The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-17
c10I Es STANDS BY SUGAR.
r,RY A VALUABLE WITNESS
e NJ FOR THE TRUST.

ne me FORMATION of the Trust
be'g -, Extremely SmaII-The
of the Raw Material De-
ooSed without Corresponding
fit to the COnsumer-He De-
maj the Sugar Trust Is IL
,-,rx Feb. 16.-The legislative COM
->'' i,,-astigating the trusts and mo-
in this state, resumed its inquiry
MS '. lies was on hand early, and his
~ N' l1,f,n was continued. Mr.. Searles
M margin of profit between the raw
s i1 -sd,ed material during the five years
lu 5tr, the formation of the sugar trust
s-st and during the five years subse-
,os He admitted that after the
Z u'. 49, been formed, the average price
NV material had dropped 1851 per
,. mound. while the charge of the
;,,,reased 157 per cent. per pound.
,.',...s said there was very little proht
business for the five years before
-,st was formed, and denied that
u,s a seven-fold capitalization OF
r,o.iz after the consolidation of the re-
neries. ,5 =,
.,,ii.,. of the legislature to encourage
oii3i instead of driving 1t away anu
3l'' a. IS Investigations like these that
w. w., Canitai out of the state. DO YOU
Il liAr that Capitalization IN the way
an nave mentioned, where the consumer
oU 40 considered and whereby monopo-
NO. duasi-monopoieS are created,
Ill NOT be interfered with by the leg
u "a o,n scarcely remember all that ques-
an said Mr. Searles. 49,.
THE stenographef read the queSuoh "FSA
~ Mr. Scarles replied;
Kin so far as that question refers to, the
,,arican Sugar Refining Company, 90
;, SEQ any objection to IT..
# soTator Lexow then put a number OF
81 me- Guestions as TO whether the consum-
IAN get the benefit of the reduction IN
nc Of raw material so long as ag
81 .soations of capital designed to control
III irCs are permitted to exist.
"a ri can't imagine such thlns eAlsIlIS'
Fl don't believe the legislature can rem
nv such a state of affairs if IL existed.
7 said before the law of supply and
cnaud will regulate all these things in
r rep,v to another question, the witness
limited that the consumer had not re-
,Ived the full benefit of the decrease IN
| price of the raw material.
INhen the nation permits the creation
Il a mouoDoy or quaSi-monopoly do you
,Isider that there is at least an underly-
~ obligation to give labor on the one
81 End and the consumer on the other an
& ;lcquate share in the benefits OF ITS
q Fonomy?'
& '"If he monopoly exists, think there
4 should he some such obligation"
DO you think the American Sugar Re
lining Company, in the monopoly or a
4 1uasi-monopOly, it has shown itself to be
4 here, should be fostered in the absence
4 II the two considerations | have mention
n in any former questions.
Mr.. Searles got hot at this question and
Mapped back: The American Sugar Re
hing Company is not a monopoly or
i dasi-monopOly in any sense of the word.
he American Sugar Refining Company is
| the interest of the consumers and
here is no reason why the state should
Atorfere with its business in any partic-
Senator Lexow then went off on another
4k.
Mr.. 5earles had not brought the books
Cat the committee wanted, and it was
stated hat the directors of the American
Sugar Company would meet tomorrow,
wlrn tie demand of the committee would
be laid 1efore them. Mr.. Seares would
not be i1town on Thursday, but Mr. Have
meyer would bring to the committee the
answer the directors.
I'M repy to further questioning, Mr..
Sea Hes expressed the belief that the cost
Of uga TO the consumer would be half a
cent pc pound greater without the COM
binatol of reilneries; that there was as
bust nes now than before the consolidation
ployad in the business now
than before the, consolidation, and
mat wages were increased 10 per cent.
did YOU say the trust was formed be-
ca9st OF illegal combinations of LAHORE"
aid that there were combinations of
labor which melted strikes"
ARE these strikes for increased wages?"
Yes, sir"
This closed the examination of Mr..
SgarIeS. who left the stand smiling.
lawson ". Fuller was then recalled
Your competency as an expert in SUI
Sdr seems to be questioned. Now, please
Tate your experience, said Senator
Expert Fuller then said between 1860
ana lSbJ there were forty-eght sugar re-
hneres doing business, and that they en-
W0}ed between 5000 and 10000 men.
Mr. Fuller said that IS of these refiner-
yes went out of business throwing between
'WW ana 1900 men out of employment.
10 YOU think there were more men en-
plpyed then or noWY'
Well, / should judge that As refneries
YOU'D employ more men than two reliner-
A moment later, he added: ''If the sugar
II9sl was not formed to reduce expenses,
lon' KNOW what it was formed for"
Mf Fuller said thelie was more machin-
men
Mr.. searles stated that the trust was
formed 10 get rid of the weak men i'm the
business but ] say 1T was formed to get
iI Of the honest men, = said Mr.. Fuller.
Mr.. Fuller then told how there was an
lnNeStigatoh before a congressional com
mItlee in 1891 in regard TO charges made
ny the witness, that certain refineries got
lnolr sugar cheaper Through the custom
house than Others.
How did She committee repaft?"
on, II was not much of a report. They
could not get at the fac IS"
Mr.. EULER then paused a moment and
sald; Now, | want to say, that if you
give MS honest senator's we will have
cheaper sugar. ! am in favor of electing
men 10 cOna ress who w Ill legislate in ia
Nor of the public"
There was applause from the spectators
~ The remark of Mr.. Fuller, which
CHAIRMAN LeXow suppressed.
We will now take up the United States
h44ohor Company" said Senator Lexow.
Ine first witness was Charles r. Flint,
VINO was duly sworn. Mr.. Flint is treas
uI'r and a member of the board Of truss
,.e' of the rubber company, which is a
New Jersey corporati ton. capitalized at
s%lVAOO. [ had been formed by a union
oi Competing firms. The witness said
,here was an understanding in the rub
Der business in regard to prices for the
PAT twenty years.
sollddton?"
The object was 10 centralize manu-
laojufes and to secure economy by means
ol such Capitalization"
lne witness explained that the CONSOLE
NdIrd companies controlled about 50 per
cent of the rubber business and competi-
uQn was continued with the companies
upluG the rest of the business The wit
"a IL Ii.