Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-02-17
I THE SUGAR TRUST.
Mr.. Searles Still on Stand
But is Very ForgetfuI.
Imparts Much Information But is Very
Reticent About Many Things.
Refuses to Expose ths Refining company's
Business 70 rs Competitors.

Sttiiis SoiIlbilitSVs x0Auuuay. lie S:llQ the
| cost OF refining sugar was Il to " Il cent
| per pound. This year. the margin OF profit
| between raw and refined sugar had de-
| creased about ls OF u cent pound.
able to produce sugar cheaper than other
| companies in the United States?" Mr..
Searles WAS asked.
Il have no knowledge of other com.
panieS' he replied.
| Have you not testified that the con-
soiidation OF 10 companies was for the
sake OF economical production and do
you now say you have no knowledge OF
| amy other concernSg
Il have no knowledge of other nom
consolidated companies replied the wit
| III you could not produce sugar cheaper
| than the smaller concerns that were not
consolidated. one OF the principal OBJ
iects Of the consolidation. would have
| failed?'
Il presume thar would be So
| Mr.. l.eXow read some of the testimony
o. Mr. Macahn. i'll which the latter said
the cost of refining siig;,r by the Macuhn
| refinery was 81 cents per 100 pounds and
| asked the witness II Il was possible that
hit cost his company ~ to - cents per IGI
pounds. The witness replied that MIR.
| Macahn used the purcst kind of raw ma
| teri:l and the cost OF refining WAS conse-
qucntiy less. lie commended that the pro-
dnction OF the American Sugar refining
| Co. WAS tn" finest In the world.
| lie said that last year. II rciineries were
| not operated. He admitted that his COM
! t;iny had IN contemplation the purchase
| of The United states Sugar Refining Co.
would give for this contemplated pur-
chase was that his company might be
able to utilize il. His company. he said.
had not determined how the United States
Sugar Co. was 10 be acquired
| Witness had no knowledge as to how
many men were discharged when the
Knight. Delaware and Franklin factories
| closed. last September. He added that
the Delaware was not closed but con-
| solidated with SPECIFIES. lie did not he
| lievc that 1VI men We're discharged nor
that the men We're discharged from the
| Franklin refinery In Philadelphia with
out warning.
| The American Sugar Refining Co. pur-
chased the Baltimore refinery in 1876. be-
cause the company thought it a good
purchase, and that sugar could be con-
veniently distributed from that point to
the South and West. Witness admitted
that whatever plant has been acquired
by the company had been Il competing
plant. lie denied that the company could
! close all the factories in any state and
, sim be able to supply the country: also
that there was a special sum set aside for
supporting idle refineries.
In reply to questions about the organ
iZation of the Sugar Trust. the witness
said there We're about $500 shareholders
when the original American Sugar Re-
| iinery Co. was formed There were now
about 5000.
who sold the holders the additional
5000 shares of stock"
1T was sold on the Stock Exchange"
And you have recapitalized the stock
from $1,000 to &0.oo0 and increased the
ownership by 3Ooo?''
That's So
Now why did you not let the public
get d chance at the stock when it was
owned by 100 people and not wait until
it was increased in nominal value?"
The stock before the consolidation was
in the hands of Il few private people and
the great public could not gain access to
it, replied the witness.
Senator LeXow here announced recess
until go. Before Mr.. Searles left the
stand the chairman asked him to bring
the books of the company after the
recess.
After recess. Mr.. Searles said the only
retailers his company ever sold sugar to
were large concerns.
rs it not a fact that you have an
Association"
No sir. We have an agreement with
the wholesale grocers In regard to freight
from the refining point to the point of
SALE
The witness said the American Sugar
Refining Co. had asquiesced in factors
selling to another at the retineries' prices.
provided the purchasing factors main
tanned the price set down in the list.
Articles relating to the equality plan in
the Wholesale Grocers' Association We're
prepared by the association. the witness
said. not by the American Sugar Refining
Co. The price of sugar fixed by the in
voice of the American Sugar Refining
Co.: only fixed the price of that company
and no other.
II disclaim any responsibility in the
rules adopted by the Wholesale Grocers'
Association said Mr.. Searles.
Senator LeXow wanted the witness to
admit that under the code of rules adopt
ed by the wholesale grocers. the Ameri-
can Sugar Refining Co. controlled the
Searles would not admit that such was
the case.
Now. isn't it a fact that the factors
contract. coupled with the wholesale gro
GERS rules. has absolutely destroyed COM
petition after the product leaves your
hands?"
Only so far as other refneries see fit
Witness said the factors got prices
from brokers and through the press. The
retailers supplied by the company were
ohliGed to sign ce contract They Gyt were
said the value of tho refinery was not
altogether fixed on its capacity for out |
put of sugar.
Witness gave the items of the original |
of the original sugar trust. |
There were Is companies and their capt. |
tai amounted to 81. 600 He said he had
no record of the amount of certificates
issued for stock. He had not seen the |
certificate books since the formation of |
the new company. The original certiti- |
eat! hooks s had Tesow 1.-The
that show an increase of $4s.00O.OO0 from |
Il capital of s6,OO0.000 are not in existence |
according to your
.That is So replied the witness
Mr.. Searles declared that he did not |
know the whereabouts of the trust deed |
which showed the amount of the certifi- |
Gates distributed among the Is COM |
panies. He could not recollect the |
amount of certificates that went TO each /
The following is the capital stock of
the Is original companies that composed |
the Sugar Trust, according to the wit |
ness: Havemeyer & Elder. $500000; Dick |
& Meyer $2cO, O0O: De Costre. $3.50, 1000: Mol
Ter & Sierck $4,000; Orynaud, 100000: /
+. o. Matthieson & Wiechers. 100000; |
Brooklyn. $500, OOO Havemeyer $l.060. 0tW;
Forest City, 100000: Boston, $3.50. 900;
Standard, $lOOO,O0O; Bay State, s225, 600;
st. Louis. $4,000; Louisiana. $3.50, 900;
Senator Lexow asked the witness if he !.
had the minute book of the American SUI I
gar Refining Co. with him.
Il have no.. 'replied Mr. Searles
We want to look at the minute book to
find out something about the capitaliza-
ton of the original companies. Are you
to produce the books now?
asked Senator LexOw.
Il submitted yDur request" replied Mr..
Searles Ito AS many of the directors as
could reach and was unable to get their
permission to produce the minute book
(Continued on page 81