The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-02-06
PRO BONO PUBLICO
The Sugar Trust is Organized
In the Interest
Of the Consumer Says Mr..
Henry HaVemeyer.
COFFEE is TOO HIGH
And for That Reason the Sugar
Trust
Has Gone Into the Coffee Bust
ness Too.
COFFEE is TOO HIGH

New York, Feb. cat the Lexow in
vestigation of the sugar trust yesterday
Senator Lexow called Mr.. Havemeyer's
attention to the fact that he had tes-
titled in 1894 that the company contro1l-
ed the sugar market up to the import
ing 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 forced to control the output and
the price of refined sugar Mr.. Have
meyer said that was the way he looked
at it when he gave that testimony.
1T was certainly to control the price
of our American sugar." said Mr.. Have
meyer
/ You really do control the product
and price of refined sugar in the United
States, do you not?" asked the senator.
I'VE undoubtedly do replied Mr..
Havemeyer emphatically. I'VE turn
out more than so per cent of the whole
country, and [ want to say he said,
raising his voice, that when we con-
trolled 50 per cent, the supreme court
said it was perfectly legal to do So.
DO you ship sugar west of the Mis-
souri, in competition with Mr.. Spreck-
els?"
mo"
Did you enter into an agreement
with Spreckels not to compete with him
Certainly not. Competition with him
there is not possible. 1t is purely a
question of geography. Where the su-
gar would cost us 112 there, il costs him
u cent
Senator Lexow wanted to know about
the Arbuckle company.
They never competed with u.s." he
said. They are wholesale grOcerS and
handled our product. We took back all
their empty barrels at 20 cents, and
Mollenhauer offered them % cents. so
they shifted their trade from u.s.
why did you organize coffee COM
pany within a day or two? Do you
think the coffee business as alluring as
the sugar business?"
Yes, I propose to carry on the cof
fee business, just as we have the sugar
business, and that isl state it here in
open court without fear of contradic-
tonic the advantage of the consumer.
The margin between the raw and re-
fined sugar now is three quarters of a
cent. Concentration of large business
under one management, with it's con-
seQuent economy, allows US to put su-
gar on the market at price less than
separate concerns could afford to do.
Green coffee declined cents in 1896,
but Arbuckle has lowered the price of
the finished product only cents. thus
taking 8 cents a pound more than his
legitimate profit out of the consumer.
Il can put it on the market at only
one cent advance over the price OF the
raw article. The coffee business has
trade from us
John Arbuelxle was then called.
He testified that after he had deter
mined TO build a sugar refinery a di-
rector of the American Refining COM
pany, in speaking to him about it, said:
How would you like US to go into the
coffee businesS?"
Il felt said Mr.. Arbuckle, that it
was an implied threat"
James N. Harvie was called. He
said: Lowell NJ. Palmer of the Amer
lean Sugar Refining company came to
me and said: If you start refining
sugar we will go into the coffee bust
ness and the HaVemeyerS have more
millions than the Arbuckles-'
Mr. H. o. Havemeyer arose and said:
Lowell NJ. Palmer had no authority to
speak for the Havemeyers or the Amer
lean Sugar Refining company, If he did
speak Mr.. Palmer is at the head OF
our company operating department he
is not in the directory of the company.
Mr. Harvie went on to says: H F.
Mclaughlin of Chicago, competing
roaster came to me and said: i have
authority from one high in the sugar
trust to say to you that if you do not
go into the sugar refining business they
will stay out of the coffee business
Mr. Havemeyer jumped to his feet
and exclaimed: Il deny most emphat-
ically that any such proposition ever
came from US. 1t is monstrous. We are
going into the coffee business regard
less of the ArbuckleS-
The committee adjourned until IL a.