Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-02-09

nlLCee ana Hides as Much IntOr-
nation as Possible-Has Ideas
About Competition and Capitali-
zation That are Hardly Consistent
With Good Public Policy-Had
Been Over to Canton Urging a
Trust Disciple Upon Mckinley
for Attorney General-That Is
Why He Failed to Respond
Promptly to the Committees Sub
poena.
New York, February ST. Searles,
secretary and treasurer of the Ameri.
can Sugar Refining Company, was OIL
hand to-day when the joint legislative
committee on trusts met ii this city
Mr.. Searles left his home in Brooklyn
for Canton, Ohio, last Thursday even
ing, after having been served with
subpoena, and the committee was dis
posed at its sitting on riday to de-
clare him in contempt and take steps
for his punishment. Mr.. Searles was
warmly greeted by the members of the
committee.
Lawyer Edward NJ. Shepard, attorney
for the sugar company, arrived soon
after, and Immediately entered into
conversation with the prospective wit
ness.
Before taking the stand Mr.. Searles,
at Senator LeXow's request, made
statement that he only received the
subpoena as he was on his way to take
a train and that he felt it was his duty
first to attend the business on hand
at the time.
Senator Lexow repTovingly told Mr..
Searles that subpoenas of the COM
mittee could not be ignored by the
millionaire or by the poor man.
"At the close of your testimony, Mr..
Searles." added Senator LeXow, the
committee will pass upon the question
of contempt"
Mr.. Searles said his occupation was
the sugar refining business and that Oh
bank president and president or sew
eral local corporations, and secretary
and treasurer Of the American Sugar
Refining Company.
Mr.. Searles said that he purchased
and held all the stock of the North
River Refining Company. The pur-
chase was an individual purchase, he
continued. and had no relation to the
value of property to the Sugar Refining
COMPANY. The circumstances were
somewhat peculiar and, he added, the
whole transaction was ventilated IN
the court of appeals.
Mr.. Searles gave the stereotyped re-
pIy: 81 cannot recall to series oil
questions propounded by Senator
Lexow in regard to purchase OF the
North River Retiring Company IN
cluding the inquiry if the price was
not about $925,OOO.
Asked as to the present Whereabouts
of the books of the company IN use
at that time, witness said it was MS
opinion they were in the archives OF
the subsidiary companies, over when
he has no control.
Mr. Searles said the capital stock
did not represent its intrinsic value
and that the public only suffered III
case of over-capitaliZatlon.
"Comnanies first representing the Sugar
Trust were Havemeyer & Elder, with
Capitalization of $5OOO0O; Dick & Meyer,
5000 600. and others entered on basis OF
s1OO Geo." the witness said.
"Tben the valuation of the property
said Chairman Lexow, was not correct
as represented in the certificates or else
the capital stock was false?'
The witness did not think so.
"Do you. as a business man, think that
the issuing Of capital stock at figures that
do not represent real value is the principal
vice in co. porations?'
81 hard, think that is the. truth. Tor the
reason that the corporation law Is availed
of by many parties associated in business
simplv to provide for the distribution OF
interests in the settling Of business
In reply to another question witness said
he was If the opinion that the Legislature
should encourage the formation of corpo-
rations in the State rather than drive them
to other Staes.
"Was the actual cash value Of the various
companies that comprise the American
Sugar Refining Company $l2Ooc'o. ana
were there not $5O,OJO0OO in certificates
issued?"
"There was no cash appraisement OF the
actual value Of the companies.
"Win you swear that the actual cash
value represented more than a total oI
s12 ZOO. OOO?"
u should most assuredly."
'yyhat other company except the So
called California company is in compeu-
ton with the Western Refining Com
pany?"
''None that I know OF.
Witness said that out Of a total OF 1000
OOO tons Of sugar produced annually in the
United states. the American Sugar Rein
ing Company controls eighty per cent. OF
the product annually. but denied the COM
pany controls the price.
when we are not in the market our
competitors are and buy and sell at their
own fixed prices" the witness said.
"Do YOU agree with Mr.. Havemeyer. who
stated that the principal object in consoI-
idating was to stop competition
"No. sir"
Wine.s was asked by Chairman LeSow
II anv refneries had been built since the
condemnation in 1891. and answered in
the Affirmative, saying that two had gone
up in this State alone.
How do you explain your testimony be-
fore the Senate committee
"Oh. that must be read with the con-
text"
eve are obliged to notify You formally
A. .a,,co ot tho next meeting OF the