The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1897-02-18
THE TRUST INVESTIGATION.
THE LEXOW COMMITTEE STILL
PROBING INTO THE SUGAR
BUSINESS.
SEARLES DID NOT BRING THE BOOKS
Some of Them Were Lost, While the
Directors Would Not Permit Others
TO Be Taken-Searles Says the
Inquiry Is Unfair t


secretary and treasurer of the American
Sugar Refining company, and his lawyer,
John T.. Parsons, were present today
when the joint legislative committee in
vestigating trusts resumed its sessions.
AS the latter took a seat he drew from
his coat pocket a bulky package of docu-
mcnts.
Are those the missing documents Sem
ator Lexow wants." asked reporter.
Does Senator Lexow himself know
what documents he ~ Mr. Parsons
replied, with broad smile.
John II. Post, coffee and tea broker,
was the first witness examined by the
committee today. NJ. Post said he rep
resented the firms of AIoltenhauer and
b. II. Howell, refners. He admitted that
competition between the Moltenhauer
and Howell companies was carried on in
his Office, though he was the recognized
agent of the companies mentioned.
There are times W hen those refiners
do not want to sell, and hence the com
petition of which l speak"
Asked as to the output of the sugar
companies, he said it reached $4,000 tons
annually.
Asked if the profits of the concerns
Jointly reached S12,000,000 or $14, 0OO 600
annually, witness said he doubted the
accuracy of the figures quoted, and finally
said that his own estimate was 1-3 of a
cent pound last year.
Senator LeXow was evidently displeascd
with the reply given by the witness and
asked the stenographer to read the ques-
ton. This was done, and Senator Lexow
sternly said:
Now, Mr.. Post, answer and don't
beat around the BUSH
Il am not beating around the bush"
rctortcd the witness, with much heat.
Asked about the relations of Molten
haucr and Howell to the American Sugar
Refining company, Mr.. Post said he knew
absolutely nothing about the affairs of
the sugar company.
rs it not fact that you compete with
the American Sugar Refining company
in the matter of prices?" asked the chair
man.
1T happens in some grades every day
through the various brokers here and
The witness said the profit to the
wholesaler on refined sugar was 3-16
cents per pound, and added that if his
company realized is of a cent per pound
profit on refined sugar ii would be per-
fectly content with the transaction.
Witness said he knows nothing of the
extent of the annual output of the Ameri
can Refining company.
Don't you fix the price of the raw ma
terialT'
NO: the market of the whole world
would have to do that"
"Is it not Il fact that factors get 3-16
of cent rebate when the retiner does
not make II of a cent?" Senator LeXow
asked.
That is So" the witness replied
In reply to another question. he said
the National compnny's capacity was 1SSS
barrels a day. and that the value of the
property was about 100000. The equal
ity rate book fixing prices and freights
was the same in the management of his
concern as in the American Sugar Re
filming company.
Senator LeXow handed the witness an
equality book sent from Kentucky. and
the witness read the book. but said it
did not fix the price of sugar but only
contained rules governing freight rates.
You do not seem to know much about
your business; if you do you won't tell,
said Senator LeXOw.
II am not wholesale grocer and know
nothing of their rules" retorted the wit
ness. THE Wholesale Grocers' aSsocia-
ton was not started in the interest of
the rcfneries. 1t was started because the
buyers wanted to make a little profit on
sugar and not sell il ut a loss
John f.. Searles then took the stand.
The witness admitted that the margin of
profit between raw and refined sugar had
increased during the last three years.
The questioning continued along this line.
and an effort was made to elicit from
Mr.. Scarles his knowledge of the effect
of the formation of the sugar trust upon
the trade and product of the rehneries
which were not i'll the consolidation.
Mr.. Searles. however stated that he
had no knowledge of the affairs of COM
panies outside the American.
Senator LeXow changed his inquiry to
another direction and brought cut the
information that during the past year the
Green Point refinery. one in Louisiana,
the Continental in Boston. and the, DE
Castro were closed and that the purchase
of the United States Refining company
plant in Camden was in contemplation
by the American Sugar Refining company.
well. what in the world causes you
to contemplate the purchase of the United
States Sugar Refining company at Cam
den" exclaimed Mr.. LeXow. when you
do not use 90 per cent of your rehncries
now?'
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 Gripping COM
nptitiOn on the sugar market.
How much money does the American
Sugar Refining company pay annually 10
maintain the unworked factories y
II have no figures 10 answer that Ques-
of the company
Mr.. Searles admitted, however. that
whatever plants have been acquired have
been competing plants. The witness was
then questioned at considerable length
as to the organization of the sugar trust.
As the result of many questions. Mr..
Searles said he did not know the exact
number of security holders in the origl-
nal company. There were now over 5000.
The reason the public did not get a chance
TO buy stocks was because the corpora
ton was owned by private gentlemen be-
fore the consolidation.
At this .juncture a recess was taken.
On resuming. Mr.. Searles denied having
any dealings with the originators of the
Wholesale Grocers' association. but adj
mitted having an agreement with the fac
tors on freight rates in specified territory.
He asserted that the American Sugar Re
fining company had nothing TO 10 with the
process formulated by any other sugar