The herald., 1897-02-06
THE TRUSTS ARE ON TRIAL
Before the New York LegisIa.
tive Committee
MR.. HAVEMEYER TESTIFIES
As to Business Methods Of the Sugar
Trust
He Never Made A-v Agreement Regarding
the Fixing or Maintain.
Ing Jf PRICES
Mr.. HAVEMEYER TESTIFIEs

man LeXow called the Joint executive
committee on trusts to order today there
were present upon subpoenas to testify
II. o. and Theodore Havemeyer, besides
a number of men prominent in mercan-
tile pursuits and several lawyers, whose
clients interests, it was supposed, might
be affected by the investigation.
A letter was read from C. B. Richards
& Co., steamship agents of this city,
calling attention to the alleged existence
of a pool by one transatlantic steam
ship company, and requesting investi-
cation into its methods.
Theodore Havemeyer, vice-president
of the American Sugar Refining COM
prior to 1891 he was concerned with eight
sugar refining companies now operating
as the American. Havemeyer said he
had nothing to do with the commercial
or social side of business. He could not
give the capitalization of the various
companies absorbed in 1891 without ref
erence to books. That was a matter
upon which Mr. Searls would >proba bly,
be able to inform the committee. The
question was then put to the witness:
do you (meaning the American Su-
gar Refining company transact any
business save sugar refining?"
Il think not"
Have you not recently been led into
the manufacture of coffee?"
Yes, sir; I am connected with cof-
fee company in Ohio"
What was the object of your consol-
idation in 1872"
ITO refine sugar"
WAS not your company organized,
Mr.. Havemeyer, to control the refining
and sale of sugar in the United States?"
II think not, sir"
do you not control the sugar market
in the United States?"
mo, sir
WAS your company not organized for
the purpose of preventing Illegal COM
binations of labor?"
mo, sir'
Have you not increased the capital
stock of the company since 1872"
Yes, SIR
'Now, to what extent?'
II should say $25,0O0,0O0
''How many sugar companies outside
yours are there in the United States?'
II should say about eight"
Witness then enumerated the names
of the companies. In reply to another
question Havemeyer said the American
Sugar Refineries company produced 73
to rs per cent of the sugar manufactured
in the United States.
"Why was stock increased?"
ITO purchase other companies
Franklin, Spreckels and Delaware Su-
gar Refining companies of Philadel-
phia."
rs it not a fact that the price of sugar
increased owing to the acquiring infiu-
ence of your company"
mo, sir; think the price of sugar now
is lower than it was then"
"Who fixes prices at board meeting?"
my brother" responded the witness.
Reverting to the recent advent of the
sugar company in the coffee trade, the
chairman of the committee asked: why
did you go into the coffee business?"
'I thought it was a pretty good busi-
ness
Are you willing to swear that the Of
ficers of the coffee company are not or
ganized for the purpose of shutting out
competition for the American Sugar
refinery"
"They are not, SIR" the witness said
slowly.
why do you hesitate to answer?'
your uuestior0 are so long that 1
must take time to follow the drift of
them"
Witness said that that part of the
cry about competition in the sugar mar
ket was newspaper talk, but admitted
defending suit In Ohio brought ABOUT
through the activity of competition
there.
when did you purchase the Woolson
stock in Ohio?'
"I'll have to refer you to my brother"
Asked if his company organized in
New Jersey so as to evade the payment
of taxes under the laws of the state of
New York, he said Mr. Parsons, their
lawyer, would have to be asked about
that. Mr.. Parsons had advised it.
The preferred stock OF the company
was $37, 100000 and the common stock
$37 900, 900. A dividend of per cent was
declared last year on the preferred stock
and 12 per cent was declared ON the COM
mon stock In addition there may have
been accumulated a surplus.
II would not go into business" Mr..
Havemeyer said, eff did not make Is
or 20 per cent in it"
Senator Lexow quoted some figures
from a financial paper which showed
that in 1894-95-96 the surplus stock in
creased from SO, ,00O, 900 to 5000 900.
Are those figures correct?" asked
Senator Lexow.
II cannot say. If you got them from
Mr.. Searles they are correct"
do you know any business not in the
nature Ol d LlOHOpOiy lildt pays 10 UT 10
per cent?"
Plenty of them
"Tell us one of them"
Coffee, for instance"
And that is the reason you went
into it?"
zone of them.'
Are you willing to swear that there
is no agreement, verbal or written, be-
tween your company and any others re-
garding the fixing or maintaining of
prices?"
II am willing to swear that so far as
I know there was no such agreement
H. o. Havemeyer. president of the
American Sugar Refining company, was
sworn, and described the organization
of the sugar trust in 1887. The assets,
real and personal, of the fifteen COM
panies We're purchased by the American
Refinery company at the time of ANAL
gamation. Asked by Senator Lexow it
the directors Of the fifteen original re-
fineries were not the directors of the
present sugar company, sMr. Havemey-
er said that six of the original directors,
with the addition of William Parsons,
were still on the directory board of the
American Sugar Refinery company.
Asked vvhera III oricri n al doc1,r,, ont nb