The San Francisco call., 1897-02-09
SENATOR LEXOW
BhDGERS SEhRLES
Sharply Questions Him as
to the Sugar Trusts
Affairs.
The Secretary Will Not Admit
That His Company Con-
trolls the Market.
Formal Demand on the Cautious Wit
ness for Books and Papers of
the Concern.

NEW YORK, n. Y, Feb. 3.-The Joint
commission, appointed by the lie islature
to inquire into trusts and monopolies in
the State of New York, continued its in
vestigation this morning. Secret tary
Searles of the American Sugar Refining
Company was on hand. His name was
called by the sergeant-at-a and Mr..
Searles answered Here"
'Before you take the stand, Mr.. Searles,
l would like to have you explain why you
did not appear before the committee on
Friday and Saturday last when you were
subpenaed," said Senator Lexow.
II was on the way TO catch train to
keep an out-of-town engagement when
was served with the committee subpoena.
l asked Mr.. Parsons to come before the
committee and explain the reasons for
my absence" said Mr.. Searles.
Senator Lexow looked angry at this
statement. lit seems to the com mittee,"
he said, "that its subpoena is superior to
any business. This committee makes no
distinction between the millionaire and
the beggar, and insists upon the same
obedience from both. The committee will
not pass upon the question of contem pit
until the end OF your testimony, and see
il it be helpful to this committee"
Mr.. Searles was then sworn, and related
to the committee his various business
connections. He was sharply questioned
by Senator Lexow concerning the pur-
chase of the North River Sugar Refinery
and the formation of the alleged sugar
trust, but the witness would make no ad-
missions of the charges of stock watering,
etc., contained in the Senator's question.
Chairman Lexow said, significantly
that the committee would have to get
The books of the companies that were
consolidated into the trust, no matter
who held them. when the witness said
that the American Sugar Refinery Com
pany did not hold them.
Witness said the total consum ption of
refined sugar In the United States was
!, 800, 600 tons annually and that his COM
pany produced about l, 200, 900 tons. The
American Refinery Company fixed the
price before they fixed it so low that they
undersod their competitors. Witness
would not admit that his company con-
trolled the sugar market.
Chairman Lexow taen called the atten-
ton of the witness 10 his testimony before
the Senate Committee at Washington,
when he said that the object of the con-
solidatcn was 10 control the output of
sugar and shut off com petition.
"How do you explain your testimony
before the Senate committee?"
"Oh, that must be read with the con-
text"
''Is it not fact that where you have
competitors you cut down the price in
their particular locality and force them To
the wall ?"
No, sir, it is not"
''But you control the price of sugar?'
1--WE only control the price OF our own
sugar, and 1 disagree with any other
statement"
Chairman Lexow at this point grew
grave and said: 1--WE now notify you for
maly to produce the minutes of the
American Sugar Refinery Company direc-
tors meetings and also all data and mem-
oranda a in relation to the purchase of the
four Philadelphia rehneries in 1892.
will ask you now whether you require
subpoena duces tecum or whether you will
pro iuce them without it"
Mr.. Searles paused nom ent and then
said: 1.-THE books of the company are
not in my control and have no right to
produce them. l will submit your request
to the directors"
Are you personally willing to produce
them2'
PERSONALLY have no objection, but I
have no right to produce them"
Chairman Lexow then put q number OF
questions to the witness regarding the
market prices of refined and raw sugars.
The witness said that three of the re-
fneries absorbed in the consolidation
were abandoned because it was shown
that the same amount of sugar could be
manufactured more economically and the
work was Gransf rred.
Chairman Lexow then informed Mr..
Searles that he had finished with him for
the present.
Chairman Lexow said the whole board
of directors would be summoned ii neces-
books were wanted.
An adjournment was taken until Satur-
day morning at 8 o'clock.
---