The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-02-08
all the various companies that composed
the Sugar Trust?''
don't remember the figures"
,a<,{ 7cnn nano,

My recollection is that it was much
less; not S7000,000, should say"
The companies first representing the
sugar trust We're Havemeyer and Elder
with a capitalization of s500,0G0 Dick and
meyer, 10000. and one other that enter
ed the trust at a basis of 100000. the wit
ness said
Mr.. Searles said he did not remember the
value of the certificates given for the
stock. but finally said they received about
Sl4, 600 in certificates.
Then, said Chairman Lexow, the
valuation of the property was not correct
as represented in the certificates, or else
the capital stock was false
The witness did not think so.
DO not you as a business man think
that the issuing of capital stock at figures
that do not represent real value is the
principal vice in corporations?"
Il hardly think that is the truth for
availed of by many parties associated
in business simply to provide for the dis
tribution of interests in the settling of
business
said he was of opinion that the Legis-
lature should encourage the formation Of
corporations in the State instead of driv-
ing them to other States.
Was the actual cash value of the var
ious companies that compose the Ameri-
can Sugar Refining Company $l2,060, 600,
and was not there $50,000000 in certifi-
There was no cash appraisement of the
actual value of the companies"
"Wtl you swear that the actual cash
value represented more than a total of
$12 060, o00?''
y should most assuredly.''
"Bastng your answer on the North
@ you'd uad oyi, you say the actual cash value Was
II could not give an answer taking that
purchase-2s basis" replied Mr.. Searles,
''Mr. Havemeyer told us that you were
the man to give US the information of the
actual figures upon which the trust was
based?" said Senator Lexow in a sharp
tone.
Il will help you all can," replied Mr.
Searles.
Have you, since the organization of
the Trust and subsequently of the Amer
lean Sugar Refining Company, made any
pubic or official report in this Slater"
mo, SIR
"Or in the State of New Jersey?o
The laws of the State of New Jersey
do not require report
Have you ever made a report?''
Yes, sir: we made one in 1884,
.Where?"
In the State of Massachusetts, where
we have refinery. The laws of that
State requires a report
require report
mo, sir, the laws of the State of New
York do not, | think, require report
from q foreign corporation"
-
The American Sugar Refining Company
is a New Jersey corporation.
In reply to another question the witness
said the total annual consumption of re-
hned sugar IN the United States was
1,500, 900 tons.
How much does the Sugar Refining
Company produce out of that total?''
About 200, 600 TONS"
Then you fix thep rice?"
We fix the price only in so far as we
make such low prices that we undersell
our competitors
The witness would not admit that his
company did contrcl the sugar market
Chairman Lexow then called the atten-
ton of the witness 10 his testimony be-
fore the Senate Committee at Washington,
when he said that the object of the con
solidation was to control the output of
sugar and shut off competition.
Then your various plans for the consol-
idation have been designed to control the
output and shut out competition that
would otherwise exist ?"
mo, sir replied the witness emphati-
cally. "rhe object Of consolidation was
to enable us to produce sugar more econ
omically than otherwise could be done.''
But Mr.. Havemeyer has testified that
the principle object of consolidation was to
control the output and shut out competi-
ton; is that so?"
mo, SIR
Then you don't agree with Mr.. Have
meyer?''
mo, SIR
HOW 90 you explain your testimony
before the Senate Committee?"
oh, that must be read with the con-
text"
rs it not a fact that where you have
competitors, you cut down the price in
their particular locality and force them
to the wall?''
mo, sir: it is not.''
But you control the price of sugar?''
I'VE only control the price of our own
sugar, and disagree with any other
statement
At this point Chairman Lexow directed
the witness to produce the minutes of the
American Sugar Refineries Company Di-
rectors' meetings and all data in relation
to the purchase of the four Philadelphia
refneries IN 1892. Witness declared that
he had personally no right to produce them
request before the directors. Mr.. Lexow
next asked the witness if it was not a
fact that his company had reached a
of sugar to point where the people
would refuse to buy. He replied that 1t
had always been the policy
sugar to the consumer at the
least possible price: not" he added
from philanthropic reasons, but because
it is good business The witness ex-
planned that the price Of sugar was in
creased in the years 1892 and 1893 when
there was no tariff on sugar, because the
price for the preceding years was abnor-
mally low. He declared that wages had
been increased in the manufacturing de-
partment of his company ten per cent
since the consolidation of the refineries.
The witness said that three of the re-
fineries absorbed in the consolidation
were abandoned.
You wer treasurer of the Havemeyer
Company previous to the pool?''
"Yes, sir.
What was its capital stock?"
II think about ST. 600 000''
What was the amount of certificates
you received by the pool?''
Il cannot tell you now.''
You have the figures?''
"Oh, yes
The witness a little later said that the
reason why some of the refneries were
abandoned was because it was found
that the same amount of sugar could be
manufactured more economically, and
the work was transferred
You reduced Is companies to 8?'
ultimately, not at once
That is, you reduced the number by
half!''
1--WE transferred the work rather from
one factory to another" replied the wit
ness, with smile.
The witness said that the -productiye
power of their factories was never fully
You could supply the entire United
States?'
Eyes, SIR
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