The Portland daily press., 1897-02-15
what is THE FACTOR {?
Witness in Sugar Trust Investi-
CATION Explains
InyAsti,
HE rs VERY IMPORTANT PERSON
AGE TO ALL TRUSTS.

The Lexow Court Continues Its Inquiries
"A Denial That Prices Have Gone
Down-The Scheme of Blackmail
| Practiced.
| New York, February 1a.-The joint
| legislative committee appointed to ln-
| vestigate the existence of trusts and
monopolies in this state, resumed its ses-
sions today. James B. Duke, who had
| been suhpoenaed, was nut present. neltE-
er was John E. Searles. secretary and
treasurer of the American Sugar Refne-
ries Company.
| George H. Moller, who was SECRETARY
of the North River Sugar Refining COM
pany from 1873 to 1857, was the first wit
ness. This was the company bought by
Mr.. SearIes for $3.50, COO, who turned it
over to the Sugar refining company, get
| ting sugar certificates i'll return. Inc
witness said he did not consider himself
All expert on values and Chairman
| Lexow did not get much information
from him as to the value OF the properties
that made up the sugar trust in 1887.
Lawson N. Fuller, who had made q
general estimate of the value OF tho
sugar trust in 1887, said there must have
been 1877 per cont per pound advance In
profit .er the formation of the trust.
In answer to questions, Mr.. Fuller said
that these figures make the increase in
the cost Of sugar to the consumer VI, :
200 600 a year. 1t was absolutely false
that the price to the consumer was re-
duced after the formation Of the trust.
Although the cost Of raw material was
within fraction of cent per pound to
the refner, the charge for the refined
product had been increased from 1853
to 1851 of a cent per pound, or at the rate
of So, 400, 900 year increase to the con-
sumer. Whatever benefit the consumer
derived in the reduction of the price of
sugar had been that they had shared in
the fractional reduction of the cost Of
raw material and this benefit had been
lost to them by the advance Of the price
of the refined product. Mr.. Fuller said
he believed that the Havemeyers con-
trolled the sugar market Anybody that
prod uced so per cent of the sugar of the
| United States must control the market
absolutely.
| Edward J. Duggan, a wholesale grocer
from Albany, said that for two months
he was factor in the American Sugar
Reflneries Company, though representing
one of the companiesss taken into the
trust. When the trust was formed, he
refused to join the Wholesale Grocers'
association, and was shut off from getting
| sugar from New York and of the trust.
He had been cutting prioes. He bought
some imported sugar and was told soon
after that his relations as factor had
ceased. Robert S. Russell Of No. II
Water street, informed him that he ought
to buy all his sugar from the American
refinery. The witness then explained the
duties of q stfactor' and produced the
agreement he made as factor with the
franklin refinery of Philadelphia. He
said that the interests of the factor are
protected by being factor. The brok-
ers sell to wholesale dealers, who sell to
retailers, and all must make their profit.
They protect each other and all protect
the refinery. The factor gets q rebate
of 8-16 of a cent per pound. Without
that rebate he would be forced out. The
witness said that one of the articles in
the factors agreement is as follows:
None of the sugar shall be sold or dis
posed of by you either directly or indi-
rectly for less than our daily quotations
with freight al ded from refining point
to point Of sale (aR per equality rate
book) nor on more liberal terms as to
credit or cash discounts" The witness
said he got his agreement in October,
| 1896. He was thrown out Of the grocery
business by this rule because he didn't
sign the affidavit and could not get
sugar and consequently could not con-
tinue in the grocery trade. He said he
! was now closing up his business.
Michael Callahan, broker, dealing
in imported sugar. denied that the Anne
rican Sugar Refineries company had con-
trolled the price of raw material the last
three years. He said the company was
not the only purchaser Of the raw material
| in this country; it was only large pur-
chaser. 1t could not control tho market.
1t was true that last spring the supply
of sugar from Cuba having diminished,
imp erters and brokers bought largely in
other directions until they had accumu-
lated a large supply.
| "Didn't the American Sugar Re6neries
company then cause depression in the
market by suddenly censing to buy
and were not several brokers and i'm
porters injured in consequence p
"Sorns people were hurt, but the Anne.
rican Sugar Refneries company were
not responsible for that" was the reply.
The witness said he sold to the Ameri-
can refining company last year 800, 200
! tons of sugar, practically one-quarter
of their purchase.
James S. Cornell, sugar broker, tes-
titled that he sold sugar to the American
| Cuoar Retineries comnanv abOut one.