The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-06
WHY COFFEE Is CHEAP.
MR, HATEMEfER says II ~ Dur 70
HECOM8fNATfON
He Astouishes Chairman Iexow Of the
Special Legislative Investigating
Committee In New York.

NEW YORK. Feb. 1.-The special legis-
Iative committed appointed to investigate
the subject Of combinations, met In TINS
city to-day. II. o. IIavemeyer ana lheo-
dore \. IIavemoyer. the heaus oi '"o
American Sugar Refinery Company, were
on hand. having been subpocnaed as Wit
ncsses.
Theo. Havemcyer. vice-president OF the
sugar was the first witness
but his examination was not as sonSa-
tionsl "a was that of Henry O.. Have
meyer. president Of the company. The lat
fer said that the so-called sugar combina-
tion came into existence I'm 1857, and 1t
continued until January. 1891. The witness
said that there were about niteeh COM
NAMES. which we're consolidated IN 1871.
He thought that the total value OF the
assets OF the combined companies was
$4,000 900. less 10 per cent.
Witness said the American Sugar re
hneries Company was organized III 1871
and took the place of the so-cated coW-
bination. The transfer was made by the
purchase OF the assets Of the comblh1-
ton. Fifty million dollars WORTH OF
stock WIS originally Issued. ana increased
I'm 1899 10 S15.O0J.OCO ~. The S23,OlV,uo III
crease was for the purchase of the Fhlla-
dclphia sugar reinerics.
CONTROL THE PRODUCT.
To an inquiry from Chairman LeXow.
whether the witness company dld not
now control the product ard price OF re-
fined sugar I'M the Jnlttd Sti'eS' M
Havcmeyer replied IN ID very emphatic
voice:
we undoubtedly do"
And you do it Boy reason OF the con-
solidation?'
We do it simrsy from the fact that We
own property that can refine so much
sugar
Mr.. Havemcyer paused "a moment and
then said
And it may as we'll be recorded that
when We controlled % per cent. of the
sugar market Of the United states. the
Supreme Court decided IT was perfectly
] legal for us TO do So"
Tie witness said that the American
Sugar Refneries Company did not pre-
vent anybody from competing. and that
ii could not be called "a moopo-y.
Mr.. Havemeyer said that he considered
That tho coffee business was "a good one.
and that was the reason they purchased
the WoOlson Company. I'm Ohio.
- you think the coffee business pre-
scnts as am a|lluring "A field - the sugar
BUSINESS
Yes. sir. ] propose 10 carry on the
coffee business just as We have done the
sugar business so that instead Of paying
three or four cents ID pound proht. which
has prevailed for years. the public will
get the benefit Of AN above half "a cent
profit and we will also get "a magnificent
return for our investment. ] make this
declaration i'm open court"
Mr.. Havemeycr "a little later on de-
clarcd that before the Havomeyers on
gagged In tho coffee business. the profits
were three cents "a pound. and now it was
only one cent.
MR. LENOW ASTONISHED.
THE customer gets the benefit Of AN
THIS ana We also have "a splendid invest
ment," said Mr.. Hayemeyer emphatical-
ly.'
Chairman LeXow looked as,onishcd M
this statement.
In reply 10 "a question. the witness said
his going into the coffee business had
nothing 10 do with Arbuckle n co.. com
peting with the American Renncrios Com
pany. That story is pure nonsense. 20 de-
clarcd Mr.. Havcmcyer. Mr.. Arbucklo
has never been 20 competitor with u- I'm
the sugar business.
do you and your associates on tho
board to control the stock Of the Amcri-
can Sugar Rehneries Company
NO. sir. We do not There woro 5000
stockholders in the company and 10 would
be perfectly impracticable TO control tho
stock. Mr.. Havemcyer was asked whcr,
Treasurer Scales was al the present
time. lie replied that he thought he VA.
in Washington.
John Arbuckle was called next. IT.,
testified that after he had determined &c
build a sugar refinery 20 director of th,
American Sugar Refuories Company ir
speaking 10 him about il said. "Hov
would YOU like as 10 go into the coffee
roasting business
II felt IL was am implied threat that If
we went on with the building Of oul
sugar refinery they would go into th,
coffee business" said Mr.. Arbuckle.
did YOU go on?"
eyes. sir, we did and We are now build
ing IT,"