The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-02-16
LBXOW GUYED.
Mr.. Searles Has Fun With
the Tuppeny Nyack
Monster Hunter.
OBLIGATIONS OF MONOPOLY
Books of the Sugar Trust in New
Jersey and Directors Oppose
Their Surrender.


monopolies in this State resumed its in
quiry this morning. Mr.. Searles was on
hand early and his examination was con-
tinued. Mr.. Searles said the margin of
profit between the raw and refined ma
terial during the five years preceding the
formation of the Sugar Trust was 1854
and during the five years subsequent 1.96.
He admitted that after the trust had been
formed the average price of the raw ma
terial had dropped .s57 per cent. per pound
while the charge of the refiner increased
.157 per cent per pound. Witness said there
was very little profit in the business for
the five years before the trust was formed
and denied that there was a seven fold
capitalization of the stock after the con-
solidation of the refineries.
s''You said yesterday that it should be
the policy of the Legislature to encourage
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 consumer is not con-
sidered, and whereby monopolies OF quasi
monopolies are created should not be in
terfered with by the Legtslature?"
II can scarcely remember all that ques-
tion." said Mr.. Searles.
The stenographer read the question over
and Mr.. Searles replied
in so far as that question refers to the
American Sugar Refining Company, do
not see any objection to it"
Senator Lexow then put a number of
long questions as to whether the con-
sumner can get the benefit of the reduc-
ton in the price of raw material so long
as aggregations Of capital designed to
control prices are permitted to exist.
81 can't imagine such a thing existing.
/ don't believe the Legislature can rem
edy such state of affairs If it existed.
As / said before, the law of supply and
demand will regulate all these things in
time"
In reply to another question the witness
admitted that the consumer had not re-
ceived the full benefit of the decrease in
the price of raw material.
when the nation permits the creation
of monopoly or quasi monopoly, do you
consider that there is at least an un-
derlying obligation to give labor on the
one hand and the consumer on the other
an adequate share in the benefits of its
economy"
IF the monopoly exists I think there
should be some such obligation"
Refning oa company a s In the nas monopoly s,r or
quasi-monopoly it has shown itself to be
here, should be fostered in the absence
of the two considerations / have men,
ton in my former question:
Mr.. Searles got hot at this question
and snapped back
The American Sugar Refining Com
pany is not monopoly or a quasi-mon
opoly in any sense of the word The
American Sugar Refining Company is in
is no reason why the State should inter-
fere with its business in any particular"
Senator, Lexow then went off on an
other tack.
Mr.. SeaIles,'' he said. "have you since
yesterday given the question of the pro-
ducti9n OF the books amy consideration"
Il have not" replied Mr.. Searles, with
SMILE; SMILE; -
Yesterday"
Eyes, SIR"
Senator Lexow then called the attention
Of the witness to the fact that LAWYER
Shepard. of counsel for the company. had
promised to produce certain books and
also documents regarding the purchase
number of men discharged and asked il
II would be necessary to issue a subpoe-
ma duces tecum. Lawyer Parsons, one of
the counsel, here arose and said:-
'I do not know what Mr.. Shepard
promised and I would prefer to talk with
him before answering. The directors
meet tomorrow and we will lay the mat
We'll" said Mr.. Lexow to the wit
ness. If we will let the affair rest until
Thursday morning will you be here and
here?'
1T will be difficult for me to be here
town on Wednesday,
Mr.. Parsons here said that Mr.. H. o.
Havemeyer would be present on Thursday
morning and he would carry the answer Of
the directors In regard 40 r,1J,>o n ,f
the books.
This was satisfactory to the committee
and thus the matter rests for the present
What do you figure the cost of the out
put of the American Sugar Refining Co.,
basing it on 100000 yearly?" asked Sena-
tor McCarren.
Mr.. Searles took a notebook and made a
hasty comnutation.3
81 figure the cost as 81, 300 De0,'' he said.
And | figure itas s4,2ooo9e, said Sena-
tor Lexow.
well. perhaps your figures are right, y
replied Mr.. Searies, in a soft tone.
What would be the cost of raw sugar
today If the companies had not CONSOLE
To-day it would be the same, but in
certain periods during the last eight or
nine years the price of raw and refined
sugar would be a cent pound dearer."
Would refined sugar be dearer to the
consumer without consolidation"
believe 1t would be half a cent
dearer."
LII 1Cply " dIDtiSI QuGSllOH InG VIII
ness said that he believed there was as
much labor if not more employed now
than before the consolidation.
Senator Lexow wanted the figures in
that respect and Mr.. Parsons speaking
for Mr.. Searles, said he would request
Mr.. Havemeyer to produce the desired
6ata.
Perhaps these figures are also destroy
ed,'' remarked Chairman Lexow and Mr.
Searles smiled.
In reply to another question the wit
ness repeated again that it was the Lon
don market that controlled the price of
raw sugar. The London market was in
competition with the American market.
The American Sugar Refining Com
pany with it's large capital can purchase
sugar all over the world and in this way
we have been enabled to hold the price
Df sugar down..
Witness gave the price. of sugar since
1899, and said sugar today costs four
sents per pound He could not tell he
iadd, the cost of refined sugar in 1887,
aot having the necessary data with him.
He said there was an increase of fully
zen per cent. in wages after the formation
bf the trust,
because of Illegal combinations Of Ia
bor p,
Il said that there were combinations Of
abor which melted strikes
And these strikes were for increased
s.Yes.'
This closed the examina ton of Mr..
tearIes. who left the stand smiling.
Lawyer n. Fuller was then recalled.
our competency as an expert ia sugar