The herald., 1897-02-09

lnen tne ValuatlOn OF the property,
| said Chairman Lexow, was not correct
as represented in the certificates, or else
| the capital stock was false?"
The witness did not think so.
DO not you, as a business man, think
| that the issuing of capital stock at fig
ures that do not represent real value is
| the principal vice in corporations"
II hardly think that is the truth, for
| the reason that the corporation law is
availed of by many parties associated in
| business simply to provide for the dis
tribution of interests in the selling CT
business.
In reply to another question witness
| said he was of the opinion that the legis-
ldture should encourage the formation
of corporations in the state, rather than
drive them to other states.
Was not the actual cash value of the
various companies that comprise the
American Sugar Refining company $12,-
100000 and was not there $50, 000.0 900 in
certificates ssued?"
There was no cash appraisement of
the actual value of the companies"
will you swear that the actual cash
value represented more than total of
$12, 900, 000?"
II should, most assuredly."
what other company except the So
called California company is in compe-
tition with the Western Refining COM
pany?"
None that / know Of"
Witness said that out of total of
100000 tons of sugar produced annual
~ in the United States the American
sugar Refining company controls so per
cent, but denied that the company con-
trolls the price.
when we are not in the market our
competitors are, and they buy and sell
at their own fixed prices" witness said
Senator T,aY 10 wi ~
of the testimony given by him (Searles)
before a former committee, which, the
witness said, expressed his views at
present in regard to control of the out
put of sugar in order to get rid of COM
petition prevailing between free factor
les.
Mr.. Searles said that he did not agree
with Mr.. Havemeyer, that the principal
object of consolidation was to stop COM
petition. He said two refineres had
been built in this state alone since the
amalgamation in 1891.
The chairman notified him to produce
at the next meeting of the committee
the minutes of the company in refer
ence to the Philadelphia companies and
other transactions of the amalgama-
ton. He replied that he should have to
have the consent of the directors.
In reply to another question, witness
said he disagreed with any statement
implying that the American Sugar Re-
f1ning company controlled or fixed the
price of the product in the United States
rs it not a fact that where you have
competitors you could lower the price
In this particular locality and force
hem to the wall?"
mo. sir; it is not. We only control the
price of our own sugar. The policy of
the American Sugar Refining company
is to produce the largest quantity posi-
BILE and always in advance of the de-
mand, that the consumer may obtain the
product at a fair, standard price" ad-
ded Mr.. Searles.
In reply to another question the wit
ness said that since the consolidation
the wages of the employees of the
company in this state were increased 10
per cent.
What was the capital stock of the
Havemeyer Refining company at the
time of the consultations"
"One million dollars"
What was the amount of certificates
you received by the pool?"
Il cannot tell you now
you have the figures?"
ooh, yes"
"You reduced nineteen active COM
panies to eight did you not?"
mo; it was from fifteen to eight"
you have factory that could furnish
the entire demand of the United States?"
I'VE could do it very easily"
"At the time of reorganization of the
trust the witness testified there were
only n few hundred stockholders. How
many are there now?'
well, there were 5000 dividend checks
sent out on January 12"
Witness said he was not positive as
to whether the majority of the board of
directors held the largest number of
shares in the company.
Have you not been self-appointed
body since the organization"
mo. sir; the directors are elected by
the stockholders"
Have the stockholders asked for a
yearly statement?"
mo. sir; they are perfectly satisfied
to leave the matter in the hands of the
board of directors. who are always
elected unanimously"
II suppose they are we'll pleased with
the profits?"
IT suppose So" replied Mr.. Searles.
This ended the examination of Mr..
Searles, who promised to furnish the
books of the company when the commit
tee reconvenes on Saturday next.
Before the members of the joint COM
mittee separated Chairman LeXow said
to them that if they could so arrange
their affairs he would like to have them
sit all next week when an investigation
of the American Tobacco company
would be made. The subpoena servers
have had some trouble in reaching the
officials of the Tobacco company for the
reason that most of them are out of the
city, and they report that only one of
them, George "A. Rentz, the treasurer
has been served
This has given rise to various rumors
to the effect that the members were
frightened into avoiding the committee
by leaving the city, and that the COM
pany had moved its books into New Jer-
sey. Chairman LeXoW, when asked if
he had heard of these rumors. said that
he had assumed that the books were
still within the jurisdiction of the COM
mittee. The company has an Office in
New Jersey as well as in New York
James B. Duke, president of the COM
pany, was reported as being al his home
in Somerville, N. j., yesterday. VIM.
H. Butler is in Europe.
Beyond the proposed investigation of
the Tobacco company next week the
chairman declined to state what the
future program of the committee would
be-
THE TRUST LOSES
CHICAGO, Feb. SIN the federal
court today Judge Grosscup handed
down a decision in the suit against the
Charles Pope Glucose comptny for us
ing the Arno Pehr devices in the prepa-
ration of corr for the various products
of oil. starch and sugar. The suit was
dismissed for wart of equity. the court
holding that the Behr patents had not
such novelty as can be afforded the
protection of the patent laws. The de-