The herald., 1897-02-06

agreement was Mr.. Havemeyer said he
did not know, and doubted it's existence
now.
The American Sugar Refining compa-
ny of New Jersey, Mr.. Havemeyer said,
took the place in 1891 of the former So
called trust. 1t was done through pur-
chase. The new company acquired all
the property before held by the trust
and no more, and was capitalized at
first at $50,000000. and afterward in
creased to SIS, 100000. The greater part
of the s25, 1000, 600 increase was used in
the purchase of the Philadelphia prop
erty.
In answer to direct questions, Mr..
Havemeyer denied gorically that his
company controlled the sugar market
in the United States; fixed the price of
refined sugars; controlled the product
of sugar, or that it had an agreement
with the Mollenhauser concern, the Ma
tional or the st. Louis.
Senator Lexow called Mr.. Havemey-
testified in 1894 before the United States
senate committee that the company
controlled the sugar market up to the
importing point.
THAT was true at that time" replied
Mr. Havemeyer. "Competition has
changed it since then
do ycu snip sugar west of the Mis-
souri, river in competition with Mr..
Spreckels?" asked Senator Lexow.
mo-
did you enter into an agreement
with Spreckels not to compete with
him west of the Missouri"
Certainly not. Competition with him
there is not possible. 1t is purely ques-
tion OF geography. Where the sugar
would cost US IL cents there, 1t costs
him half cent"
Arbuckle Brothers relations with the
American Sugar Refining company
'They never competed with u.s. he said
"They are wholesale grocers, and
handled our products. We took back
their empty barrels and Mollenhauser
offered them % cents, so they shifted
their trade from u.s."
"Why did you organize a coffee COM
pany within day or two? Do you
think the coffee business as alluring as
you do the sugar business?"
Yes; I propose to carry on the coffee
business Just as we have the sugar busi-
ness, and that isl state it here in open
court without fear of contradiction-to
the advantage of the consumer. The
margin between the raw and refined
sugar now is three-quarters of cent.
Concentration of large business under
one management, with it's consequent
economy. allows us to put sugar ON the
market at less price than separate
concerns could afford to do. Green cof-
fee declined six cents in 1896, but Ar
buckle has lowered the price of the un-
finished product only three cents, thus
taking three cents a pound more than his
legitimate profit out of the consumer"
Mr.. Arbuckle testified that after he
had determined to build sugar re-
finery a director of the American Re-
f1ning company, in speaking to him
about it, said: "How would you like to-
go into the coffee business?"
IT 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 to refining sugar we
will go into the coffee business, and the
Havemeyers have more millions than
the Arbuckles.'"
Mr.. Havemeyer arose and said:
Lowell M. Palmer had NO authority to
speak for the Havemeyers or the Amer
lean Sugar Refining company, If he did
speak. Mr.. Palmer is at the head of our
company's operating department. He
is not a director Of the company"