evidence did not tx
the prices OF sugar; but only contained
rules governing freight rates.
You do not seem to know much about
your business. or, If you do. you won't
tell said Senator Lexow.
I'm not wholesale grocer and know
nothing of their rules retorted the wit
was not started in the interest of the re-
finery company. 1t was started because
the grocers wanted to make q little profit
out OF sugar and not sell it at a loss" He
denied the statement that no man can live
in the sugar business unless he becomes
a factor, The price of sugar. he stated
was fixed by the daily state of the market
and not by refining companies. This fin
ished the examination of Mr.. Post.
john r. Searles next took the stand. The
witness admitted that the margin of profit
between raw and refined sugar had in
creased during the last three years. The
questioning continued along this line. and
IL
Searles his knowledge OF the effect OF the
consolidation of the fifteen mpanies into
the American Sugar Refinery Company on
the trade and business of those sugar
refining companies which are not in the
consolidation. Mr.. Searles. however. stated
that he had no knowledge of the affairs of
companies outside the American.
PURCHASE OF REFINERIES.
Senator Lexow changed his inquiries to
another direction and brought out the in
formation that during the past year the
Greenpoint refinery. one in Louisiana. the
Continental in Boston and the Decastro
were closed, and that the purchase of the
United States Refining Company's plant in
Camden was in contemplation by the
American Sugar Refinery Company.
We'll. what in the world prompts you to
contemplate the purchase. of the United
States Sugar Refining Company at Cam
den, exclaimed Mr.. Lexow. when vol,
don't use 60 per cent. OF your refineries
Iow?"
I'VE may be able to utilize that prop
erty for the interest of the Company was
the calm reply. He did not think that the
acquisition by the company of additional
factories tended in the direction of cripplina
competition on the sugar arket.
LOW much money does the American
Sugar Refinery Company pay annually to
maintain the unworked factories? o.
L have no figures TO answer that ques-
ton. 1t enters into the expense account
of the company" Mr.. Searles admitted
however. that whatever plant had been ac,
quired had been a competing plant
The witness was then questioned at con-
siderable length TO the organization of
the Sugar Trust. AS the result of many
questions Mr.. Searles said that he did moi
know the exact number of shareholders i'm
the original companies There are now
over 9.O0O. the stock being sold on Change
The stock had been recapitalized from
81. CO0. 600 to $50 600 900 and the ownershin in
creased by 5000. The reason the public did
not get chance to buy stocks was because
the corporation was owned by private gen.
tlemen before the consolidation. At this
Juncture a recess was taken.
On resuming. Mr.. Seares denied having
any arrangement with individual wholesa L.
with the factors east of the Missouri i'm
relation to the rates of freight within GER
tain specified limits He asserted most
positively that the American Sugar Rein
cry Company had nothing 10 do with the
prices formulated by any other sugar re-
have only to reiterate." he said. what I
have already testified to. and desire TO say
again that we do not restrain or compel
any competing concern in the country to
follow our prices. nor do we command the
regulation of prices in the South or East
Mr.. Searles also said thsI the wholesale
grocers had. in convention. formulated
rules for the government and guidance of
factors In the distribution of the producer
of the sugar company.
RETAILERS MUST SIGN CONTRACTS
Now, is il not fact that the factors
contract. coupled with the wholesale gro
GERS rules. has absolutely destroyed CON-