The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1897-02-18

New York, Feb. Ex-senator Lexow,
in his questioning Of John E. Searles,
secretary and treasurer of the American
Sugar Refining company, before the
state senate investigating committee,
has brought out the information that
during the past year the Green Point
refinery, one in Louisiana, the Conti-
mental in Boston and the DeCastro were
,losed and that the purchase of the
United States Refining company's
plant in Camden was in contemplation
by the American Sugar Refining com.
pany.
"Well, what in the world prompts
you to contemplate the purchase of the
United States Sugar Refining company
at Camdenp exclaimed NJ. Lexow,
"when you don't use 60 per cent Of
your refineries now?"
1--WE may be able to utilize that prop.
erty for the interest of the company"
was the calm reply. I'VE did not
think that the acquisition by the com.
pany Of additional factories tended in
the direction of crippling competition
on the sugar market"
GLOW much money does the Ameri.
can Sugar Refining company pay annu.
ally to maintain the unworked fac.
tories"
81 have no figures to answer that
question. 1t enters into the expense
account Of the company"
Mr.. Searles admitted, however, that
whatever plant has been acquired has
been q competing plant.
The witness was then questioned at
considerable length as to the organi2a.
ton of the sugar trust. AS the result of
many questions, Mr.. Searles said that
he did not know the exact number Of
shareholders in the original companies.
There are now over 5000, the stock
being sold on "change." The STOCK
had been recapitalized from 1000, ,000
to $50, 100000 and the ownership iu-
creased by 5000. The reason the public
did not get a chance to buy the stocks
was because the corporation was owned
by private gentlemen before the consol-
idation.
Mr., Searles denied having any ar
rangement with individual wholesale
grocers, but admitted having an agree
ment with the factors east of the Mis-
souri, in relation to the rates of freight
within certain specified limits. He as
serted most positively that the Ameri-
can Sugar Refining company had moth
ing to do with the prices formulated by
any other sugar refining company in the
| United States
"Now, isn't it fact that the factors
contract, coupled with the wholesale
grocers' rules, has absolutely destroyed
competition after the product leaves
| your hand?'
"Only so far as the other refinerie'
see fit to adopt our prices"
He admitted that the retailers are
obliged to sign the contract and are
allowed the 3-16 per cent rebate.
Senator Lexow quickly shifted hi
position and questioned Mr.. Searles a
to the whereabouts of the certificat,
books of the original company. To tht
same question put in various guises thu
reply was disavowal of any knowledge
of the location of the books.
"They have been lost sight Of" saiC
the witness. "They were obsolete ant
of no use," The inquiry showed tina
they alone contained the figures show
ing the increase from So, 900, 900 to $43,
100000 of capital stock and the!
together with all the minutes and rec
ords of the old trust are gone. Senate
Lexow then inquired if Mr.. Searle
had with him the minute book of tn
sugar trust.
III have not" replied the witness
"The directors" he continued, "de
clined to permit me to present then
here. l have no power in the matter.
Mr.. Searles stated that the book wa
in the Office of the company in NeS
Jersey, nominally in his custody but aC
| t,,a IN, ~ %
clerks. Senator LeXow asked that it b
noted that the directors, accordig to tn
testimony of the witness refused I
make the minute book available an
added that the whole board Of director
would be subpenaed to answer and prt
duce the book.
"ls the increase Of large corporation
. q disadvantage to the workingmen ?"
D "No sir" was the reply. "If we ha
less legislation we would be far bett,
a OFF. If you make laws that will invit
o capital to this state instead of drivin
!, 1t away it would be an advantage. B,
@ so long as Investigations like this al
n fomented it makes capital unsafe an
!. uncertain and makes it act on the d
n fensive as though 1t were the enemy
a the workingman. There is law fl
q higher Uiluu tHe leRlSldblNo, bndu u
/. state of New York, the law Of suppl
s and demand, and which controls a
I these things which no trust, howevt
big, is able to control"
q Mr.. Searles thought it unfair to prol
r Into the minor workings of any con
/. pany doing legitimate business al
q have the facts paraded before the publ
|. The witness admitted that the ma
d gin of profit between raw and refine
!. sugar had increased during the la
n three years.
James M. Post, q coffee and te
broker, said he represented the firm {
Hollenhauer and B. II. Howell. refiner
!, He admitted that competition betwee
= the Hollenhaur and Howell compani,
. was carried on in his office. though |
!, was the recognized agent of the con
= panies mentioned.
y Witness said the profits to the Who'll
> saler ON refined sugar was 3-l6 of Gel
per pound, and added that if his cor
pany realized "a of a cent profit p
pound on refined sugar it would be pc
y fectly content with the transaction.
CabIegram From Sylvester scovel.