New-York tribune., 1897-02-06

rs the American Sugar Refining Company en-
gagged in any other business than the refining Of
sugar.
mo. think not"
Aren't you engaged In the coffee business?"
Come TO think Of IT, guess are. We bought
an interest in the Woolson Spice Company"
The witness thcn added that It not the
Sugar Refining Company which interested
He said 1t was the firm of Havemeyers & Elder.
How many refneres doing business In the
United States not members Of the consolidated
company"
About ten or twelve. think, but don't know"
CONTROL OF THE PRICE OF SUGAR.
Now Mr.. Havemeyer." said the chairman, was
not your company formed TO control the price OF
sugar In this country
1T was not" answered the witness.
"Or the product?'
1T was not"
Isn't 1t a fact that you do Ak the price,?
"Only for our own product"
How do you fix the price OF that7'
Il really couldn't tell YOU" replied Mr.. Have
meyer wearily Il seldom trouble myself about
the price. don't know what 1t is to-day
How did you happen to go into the coffee busi-
ness?'
why, my brother said 10 The coffee busi-
ness is a good business, and I said to him. All
right. so into IT,. and he went into it, That's all
know about 1t. l never troubled myself about It
anyway"
company had threatened the Arbuckiss that II
they didn't keep Out Of the sugar business, his
company would 60 into the coffee business and he
denied that such a threat had ever been made.
When asked what tho capital OF the American
Sugar Refining Company was he said II was
little less than s40O000. having been Increased to
that sum from Soooo.ooo by the purchase Of the
Franklin. Spreckels and knight renneries at Phila-
dephia. He thought the average profits on the
capital stock were less than = per cent;
DO you know Of any other business that Is not
a monopoly that Is making as much prof. as
that2" asked Senator Lexow.
Mr.. Havemeyer replied that he knew several and
that the coffee business one of them. Here
he smiled and looked at Mr.. Arbuckle. He added
that he wouldn't go into a business unless it
Yielded profit Of 10 or l6 per cent.
'Is that the reason you went Into the conee
busness?" asked Senator Lexow.
zone Of them" responded the witness with
smile,
Now. why did your company organize under
the laws Of New-Jsrsey?" asked the chairman.
BECAUSE our lawyers told us that was the best
thing 10 do"
was it to avoid payment Of taxes"
II don't know.
"Was It because in that state you could organize
q company that would be illegal under the laws OF
the State of New-YOrk?'
II don't know that. either really Know holhihs
about the legal side of the matter
1neres were closed a result Of the consolidation
~ 1891 and that about 1,5Oo men were thrown out
of employment thereby. but he said that other re-
fneres were soon opened so that there was no maj
loss of employment or reduction In output lie
couldn't tell he said. where the American sugar
Refining Company paid taxes Senator Le1ow
would have to ask Mr. Searles about that
THE SURPLUS STOCK.
IN answer TO a question. Mr.. Havemeyer said that
tTi1
there may have been an accumulation OF surplus
stock He had no Idea how much Of such stock
there WAS Senator Lexow read from a paper
statistics TO show that in the years 1904. 1885 and
1898 the surplus stock increased from s9OO0OO0 to
s13 900 600 and asked the witness If those figures
we're correct.
Il can't say" answered the witness. III Mr.
Searles gave them they are correct undoubtedly"
''Wi you swear" asked Senator Lexow earnest
ly" that there not. and is not, any agreement
between your company and other sugar refining
companies to maintain the price of your output
80 far as / know there Is no such agreement"
was the answer.
This ended Mr.. Havemeyers testimony, and the
chairman asked II Mr.. Searles would be on hand
at o'clock In the afternoon. Edward NJ. Shepard
who was in court In the interests of the Havemey
ers arose and said that he didn't think Mr. Seares
could be present then.
Senator LeXoW conferred with his associates n
moment and then added: While we do not wish to
discomnode anybody, We must insist that our sub
poena be obeyed. Mr.. Searles must be here at .
o clock this afternoon. We will now order an ad-
journment until that hour
Mr.. Shepard seemed much perturbed this an
nounccment. and hurried up TO the platform
talk with the. Senator. but apparently he got cold
comfort for his pains
Mr.. Seares had not appeared at 230 when the
committee again assembled, and Henry O. Have
meyer president OF the American Sugar Refining
Company. the first witness called. Mr.. Have
meyer is shorter than his brother, and stout, with
the manners of the business man who has time
the who never looks back from the plough
TO which he has put his hand. He made an enter
tanning witness and he called spade by the
proper name Of that implement His references TO
entry OF the Sugar Trust into the coffee business
seemed TO promise warm struggle in that field
OF commercial activity.
THE FORMATION IN 1881.
Mr.. Havemeyer first asked about the forrna-
tion o. the American Sugar Refining Company in
1891. He said it not a consolidation OF the
companies that had formed the Sugar Trust. II
had been effected by the purchase OF the properties
formerly owned by those companies There had
been no transfer OF the stock certificates OF those
companies: II had been purchase OF their actual
property. Under pressure. however. he admitted
that the controlling spirits OF the present orgsni-
"a ton had been the directors OF the companies
forming the old Sugar Trust, six out OF seven
directors OF the American Sugar Refining Company
having been directors OF the old companies.
When the present company organized. he
ssid tne total valuation of the stock was 5000
nO less Is per cent. which was reserved for the
purchase OF properties and necessary improve
nmenfs Subsequently this total had been raised
10 nearly $5.00,0l-he wasn't sure, he SAID but
~ might be million less-by the purchase OF