The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-06
SUGAR TRUST DEFIANT.
II. o. Havemcycr Talks Right out TO
the Investigating Committee.

New York, Feb. 5.-The special leglsla-
tive committee appointed TO investigate
the subject of trusts met in this city to-
day.
Ii. O. Havemeyer and Theodore Have
never, the heads of the American Sugar
Refinery, were on hand, having been sub
poenaed as witnesses.
Theodore Havemeyer vice president of
the sugar company, was the first witness,
but his examination was not as sensation
al as was that of Henry Q. HaVemeyer,
the president of the company.
The latter said the so-caLed sugar trust
came into existence in 1887, and continued
until January, 1891. The witness said mat
there were about fifteen companies which
were consolidated in 1891. lie could not
tell what the capital stock was nor where
the original document was of the agree
ment between the companies that had com
bined. He thought that the total value
of the assets of the combined companies
was $50 coo, 600. less 10 per cent. Witness
said the American Sugar Rehneries Com
pany, was organized in 1891, and took the
place of the so-called sugar trust. The
transfer was made by the purchase of the
assets of the trust. Fifty mill
lion dollars worth of stock was
originally issued and increased in 1898 to
SIS 100000. The $25,0O0000 increase was for
the purchase of the Philadelphia sugar
retinerieS.
TO an inquiry from Chairamn Lexow
whether the witness company did not
now control the product and price of re-
fined sugar in the United States, Mr..
Havemeyer replied in very emphatic
voice: I'VE undoubtedly do
And you do it by reason of the CONSOLE
I'VE do it simply from the fact that we
own property that can refine so much
sugar"
Mr. Havemeyer paused a moment and
then said: And 1t may as well be record
ed now that when we controlled IS por
cent. of the sugar market of the United
States the supreme court decided it was
perfectly legal for us to do So"
The witness said that the American
Sugar Refineries Company did not prevent
anybody from competing and that it
could not be called a monopoly
Mr.. Havemeyer said that he considered
that the coffee business was a good one
and that was the reason why they pur~
chased the WoOlson company in Ohio
do you think the coffee business pre-
sents as alluring field as the sugar bus
"Yes, sir: 1 propose to carry on the
coffee business just as we have done the
sugar business, so that instead of laying
the or cents a pound profit, which has
prevailed for years, the public will get
the benefit of all above half a cent profit
and we will also get a magnificent return
for our investment. l make this declara-
ton in open court"
Mr.. Havemeyer little later on, 1eclar-
ed that before the Havemeyers engaged
in the coffee business the profits were 3
cents a pound. and now 1t was only ] cent.
1.-The consumer gets the benefit of all
this and we also have a splendid invest
ment," said Mr.. Havemeyer empha ticaly.
Chairman Lexow looked astonished at
this statement
The witness said+that tia .nnargtn be-
tween the raw and refined sugar now is
| only three-quarters of a cent. COncentra-
ton of a large business under one man
agement with its consequent economy al
| lowed the company to put sugar on the
market at a less price than separate con-
Germs could afford to do.
In reply to another question the wit
ness said that his going into the coffee
business had nothing to do with Arbuckle
& Co., competing witha the American Su-
gar Refineries Company.
THAT story is pure nonsense" declared
Mr.. Havemeyer Mr.. Arbuckle has never
been a competitor with us in the sugar
business"
do you and your associates on the
board control the stock of the American
Sugar Refneries Company
mo, sir, we do not. There are 5000
stockholders in the company, and it would
be perfectly impracticable to control the
stock"
Mr.. Havemeyer was asked where Treas
urer Searles was a the present time He
replied that he thought he was in Wash
ington.
John Arbuckle was called next. He tes-
tilted that after he had determined to
build a sugar refinery, director OF the
American Sugar Refineries Company, in
speaking to him about it, said: How
would you like US to go into the coffee
roasting business|"
Il felt it was an implied threat that If
we went on with the building of our SUI
gar refinery they would go into the cof-
fee business" said Mr.. Arbuckle.
did you go on?"
yes, sir; we did and we are now build
! L....