Kansas City daily journal., 1897-02-07
HAVEMEYERS' TRUST.
ARBUCKLE, THE COFFEE MAN, THE
PRINCIPAL WITNESS.
is THERE A COFFEE COMBINE?
THE TESTIMONY TENDS TO SHOW
THERE Is NOT.
Secretary SenrIes, of the American
Sugar Refining Company, Given
Until Monday to Answer the
Subpoena of the LeEis-
Iative Committee.

New York. Feb 6-Before the legislative
joint committee on trusts adjourned yes
terday, Chairman LeXow announced that
failure on Iha part OF John +. Searles, Sec
retary and treasurer of the American Su-
gar Refining Company, to appear before the
committee to-day would bring upon him
suCh punishment for contempt as the laws
of the state CT New York prescribed. Mr..
Searles was not On hand to-day. Edward
NJ Shepard and Johr F. Parsons. attor-
neys for the sugar company. explained
th1t the subpoena to appear before the
committee was served on Mr.. Searles just
as ne was leaving the city. He was to-
day in Washington and could not meet the
committee until Monday. on that day Mr..
Shepard said Mr.. Searles would be either in
this city or in Albany as would best suit
the convenience of the committee and sub
init to the proposed inquisition. Chairman
Lexow said that the committee would de-
eide in executive session what should be
done i'll the premises
John ArbuckIe was then recalled to the
witness chair. lie said it was not true.
as stated by President Havemeyer. that the
American Sugar Refining Company dill not
threaten to force him out of the coffee
business if he engaged in the refining of
sugar.
There is no coffee business now. Mr.. Ar
buckle said. and explained that the profit
in 1896 was only Sa of a cent Il pound. In
1895 it was little less than Clio of q cent,
and in 1928 Il little less than Clio Of a cent
q pound
James n. Jdryie. the business partner of
John Arbuckle, was recalled, and in the
course of his testimony said that coffee
had fluctuated in the market within the
last ten years. He said there was no profit
in the coffee business nowadays and read
statistics TO that effect.
This was in contradiction of the state
ments made yesterday by Mr.. Havemeyer.
who stated that the coffee business was
tile industry. In reply to Senator Lexow,
the witness testified that the firm of Ar
buckle * Co. and William F. Mclaughlin.
of Chicago. control the coffee package
trade in the United States. The witness
said there We're several grades of coffee.
ranging in price from 10 10 50 cents a
pound. the latter price being paid for Java
and Mocha.
What was the purchase price of coffee
when the American Sugar Refining Com
pany went into the coffee business through
the Woolson Company"
Il should say the market price for Rio
coffee was 10c pound and it sold at l5c
d pound to the middlemen."
What price do you sell it at now"
AT 1SleC per pound"
Does a profit accrue?''
L am not prepared to say Just now
And the WoolSon Spice Company set
tied ed at 1Sc a oound?'
Yes. sir.
DO you. as a manufacturer. consider it
1air 10 amaSs from the consumers enor-
nous profits. to be distributed among the
directors and stockholders, in the charge
OF unreasonable prices?'
The witness tried to evade the question
and the spectators gave noisy evidence of
their disapproval. Senator Lexow pound
ed his desk with his gavel and ordered that
no display of feeling be permitted
How long will the public stand such a
thlng,do you think?" asked Senator Lexow
The witness said that the so per cent
diyidend drnd m only represented per cent divi-
uend on the present value of the stock.
He said his company paid 81 900 for a
single share of the Woolson Spice Com
pany.
rs it a fact that they are putting up a
better coffee at less price than you for
the purpose of driving you out of the
/ think our coffee is better than THEIRS
the witness replied.
AT this juncture Senator Lexow asked
for c. o. Havemeyer. and Mr.. Parsons
SAID he had just received word that Mr.
Hsvemeyer would be on hand at . O'clock
to which hour recess was taken Senator
I.txow then announced that during the re-
cess the committee would consider the
question of Mr.. Searles' disobedience to the
order of the committee.
After recess Chairman Lexow announced
that Searles would be given until 10 a. m.
Monday to answer the subpoena of the
committee. President Havemeyer was
then recalled; He said that the four re-
sorhed in 1891 still continue in operation.
How many men had you in your en-
ploy in New York state at the time Of
the organization?''
Il am unable to tell YOU
Were there 1900 on the East side?"
Il should not think So"
rs it not true that 1000 men were at
one time discharged?"
"It is not true. We did not at any time
have that number employed"
In reply to another question he denied
that there were any sugar refineries closed
after the consolidation in 1891
81 think he said. my brother was in
error when he said that some of the refin-
cries were closed after the consolidation in
1891
The witness further testified that prior
20 the consolidation. six factories, employ
ing 1900 hands. were closed down. Mr.
Havemeyer then read long list of figures
showing the profit per pound of retiring
sugar derived by the company for a spe-
cified number of years.
John Bergen, who had been in the en-
ploy of the American Sugar Company IN
various capacities from 1876 to 1894. was
next called. He said that in 1892 he was in
the employ of the sugar company as dock
foreman. and that at the time of the for
nation of the sugar trust in 1887 between
5000 and 6,0O0 men were discharged. Asked
as to the number rendered idle by the clos
ing down of the Brooklyn concern, he said
1000 men Were discharged The witness
said that he understood that one OF the
closed retinerieS was now being operated
as a coffee mill. Eight refineries were
closed, he said, since the formation of the
company, and this coffee concern is the
only one of them now in operation
John Arbuckle again took the stand and
testified that he controlled at least one
quarter OF the coffee trade In the United
States. Mr.. ArbucSle said he wanted TO
explain that the price of coffee was vcrv
variable and gave IL as his candid opinion
that 1t was the most speculative business
in the world.
Have You any agreement with the other
big firms to fix priceS?"
No. sir we have no agreement; we only
fix our own prices"
This ended the work Of the committee for
the day. and an adjournment was taken
until 10 o'clock Monday morning.