The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-02-14

4
finer Duggau, However, Knows What
Run Him Out of Business.
| New York. Feb. 13.-The legislative
| joint committee on trusts resumed its
| meetings in this city today. Before TAX
| ing up the thread of investigation where
| it was dropped on Monday, announce
ment was made that William NJ. Wins
! would be questioned as to the operations
| Of the United States Rubber company.
George r. McDougall and John E.
| Searles were both absent, alleging bust
ness as an excuse and were given till
Monday TO appear.
George II. Moller, for thirty years a
sugar refiner at Williamsburg, was the
first witness examined today. AS sec
rotary of the North River Refining COM
pany he had received from John E..
Searles the check for the sum for which
that company sold out to the American
Sugar Refining company.
BAD MEMORY:
"what was the price paid?" asked
Chairman Lexow.
L don't remember"
WAS il a fair market price?'
eve thought so, or we would not have
made the transfer"
Witness admitted that his company
was competing with the Havemeyers.
He did not remember that the price Of
sugar went UP after the trust was form
ed.
Mr.. Moller was excused and Mr.. Law
son W. Fuller was called to place a value
on the refining property. He said that
he was in the sugar business from 1854
10 1873 and was in the real estate bust
ness when the Sugar Trust was formed.
Mr.. Fuller knew very little about the
value of the individual plants and Mr..
Lexow labored with him for long time
without extracting any information. Mr..
Fuller finally said that in the five years
after the trust was formed the price OF
sugar has raised 81 of a cent pound.
This, he declared, has cost the consum-
ers 81 900 during that time. Mr.. Mol
Ter based his figures on a circular price
list issued by Wellett & Gray, which, he
said, was an authority. The number Of
employees was decreased and the ref1ner-
les were run at a much less cost. Mr..
Fuller spoke as an expert accountant,
for he had charge of Havemeyer & Ed
The trust, he said, absolutely controll-
ed the price of the raw material, and
thought the price of the raw material
had gone down, the refined had gone up.
This increase fell on the consumers.
Previous to the trust there was a fierce
competition among the various refin-
cries.
PUTTING ON THE SCREWS.
Edward j. Duggan OF Albany. whole
sale grocer, was the next witness. He
had been in the sugar business for TWEEN
ty years. He said that he is what is
known as a factor for the sugar trust.
Before the trust was formed he could
buy sugar anywhere, but after the trust
went into operation he refused to join
the Wholesale Grocers' association and
then he could not buy any sugar at all.
What reason was given for that?"
''They said that / was cutting prices
and I was then forced TO buy imported
sugar.
What was said to you?"
Robert S. Russell of this city told me
that 1 must buy all my sugar from the
American company
In answer to further questions. Mr..
Duggan said that the trust had refused
II sell him any sugar and allowed him
the rebate by which profit could be
made. He was a factor for the company
for only two months.
1.-The trust" he said, has forced me
out of business. and 1 am about to close
out. The factor gets a rebate of g of a
cent pound. A grocer cannot live I'M
less he is a factor. He would be run
out Of business.
You must make an affidavit that you
will sell the sugar at a certain rate be-
fore you get the rebate.
"One of the articles in the factors
agreement reads: None of the sugar
shall be sold by you or disposed of by
you for less than our daily quotations
with freight added TO point Of sale, nor
on more liberal terms as TO credit and
cash discounts /
Witness made his agreement in Octo- |
Der, 1895, and since he was thrown out
he has sold very little sugar. When |
a customer wanted a barrel OF sugar he
went out and bought it from another
grocer.
Did you pay more for it than when |
you bought it of the American Sugar |
Refining company.
Yes, because 1 could not get the re- |
bate"
IMPORTERS STAND IN.
Michael Callahan. broker in import |
ed sugar. took the stand next. He would |
not admit that the trust controlled the |
price of raw material for the last three !
years.
is not the American Sugar Refining |
the only purchaser of the raw |
in this country"
1T is only a large purchaser. The |
cannot control the market"
Witness said that he had sold the trust |
500. 900 tons Of sugar, one quarter OF their |
purchases. He admitted that some /
people were hurt by the way the trust /
the market last year" but /
added that the trust was not RESPONSE |
bic for that"
Witness said that the brokers could |
speculate in the future de- /
mands OF the company, but il practically |
had the broker and Spectator in its own |
power all the time.
f. 5. Beardsley was then called. He
5 also a sugar broker. He said tina: |
there was competition in the raw MA
terial and he gave the names OF several /
companies. He sells the trust
about one-eighth OF the raw material il .
purchases. He said that the trust did
not fix the price in this country. that I,
was liked in Europe by free and fair
Chairman LeXow said that owing to
the absence of Mr.. Searles the committee