The times., 1899-06-15
HENRY D. HAVEMBYER
DEFENDS THE TRUSTS
He Has Little Respect for a
Protective Tariff.
States Have No Right TO Interfere
With Corporations.
The Head of the American Sugar
Combination Before the Indus
rriuI sion

The Industrial Commission yesterday OBJ
tanned the opinion of Henry o. Havemeyer |
on trusts. Mr.. Havemeyer is the President /
of the American Sugar Refining Company, !
the combine which controls the sugar in
dustry in the United States, and in view of |
the fact that the Commission has found it !
difficult to obtain witnesses who were di- |
rectIy interested in the large trusts of the |
country, his testimony has been looked !
forward to with much interest.
Mr.. Havemeyer occupied the witness !
stand from II o'clock in the morning until |
after g. He made vigorous attack on the |
tariff law and said that there was no !
money in refining sugar at the present |
prices. The only thing in the way OF re-
medal legislation that Mr.. Hayemeyer !
could suggest was that quas-public cor |
pcrations should be subject to inspection
by the proper authorities. This, however, |
Mr.. Hayemeyer qualified very carefully, |
saying it was almost impossible to carry
out such suggestion without giving the
business competitor information, which
was not desirable.
statement covering the conditions of
the trade was read to the Commission by
the witness when he first took the stand.
At the conclusion of this statement, Prof.
jerks took the witness in hand and asked !
him many questions concerning the en-
quiry.
The statement of Mr. Havemeyer was as
follows:
lit would have been very easy and
proper for the Government to have put a
corresponding internal revenue tax on
sugar simultaneously with the imposition
of the present duty and have these s24.-
00O.G00. which now go into the pockets of
few individuals go into the Treasury for
the benefit of the whole people. If no eX-
! penses of the Government needed to be
| provided for. and protection to Ameri
/ can industries was desired. then the lmpo-
! sition OF 10 per cent ad vaiorem on all
manufactured products would have settled
/ the matter. There is every reason why, if
revenue is desired, that with duty on
raw materials of foreign production, cor
responding internal revenue tax should be
I levied on similar products, and the pro-
lection to manufacturers thereof limited
to an additional 10 per cent.
! Il repeat that all this agitation against
! trusts is against merely business machin-
cry employed TO take from the public what
| the Government in its tariff laws says it
/ is proper and suitable they should have.
! 1t is the Government, through its tariff
/ laws. which plumbers the people. and the
| trusts, etc, are merely the machinery for
/ doing it.
The statements made before the COM
mittees in Congress and the speeches
against the sugar refinery company are
1 absolutely devoid Of truth-utterly un-
worthy of credit The intention OF Con-
gIess, however, TO enact something into
law contrary to what the sugar refining
industry properly required resulted, ire
spective of the great injury and injus-
| tice done, in the passage of the existing
I sugar schedule
Whether the sugar refining company
has been benefit or an injury to the COM
munity can be best expressed in the ac-
companying table. showing in brief the
prices for considerable period pIior 10
the formation of the trust and for COR
responding period subsequent The offer
ence since its formation shows an advan-
tage to the consumer-note that, con-
sumer-of over Is of a cent per pound.
What the sugar company has disbursed
in dividends has been. not because of any
extreme protection under the tariff. but
out OF conditions perfectly Legitimate and
commendable. Their record shows concu-
sively that no advantage has ever been
taken by the company in excess of the 8
per cent claimed, i. e, Ii per pound under
the tariff.
Tariff laws should not afford protection
exceeding 10 per cent TO any industry, so
that, irrespective OF the form OF doing
. business. individual or corporation. the
people-that is the consumer-would be
. protected. As the tarin laws are, and have
been, it is the cOnsumer-the great mass
of the people-whO has terribly suffered.
to the great advantage of the few of the
business community. The sugar COM
. pany undoubtedly tries TO do its utmost 10
enlarge its business, but does it in a
manner which they consider the only
proper one. by making the price so low
as 10 defy competition.
1T is my opinion that corporations are
under no obligations whatever 10 any Of
!. the States for their existence. Quite the
reverse. The States are under obligations
to them. If the plant of these industries
consolidated was capable of being pat on
wheels and moved from State TO State.
YOU would find very active bidding for
them. 1t is not an unusual thing for Ger
: tain localities TO guarantee free taxation
. for twenty years, free water, and in some
instances give the land 10 corporations 10
have them organized under their statutes
and locate in their States.
Hostility TO capital meets with its own
! condemnation. This is illustrated by the
| situation in New York where a discrimi-
/ nation against capital has prevented its
! employment and driven it elsewhere re-
sulting in greatly increased tax rate. and
| a tendency to increase the number OF the
unemployed.
Il All / have to say about trade organl-
| zation and strikes is that. without vio-
lence, they are natural. Their one objec-
| tion however, is their tendency to reduce
all labor TO a low level. Business is not
philanthropy. Capital and labor will ad-
just their own relations if they are let
| alone Interference always operates against
one or the other That means to the dis
| advantage of both. There is no such
thing as monopoly in these days except
that which results from patents and copy
rights.
'.'The true communism of pelf' is the
: customs tariff bill. II says to the people:
: Here is the law we have enacted for your
\ | robbery. DO not complain Of il, but do
, your utmost to attack and injure the
machinery engaged in extracting from you
what we legislate shall be taken from you.
Keep up the clatter while the voters on
! the tariff bill take advantage OF the noise
: to enact laws that cause your impoverish-
ment and thus contribute 10 the greed and
avarice of the few
There is a prevailing hostility 10
wealth This is perfectly Illogical. Every
one wants money. II is the abuse of
| money, not its possession. which is op-
posed TO public interest. This hostility
finds its outlet in hostile legislation, in
unequal and unjust taxation All this Is
probably unconstitutional. IT is directly
against the interest OF the very class,
| mean the poorer class whom it is sup
posed to benefit Corporations. whether
directly such or In the form of trusts, are
uniting bn interests M