The record-union., 1897-02-14
Immense Profits Made After the Com
bine Was Formed.
The Number of Employees Decreased
and the Refineries Run on a Much
Less Cost, While the Price of
Sugar Was Raised Over a Half a
Cent a Pound.

ave JOINT COMMITTEE on Trust is resumed
its meetings to-day. George R. McDou
gall and John E. Searles were absent
alleging business as an excuse, ant
were given till Monday to appear.
George III. Moller, for thirty years g
sugar refiner at Williamsburg, was ex-
amined. AS Secretary of the North
River Refining Company he received
from John Z. SearleS a check for the
sum for which the company sold out tt
the American Sugar Refining Company
What was the price pald?" asked
Chairman Lexow.'
Il don't remember
WAS it a fair market price?"
Eve thought so, or We would not
have made the transfers"
The witness admitted his company
was competing with the Havemeyers
He did not remember if the price OF
sugar went up after the trust was
formed.
Lawson w. Fuller was called to place
a value on refining property. He said
he was in the sugar business from 1So4
TO 1888, and in the real estate business
when the sugar trust was formed.
Fuller knew very little about the
value of individual plants. Mr.. Lexow
aabored with him for long time with
out extracting any information.
Fuller finally said in five years after
the trust was formed the price of sugar
was raised 81 cent per pound. This,
he declared, cost the consumers 400, =
900 during that time.
Fuller based his figures on the circu-
lar price list issued by Wellett & Gray,
who, he said, were authority. The num-
ber of employees was decreased, and the
refineries were run al much less cost.
Mr.. Fuller spoke as an expert account-
ant, for the had charge of Havemeyer
& Elders affairs for many years.
The trust, he said, absolutely con-
trolled the price of the raw material,
and though the price of raw had gone
down, the refined had gone up. This
increase fell on the consumer. Previous
to the trust there was a fierce competi-
tion among the various refiners.
Edward J. Douggan Of Albany, a whole
sale grocer, was the next witness. He
had been in the sugar business for
twenty years. He said that he was
what is known as a factor for the su-
gar trust Before the trust was formed
he could buy sugar anywhere, but after
the trust went into operation he re-
fused to join the Wholesale GrOcers'
Association, and then he could not buy
any sugar at all.
What reason was given for that?'
''They said 1 was cutting prices, and
I was then forced to buy imported su-
gar"
What was said to you?"
Robert S. Russell of this city told
me that I must buy all my sugar from
the American Company"
In answer to further questions, Mr.
Duggan said that the trust had refused
to sell him any sugar and allow him the
rebate by which a profit could be made.
He was a factor for only two months.
s-The trust" he said, has forced me
out of business, and L am about to close
out. The factor gets a rebate of as Of
cent a pound. A grocer cannot live un-
less he is a factor. He would be forced
out OF business. You must make an af-
fdavit that you will sell the sugar at a
certain rate before you get the rebate.
s'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 from point to point of
sale, nor on more liberal terms as to
credit and cash discounts"
Witness made his agreement in Oc-
tober. 1895. and since he was thrown out
he has held very little sugar. When a
customer wanted a barrel of sugar he