The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1897-02-09


,,,arr and treasurer Of the American
snsar Refining Company was on hand
to-day when the iolns legislative COM
mlt,ee on trusts met In this city. Mr..
sclrlcs left his home In Brcoklyn for
canton. Ohio, last Thursday evening.
sf,er having been served With a sub
p5ena, and the committee was dlSpos-
cd at lis sitting on Friday, TO declare
him in contempt, and take steps for
his punishment. Mr.. searles was warm
ly greeted by the members OF the
committee.
Lawyer Edward 81. Shepard, attor-
npy for the sugar company, arrived
soon after and Immediately entered In
10 conversation with the prospective
witness. Before taking the stand. Mr..
sparles. At Senator Lexows request.
made a statement that he only receiv-
ed The subpoena as he was on his way
10 take train. and that he felt II was
his duty first TO attend 20 the business
on hand al the time.
senator LeXow rrprovingly told Mr,
Searlcs tina; ;he subpoena OF the COM
nittee could moi be ignored by the
millionaire or by the poor man.
"A, the close Of your testimony, Air.
Searles." added Senator LeXow, "the
committee Will pass upon the question
Of contempt
MI. SeArles said HIS Occupauou was
the sugar refining businesN and that of
hank president and president ot several
81 .RRFRNAFE
treasurer OF the American Sugar Re
Anlng Company.
Mr.. Searies said that he purchased
and held all the stock OF the North
River Refining Company. The purchase
was an individual purchase he Contin-
ued. and had no relation as to the
value uf property to the sugar refining
company The circumstances were
somewhat peculiar and, he added, the
whole transaction was ventilated In
the court Of appeals.
Dehclsnt Memory.
Mn searles gave the stereotyped re-
ply: Il cannot recall" TO a series OF
questions propounded by Senator Lex
ow in regard 20 purchase OF the North
River Refining Company, including the
inquiry II the price was not abou:
$4,000
Asked as to the present whereabouts
nf the compuny's books at that time
witness said 1t was his opinion they
were In the archives OF the subsidiary
companies over which he has no con-
troll.
witness further said that the trans
action had the acquIescence OF the
directors and stockholders Of the Su-
gar Trust. The witness finally admit.
ted that instead OF receiving 100000
worth OF stock certificates from. the
North River Sugar Refining Company
he only received $59j,00O.
At this stage Stephen Little, the eX"
pert accountant who had been 6ubpoe-
naed, announced himself and on ex-
plalnIng to Senator Lexow that he In
no wise was concerned in the corpora
iion under investigation, was excused.
In reply to Senator LewoX, AIr. Searles
denied that his purchase OF the stock
Of the North River Sugar Refining
Company, was 20 crush out the COM
pany as a competitor In the sugar
market.
In reply 10 another question witness
sald he could not say definitely wheth-
er or not the actual values of all the
stocks taken into the amllgamated
trust was less than $2O.0O0,00O.
''Is It not fact that the $500OO,0OO
worth OF stocks In the Sugar Trust arc
only a third OF that figure in actual
vaIue?"
"By Octual value do you mean bricks
and mortar? inquired Mr.. Se0rles, who
finally stated that his mind was not
sufficiently clear on this subject.
He denied positively that his COM
pany controlled the price Of sugar and
also allegations thnt It forced competl-
tors to the wall bH reducing prices in
certain localities.
not represent its Intrinsic value, and
that the public only suffered in case Of
OvercapItaIlzation.
Companies first representing the
Sugar Trust were Hnvemeyer and FL
der. with a capitalization OF 100000;
Dick G. Meyer 500. 900. and Others en-
tered on basis OF 100000" the wit
ness said.
Then the valuation OF the proper
ty." said Chairman LeXow, was not
correct rs represented IN tho certlh-
cates. or else the capital stock was
falge?"
Tho witness did not think 80.
FaIIe Values.
do not you, as a business man,
think that the issuing OF capital stock
at HEuros that do not represent real
value is the principal vice in corpora
tIons?"
Il hardly think that Is tlle truth for
the reason that The corporation law Is
RVniled OF by many parties associated
in business simply TO provide for the
distribution Of interests In the settling
OF business"
In reply to another question. wltness
said he was OF the opinion that the
legislature should encourage the for
nation OF corporations in tho state
rather than drive them 10 other states,
WAS the actual cash value Of the
various companies that comprise the
American Sugar Refining Company,
Sl2,0O0,O00, and was not there SJ0,g0O.0OJ
IN certificates issued2"
There was no cash apprnlscment OF
the actual value Of the ,coInpmicE.'
WIN you swear that the actual
cases OF value representel more than
total os s12,0OO,OOO2'
~ should iuost asEurclly"
what dthdr company except the go
called California company Is IN cOmpc-
ton with tho Weston RchnIng Com
pauy?"
Mono that J know ct" ..
Witness raid thut ont Of total of
. 1pOuU1 taIS ~ sUEGr produced aGuu-
aiiy IN the iin.tra states. the American
sugar ErrrIlg CpmpOny controls 20
Inr cont oi t'Io product annually but
GTiHb tho 6DJrGHT Cguti'lH thn price.
"Nihrn Nr are no. M the UQrkot our
competitors aro. and buy aud sell nj
tiyir own GS'd brlocs,' tho witDeH1 said.