Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-17
MR.. SEARLES ANGRY.
"THE AMERICAN sUGAR-REFINING
NOT A MONOPOLY
The SECRETARY ON THE STAND.
The Witness Failed to Produce the
books Asked For by the Lexow
sfrikes-Other Testimony.


and monopolies in this State resumed
its inquiry this morning. Mr. searles
was on board early and his examina-
tion was continued. Mr.. Searles said
the margin Of profit between the raw
and refined material during the five
years preceding the formation of the
Sugar Trust was 1874. and during the
five years subsequent 1856 He admitted
that after the trust had been formed
the average price Cf the raw material
had dropped .957 per cent. per pound,
while the charge of the refined increased
.l57 per cent. per pound. Witness said
there was very little profit i'm the bust
ness for the five years before the trust
was formed. and denied that there was
sevenfold capitalization of the stock
after the consolidation Of the refnerles
you said yesterday that it should be
the policy of the Legislature to encou-
rage capital instead Of driving It away,
and that it Is Investigations like these
that drive capital out of the State. Do
you consider that capitalization in the
way you have mentioned, where the con-
sumer is not considered. and whereby
monopolies or quasi-monopolies are
created. should not be interfered with by
the Legislature?'
THE QUESTION TOO LONG.
'T can scarcely remember all that
question" said Mr. Searles.
The stenOgrapher read the question
over, and Mr.. Searles replied:
"In so far as that question refers TO the
A DaHpfpg / do
not see any objection TO it,"
Senator Lexew then put a number of
questions as to whether the consumer
can get the benefit of the reduction in
the price Of raw material so long as
aggregatiOns Of capital designed TO con-
troll prices are permitted TO exist.
II can't imagine such a thing existing.
I don't believe the Legislature can remedy
such a state Of affairs If II existed. AS
] said before, the law Of supply and de-
mand will regulate all these things in
time"
In reply to another question, the wit
ness admitted tht the consumer had
not received the full benefit Of the de-
crease in the price of raw material.
when the nation permits the crea-
tion of a monopoly, or quasi-monopoy,
dc you consider that there is at least an
underlying obligation to give labor on
the one hand. and the consumer, on the
other, an adequate share in the benefits
of it's economy
IF the monopoly exists. I think there
should be some such obligation"
MIR. sEARLES ANGRY.
do you think the American Sugar Re-
fning Company, in the monopoly. or
quasl-monopoly, It has shown itself TO
be here. should be fostered in the alb
sence of the two considerations / have
mentioned in my former questions?"
Mr. Searles got hot at this question,
and snapped back:
'The American Sugar Refining Company
is not a monopoly, or a quasi-monopoly,
in any sense Of the word. The Amerl-
can Sugar Refining Company is in the
interests Of the consumer, and there is
no reason why the State should inter-
fere with its business in particular"
Senator Lexow then went off on an
other tack.
Mr.. Searles had not brought the books
that the committee wanted. and it was
stated that the directors Of the Ameri-
can Sugar Company would meet to-mor-
row, when the demand Of the commit
tee would be laid before them Mr..
would not be in town on Thurs
day, but Mr. Havemeyer would bring to
the committee the answer Of the direc-
tors.
In reply to further questioning. Mr..
Searles expressed the belief that the
cost OF sugar TO the consumer would be
l-2 cent per pound greater without the
Of refners; that there was
as much. If not more, labor employed in
the business now than before the con-
creased 10 per cent. after the formation
Of the trust.
A QUESTION OF STRIKES
did you say that the trust was formed
because of Illegal combinations of labor?"
Il said that there were combinations
Of labor which melted strikes"
"And these strikes were for increased
wages?"
eyes, sir"
This closed the examination Of Mr..
who left the stand smiling.
Lawson n. Fuller was then recalled.
your competency as an expert in sugar
seems to be questioned. Now, please
state your experience" said Senator
Lexow.
Expert Fuller then said that between
$50 and 1865 there were forty-eight sugar
doing business, and that they
employed between 25,O0O and $1,000.
Mr. Fuller said that twenty-eight Of
hese refineries went out of business,
.hus throwing between 10000 and 1900
men out of employment.
"Do you think there were more men
employed then or now?"
"Well, 1 should judge that forty-eight
'ehneries would employ more men than
two refneries," said Mr.. Fuller.
MIR. FULLER ON THE STAND.
A moment later he added: IF the Sugar
Trust was not formed 10 reduce expenses,
don't know what it was formed for"
Mr.. Fuller said there was more ma
,hinery employed now, and consequently
ess men.
"Mr Searles stated that the trust was
ormed TO get rid of the weak men in the
business, but / say IL was formed TO get
id of the honest men," said Mr.. Fuller.
Mr. Fuller then told how there was an
nvestigation before a congressional com
nittee in 1881 in regard TO charges made
~ the witness that certain refiners got
heir sugar cheaper through the custom
house than others.
How did the committee reportY'
ooh. II was not much of a report. They
,ould not get at the facts"
Mr.. Fuller then paused a moment and
iaid:
Now. | want 70 say that II you give US
,onest senators we will have cheaper
ugar. / am in favor of electing men TO
congress who win legislate in favor Of the
public"
There was applause from the spectators
n the remark Of Mr.. Fuller which Chair
nan Lexow suppressed
THE UNITED STATES RUBBER COM
PANY NEXT.
1--WE will now take up the United States
2uhber Company" said Senator Lexow.
The first witness was Charles X. Flint
Who was duly sworn. Mr.. Flint is trea-
,urer and member Of the Board of Trus-