The herald., 1897-02-07
But Apparently Getting Very
Little Fat
A RECALClTRANT WITNESS
Given Until Monday to Make Response
to SubpGna
conditions-An Assert Innocence
Of Wrong Doing

ASSOCidtcu ETeSS SpcCldl WIZ
NEW YORK, Feb. 6.-Before the legis-
lative joint committee on trusts ad-
journed' yesterday. Chairman Lexow
announced the failure of John Searles,
secretary and treasurer of the American
Sugar Refining company, to appear be-
fore the committee today, which would
bring upon him such punishment for con-
tempt as the laws of New York pre-
soribed. Searles was not on hand today.
Edward M. Shepard and John F. Par
sons, attorneys for the sugar company,
before the committee was served on
Searles just as he was leaving the city.
He was today in Washington and could
not meet the committee until Monday,
when he would be either in this city or
Albany, as would best suit the conven-
ience of the committee and submit to a
proposed inquisition. Chairman Lexow
said the committee would decide in eX-
ecutive session what should be done.
John Arbuckle was recalled. He said
1t was true, as stated by President Have
meyer, that the American Sugar Refn-
ing company did not threaten to force
him out of the coffee business if 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; in 1895 a little less than
six-tenths of a cent. James n. Jarvie,
business partner of Arbuckle. was re-
called and read statistics to prove there
was no profit in the coffee business.
This was in contradiction of the state
ment made by Mr.. Havemeyer, who stat
ed yesterday that the coffee business was
a thriving and profitable field of indus
try. In reply to Senator Lexow, witness
testified that the firm of Arbuckle & Co.
and William f. Mclaughlin of Chicago
control the coffee package trade in the
United States, and that the Havemeyero
control the bulk of the sugar trade to
the same extent. The witness said there
were several grades of coffee, ranging in
latter price being paid for Java and
Mocha.
Il should say the market price for Rio
when the American Sugar Refining COM
pany went into the coffee business
through the Woolson company"
II should say the marketp rice for Rio
coffee was 10 cents pound, and it sold
at Is cents a pound to the middle men,"
What price do you sell it at now?"
''At 131a cents per pound
docs a profit accrue"'
II am not prepared to say. just now"
And the Woolson Spice company
sold at Is cents pound?"
"Yes, SIR"
DO you manufacturers consider 1t
fair to amass from the consumers large
profits to be distributed among the di-
rectors and stockholders in the charge
of unreasonable prices?"
Eta xx-it, tp;n TO 10 ha rtYn CT ;nr,
and the spectators gave noisy evidence
of their disapproval.
Senator LeXow pounded the desk with
his gavel and ordered that no display
of feeling be permitted.
How long will the public stand such
a thing, do you Think" asked Senator
LeXow.
The witness said that the so per cent
dividend only represented a per cent
dividend on the present value of the
stock. He said his company paid $1,000
for q single share of the Woolson Spice
company.
rs it a fact that they are putting up
better coffee at less price than you
for the purpose of driving you out of the
market"
II think our coffee is better than
theirs" the witness replied.
AT this juncture Senator Lexow asked
for c. o. Havemeyer. and MIR. Parsons
said he had just received word that Mr.
Havemeyer would be on hand at o'clock,
to which hour recess was taken.
Senator LexoW then announced that
during the recess the committee would
consider the matter of Mr.. Searles' dis
obedience of the committee.
After recess Mr.. Lexow stated that Mr..
Searles would be given until 10 am.
Monday to answer the subpoena of the
committee Mr.. Havemeyer was then
recalled. He said that the four refiner-
les i'm Philadelphia, which were absorbed
in 1891, still continue in operation. In
reply to a question he denied there were
any sugar refineries closed after the
consolidation in 1891.
Il think he said, my brother was in
error when he said that some of the re-
finerieS werec losed after the consolida-
ton in 1891
The witness further testified that prior
to the consolidation six factories en-
ploying 5000 hands were 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
1894, was next called. He said that in
1892 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 num-
ber rendered idle by the closing down
of the Brooklyn concern, he said 1000
men were discharged. The witness said
that he understood tat one of the closed
refineries was now being operated as
a coffee mill. Eight refineries We're
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
ore-quarter of the coffee trade in the
United. 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 spec
ulative 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"
This ended the work of the committee
for the day and an adjournment was
taken until Monday morning.