New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-16

u
show that the American Sugar Refining Company
from the very agreement which It exacted from us
factors unable to sell to the casual retailer.
rs 1t not a fact" asked Senator Lexow of Mr.
Searles, that you have an arrangement win the
Wholesale Grocers' Association which depars you
from selling to the small retailersT'
I'VE have no arrangement Of any kind to that
effect with the Wholesale Grocers' Association
answered Mr. Sear.es.
Have you any agreement with individual whole
sale grocers as distinguished from the ASSOCIATION!
we have a form OF agreement which We call
factor agreement and that agreement exists IN the
case of large proportion OF the wholesale grocers
in this State"
And the conditions OF that agreement with the
factors form the basis upon which your property Is
distributed"
I'm the main. yes"
Quoting at some length from book issued by the
Wholesale Grocers Association, dealing nomnaiy
with the equality OF freight rates on sugar Senator
Lexow endeavored in a series of questions TO elicH
admissions from the witness that the equality plan
laid down in the book and the rules explained thereh
for the direction OF the retail sugar trade. were
really instructions omanating from the trust TO It's
factors With many questions in this direction pun
by the chairman OF the committee, Mr.. Searles
fenced. refusing TO admit anything regarding TINS
equality plan ostensiby evolved by the Wholesale
Grocers' Association. beyond the enactments apply
ing to the equality of rates Of freight.
THE READING IN VAIN
1t was in vain tha: Senator Lexow read several
clauses from the book pointing out the stipulation
laid down therein that no sugar should be disposed
Of by the factors either directly or indirectly Tor
less than the daily quoatons-with the equalized
freigh: added-of the American Sugar Refining Com
pany Senator Lexow then asked the witness pluntiy
whether or not he wished the committee to believe
that the equality plan laid down by the Wholesale
Groccrs' Association referred only to the question
frop .ha moi If
ing destination Mr. Seares. however, contended
that freightage the only question involved and
that there intent on the part of the associa-
tion fix any equality as to the retail price OF
sugar As sort of clinching proof Of this inter-
probation Of the associations rules. Mr. Seares asked
Senator Lexow TO peruse the wording of the book
and slightly paraphrasing Shakespeare. asked is
II not so stated IN the document
Ignoring the question. however. Chairman LeXo~
proceeded to ask: do you mean TO be understood
that the American Sugar Refining Company. SELL
ing 50 per cent Of the sugar product in the United
States permits this equality rate book-whlch
fixes The freight from the point Of refining TO the
point of sale and containing other important drec
tions-to he made up without reference TO- OF
consultation with. the trust and that the trust
is not even aware of the contents OF the BOOK
until after it is issuod?'
Il have not made such statement. what 90
says that the rate book refers only to the equatE
Of the rates of freight which have been examined
BIZ the American Sugar refining company anu
have been adopted by it.
But in this very equality plan, which you say
was adopted by YOU only in reference to freights
q "a stated that your New Orleans price list Should
he the regulation price for the West ana your
Ney-York list should be the price for TINS part OF
the country How do YOU connect that with your
opinion that only equality Of freishts Is reIe''eu
10 in this book
"Tbot clause refers only TO own sugar and
In, way
made by other manufacturers. The articles III
This hook are prepared ty the Wholesale Grocers
Association They are not prepared by the Ameri-
can Sugar Refining Company, which directs that us
factors shall sell sugar AT the price we hX' lhey
car sell anybody elses sugar at any price '"eS
like"
Senator Iexow however. was Ioath TO abandon
the noint and asked Mr. Scarles question after
question in the endcavor TO show mat the AheIi-
can Sugar Refining Company held down It's factors
to a hard and fast agreement as 10 the price AT
which they should retail sugar of any manuiact-
urc but the witness only reiterated that the con-
tracts entered into with the factors applied only
10 the selling OF the trusts sugar. ana 10 the
equalization of rates and that the factors were al
liberty to sell other sugars at any price they
wished.
But is it not a fact" persisted Senator Lexow.
that you actively acquiesce in rules OF the whole
sal, Crocers' Association. and do you not influ-
enca prices thereby the whole of the United
States"
only in so far other refneres accept our
prices. Other rehneries are not bound TO accept
our prices.
But the Wholesale Grocers' Association. by rea-
J son of these rules compels other companies in
| the United States to fix the same price as the
! American Sugar Refining Company?
AWARE OF no SUCH COMPULSION.
81 am not aware of any such compusion'
| But does il not appear so from the articles IN
| this equality scheme?"
Not AT all"
| In further examination Mr.. Searles was asked
to explain the provisions headed Sugar Factors
Code of Rules" which were laid down by the as
| ISOLATION. and he did so by saying that the rules
! were made by the members Of the association for
| their statesmen for their own protection The rules
| had been fixed upon at convention of the grocers
| In order to obviae the arising Of any conflict in
| their personal interests. He deprecated the sug-
gestion Of Senator I.exow that the term conflict"
| might more properly be construed as competition
| and went ON TO explain that the rules TO which
ana NJ VA 1oen made were for the guidance
| only of the employees of the factors.
| "Yon say that these factors have no agreement
| with you for the sale of your property" asked
YES" answered Mr. searles.
| Therefore, is it not true that the factors VINO
| are embodied in this association are your own
| agents. and have formulated rules for the con-
| duct and government OF your property?
at is true that they have formulated rules but
| they are solely for the conduct of their own en-
| ploves in the distribution OF our products
| ''rhese same factors. then, are also the FACTORS
of connecting compa MES. and therefore these rules
| will apply TO other companies. Now, Is the con-
clusion not irresistible. that competition Is oe-
| stroyed as soon as your product leaves your
| hands" 49, -.o.,o .u... oao,. o,,r
but do they not adopt your prices absolutely
| put Rule 10 gives you absolutely the power Of
| hying prices Is there more than one card price
| sent out every day. O.
| ";rbc Moenhaucrs fix their prices. and we fix
| ours II Is not true that we absolutely fix the
| p'Tow Is II not a fact that this equality plan
| &c for Inc purpose OF preventing any variation In
'"No; the equality plan simply applies to freight
| age"