The record-union., 1897-02-07
Who Control the Coffee and Sugar
Trade of the Country.
Chairman Lexow Becomes Angry at
the Non-Appearance of the Secre-
tary of the American Sugar Refin-
ing Company, Who Had Been SUBJ
penaed as a Witness.

Joint Committee on Trusts
adjourned yesterday Chairman Lexow
announced that the failure of John
Searles, Secretary and Treasurer Of the
American Sugar Refining Company, to
appear before the committee to-day
would bring upon him such punishment
for contempt as the laws of New York
provide.
Searles was not on hand to-day. Ed
ward NJ Shepard and John F. Parsons,
for the sugar company, ex-
planned that the subpoena to appear be-
fore the committee was served on
Searles just as he was leaving the city.
He was to-day at Washington, and
could not meet the committee until
Monday, when he would be either in
this city or Albany, as would best suit
the convenience of the committee, and
submit to the proposed inquisition.
Chairman LeXow said the committee
would decide IN executive session what
should be done.
John Arbuckle was recalled. He said
it was not true, as stated by President
Havemeyer, that the American Sugar
Refining Company did not threaten to
force him out of the coffee business il
he engaged in refining sugar.
There is no coffee business now"
Arbuckle said, and explained that the
profit in 1896 was only three quarters
of a cent a pound, and in 1895 a little
less than six-tenths of a cent.
James N Jarvie, business manager
of Arbuckle, was recalled and read sta
tistics to prove there was no profit in
the coffee business.
This was in contradiction of the
statement made by Havemeyer, who
stated yesterday that the coffee busi-
ness was a thriving and profitable
field of industry.
In reply to Senator Lexow, witness
testified that the firm of Arbuckle &
Co. and William F. Mclaughlin of Chi
cago control the coffee package trade in
the United States, and that the Have
meyers control the bulk of the sugar
trade to the same extent. The witness
said there were several grades of cof-
fee, ranging in price from ten to thirty
cents a pound, the latter price being
paid for Java and Mocha.
What was the purchase price on
coffee when the American Sugar Re-
fning Company went into the coffee
business through the Woolson Com
pany?"
Il should say the market price for
Rio coffee was ten cents pound, and
it sold at fifteen cents a pound to the
middlemen."
What price do you sell 1T at now?"
"At 1872 cents a pound"
DO you manufacturers consider it
fair to amass from the consumers large
profits to be distributed among the di-
rectors and stockholders in the charge
of unreasonable prices?"
The witness tried to evade the ques
ton, and the spectators gave noisy evil
dence of their disapproval. Senator
Lexow pounded the desk with his gavel
and ordered that no display be permit
ted.
How long will the public stand such
a thing, do you think?" asked Senator
LeXow.
The witness said that the 80 per cent
dividend only represented a > per cent.
dividend on the present value of the
stock. He said his company paid 81 900
for a single share of the Woolson Spice
Company.
rs it fact that they are putting up
better coffee at less price than you for
the purpose of driving you out of the
market"
Il think our coffee rs better than
theirs" the witness replied.
AT this juncture Senator Lexow asked
for c. 0. Havemeyer, and Mr. Parsons
said he had just received word that Mr..
! Tow
O'Clock, to which hour recess was
taken.
Senator Lexow then announced that
during the recess the committee would
consider the question of Mr. Searles'
disobedience of the order of the COM
mittee. After recess Chairman Lexow
announced that Mr.. Searles would be
given until 10 a. m. Monday to an
swer the subpoena of the committee
Mr.. Havemeyer was then recalled He
said that the four refneries in Phil
adelphia, which were absorbed in 1891,
still continue in operation. In reply to
a question he denied that there were
any sugar refneries closed after the
consolidation in 1891. Il think" he
said, my brother was in error when
he said that some of the refineries were
closed after the consolidation in 1891"
The witness further testified that
prior to the consolidation six factories,
employing 1000 hands, We're closed
down. Mr. Havemeyer then read a
long list of figures showing the profit
per pound of refining sugar derived by
the company for a specified number of
years.
John Bergen, who had been in the
employ of the American Sugar Com
pany in various capacities from 1876 to
1891, was next called. He said that in
1872 he was in the employ of the sugar
company as dock foreman, and that at
the time of the formation of the sugar
trust in 1887 between 5000 and 5000
men were discharged. Asked as to
the number of men rendered idle by the
closing down of the Brooklyn con-
Germ, he said 1000 men were dis
charged The witness said that he
understood that one of the closed re-
fineries was not being operated as a
coffee mill. Eight refineries were
closed, he said, since the formation of
the company, and this coffee concern is
the only one of them now in operation.
John Arbuckle again took the stand,
and testified that he controlled at least
one-quarter Of the coffee trade in the
United States. Mr.. Arbuckle said that
he wanted to explain that the price of
coffee was very variable. and gave it
as his candid opinion that it was the
most speculative business in the world
Have You any agreement with the
other big firms to fix prices?"
mo, sir: we have no agreement. We
only fix our own prices"