Evening star., 1897-02-08
LATE NEWS BY WIRE
Searles Explains His Absence to the
Investigating Committee.
NORTH RIVER REFINING co.'s STOCK
He Denies Making $350,o0o
Overnight.
STIONE AT LENGTH

ESTIONED AT LENGTH
NEW YORK. February s.-John E.
Searles, secretary and treasurer of the
American Sugar Refining Company. was ON
hand today when the joint legislative COM
mittee on trusts met in this city.
Mr.. Searies left his home in Brooklyn for
Canton. Ohio. last Thursday evening, after
having been served with a subpoena, and
the committee was disposed at its sitting
Saturday to declare him in contempt and
take steps for his punishment.
Mr.. Searies was warmly greeted by the
members Of the committee. Lawyer Ed
ward NJ. Shepard. attorney for the sugar
company. arrived soon after. and imme-
dlately entered into conversation with the
prospective witness.
Before taking the stand, Mr.. Searles,"
said Senator Lexow, when some prelimi-
naries had been disposed of. will you
please explain to this committee why 1t
was that you absented yourself on Friday
and Saturday last?"
Mr.. Searles said he received the subpoena
as he was on his way to take train for
out-of-town places. and added that he felt
1t was his duty to at first attend to the
business on hand.
Il explained my absence to Mr.. Par
sons Mr.. Searles said.
Senator Lexow reprovingly told Mr..
could not be ignored by the millionaire or
by the poor man.
AT the close of your testimony, Mr..
Searles." added Senator Lexow. the COM
mittee will pass upon the question Of con-
TEMPT
How OLD are you. Mr.. searles?" asked
Sen4ro- Lexo~.
"FIety-six."
"Wha. Is your occupation?"
Sugar refining business"
ANY other?'
"R2nh president and president of several
local corporations. secretary and treasurer
did you hold all the stock of the North
Hiver Refining Company
II did"
Did you purchase it's stockr'
For how much?'
Il cannot recall
Was not the sum paid ss25.ooo?''
"Of that am not certain"
Would you say 1t was $3.50, ,0OO?''
IF you have the figures that possibly
is correct
The purchase was an Individual pur-
chase" continued Mr. Searles land had no
relation as to the value of the property to
the sugar refining company. The circum-
stances were somewhat peculiar. and TIE
whole transaction was ventilated in the
court of appeals
tor Iexow read from the testimony given
by the witness before a former committee
Mr.. Searles gave the stereotyped reply:
Il cannot recall.'' to series of questions
propounded by Senator Lexow in regard
to purchase of the North River Refining
Company. Senator Lexow reaG the witness
a resolution adopted al meeting CT the
stockholders of the North River Refinine
Company. held April - 1887. fayorine
amalgamation with the other sugar cor
porations In the United States and asked
MI Searles TO explain what he knew on
the subject
The matter of consolidation was under
consideration at the time, but no definite
action had been taken prior to IS9l''
Asked as to whereabouts of the COM
pany's books relating to that time witness
said 1t was his opinion they were in the
archives of the subsidiary companies, over
which he has no control
Now. you might as well tell us what was
paid In the North River Sugar Refining
Company case. We are going to have it If
it is in this world"
Il have no figures at the present time by.
which L could give you the exact figures"
said the witness. who later recalled that
the price paid in for the stock Of the North
River Sugar Refining Company was 5000
600. '''
rs IL not true that you made $3.50. 600
over night on the transaction?'
1t is not true. l did not make $3.50. 600
over night In the transaction
DO you dispute that?'
Il do
Did you lot consider. when Won were
taking the SO0,00O worth of ce-tifica tes
value?
~ would be their value when they be-
came a part of the consolidated stock 1t
was my faith in their ultimate value that
induced me to take them"
The witness said that the North River
Sugar Refining Company was anxious to
get cash instead Of certificates, and in or
der to accommodate the company, witness
took the certificates Off its hands.
Witness further said that the transaction
had the acquiescence of the directors and
stockholders of the sugar trust The wit
ness finally said that instead of receiving
SIOO.UO worth of stock certificates from the
North River Sugar Refining Company, he
received only $J95, 600
At this stage Stephen Little, the expert
accountant, who had been subpoenaed, an
nounced himself. and on explaining to Sen
ator Lexow that he in no wise was con-
ton. was excused.
In reply to Senator Lexow Mr. Searles
denied that his purchase of the stock of
the North River Sugar Refining Company
was to crush out the company competi-
tor in the sugar market Going back again
to the purchase of the North River Sugar
Refining Company. Mr.. Searles said that
when it came to the consolidation arrange
ment one of the directors of the North
River Sugar Refining Company objected to
'he carrying out Of the transaction.
In reply to another question, witness said
he could Eot say definitely whether or not
the actual values of all the socks taken
into the amalgamated trust was less than
so. 100000.
is it not a fact that the $5o.OOOUU worth
OF stocks In the sugar trust are only
third Of that figure in actual value7"
BY actual value do you mean bricks
and mortar?' inquired Mr.. Searles, who
finally stated that his mind was not suffi-
ciently clear on the subject.
witness said he had no. known the fig
ures in the case. and on being asked by
Senator Lexow IL they were available Mr.
Searles said he presumed they could be
supplied from the books of the company.
How much did the four Brooklyn re-
fireries that were shut up receive in GER
t;fcates?
Il don't remember the amount"
Fight to BE at Carson