The sun., 1897-02-14

years, and had sold sugar fcs the American
factor for tie American sugar Refining Com
| panr. under an aereement. copy OF which was
! o.--Iiow long we're you n factor ? Al should
| say close to q couple OF months.
Odd you get any rebatoH A.-No, sir not
Q.-How will you explain your experience.
with the American Sugar Refining Company :
fcr@sd cn refused S p to JON the wholesals Gro.
| GERS Association. aud | was shut OF from
| getting aiiy sugar In New York.
| Q.Do you moan they wonlan't soll you
| they told me that had been cutting prices.
| Mr.. Duean didD'L really mean that the Amer
sell sugar TO him He meant that because he
was accused OF cutting prices they refused to
And cutting prices wa, a crime" said SEN
"It seemed to be-" said Mr.. Dugan.
Q.-The fact Is that you had been selling i'm
| ported sugar, was II not2 Al had bought
J V.oHnI as I soon as you bought imported sugar
they closed their business with your A.-Isup
ceivo any written notice that the business was
closed. but when went to order my broker re-
Q.-Was any thing said to you about imported
sugar. A:-By the broker. yes: ne se'd that
Of fAi. the a American Sugar Refining Company. and
! shouldn't he running around buying sugar
everywhere,
Thu. brokers name. he said. was Robert =.
Russell. and his address was 107 Water street.
Q,-Can you explain how 1t is that no grocer
or dealer In sugar can live unless. he becomes =
psny' A.~wei the object OF tho factor i. to
protect the broker and the Wholesale grocer;
that means that before the sugar comes to the
consumer there are two or three profits; tho
Ger buys OF the broker and sells to the retailer;
be makes profit: then the retailer gets some
IN nrn ntegf has .sNin 10 IN nan Ia
sugar Refining Company has factors.
1. senator McCsrren-ls that conslusion, % or Is
IL your personal knowledge A.-Well. had
chance to form AN opinion.
.Q.-Isn't 1t true that this rebate of three
able2 A,..No. don't think 40.
would there be al any profit at all to the seller
A.-why. yes. OF course. There would be the
same profit that there was before the factors
You don't seem to understand" said Chair
man Lexoa. 81 mean that u one man gets re-
man who doesn't get It can't live in business -
oh. Of course not; OF course not" said Mr..
And he added that tho factors agreement
was AN agreement that lie would sell at the daily
that he would be guided by its rules regarding
credits and discounts. He said that lac was
"s guy sugar. @ " lie o didn't ssy Why n he he eoudns
buy sugar OF the American Sugar Refining Com
pnny aud get rebate. lac didn't buy OF the four
ported sugars. These reiners sell AZ chesply
and very often undersel! tho American sugar
do We understand you TO say" asked Chair
man Lexow. that unless a man makes this
"Ms cannot live" said Mr. DSgan. still neg
lecting to say why ho did not patronizo the op-
Q.-tBy Senator McCarrenl-well. you fell out
with the American Sugar l,rnning Company In
hsss You ha,e Sssn & III business e., since then
Q.-Have you been selling sugar siucef A.
Yes, sir, up to short time ago.
A.GwelI. it's this way: II customer wants a
barrel Of sugar. Of course 10 out and got 1t for
Q.-what price do you pAy' A.The renner's
Q.--That is to say. you pay exactly the price
for the sugar that you would pay II you bought
Il OF the American sugar Rchnin. Company
Mr. Dugan dodged about n bit, but he finally
had to admit that he did. ana also that he could
purchase sugar OF the American Sugar Refining
was that he would not be able to get the three
sixteenths OF cent rebate. because he had not
carried ont tho factors agreement emitting him
II really looked as though Mr.. Dugsn did not
have u great deal to complain OF. and the hunt
ers were all disappointed.
CALLED A BROKER AND CAUGHT A TARTAR
Michael Callahan was called. He said he was
. broker and dealt In raw sugars. He was
Company, but for the importers OF raw sugar.
, Q.-How many buyers wero there before the
sugar trust was fOrmcdI Al COuldn't I say. /
think there were about five or six in Now York.
Q.-And since the organization OF the trust
how many buyer- have there been; that is. buy
ers OF raw sugar. A.-Outsido OF the trust l
think there have been four.
Here the hunters began to pick mp chunks of
knowledge about tho law of supply and de-
Who fixes the price of the raw materlalT"
Demanded Senator LeSow with becoming fierce
The price of raw material" said Mr.. Gala.
han. " all depends upon the market The price
here iA governed hy the rrice I'm EurODP"
All. yes" sad Senator LrIow, "of course
,hs price in Europe fixes the price here. but the
Is below the import price. does itI'
Yes" sain Mr.. Callahan.
raw material here is lower than the price of the
raw material In Europe. docs ity
Mr.. Callahan smiled and tried to explain tho
RELATION between the prices here aud the prices
In Europe.
Refining company takes so per cent. Of the pro-
dnct.rn enable II I" tx the price OF the raw
material 7" demanded Chairman Lexow.
Not ALWAYS" said Mr.. Callahan.
Q.-Hasn't the American sugar refining Com
pany; ia enegi iix.d the price OF the raw ma
Q.-Have they controlled the market? A.
Tney cannot contro. the market.
reason OF their large purchnsesY A.-1hey posi-
ttyely cannot ln,, contro! ths market. =.
that wayf A"NoD. , Dni' i ioa'. WV 0'" " WORK
.,Q.,,Didn't they control 1t last winterr Al
q. lsnnrlinalyl-Im not asking you what you
think. Didn't they control III A.-They did
not: no. sir.
Q-Is it true that. owing to the Cuban war,
the supply from Cuba having diminished. the
imnPrtsers ,s s bought largely In other directions
last ycarp Ayes sir.
Q.-Now. did not the American Sugar Refining
Company At that time control tho sugar mar
ket2 A.-SO. sir.
Q.-Didn't they control It by keeping out OF tho
mnrketf A.-No, sir; they wcro continuous
Q.-Didn't they cease buying In Now York
after they had sufficient supply for them
seivos2 A.--Yes, sir.
Q.-Didn't they accumulate 100000 tons or
more and stop. and then did not the demand for
raw sugar cease entirelyf A.-There was q do
mand for raw sugar right along.
Q.--Were not, Rs II result OF this stoppaEe OF
purchases, large number Of brokers wrecked
In busnessY h.-Some men who were In the
business failed, but that was not the fault Of
the American Sugar Refining Company.
q Was It. not due To tho stoppave OF pur-
cha-es by tho American sugar Refining Com
pany that these men faedr A,-No. IL was not.
., DO you state that Hs n positive fact OH your
oRthp A.-Yes sir. | do.
Mr.. Callahan then explained to Chairman
Lexow that the months he uhe Chairman was
ArIv vinya 4 tlsxk In.,