The record-union., 1897-02-06
State Why They Had Engaged in the
Coffee Business.
Knew That There Was Large Profit to
be Tlade-Deny That They Control
the Sugar Market, or That They
Had Entered Into an Agreement
With the Spreckels Not to Com-
pete West of the Missouri River.

NEW YORK, Feb. 5.-The special
legislative committee to investigate the
subject of trusts met in this city to-day.
II. .. Havemeyer and Theo. A. Have
meyer, heads of the American Sugar
Refining Company, were on hand, hav-
ing been subpenaed as witnesses.
Theo. Havemeyer was called as the
first witness. He denied that his COM
pany had fixed the price of sugar. He
said that the price of sugar had not in
creased because of the acquisition of
those companies. In fact, sugar was
now lower than when the companies
We're acquired. He denied the abSorp-
ton of the companies for the purpose
of shutting off competition in the sugar
market.
Witness said that he went into the
coffee business because he thought it
was a pretty good business. The Amer
ican Sugar Refining Company, witness
said, had no connection with the coffee
company.
Senator Lexow ELECTED the fact that
the Havemeyers and John Z. Searles
filled equivalent positions in the Ameri-
can Coffee Company as they did in the
American Sugar Refining Company.
Witness admitted that in addition to
l. per cent dividend since 1891 there
may have been accumulated a surplus
of stock. He could not say whether it
had increased from $1,000 900 to S13-
100000.
H. 0. Havemeyer, President of the
American Sugar Refining Company, was
sworn and described the organization of
the sugar trust in 1887. The assets real
and personal, of the fifteen companies,
We're purchased by the American Re
fining Company at the time of the ANAL
gamation.
Asked by Senator LexoW if the direc-
tors of the fifteen original refineries
were not the directors of the present
sugar company, Mr. Havemeyer said
that six of the original directors, with
the addition of William Parsons, were
still on the Directory Board of the
American Sugar Refining Company.
Asked where the original document of
agreement was, Mr.. Havemeyer said
he did not know, and doubted its exist
ence now. The American Sugar Refin-
ing Company of New Jersey, Mr.. Have
meyer said took the place in 1891 of the
former so-called trust 1t was done
through purchase. The new company
acquired all the property before held by
the trust and no more, and was capital
lied first at 500 100000 and afterwards
increased to $4,000, 900 The greater
part Of the S2J0O0,000 increase was
used in the purchase of the Philadelphia
property.
In direct questions, Mr.. Havemeyer
denied categorically that his company
controlled the sugar market in the
United States; fixed the prices of refin-
ed sugars controlled the produce of
sugar, or that it had an agreement with
the MollenhauSer concern, the National
or the St. Louis.
Senator LeWox called Mr.. Havemey-
er's attention to the fact that he had
testified in 1894 before the United
States Senate committee that the COM
pany controlled the sugar market up
TO the importing point.
That was true at that time" replied
Mr. Havemeyer. Competition has
changed since then"
DO you ship sugar west of the Mis-
souri, River in competition with Mr..
Spreckels?" asked Senator Lexow.
No"
iCiU yCt NlAlCi llhLO an dS ItttlltllI
with Spreckels not to compete with him
west of the Missouri"
Certainly not. Competition with hin,
there is not possible. 1t is purely a
question of geography. Where the su-
gar would cost US IL cents there it
costs him y cent"
Senator Lexow wanted to know
about Arbuckle Brothers relations with
| the American Sugar Refining Company
They never competed with U.S. he
said: They were wholesale grocers.
and handled our products. We took
back their empty barrels al 20 cents,
and Mollenhauser offered them % cents.
so they shifted their trade from US"
Why did you organize a coffee COM
| pany within a day of two? You think
| the coffee business as allurfng as the
sugar busness?''
Yes; l propose to carry on the cof-
fee business just as we have the sugar
business, and that isl state it here in
open court without fear of contradic-
tion-to the advantage of the conslIrn-
er. The margin between the raw and
refined sugar is "a of a cent Concentra-
tration of large business under one
management Of this, it's consequent
economical views, was to put sugar on
the market at less price that separate
concerns could afford to do Green cof-
fee declined 6 cents in 1896. but Ar
buckle has lowered the price of the un-
finished product only ; cents. thus TAX
ing ; cents pound more than his legi-
| innate profit out of the consumer"
Arbuckle testified that after he had
determined to build sugar refinery, a
director of the American Refining Com
pany, in speaking to him about it, said
How would you like to go into the
coffee business"
Il felt" said Mr. Arbuckle, that It
was an implied threat
James n. Harvie was called. He said:
Lowell NJ. Palmer of the American
Sugar Refining Company came to me
and said: IF you start refining sugar,
we Will go into the coffee business, and
the Havemeyers have more millions
than the ArbuckleS'"
Mr.. Havemeyer arose and said:
Lowell NJ. Palmer had no authority to
speak for the Havemeyers or the
American Sugar Refining Company, If
he did speak. Mr.. Palmer is at the
head of our companys operating de-
partment. He is not a director of the
company"
The hearing then adjourned.
4