The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-16
SEARLES TAKES THE STAND.
THE SUGAR TRUSTS SECRETARY
A SHARP WITNESS.


James II. Post, New York Commits
sion Merchant, the First Witness
of the Day-He Represents the Two
Eastern Concerns That Arc sup
posed to he in Competition with
the Trust-SearIes Enumcrntes the
Capitalization of the Trust Conn
panles.
New York, Feb. 15.-The Joint legislative
committee, appointed TO investigate the
existence of trusts and monopolles in the
state of New York, met again this morn
ing.
John E. searles, secretary and treasurer
of the American Sugar Refining Company,
was on hand early.
The first witness called was James H.
Post, commission merchant of this city.
He said he was a representative of T. IL.
Howell, Son & Co. He represented the two
eastern concerns that were supposed to
be in competition with the American Su-
gar Refining Company. These were the
National company and the Molenhauer
company. From his testimony 1t seemed
that the methods of the two competing
retineries We're much the same as those
Of the american Sugar Refining Company.
II they did not actually work in concert
Wlth that company, Mr.. Post, however,
testified that there was no agreement be-
tween his principals and the American
company, except as to freight. In reply
TO questions from Chairman Iexow Mr.
Post admitted that it might be a fact that
ms principals increased or restricted their
output, or raised and lowered prices sim
uiSane4usly with the American company.
MT. LeXoW asked: Don't your COM
panies and the American Sugar Refining
company fix the price of sugar."
4, NO, sir; the price of sugar is fixed by
the whole world. One-siXteenth or one
eighth of cent would carry sugar to any
part of the world"
The witness said that the price of sugar
was fixed by the daily state Of the market
and not by the refining companies He ex-
plalned that the equality rate book ac-
cepted by the grocers and the companies
only dealt with the freight.
This contract, the witness admitted. was
70 stamp out competition, but was equally
Tor the benefit of the grocer and. the con-
sumner, because sugar was sold to every
body at the same price.
> Mr.. Searles then took the stand Mr.
i5eAoW drew from him statements that
the cost of refining sugar was from 4 to
"a OF cent per pound; that the margin
OF profit between raw and refined sugars
had decreased 1s of a cent per pound dur
ing the last year, and that If the Ameri-
can company could not produce sugar
cheaper than the smaller concerns that
were not consolidated, one of the prin-
cipal objects of the consolidation would
have failed.
The witness said that twelve refnerles
belonging to his company We're not oper-
ated last year; that the American COM
pany contemplated the purchase of the
United Sugar Refining Company of Cam
den, N. j., recently established. and that
whatever plant had been acquired by the
American company since Its establishment
had been competing plant. In regard to
the purchase of the Baltimore refinery in
1896, the witness said: I'VE thought il
at,I fH.f
could be conveniently distributed from
that point to the south and west"
Mr. Searles denied that there was a spe-
clal sum set aside for supporting idle re-
hnerles Also that there was any agree
ment with the wholesale grocers associa-
ton. He said there was an agreement,
however, with wholesale grOcers in re-
gard to the freight from the refining point
TO the point OF sale
The articles relating to the equality plan
In the Wholesale GrOcers Association were
prepared by the association, the witness
said, and not by the American Sugar Re
inning Company.
The following is the capital stock of the
fifteen original companies that composed
the sugar trust, according to the witness:
Havemeyer & Elder, $500 900; Dick q Mey-
er, 100000; De CostrO, $4,000; Moller &,
Sierck, $210OOO; Oxnard, $iOO 900; r., o. Mat
thieson & Wiechers, 800 900; Brooklyn,
$500, 000; Havemeyer, $1.0G0,O00; Forest city,
500 OC0; Boston, S6JO0O Standard, sl0O0,OOO;
Bay State, $225, 600; st. Louis, $50, 600; Lou
isana a50,000; Planters, $3.50 900.
Mr.. Searles had brought no books or
records of any kind with him, and Chair
man LexoW announced that the directors
of the American Company would be sub
poenaed to produce the books required
In reply to further questions, Mr.. Searles
said that more men were employed in the
sugar refineries now than before the ex-
istence of the trust; that during the last
nine years his company had distributed
$l500 100000 of sugar in the United States,
and that the London market controlled
the price of sugar all over the world.
us the increase Of large corporations a
disadvantage to the workingman?" asked
the chairman suddenly.
mo, sir; but If we had less legislation
we would be better off. If you win make
laws that will invite capital to this state,
instead of driving IL away, IL would be
an advantage. But so long as inVestiga-
tinns like these are fomented, IL makes
capital unsafe and uncertain and makes
II act on the defensive as though Il were
the enemy Of the workingman. There is
n law far higher than the legislature of
the state of New York-the law OF supply
and demand-which controls all these
things, and which no trust, however big,
Is able to violate"
Senator Lexow at this juncture ad-
journed the proceedings until 10 o'clock
tomorrow morning, when Mr.. Searles will
produce a lot Of statistics in regard 20
the price Of the raw material before and
after the formation of the trust.