The San Francisco call., 1897-02-17
STILL LEXOW|NG
THE SUGA TRUST
Secretary Searles Proves a
Cool and Cautious
Witness.
Once, However, He Grows Angry
and Snaps Back at HIS
TOrmentorS.
Makes SINE Admissions, but Fails 10
Produce the Books and Leaves
the Stand Smi ing

NEW YORK, n. Y, Feb. 16.-The
legislative committee investigating the
trusts and monopolies in this State re-
sumed its inquiry this morning. Mr..
Searles was on hand early and mis- ex-
animation was continued. Mr.. Searles
said there was very little profit in the
business for five years before :he trust
was formed and denied that there was a
sevenfold capitals ization of the stock after
the consolidation OF the refineries.
Senator Lexow then put q number of
long questions q 8 to whether the consumer
can get the benefit Of the reduction in the
price of the raw material so long as ag-
gregations of capital designed to control
prices are permitted to exist.
81 can't imagine such a thing existing.
l uon't believe the Legislature can remedy
such q state OF affairs if it existed. AS
said before, the law of supply and demand
will regulate all these things in time"
In reply to another question the witness
acknowledged that the consumer had not
received the full benefit of the decrease in
the price of raw material.
Mr.. Searles got hot at one of Senator
Lexow's questions and snapped back ::
THE American Sugar Refining Company
is not monopoly or quasi-monopoly
in any sense of the word. The American
Sugar Refining Company is in the interest
of the consumer, and there is no reason
why the State should interfere with its
business In any particular.
Senator LeIow then went off on another
tack. "Mr. Searles,' he said, "have you
since yesterday gwen the production of
books any consideration
Il have not" said Mr.. SearIes, with a
smile.
Lawyer Parsons OF counsel Cor the sugar
company said the directors would meet
tomorrow and he would lay the matter
before them. Mr.. Parsons said that II. 0.
Havemeyer would be present on Thursday
morning and lie would carry the answer
of the directors in regard TO the produc-
tion of the books. This was satisfactory
to the committee.
In reply 10 another question Mr.. Searles
said that he believed there was as rcuch
labor II not more employed now than be-
fore the consolidation.
Senator Lexow wanted the figures in
that respect, ana Mr.. Parsons, speaking
for Mr.. Searles, said he would request Mr.
Hayemeyer TO produce the desired data.
perhaps these figures are also de-
stroyed," remarked Chairman Lexow, and
Mr.. SearleS smiled.
Witness said there was an increase of
fully 10 per cent in wages after the forma-
tion of the trust
Did you say that the trust was formed
because of illegal com binations of labor?"
II said that there were com binations of
la Dor which incited strikes and these
strikes were for increased wages.
This closed the examination of Mr..
Searles, who left the stand SIN ling.
Lawyer Fuller was then recalled as an
a haf ha
formed to reduce expenses, and there was
more machinery in use now tuan when it
was formed, consequently less men. Mr.
Fuller, alter answering some further ques-
tions, said:
Now, want TO say that if you give us
honest Senators we will have cheaper .su-
gar. l am in favor of electing men to
Congress who will iegislate in favor of the
public"
There was applause from the spectators
at this remark, which Chairman Lexow
suppressed.
1--WE will now take up the United States
Rubber Company" said Senator Lexow.
The first witness was Charles B. Flint.
Mr.. Flint described the company, of which
he was treasurer and a mem Der of the
board OF directors, by saying it was organ
lied in New Jersey in 1892. He said there
had been an understand. .ng in the rubber
business In regard 10 prices for the past
twenty years, and that the object of the
consol1d alton was to secure economy. by
Capitalization. He explained that the con-
soidated companies controlled about so
per cent of the rubber business and COM
petition was continued with the com mpanies
doing the rest of the business
The witness was examined at great
lensth concerning the stock issues, the
purchases of competing properties and
other details OF the business up to the hour
of adjournment.