Kansas City daily journal., 1897-02-06
COFFEE KING ALSO TEsTIFlEs.
FIGHT BETWEEN ARBUCKLE AVID
AMERICAN REFINERY co.
IL. o. Haremeyer Says Consumers VIII
BE BENEFITED by Their Entering
the Business-WiH BE Sat-
isfied With 10 to 70 Per F.
cent Profits.

| suits and several lawyers Whice clients in
| terests it was supposed might be affected
| by the investigation. a letter was read
| frcm c. L. Richards & Co.. steamship
agents of this city, calling attention to the
| alleged existence of u pool by the Trans
| Atlantic steamship companies and refusing
| an investigation into its methods. Theodore
| a. Havemeyer, vice president of the Amer
| lean Sugar Refinery Company, was then
| sworn, having explained that prior to 1881
he was connected with eight sugar refining
companies now operating as the American.
| Mr. HaVemeyer said that he had nothing TO
| do with the commercial or fiscal side of
| the business He could not give the cap
| utilization of the various companies that
| We're absorbed in 1891 without reference to
| the books that was Il matter upon which
| Mr.. SearleS would probably be able TO in
What was the object of your consolida-
| ton in 1Sgl?''
To refine sugar
was not your company organized, Mr..
! Havemeyer TO control the refining and sale
| of sugar in the United States.
DO You not control the sugar markets
| of the United States?
WAS your company not organized for
the purpose of preventing illegal combina-
| tions of labor?'
NO, sir" .-..
Have YOU not increased the capital stock
of the company since 1877
| Yes. sir.
TO what extent" e.sI
Il should say $25,0OO,0O0.'
How many sugar companies outside Of
| yours are there in the United States?"
| Il should say about eight
The witness then enumerated the names
| Of the companies
In reply to another question. Mr.. Have
| meyer said that the American Sugar Re
| iinerics Company produced from l3 to 10
| per cent of the sugar manufactured in the
| United States.
ITO purchase other companies, the
| Franklin, the knight. the Spreckels and
| the Delaware Sugar Refining Companies OF
is it not Il fact that the price of sugar
| increased owing TO the acquisition of these
| four companies:
Il think not; the price OF sugar Is lower
now than it was then. ..-
| Reverting to the recent advent of the SUI
gar company in the coffee trade, the chair
man of the committee asked: Why did
you go into the coffee business?"
Il thought it was pretty good busi-
Are you willing to swear that the Off
GERS of the coffee company are not organ
lied for the purpose of shutting out COM
petition against the American sugar re-
iineries?'
They are not. SIR
Mr. Havemeyer said the preferred stock
of the company was $37,OOO,000 and the COM
mon stock $37 900, 600. A dividend of I per
cent was declared last year on the pre-
ferred and y per cent? on the common
i an accumulated surplus. .'tiit-'---. '. -
Il would not go into business Mr. Have
meyer said II L dM not make 1j or 20
| pc cent on it
Senator LeXow quoted some figures from
a financial papsr which showed that in
| lS94-5-G the surplus of stock increased from
DO you know any business not in the
nature Of monopoly that pays 10 or 1t
per cent?"
Plenty of them"
Tell us one of them.
Coffee, for instance"
And that is the reason you went into it,"
"One of them.
II. o. Havemeyer president of the Ameri-
can Sugar refinery, was sworn, and de-
SCribed the organization of the sugar trust
in 1881 The assets, real and personal prop
erty of fifteen companies, We're purchased
by the American Refinery Company at the
time of amalgamation. Asked where the
original document of agreement was, Mr..
Havemeyer said he did not know. and
doubted its existence now. The American
| Sugar Refining Company of New jersey.
Mr.. Havemeyer said, took the place in 1881
through purchase. The new company was
capitalized first at S50,0O0,O00 and after
wards increased TO S75,OOOOO0.
In answer to direct questions, Mr.. Have
meyer denied categorically that his COM
pany controlled the sugar market in the
United States, fixed the price of refined
sugars, controlled the product of sugar, or
that it had an agreement with the Molen-
hauer concern, the National or the st.
Louis.
Senator Lexow called Mr.. Havemeyer's
attention to the fact that he had testified
in 1S9i before the United States senate com
mittee that the company controlled the
sugar market up to the importing point.
THAT was true at that time" replied
Mr. Havemeyer. Competition has changed
that since then
Senator LeXow then read another part of
Mr. Havemeyer's testimony at that time
in which he said the company had been
formed TO control the output and the price
of refined sugar. Mr.. HaVemeyer said that
no doubt that was the way he looked at
4 X--b. l.a a
1t was certainly organized to control
the output and price of our own sugar"
said Mr.. HaVemeyer.,
You really do control the product and
price of refined sugar in the United States
do you not?" asked the senator.
never emphaticaiiy. we turn ~ out It be- be-
tween ~ and so per cent of the whole out
put of the country.
went on. raising his voice, that when we
controlled q per cent of the output the
supreme court said it was perfectly legal
DO 'j You ship sugar west of the Missouri
in competition with Mr.. Spreckels?' asked
Senator Lexow.
Did You enter into an agreement with
Spreckels not to compete with him west of
the Missouri"
Certainly not Competition with him
there is not possible; 1t is purely a ques-
tion of geography. Where the sugar would
cost us IL cents there II costs him y
cent
Senator Lexow wanted to know about
ArbuCkle Bros. relations with the Ameri-
can Sugar Refining Company, and spoke of
the firm competing with sugar companies.
They never competed with us" he said.
They areN wholesale grocerS and handled
our products. We took back their empty
barrels at 20 cents and Moltenhauer Of
fereG them - cents. so they shifted their
trade from us
why did you organize coffee company
within 4 day or two. You think tile Cof-
fee business is as alluring as the sugar
buSiness?'
Yes propose to carry on the coffee
business just as We have the sugar bust
ness and that Is TO the advantage OF the
consumer. The margin between the raw
and refined sugar row is three-quarters of
cent Concentration of large business
under one management with its conse-
quent economy, allows us TO put sugar on
the market at a less price than separate
concerns could afford TO do. Green coffee
declined cents in 1896. but Arbuckle has
lowered the price of the unfinished prod
pound more than his legitimate profit out
OF the consumer.
Il can put it on the market at only /
cent advance over the price of the raw
product. My going into the coffee business
has nothing TO do with: Arbuckle taking
his trade from us. That is pure nonsense.
Senator LeXow then aroused interest and
surprise by calling John Arbucke to the
stand. Be fore he was questioned, Senator
I.eXow asked Mr.. Havemeyer: Are vol
with your brother. in complete control of
the American Sugar Retineries Company"
No, sir, we are not" answered Mr.
Havemeyer, with some heat.
The stock is held by 5000 stockholders.
and no one man or two men or firm can
control it
Mr.. Arbuckle testified that after he had
determined to build sugar refinery IL di-
rector of the American Sugar Refining