The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-14
Testimony of Edward j. Duggan and
others Before the LexOw Legisla-
tive Investigation Committee.
AGREEMENT WITH JOBBERS
THAT FORCES THEM TO SELL AT
FINED PRICES OR SUFFER.
One Man Who Was Compelled to Pur-
chase from Importers because
He Cut Rates.

NEW YORK, Feb. b. - The legislative
joint committee on trusts resumed its sit
tings in this city to-day. Before taking
up the trend of investigation where it was
dropped on Monday announcement was
made that William a. Evans would be
questioned on the operations of the United
States Rubber Company. George McDou-
gall and John E. Searles were both absent,
alleging business excuse, and We're
given till Mondly to appear
George p. Moller, for thirty years sugar
refiner. of williamsburg, the first wit
ness examined. AS secretary of the North
River Refining Company he had received
from John Z. Searles the check for the
sum for which THAI company sold out to
the American Sugar Refining Company.
What was the price pald?" asked Chair
man Lexow.
Il don't remember"
WAS it a fair market price?"
I'VE thought would not have made
the transfers" Witness admitted that his
company competing with the Have
meyers. He did not remember that the
price of sugar went up after the trust was
formed.
Mr. Moller was exused and Mr. Lawson
w. Fuller was called to place a value on
the refining property. He said that he was
in the sugar business from 1854 to 1873 and
was in the real-estate business when the
Sugar Trust was formed Mr. Fuller knew
very little about the value of the individual
plants, and Mr.. Lexow labored with him
for a long time without extracting any in
formation. Mr.. Fuller finally said that in
the five years after the trust was formed
the price of sugar was raised 81 of cent
a pound. This. he declared, had cost the
consumers $4,20OO0O during that time. Mr..
Fuller based his figures on circular price
list issued by Wallet Gray. who, he said,
was dn authority. The number of employees
was decreased and the retineries were run
at a much less cost.
Mr.. Fuller spoke as an expert accountant,
for he had charge of Havemeyer & Elders
affairs for many years. The trust. he said
absolutely controlled the price of the raw
material, and though the price of raw had
gone down the price of the refined article
had gone up. Thus the increase fell on the
consumer. Previous to the trust there was
herce competition among the various re-
hnerieS.
FORCED OUT OF BUSINESS.
Edward j. Duggan. of Albany a whole
sale grocer, was the next witness. He had
been in the sugar business for twenty
years. He said that he was what was
known as a factor for the Sugar Trust
Before the trust was formed he could buy
sugar anywhere, but after the trust went
into operation he refused to join the Whole
sale Grocers' Association, and then he
could not buy any sugar at all.
What reason was given for that?''
They said that l was cutting prices and
was then forced to buy imported sugar. .
Robert S. Russell of this CITY, told me
that must buy all my sugar from the
American company.
In answer to further questions Mr. Dug
gan said that the trust had refused to sell
him any sugar and allow him the rebate
by which a profit could be made. He was
a factor for the company for only two
months. THE trust he said. has forced
me out of business, and am about to close
out. The factor gets a rebate of three
eighths of a cent pound. A grocer cannot
live unless he is a factor. he would be
forced out OF business. You must make an
affidavit that you will sell the sugar at a
certain rate before you get the rebate"
One of the articles in the factors agree
ment, reads: None of the sugars shall be
sold by you or disposed of by you for less
than our daily quotations with freight
added from point to point of sale, nor on
more liberal terms as to credit and cash
discounts" He made his agreement in Oc-
tober 1895. and since he was thrown out he
has sold very little sugar. When GUS
toner wanted barrel of sugar he went out
and bought 1t from another grocer.
Did you pay more for it than when you
bought from the American Sugar Refinery
Company?
Yes, because L could not get the re-
bate
Michael Callahan, broker of imported
sugar. took the stand next He would not
admit that the trust had controlled the
price of raw material for the last three
years.
lis not the American Sugar Refinery
Company the only purchaser of the raw
material in this country
1T is only large purchaser. The COM
pany cannot control the market" Witness
said that he had sold the trust 300 600 tons
of sugar. one-quarter of their purchases.
by the way the trust manipulated the mar
ket last year. but added that 1.-The trust
was not responsible for that Witness
said that the brokers could personally spec
ulate in the future demands of the COM
pany. but il practically has the broker and
speculator in its power all the time.
+. $. BeardSlee was then called. He is
also a sugar broker. He said there was
competition in raw material, and he gave
He sells the trust about one-tenth of the
raw material it purchases. He said that
the trust did not fix the price in this coun-
try; that it was fixed in Europe by free and
fair competition.
Chairman Lexow said that owing to the
absence of Mr.. Searles. the committee
would adjourn until Monday at 10 a. m. He
added that he did not care TO change the
line of investigation until he mad finished
meet every day next week. Ii has been an
nounced that the committee will on Thurs
day enter on an investigation of the So
called wall paper trust. Henry Burn, presi-
dent of the National Wall Paper COMPANY
has been Subpoened to testify.