Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-16
SUGAR REIN
.,,rs II. POST BEFORE THE LEN
ow COMMITTEE.
SgAULES AGAIN ON The STAMP.
He TELLS of the Margin of
Profit I'm HIS Busincss-Doesn't
Think Trusts Hurt the Working


NEW YORK. February l5.-The Joint
legislative committee appointed 10 in
vestigate the existence of trusts and
uonopolies in the State Of New York
met again this morning.
John f. Scarles. secretary and trea-
surer OF the American Sugar-Refning
Company. was on hand early
The first witness called was James II.
Post. n commission merchant Of this city.
lie said ne was the representative of T..
II Howell. Son & CO. He represented the
two eastern concerns that were supposed
n be I'm competition with the American
suear-Reduing Company. These were the
National company and the Mollenhauer
company.
From his testimony 1t seemed that the
methods of the two competing refneries
were much the same as those of the
American Sugar-Rehning Company. If
they did not actually work in concert
with that company. Mr.. Post, however,
testified that there was no agreement be-
tween his principals and the American
company. except as 10 freight In reply
TO questions from Chairman Lexow, Mr..
Post admitted that IL might be fact that
his principals increased or restricted their
output. or raised and lowered prices,
simultaneously with the American COM
pany
Mr.. Lexow asked: Don't your com
panies and the American Sugar-Reining
Company fix the price of sugar.
NO. sir: the price OF sugar is fixed
by the whole world. One sixteenth or
one eighth Of a cent would carry sugar
10 any part Of the world"
The witness said that the price OF SUGAR
was fixed by the daily state Of the mar
let. and not by the refining companies.
lie explained that the equality rate-oook
accepted by the grOcers and the com
panies only dealt with the freight This
contract the witness admitted. was TO
stamp out competition. but was equally
for the benefit Of the grocer and the con
eumer. because sugar was sold 10 every
body at the same price.
COST OF REFINING.
Mr.. Searles then took the stand. Mr..
Lexow drew from him the statement that
the cost Of refining sugar was from -
to 81 Of a cent per pound; that the mar
gin of profit between raw and refined
sugars had been decreased Is cent per
pound during the last year and that, If
the American company could not pro
duce sugar cheaper than the similar con
Germs that We're not consolidated, one OF
the principal objects of the consollda-
tion would have failed.
Witness said that twelve refneries be
longing TO his company were not ope-
rated last year: that the American com
pany contemplated the purchase Of the
United Sugar-R Refining Company. OF cam
den. y. j., recently established, and that
whatever plant had been acquired by the
American company since its establish
meut. had been competing plant. In
regard to the purchase Of the Baltimore
refinery. I'm 1896. the witness said: I'VE
thought II was a good purchase and that
srgar could be conveniently oistrnuteo
from that point TO the South and West
Witness denied that there was special
sum set aside for supporting idle re
fneries: also. that there was an agree
ment with the Wholesale Groccrs' AS
sociation. He said there was an agree
mnt. however. with wholesale grocers iu
regard TO the freight from the refining
point to the point of sale.
The articles relating TO the equality
plan In the Wholesale Grocers' Associa-
tiOn were prepared by the association
the witness said. and not by the Ameri-
can Sugar Refining Company.
The following is the capital stock OF
the fifteen original companies that com
posed the Sugar Trust. according 10 th'
witness: Havemeyer & Elder. $4,000
Dick & Meyer. S2OOO0o: De Castro $25O0O
Woller & Sierck $4,000: Oxnard SlO0
O00. r. O. Matthieson & Wiechers. 800
90. Brooklyn 100000: Havemeyer. S.O)o
Oo0: Forest City. 100000; Boston, $4,000
Standard. S1.OO0O00 Bay State, $225.OOO.
St. Louis, $4,000: Louisiana, Si50O90
Planters. S250000.
BOOKS MUST COME.
Mr Searles had brought no books or T.
cords Of any kind with him, and Chairman
Lexow announced that the directors of the
American Company would be subpoenae
90 produce the books required.
In reply 10 further questions NJ
Searles said that more men were employee
in the sugar refneries now than Deior'
the existence of the trust; that during IN
last nine years his company had distri
buted 81 500 100000 worth of sugar in tn
United States. and that the London maI
ket controlled the price of sugar in tn
the world.
'Is the increase Of large corporations q
Disadvantage to the workingman?' asked
the chairman, suddenly.
"No. sir; but II we had less Legislation
we would be better off. II you Will MAXI
laws that will invite capital to this State
instead Of driving II away. ii would Do
on advantage. But so long as inyestis'
tions like this are fomented. 1t MAKE
capital unsafe and uncertain and make
10 act on the defensive. as though It Were
the enemy Of the workingman. There j
laW far higher than the Legislature o.
the state Of New York-the law OF sun
ply and demand-which controls all these
things. and which no trust, however DIE
IS ahlet0 violate"
Senator Lexow at this juncture adjourn
"a the proceedings until 10 A. NJ. to-mor
row. when Mr. Searles will produce io'
Of statistics in regard to the raw mateIla'
before and after the formation OF the
trust