The Portland daily press., 1897-02-16
SUGAR and WATER.
Mr.. Searles Explains How Sugar
Trust Stock Grew.
INCREASE T0s43 MILLIONS FROM
CAPITAL OF SIX MILLIONS.

Interesting Facts Brought Out at tho Ah-
vestigation Yesterday-The Minute
Book Of Company Called for But Direc-
tors Refuse to Have 1t Produced.
New York. February 49, IKE joint
legislative committee appointed to inves-
tigate the existence of trusts and mono
poles In the state of New York, met
again this morning. John f. Senrles,
secretary and treasurer of the American
Sugar Refining company. was ON hand
early. The first witness called was
James H. Post, q commission merchant
of this city. He said he represented the
two eastern concerns that were supposed
TO be in com petition with the Anieri-
can Sugar Refining company. These
were the national company and the Mol
lenhauer company. Witness said he did
not believe that the profit in the sugar
business for the past ten years has
amounted to from $4,000, 600 to S14,
600, 600 a year. His company did not
make one.fourth of cert per pound
profit last year.
"Is it not fact that you operate
through the came concerns and employ
the same msans as the American Sugar
Refining oompany9'
practically, yes.
Witness said that the factor IS agreement
with his company was the same as
that of the American Sugar Refining
company. with the exception that his
company did not require an affidavit
to get the rebate of three-sixteenths of
cont per pound. The witness then
stated again that he, did not think any
Of the reiiners made one-quarter OF a
cent profit last year.
"And yet the factor gets three-aix-
teenths of cent rebate when the ref1ner
does not make one-quarter OF cent?
asked Senator Lexow.
esThat's so,'' replied the witness.
"Do you want us to believe that"'
eyes, sir.
care you giving honest testimony in
this matter?"
81 am here under oath and nm telling
the truth, replied the witness sharply.
John Z Searles was called. He said
the cost of refining sugar was from one
half to quarters of cent per
pound. This year the margin of profit
between the raw and fluid sugar de-
creased about one eighth of cent a
pound.
sis the American Sugar Refinery Com
pany able to produce sugar cheaper than
other companies in the United States?'
Mr. Searles was asked.
ct have no knowledge of other COM
panies", he replied.
"Haye YOU not testified that the con-
solidation of fifteen companies was for
the sake of economical production and
do you now say you have no knowledge
of any other concern?'
81 have no knowledge of other non
consolidated companies" replied the
witness.
IF you could not produce sugar cheap
er than smaller concerns that were not
consolidated one of the principal objects
of consolidation would have failed?.,
81 presume that would be so.''
Mr. LeXow read some of the testimony
of Mr. Macahn in which the latter said
the cost of refining sugar by the Macahn
| refinery was Sc cents per 100 pounds and
asked the witness if it was possible that
it cost his company 70 to Is cts. a hun
bred pounds. The witness replied that
Mr.. Macahn used the purest kind of raw
| material and the cost of refining was
| consequently less.
He contended that the production OF
the American Sugar Refining Company
was the finest in the world. He said that
last year seven refneries were not oper-
ated. He admitted that his company
had in contemplation the purchase of the
United States Sugar Refinery company
of Camden. The only reason the witness
would give for this contemplated pur-
chase was that his company might be
able to utilize it. His company, he said;
had not determined how the United
States Sugar company was to be &C
CURED.
The witness had no knowledge as to
how many men were discharged when