The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1897-02-23

VHlGRING THE GR0CERS
LexoW's Little Committee
Hears from the Whole
salers' Associa-
tion.
NOT TIE SUGAR MONSTERS TOOLS
Prices "fixed" According to the
Market Rebates Versus
Cut Prices.
NOT THE SUGAR MONSTERS TOOLS


NEW YORK, Feb. %, 1S97.-The join
legislative committee investigating trusts
etc, in this State. resumed its hearing:
this morning. James B. Duke, President
of the American Tobacco Company, was
early on hand. Immediately on calling
the meeting to order Chairman Lexow
asked if Mr. Elverson or Mr. johnson
was in the room. There was no response
The gentlemen are connected with the
United States Rubber Company.
G. Waldo Smith, President of the
Wholesale Grocers' Association, was the
first witness. He said his association was
not Incorporated and extended through
New York. New Jersey, Connecticut, New
Haven and Vermont. To obtain admis-
sion each member of a firm had to pay
$40 year. He denied that his associa-
ton controlled the prices of sugar in any
way. The only thing the association did
he said, was to send out a list of the
changes of prices In sugar prepared by
the secretary
Why do you make distinction in re-
gard to sugar2''
Sugar is the most important product
we sell.''
Don't you know that your secretary
gets the price from the American Sugar
Refining Company?''
Il have an impression the price is hung
up in their Office and the secretary gees
there and gets it,
Don't you know that he is ordered to
go there and get it?"
Il don't know anything about it,
The witness said that the rules of the
Wholesale Grocers' Association were
drawn up nine years ago and never
changed since then.
Now did not the American Sugar Re-
timing Company draw up the rules that
govern your association
Not to my knowledge
Now be careful; will you swear that
company does not pay for the printing
of the rules?''
I do not know; I don't think so.''
Have You ever known of the disburse-
ment of a single dollar by your associa-
tion for the rules?''
Il would not know even if such dis
bursement was made. The association
only meets once year"
~
ne association are the instruments of
IL fe American Sugar Refining Co. p"
,a,'"I don't think so.''
Mr.. Smith said that previous to the for
nation Of the Wholesale Grocers Associa-
ton the grocers lost by selling sugar.
Witness gave figures in substantiation of
this. and asserted that his firm was even
now losing money by selling sugar at
truif ,,s7i n
of cent per pound rebate allowed by
the American Sugar Refining Company.
He declared that the Wholesale Grocers'
Association had nothing to do with the
! making Of a code of rules fixing the price
kof sugar on an equality everywhere or
liking the price of sugar in any way since
SIX years ago last june. Witness said
that grocers all over the country adopted
me prices of the American Sugar REIN
Fig company as the standard.
s,-all,. ar. s, smith said his firm bought goods
tna from the Mollenhauer Co.
and you get the same discount from
notH nssR companies" -
I. Ihen ne the product of the Mollenhauer
70 ls hxed by the quoted prices of the
american sugar Refining Company"
d1fng." n any sucn
but don't you fix the price askeda"
fes, daily, as telegraphed by our brok-
Now" said Senator Lexow. rising IN
ms seat and handing Mr. smith a copv
ZIG the FACTORS agreement, IT am sorrv
~ should know more about your bust.
ness than you do?" 2
Mr.. Smith examined the document oara-
An that is in that agreement is that.
we make an affidavit to maintain the
Is that all?,'
signed the affidavif.,, :, seii
..syi Wno sie signs the d1davits in your firm?'
Now, let me show you the aftidavi+s
yon make Do these affldavits not STATE
sugar3 - eoeise 'lie
No, sir. We found we were handnrs
nusW s, al net cost which meant ruin. We
MeM M TO the sugar refineries They said
trss tlow we Will give you a list of our Gus
eo,ners oo,su and II You can get ninety-nine Der
we we, Will NJ s snem to I ask for what you want
Anen n, 1t was the American Sugar Rein
l.sg - company which proposed the organi-
oa,tsa,, Daom o OF the holesade Grocers' Asso-
mo associations was formed AT that
time. 1t was simply an agreement We
asked Ior rebate which wotld prevent
the .s, cutting of prfces::s WV = : ~
,s,p1si laen you We're granted what you
Yes, sir. We asked the Amepican
sugar Henn1ng Company to fix a price
and hmlt the price. In other words we
asked as, Tor protection and they save it to
The witness said that sugar was sofia
wherever their organizations exists afStbe ssf1,e
same price. stie H
Witness declared that combinatior
We're benefit to the consumer and to
trade.
But how do you account for the fact
that trade went ON for 1900 years of the
Christian era prior to the Organization
of these syndicates?,
Simply because twenty-five years ago
sold in the retail stores that was of uni
form quality and price. Now seventy-five
per cent. are Of uniform quality cost and
price.
Witness denied that the Grocers' Asso-
citation was tail to the kite of the Amer
lean Sugar Refining Company. He said
the members of the Wholesale Grocers
Association could buy as much imported
sugar as they liked
is not the sale of sugar absolutely es-
sentiaa to the success of the jobbfng busi-
ness?"
Yes, sir. 1t is,
Hence a>factor's making or unmaking
depends on his securing factors agree
ment from the American Sugar Refining
Company and its allies?"
Therefore the making or unmaking of
q wholesale grocer depends upon the
Sugar Refiners?'
Witness such was the case and said if
the factors agreement was withdrawn
there would be wholesale competition and