Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1899-06-22
TARIFF DOES IT
HenryO. Havemeyer Testifies
Before the Industrial
Commission.
In Connection With Its lnVeSti-
cation Of TruStS-lt His
Opinion
The Present Tariff Law IS the
Mother of all Trusts and
Combines.

WAsH1NGToN, June 15.-Mr. Henry
O. Havemeyer, president Of the Ameri-
can Sugar Refining company, was eA-
amined by the industrial commission in
connection with it's investigation Of
trusts. His testimony related almost
solely to the sugar industry, and he
opened with vigorous attack on the
customs tariff, which he declared was
the mother of all trusts" becoming
such by providing ''inordinate protec.
ton to manufactured articles" This
attack was made in a written statement
which he read. Continuing his state
ment, he said that a tariff of 10 per
cent was as high as any tariff should be-.
He contended that sugar is discrimin-
ated against in the tariff in the interest
Of Louisiana cane growers, the beet
sugar growers and the cane growers Of
the Hawaiian Islands. To these inter-
ests he contended the United States
contributed 24,O00,O0O, which was
taken out of the pockets of the people.
The protection on sugar amounted to
only one-eighth of a cent per pound, or
about 31a per cent ad valorem. It
ought to be twice as much.
What the sugar refining business
has paid or is paying represents
nothing more than an adequate return
Oh the capital invested, he said. What
congress should have done, was to put
an internal revenue tax on the Ameri-
can production Of sugar. The repre-
,<o% IL
the trust, he declared, We're untrue, and
if it was fact that people suffered
from trusts. they must blame the pro-
lective tariff system, of which the trusts
were merely machinery. No advantage
had ever been taken by his company of
the protective system, beyond the one
eighth of a cent given. He admitted
freely that the company did all possible
to advance its own business interests.
He did not think the corporations were
under obligations to the different
states, but that the reverse was true.
Would Adjust Thsm,elvoa.
"Capital and labor" he said, "would
all adjust themselves if let alone"
The only way to prevent competition,
Mr.. Havemeyer testified, was to keep
prices at minimum, not necessarily
in the interest Of the consumer, but as
a matter of business. He referred to
the trust laws of some states as putting
a premium on dishonesty, and specify
ing the Missouri law. There were al
ways two classes Of people in COM
munity-the industrious and those who
wanted to live off them.
Replying to questions by Professor
jerks, after he had concluded the read
in of his paper, Mr.. Havemeyer said
the American comp my was capitalized
for much less than it was worth.
''But for the clam n against trusts"
he said, lit could be sold for three
times its capitalization Yet he
thought the refneries could be dupli-
Gated for $3O,OJO,OOJ or $4O,000,OOO.
The present capacity Of the trust is, he
said. $4,000 barrels day and the out
put 10000. He thought the trust was
refining about 80 per cent of the sugar
refined in the United States. The wit
ness spoke very freely Of the methods of
the company in preserving and extend
ing its business. OF the earlier history
of the enterprise, he said he did not
fight the H arrison refinery at Philadel-
phia. But we had to fight Spreckels
when he came into the field with his
enormous plan. We had to do that or
suspend our dividends. We went into
the fight and we kept it up until we got
the refinery"
The late drop in the price of sugar
had been caused by the starting or new
refneries which had threatened to take
90 per cent of the business. ''It was
part of our policy to put prices down
and let the opposition take the result,
whatever it may be. Every sale made
by the opposition displaces so much of
the American company's product" he
said. I'VE must protect our own busi-
ness
Mr.. Havemeyer then went on to say
that what the company did it did not
do from motives of philanthropy-that
it had its own shareholders to protect.
anybody can buy our stock" he con-
tinued, "and as consequence the pub
lie own the stock. But doubt whether
anyone would want any of the stock of
the independent refneries."
"How many stockholders have your
asked Professor jerks.
"About II, ,OOO," he replied, and added,
''enough to take Cuba-and they would
take it if they could"
The latter remark 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 to s
cents pound.