Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1897-02-06
INVESTIGATING A TRUST.
A representative of the Sugar Mono
poly on the Stand.

poly on the Stand.
Theadore A. Havemeyer, Of the
American Sugar Refining Comp
any, was the First Witness-He
Gave Some Interesting Figures
Concerning the Sugar and Coffee
Business-From Fifteen to Twen-
ty Per Cent, Made Annually.
Denies That the Sugar Trust was
Formed to Crush Competition, or
That it Has Done So-Gigantic
capitalization Involved.
New York, February 5.-When
Chairman Lexow called the joint Leg
islatiye Committee on Trusts to order
to-day there were present upon subpoe-
naes TO testify II. o. and Theodore A.
Havemeyer, besides a number of men
prominent in mercantile pursuits and
several lawyers whose clients interests
it was supposed might be affected by
the investigation. A letter was re-
ceived from c. B. Richards & Co..
steamboat agents of this city, calling
attention TO the alleged existence of a
pool by the transatlantic steamship
companies, and requesting an investi-
cation into its methods.
Theodore A. Havemeyer, vice presi-
dent of Il American Sugar Refinery
Company, was then sworn. Having eX-
planned that prior to 1891 he was con-
nected with the eight sugar refining
companies now operating as the Amer
lean, Mr. Hayemeyer said that he had
nothing TO do with the commercial or
fiscal side of the business. He could
not give the capitalization of the var
ious companies that We're absorbed in
1891 without reference TO the books;
that was a matter upon which Mr..
Searles would probably be able to in
form the committee. The question was
then put TO the witness: DO you
(meaning the American Sugar Refinery
Company transact any business save
sugar refning?"
Il think not" replied Mr.. Hayemey-
er.
Have you not recently been led into
the manufacture of coffee?'
Yes, sir; | am connected with
coffee company in Ohio"
What was the object of your consol-
idation in 1872"
ITO refine sugar"
WAS not your company organized
Mr.. Havemeyer. to control the refining
and sale of sugar in the United States?'
Il think not, sir
DO you not control the sugar mar
kets of the United States?"
NO. sir"
WAS your company not organized for
the purpose Of preventing illegal com
binations of labor?'
NO. sir"
Have you not increased the capital
stock of the company since 1892"
Yes, sir.
"To what extent?'
81 should say S25,0000 000."
How many sugar companies outside
of yours are there in the United
States?"
Il should say about eight.
The witness then enumerated the
names of the companies.
In reply to another question. Mr.
Havemeyer said that the American Su-
gar Refinery Company produced from
73 to 10 per cent. of the sugar manu-
featured in the United States.
"Why was the stock increased? ~
"To purchase other companies"
What are these companies?'
"The Franklin. the Knight the
Spreckles and the Delaware Sugar Re
fining Companies of Philadelphia"
Us not it fact that the price of sugar
increased owing TO the acquisition Of
these four companies
81 think not; the price Of sugar is
lower now than it was then"
"Who fixes the prices at the board
meetings.
My brother" responded the witness.
Reverting 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 bus
iness?'
4 thought it was a pretty good bus
mess"
Are YOU willing to swear that the
officers of the coffee company are not
organized for the purpose of shutting
ont competition against the American
Sugar Refinery Company
"Thev are not, sir the witness said
slowly.
Witness said that part of the cry
about competition in the sugar market
was newspaper talk but admitted de-
tending a suit in Ohio brought about
through the activity of competition
there.
when did YOU purchase the Woolson
stock in Ohio?'
"Tll have to refer YOU to my brother.
replied the witness.
The preferred stock Of the sugar COM
many was S27. .OOO. 600 and the common stock
81 Oo0 OOO. A dividend of per cent. was
declared last year on the preferred and
10 ner cent. on the common. In addition.
there may have been an accumulated sur
plus.
.I would not go into business" Mr..
Havemeyer said. If I did not make 10.
16 or % per cent. in ii.
Senator Lexow quoted some figures
from a financial paper which showed that
I'm 1Sq4-5-6. the surplus Of stock increased
from s. 100000 to $lS,oooOO0.
Are these figures correct?" asked SEN
ator LsXow.
y can't say. II YOU got them from Mr..
Searles. they are correct.
DO YOU know any business not in the
nature Of a monopoly that pays Is or l6
per cent?"
Plenty OF them.
Tell us one of them
Coffee for instance.
And tina. is IN reas YOU went IN o u.