The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1897-02-06
CONTROLS PRICE OF SUGAR
CANDID ADMISSION OF a SUGAR
TRUST OFFICIAL.

Into Trusts by the New York Special
the Part of the American Refining Conn
pany to Injure the Arbuciles.
New York, Feb 5-The special legis-
lative commission appointed to investi-
gate the subject of trusts met in this
city to-day. Senator Lexow, chairman
of the committee, presided FL. o.
Havemeyer and Theodore A. Hayemey-
er, the heads of the American Sugar
Refneries Co.. We're on hand, having
been subpoenaed as witnesses.
AT the conclusion of the morning ses-
sion and after recess Henry O. Have
meyer took the stand He said he was
president of the American Sugar Re
fining company of New Jersey. He
said the so-called sugar trust came in
to existence in 1887. and it continued
until January /, 1891. About fifteen
companies We're consolidated in 1891.
Witness could not tell what the capi-
tai stock was nor where the original
document of the agreement between
the sugar refining companies that had
combined was. The value of the assets
of the various companies was fixed by
the stockholders. He thought that the
total value of the assets of the COM
bined companies was $50,000,000, less Is
per cent.
Witness said the American Sugar Re-
fining company took the place of the
tv.a far
was made by the purchase of the as
sets of the trust. Fifty million dollars
worth of stock was originally issued.
The stock was increased in 1888 to $l5,-
900, 900 The 5000, 900 increase was for
the purchase of the Philadelphia Sugar
Refining Co. Witness could not recol-
lect the par value of the concerns ab-
sorbed in 1891. He denied that his COM
pany controlled the sugar market, or
the price of sugar. He asked for a copy
of his testimony in 1894, and after read
ing it said that that testimony should
be read in Connection with other testl-
money given at the time.
but you control now the product
and price Of refined sugar in the United
States.
I'VE undoubtedly DO" replied Mr..
| Havemeyer.
And you do it by reason of the con-
solidation?"
eve do it from the fact that we own
propertv that can refine so much su-
gar
Mr.. Havemeyer then said:
"And it may as we'll be recorded now
that when we controlled 95 per cent. OF
the sugar market of the United states
the supreme court decided that it was
perfectly legal for us to do So"
| The witness said that his company
did not compete with Mr.. Spreckels
| I'VE never sent any sugar west OF the
Missouri river" said Mr.. Havemeyer.
''It is purely matter of geography.
Where the sugar would cost us one and
one half cents there, 1T costs ME.
Spreckels half a cent"
| The witness said that the American
Sugar Refining company did not pre-
vent anybody from competing, and
that it could not be called monopoly.
'I do not want to put my opinion
against that of the supreme court IN
defining monopolies," said the witness.
| Mr. Havemeyer said that he consid-
cred that the coffee business was a
good one, and that was the reason why
they purchased the Woolson company
| in Ohio.
'Do YOU think the coffee business
presents as allurng a field as the su-
gar business?"
| Eyes. sir I propose to carry on the
coffee business just as we have done
| the sugar business. so that instead OF
getting three or four cents a pound
profit. which has prevailed for years,
the public will get the benefit of half
a, cent profit and we will also get a
magnificent return for our invest
ment"
| Mr.. Havemeyer later declared that
before the Havemeyers engaged in the
coffee business the profits were three
cents pound, and now they were only
one cent The witness said that the
margin between raw and refined sugar
now is only three-quarters OF cent.
| Concentration of a large business un-
der one management, with it's conse-
ouent economy, allowed the company
| to put sugar on the market at lower
price than separate concerns could af-
ford to do.
| The witness said that his going into
the coffee business had nothing to do
with Arbuckle & Co.'S competing with
the American Sugar Refineries COM
pany.
THAT story is pure nonsense, de
clared Mr., Havemeyer. 'Mr. Arbuckle
has never been a competitor with us in
the sugar business"
do you and your associates on the
board control the stock of the American
Sugar Refineries company"
mo sir. There are eight thousand
stockholders in the company and it
would be perfectly impracticable to
control the stock.
| John Arbuckle was called next. He
said that the books of Arbuckle Broth
ers would show that they We're still
| buying sugar from the American Sugar
Refineries company. He also testified
that after he had determined to build
a sugar refinery, a director of the Am
erican Sugar Refineries company said
to him:
| How would you like us to go into
| the coffee roasting business.
| Il felt" continued the witness. that
it was an implied threat that if we went
on with the building of our sugar re-
fnery they would go into the coffee
| We went on and MN,