New-York tribune., 1899-06-15
SUGAR TRUSTS METHODS.
Fl. O. HAvEMEYER BEFORE THE INDUS
TRIAL COMMISSION.
THE TARIFF DECLARED TO BE THE
MOTHER OF ALL TRUsTs-HOw HIS
cnMpANY cONpICTS ITS BUSINESS

",
to-day in connection with Its investigation Of
trusts His testimony related almost wholly TO the
sugar industry. and he began with vigorous at
tack on the tariff. which he declared was the
mother OF all trusts, by providing "an inordinate
protection TO manufactured articles" This attack
was made IN a written statement. which he read in
q ringing voice.
MR.. HAVEMEYER'S STATEMENT.
The full text OF the statement is as follows:
The mother OF all trusts is the customs tariff
BIZ. The existing bill and the preceding one have
been the occasion OF the formation Of all the large
trusts with very fev exceptions. inasmuch they
provide for an inordnate protection TO all the in
economic advantages Incident to the consolidation
OF large interests in the same line Of business are
very insignificant proportion to the advantages
granted N the way Of protection under the Gus
There is probably not an industry that requires
protection Of more than 10 per cent ad a yaorem
centage in the tari1 that leads to the formation OF
yhat are commonly spoken Of as trusts"
with a protection TO an industry not exceeding 10
oer cent all menace to the community by trusts
E-l1ce ESa In cost Of production and kewise act as
q protection against surface products Of foreign
Sy interfering with the regular and economic work
;rg Of our industries. Any advantages that might
INV entitled to- and the public would not be dam
ssd thereey as Sny a5S pe M "0"'o De
r,e of ~ protection on sugar is an eighth of
saIe nog6d which is about 3la per cent ad valorem
foe"T To the difference in the cost Of refining be-
.aen sre y his and foreign countries. The least II
.Teeh ,%e5 have is per cent or in specific figures
i nor cent d pound The sugar refining industry
~ his country matter what form it's organiza-
ZION Is entitled 10 adequate protection II any in
dusfrv is There are at least 10000 people de-
sstoHEholders in the past represents nothing more
man fair return on the capital invested, con-
The United states Tariff bill. in assessing about
81 ton duty on PoTsG s1s1f o5 be2 pays annual crop
Of 30 90 tons 100000; TO the Hawaiian islanders
rrna crop of 10000 tons $1,000 cce; say 1000 tons
pyoduced elsewhere n the United States. 10000
- tFe Ined states for the sake OF getting the
revenue which so per ton on foreign sugar , P61e BT4
tsry-every line OF it-and its effect upon the
people In fact. the Tariff bill clutches me PeoP.e
g. tbe throat and then the Governors ana the At
torns5 @ s,st The cause but against the machinery
which the public employ TO rife the puoHcs
pocket
FORM OF BUSINESS NOT MATERIAL.
There appears to be in the public mind distinc.
t,or between robbery by an Individual ana that DY
8 corporation What Is commendable in an indi,
yiduai appears TO be dishonest in a corporation
H.Sei FORM business is done-whether by an ind-
yidu9l hrm corporation OF even trust These are
vo-5S machinery for the operation Of business II
IS the duty Of the Government to see tnat & &unoet
the tariff laws they enact TINS ne tar Ti,T
in lis actions result TO the detriment or HhpoVer-
II Would have been very easy and proper for
the Government 10 have put CORES pOIG,ns uith ~
the imposition Of the customs duty ana nave tntse
81 uooODo which now 20 into the pockets Oh ~ "
Individuals 20 into the Treasury Tor inc otnenl ot
fbe whole reope II expenses OF the Govern
ent needed to be provided for ahd mo RnDosion of
10 per cent ad vaIorem on all manufectured prod
-. ~essoD VIZ II revenue is desired that with
n dnty on raw materials of foreign pr9dhct@on non a
Cr sir5Iar Uroducts and the protection 70 manu-
facturers thereof limited TO an additional ~ per
renea that all this agitation against trusts IS
against merely the business h carnrnan In It's
tariff laws SAYS 4 is proper ana ib1ogb its
tariT laws which plumbers the people ana n,l me
trusts etc. a-e merely the machinery LOT uUs in in
Congress end the sptechsf Snyoid Of frHth-ut-
fning COMPANY are 2nsGIu'eE En Intention Of Con
,resss however to enact something into law con
trsry 10 what the refining industry prGpsry y
and Injustice done. in the passage of the existing
sugar schedule.
SAVING TO THE CONSUMER
Whether the sugar refining company has been a
benefit or injury TO the community can De Dest - eA
Irsssed IN tSpiy T,or 70 the formation OF trust
and for corresponding period subsequent Inc n.
- Inc consumer-note that, consumer-ol over one
el-hth OF a cent per pound ~ . A..
V-S,at me sugar company has disbursed IN divi-
oends mas been because Of any extreme pro pro
lection under the tariff but out OF conditiohs per- per-
t-.tiy Legitimate and commenddble. Their record
t,ows conciusivey that advantage has ever
been taken by e copdIa{ Claimed 9 e. oneqGarer
Of cent pei pound, under the tariff -..,,-o
Ian Ia, S"f :, sn%IiI a9 indstry 50 that irrespece Of
- form os doing business. individual or corpora
Won Tedlec,e H PeV As the iar laws and have been
no v-bo bas terribly suffered. the great advan-
,sge OF the few OF the business community -
III sugar company undouDted!y tries 10 90 aI ~
u,uost TO enlarge its business. but does II IN way
vb-D they consider the only proper one, e. Oy
making the price 50 Sg 0T as 10 q are Under no
o6lsations Whatever TO any Of the States for their
SSdey o6gatons TO them If the plants Of these
Industries consolidated was capaoe OF oeli4e pu poid
80 ,e-v active bid iing for them II is not un-
usual thing FOR certain localities 20 ara IN some
Instances give the land 10 corporatlons 10 nSTe E
them organize under their statutes ana 'oc"'e ="
Hostinty 70 capital meets with IT'S own con-
y w-York where discrimination against captaI
has prevented ITS employ ment and drven ~ rste
where. resulting IN greatly increase h tsh 'aoe ~
and a tendency 10 Increase the number OF the uh-
All have TO say about trade organizations and
strikes that whou, violence they are ,5dency
20 reduce all labor 10 a low level
RELATIONS OF CAPITAL AND LABOR.
Business is not philanthropy. Capital and labor
vii adjust their own roations II they let alone
Interference always operates against one or he
other. That means the disadvantage Of both:
except that which results from patents and copy
Tne true Communism Of pelf' is the Customs
Tariff bl II says 10 the people Here IS the 11 law
We have enacted for your robbery DO not COM
plain OF g. but do your utmost to attack ana lnJure
The machinery engaged In extracting from you
what We legislate shall he taken from you, nfTP bP
up the clatter while the voters on the IarlH bl.
take advantage OF the noise TO enact avs that
cause your impoverishrnent and thus contribute 10
the greed and avarlce Of the few. go .., .
There is @ prevailing hostility 10 wealth ms Is
perfectly Illogical Every one wants money. IL ls
The abuse Of money. not its possession Whlch Is
opposed 10 public interest. This hostility mas lts
outlet In hostile legislation. in unequal and unjust
taxation. A this is probably unconstitutional II
IS directly against the interest Of the very cass-I
mean the poorer class-whom II is supposed 10
Corpora tons whether directly such or IN the
form OF trusts are an expedent for uniting the In
terests q a large number OF persons OF snlali'T
f~.o lar q