Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1897-02-12
TRUST A GOOD THING
HEAD OF THE SUGAR MONOPOLY
ADVANCED THAT ARGUMENT.
H0vemeyers in the Coffee Ru.ine..
solely because There In Big
Money in 1t.

New York, Feb. s. = When Chairman
Leacom called the joint executive COM
mlttee on trusts to order today there were
present, upon subpenas to testify, H. 0.
ana Theodore Havemeyer, besides a num-
Der of men prominent in mercantile pur-
suits and several lawyers whose clients
interests 1t was snnnosed might be affect 1
ed by the investigation. A letter was
read from c. b. Richards & Co., steam
snip agents of this city, calling attention
10 the alleged existence of a pool by
transatlantic steamship companies, and
requesting an Investigation into it's meth
DDS.
Theodore A. 'Havemeyer vice president
OF the American Sugar Refining Com
parry, was then sworn. He explained that
prior to 1891 he was connected with eight
sugar refining companies now operating
as the American. Havemeyer said he had
nothing to do with the commercial or fis-
cal side C the BUSH ess; he could not give
the capitalize ON of the various COM
pan'es abso bed in 1891 without reference
to the books; that was a matter upon
which Mr.. Searles would probably be
able to inform the committee. The ques-
ton was hen put witness: DO your
(meaning the American Sugar Refining
Company transact any business save SUI
gar renntng!' Il think not"
Have you not lecently been led into
the manufac IRE of coffee?" Yes, sir; 1
am com &C with flee &C npany OF
Ohio"
What was lie object of your CONSOLE
dalton in 1892" ITO refine sugar
WAS not your company organized, Mr..
Havemeye,, to contro' the refining and
sale of sugar I the United !, :ates. II
think not, SIR
do you 1t control the sugar market
of the United States?" mo, :"
WAS your com )any not organized for
| the purpose of preventing illegal combina-
| tions of labor?' NO SIR"
Have you not increased the capital
stock of the company since 1872" Yes,
| SIR"
ITO what extent?" II should say $685.
| 600, OOO'
How many sugar companies outside of
yours are there in the United States?'' II
| should say about eight.
The witness then enumerated the names
of the companies. In reply to another
| question, Havemeyer said the American
Sugar Refinery Company produced 70 to
| rs per cent of the sugar manufactured in
the United States.
| "Why was the stock increased?" ITO
purchase other comprehensive Franklin.
Knight Spreckels and Delaware sugar re-
| filming companies, Philadelphia"
| rs 1t not fact that the price of sugar
increased owing to the acquisitions and
| influence of your company" mo, sir; L
| think the price of sugar now is lower than
| it was then"
| "Who fixes the prices at the board
| meetings?" my brother" responded the
| witness.
Coffee Business n Good One.
REWRITING to the recent advent of the
| sugar company in the coffee trade, the
chairman Of the committee asked: why
did you go into the coffee business?" 81
| thought it was a good business"
Are you willing to swear that the Off
GERS of the coffee company are not or
ganiZed for the purpose of shutting ou1
competition against the American sugar
refiners?" '"They are not, SIR" the wit
ness said, slowly.
"Why do you hesitate to answer
your questions are so long that mus
take time to follow the drift of YOU
questions"
The witness said part of the cry agains
competition in the sugar market wa
newspaper talk, but admitted defendin.
suit in Ohio brought about through tn
activity of competition there.
when did you purchase the Woolsol
stock in Ohio?" "I'll have to refer yo1
to my brother"
| Asked If his company organized in New
Jersey so as to avoid the taxation unde
! the laws of New York, he said Mr.. Per
r sons, their lawyer, would have to
asked about that.
. The preferred stock of the compan
. was $37, 600, 900 and the common stock $37
0OOO dividend of per cent was dc
| clared last year on the preferred an
~ per cent was declared on the commo
e stock. In addition there may have bee
r accumulated a surplus.
r 81 would not go into business" M
| 4 or oil
20 per cent in it,
q Startling Figures.
). Senator Lexow quoted some figure
r. from a financial paper which showed thu
@ in 1S94-5-6 the surplus of stock increase
from So, 0O0, 900 to $13,OO0000.
d Are those figures correct?" asked M
IS Lexow. IT can not say. If you got the
It from Mr. Searles they are correct"
e DO you know any business not In Il
s nature of a monopoly that pays 10 or
per cent?" PLENTY of them"
,e "Tell us one of them" Coffee for i
ID stance"
E. "And that is the reason you went in
l. it?' zone of them"
III Are you willing to swear that the
RS is no agreement, verbal or written b
a tween your company and others regar
e. ing the fixing or maintaining OF prices
IN Il am willing to swear that so lar as
is know there is no such agreement.
i'll Organizat ton of the Trust.
n H. o. Havemeyer, president or I
t American Sugar Refining company, W
es sworn, and described the organization
Id the sugar trust in 1887. The assets, re
e. and personal, of the Is companies, we
purchased by the American Sugar Il
finery company at the time OF the ami
4 E gamation.
Asked by Senator Lexow If the dire'
M ors of the Is original refineries were I
the directors of the present sugar Co
pany, Mr.. Havemeyer said that six
to- the original directors, with the additi
ow of William Parsons, were still on the
a rectory board of the American Sugar t
en- finery company.
~ The American Refining company OF N
tee Jersey, Mr.. Havemeyer said, took
tai place in 1891 of the former so-called tru
m 1t was done through purchase. The n
Try company acquired all the property bef'
o. held by the trust. and no more, and v
,cb capitalized first at $50. 900, and aft
Ike wards increased to $4,000. 0O0 The grea
part of the s25, 900 900 increase was III
In the purchase of the Philadelphia pr