The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-06-15
A Plain Statement by Havemeyer, the Head
of the Sugar Combine.
THE CONSUMING PUBLIC is nADE THE vIcTIrl
Advantage of Business Community
Corporations Simply the Machinery for the
Robbery of the People.

hdVemeyer. president OF tle American
Sugar Refining company. was examined by
the industrial commission today in con-
hection with the investigation OF the
trusts. His testimony related almost
wholly to the sugar industry and he open
ed with q vigorous attack on the customs
tariff. which he declared was the mother
Of all trusts, becoming such by providing
IAN inordinate protection to manufactured
articles This attack was made in
written statement which the witness had
prepared before making his appearance
before the commission and which he read
in ringing voice.
Continuing bis statement he asserted
that tarlff II 10 per cent was as high as
any tariff could be- He contended that
sugar is Disseminated against in the tarin
10 the interests OF Louisiana cane grow
eTs, the beet sugor makers and the sugar
growers Of the Hawaiian islands. To those
interests he contended, the United States
contributed $4,000 600 which was taken
out Of the pockets OF the people He said
protection Of sugar amounted 10 one eighth
Of cent per pound or about 3ls per cent
ad valorem II ought 10 be twice as much.
W udA tut sugar ItNLADk bNslut1a Nta
paid or is paying represents nothing IN re
than an adequate return on the capital
invested" he said. What congress should
have done was to have put an internal
revenue tax on the American production OF
sugar. The representations made IN con-
gress concerning the trusts" he declared.
were untrue and II it was a fact that The
people suffered from the trust they must
blame the protective tariff system, of
ha bq M
chinery" No advantage had ever been
taken by his company of the protective
system beyond the l-Sc given. He admit
ted freely that the company did all pos
sible to advance rs own business interests.
He did not think the corporations were
under obligations 10 the different States,
bu, that the revNse was true
Capital and labor, he stated. would
all adjust themselves II let alone. The
oaly way 10 prevent competition" Mr.
HaYemeyer testified was 10 Keep prices
az mlnimum-nof necessarily ia the in
terests Of the consumer, but a. a matter
a fact. He referred 60 the trust laws OF
s-me OF The States as premium on dishon-
esJy and specifying he Missouri law.
There was always two classes OF people
IN community-the Industrious and those
who wanted 10 live OF them"
Replying 70 questions by Prof jerks
after he had concluded the reading OF his
paper, Mr. Havemeyer said the American
company was capitalized Tor much less
than it was worth But for the elamor
agains, trusts lie said. IL could he sold
for three tiales It's capitalization Yet he
thought The retneries could be duplicated
for SS0oeo0 Geo or S4o0O0.0vo The present
capacity Of he trust Is, he said. 1900 bar
rels a day and the output 5000.
lie thought the trust was refining about
90 per cent OF the sugar refined in thl
United States The witness spoke very
freely Of the methods Of the company in
preserving and extending its business. OF
the earlier history OF the enterprise he
said he did not fight the Harrison refinery
az Philadelphia. But We hdd TO fight
SpTeckels when he came into the field
with his enormous plant We had 20 do
that or suspend our dividends. We went
into the tight and we kept it up until We
got the refinery
The late drop in the price Of sugar has
been caused by the starting of new re-
fners which had threatened to take 90 per
cent of the business Il WAS part OF
our policy 10 put prices down and let the
opposition take the result whatever Il
might be. Every sale made by the oppo-
sition displaces so much OF the American
company's product he said. I'VE must
protect our own business
Mr.. Havemeyer then went on 10 say the
apthropy-that 1t had its own shareholders
to protect
Anybody can buy our stock" he con
tinued, and as a consequence the public
owns the stock. But l doubt whether any
one would want any OF the stock OF the
Independent refnerles."
How many stockholders have you?"
asked Prof, Jenkins
About 1l,000.' ne replied, and added
enough to take Cuba, and they would
take It II they could" The latter re-
mark was made in light vein He stated
as his opinion that the Cuban sugar should
be brought in free of duty and that this
course would bring refined sugar down tc
3 cents a pound.
Speaking OF the coffee business, Mr..
Hayemeyer said he was In the business
and in It to stay.
In the course OF his prepared statement,
Mr.. HaveHeyer said: The United States
tariff bill, in assessing about $40 per ton
on imported sugar, pays Into tho pockets
OF few Louisanans on their annual crop
OF 250. 900 tons, SIC, COO 900. TO the Hawaiian
islanders, .prohsbly represented by $50 for
eigners on Their annual crop OF 250 600
tens, $4,000 900; say 100000 tons produced
elsewhere in the United States. 81 900 600.
Here We have S24,000,000 extracted from
the people Of the United States for the
sake Of getting the revenue which $40 per
ton on foreign sugar provides. This Is
merely Illustrative Of the whole tariff
every line of it--and its effect on the peo-
pie In fact, the tariff bill clutches thu
people by the throat and the governor and
attorneys general OF the several States take
action, not against the cause. but the ma
chinery which the people employ to rifle
the public pocket There appears 10 be In
the public mind a distinction between rob
berry hv an individual and that by n cor
poration. What is commendabe In an in