The herald., 1897-02-09
SUGAR KING SEARLES
answers SUBPOENA
Leaving Chunks of Mem
ory at Home
SENATOR LEX0W SC0LDED some
But Imposed no Penalty for
SearIes' Delay
THE GREAT SUGAR TRUST
Was Not Organized in Order to CoutroI
Prices
Rsaneries Were Not Purchased TO Shut Off
Competition
A Bsue> oient Institution Which the State
Should Encourage Is SesrIes' Idea
Of Americas Greatest
Trust
Was Not Organized in Order to CouiroI
Prices
Reilnerles Were Not Purchased TO Shut Off
Competition
A Bsue> oisnt Institution Which the State
Should Encourage Is SesrIes' Idea
Of Americas Greatest
Trust
Associated Press Special Wire

Associated Press Special Wire
NEW YORK. Feb. 8.-Mr. Searles
secretary and treasurer of the American
Sugar Refining company, was on hand
today when the joint legislative commit
tee on trusts met. Searles left home for
Canton, Ohio. last Thursday evening,
after having been served with a sub
poena, and the committee was disposed
Friday to declare him in contempt and
take steps for his punishment. Searles
was warmly greeted by members of the
committee. Before taking the stand
Searles, at Senator Lexow's request,
made a statement that he had only re-
ceived the subpoena as he was on his
way to take the train and felt it his duty
first to attend to the business on hand.
Senator Lexow reprovingly told Searles
that the subpoena of the committee
could not be ignred by millionaire or
q poor man. "At the close of your tes-
timony, Mr.. Searles," added Senator
Lexow, "the committee will pass upon
the question of contempt"
Searles said his occupation was the
sugar refining business and that Of bank
president and president of several local
corporations. being secretary and treas
urer Of the American Sugar Refining
company.
Searles said he purchased and held all
the stock of the North River Refining
company The purchase was an indi-
vidual one and had no relation to the
value of the property to the sugar re-
fining company The circumstances
were somewhat peculiar. he said. and
the whole transaction was ventilated in
the court OF appeals.
Searles gave the stereotyped reply, II
cannot recall" to series of questions
propounded by Lexow In regard to the
purchase of the North River Refining
company. including the iaquiry If the
price was not about $325,000. Asked the
present whereabouts of the company's
books witness said it was his opinion
they were in the archives of the subsid
iary companies, over which he had no
control.
Now, you might as well tell us what
was paid for the North River Sugar Re
fining company. We are going to have
it If It's in this world"
II have no figures at the present time
by which could give you exact figures"
said witness, who recalled that the price
paid in for the stock of the North River
rs it not true you made $350000 over
night on that transaction??'
1T Is not true"
Did you not consider when you were
taking $700, worth Of certificates you
were taking their value when they be-
came a part of the consolida ted stock?"
"It was my faith in their ultimate
value that induced me to take them"
The witness said the North River Su-
gar Refining company was anxious to
get cash instead of certificates, and in
order to accommodate the company the
witness took the certificates off their.
hands.
Mr.. Searles further said the transac-
tion had the acquiescence of the direct
Ors and stockholders of the sugar trust,
and admitted that instead of receiving
100000 worth of stock certificates from
the North River Refining company he
only received $595000
At this stage Stephen Little, the ex-
pert accountant, announced himself,
and on explaining to Senator Lexow
that he was in no wise concerned in the
corporation under investigation was ex-
cused.
In reply to Senator Lexow, Mr.. Searles
denied that his purchase of the stock
of the North River company was to
crush out the company as competitor.
In reply to another question, witness
said he could not say definitely whether
or not the actual values on all the
stocks taken into the amalgamatej
trust were less than $20,0O0,0O0.
"ls 1t not fact that the $50 900, 900 of
stock in the sugar trust is only third
sof that figure in actual value?"
"By actual value. do you mean bricks
and mortar?" inquired Mr.. Searles, who
finally stated that his mind was not
clear on the subject. Witness said he
had not the figures in the case, and on
being asked by Senator LeXow If they
were available, Mr.. Searles said he pre-
sumed they could be supplied from the
books Of the company.
How much did the four BROOKLYN
refineries that We're shut up receive in
certificates"
IT do not remember the amount"
Was MI. Havemeyer mistaken when
he said that the sugar trustees accepted
the figures and estimates of the various
officers and stockholders of the compo-
nent companies without Investigation
and issued certificates upon that basis p''
II think the statements Of the repre-
sentatives of the various companies
were generally accepted as a basis for
estimating the value Of the PROPERTY
He denied positively that his COMPANY
controlled the price Of sugar. and also
allegations that it forced competitors n
the wall by reducing prices in certain
localities.
Mr.. Searles said the capital stock di5
not represent its intrinsic value and that
the public only suffered in case of over
capitalization.
THE companies representing the su-