The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-06-13
T8ERE IRE No TRUSTS
Says Mr.. G. WaIdo,Smith but
Combinations Of Capital.
Is VALIANT IN DEFENSE
Declares They are in the In
tereSt of the Consumer.

Washington, June 12.-Mr. G. Waldo
Smith of New York, president of the
Wholesale Grocers' association, was the
only witness before the Industrial COM
mission today in connection with the
aust investigation. Mr. Smith proved TO
pe a defender of the trusts, but he re-
fused to speak of the combinations Of cap
attital by this name He indeed asserted
that there were no trusts, and THAI the
combinations were so referred y IN
justly.
Mr.. Smith detailed the particulars of the
| organization Of the Grocers' assoc ton,
which occurred in 1888. He said that pre-
! vious to this combination the wholesale
| grocers were selling many articles at cost
| price, Including sugar, baking powder and
| soap and other articles of uniform quail
| fty. There was special reason TO complain
| Of the price Of sugar, he declared, and
the wholesalers had given particular at
tention to securing cooperation with the
! sugar refners so as 10 insure a slight
profit. The American Sugar Refining COM
| pany then, he said, controlled the manu-
facture Of sugar and the wholesalers had
been able, after much consultation, to
| secure uniform rate Of 5 3-16 cents per
pound. with the understanding that all
who did not sell at less price than This
should have a rebate at the end Of each
! three months of i S-4 cents n each 100
pounds Of sugar purchased. This arrange
ment, said Mr.. Smith, had continued until
the present day and would have relieved
the groceTs Of the necessity of selling
sugar at a loss If some Of them had not
made cut on the price. There was really
no written contract with the refiner for
a rebate, Mr.. Smith testified. and those
who made reductions secured them as did
others who did not make them.
Mr.. Smith said the erection Of refiner-
les by ArbuckIe and Dosoher had had the
effect of rendering prices less certain, gnd
that they were now maintained at all,
with the various reffneries in the field.
was due to the honor and fair dealing of
the grocers themselves.
The witness confessed that he was a
jealous advocate Of this rebate system,
contending that it afforded the only meth
Cd Of insuring an honest profit on bust
ness in certain articles. Asserting that
there were no trusts, Mr.. Smith said he
had asked fourteen lawyers to name one
and they had failed to do so. AS for
combinations of capital, they were neces-
sary to do the business Of the world, and
when any of them should reach a point
at which they were making excessive
profits. competition would spring up and
thus furnish an antidote for the only pos
sible evil that might arise from them. He
knew that the combination Of fac sugar
refneries had resulted I'm a reduction Of
price, and it was also a fact that he was
now able to buy three or -FOUR allonsofoil
with the profit he formerly made on one
alIon. Hence he argued that such COM
binations were In the interest Of the con-
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