The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-06-15

Sugar Refining Company, was examined
by the Industrial Commission to-day in
connection with its investigation of trusts.
His testimony related almost wholly to
the sugar industry, and he opened with
vigorous attack upon the customs tarl1,
which he declared was the mother OF all
trusts" becoming such by providing IN
ordinate protection to manufactured art-
cles.'
The full text of the statement read by
Mr.. Havemeyer is as follows:
The mother of all trusts is the customs
tariff bill. The existing bill and the proceed
ing ones have been the occasion for the lorna
tion of all the large trusts, with very re" eA-
ceptions inasmuch they provide for an IN
ordinate protection to all the interests OF liie
country-sugar refining excepted Economic au-
vantages incident to the consolidation OF large
interests in the same line OF business are
great incentive to their formation, put ehese
bear very insignificant proportion to the al
vantages granted in the way of protection ull-
der the customs tariH, 80,
There probably is not an industry that re-
quires a protection of more than 10 per cent
ad valorem. and it is to obtain what Is proVldea
over such percentage in the tarlli that le i
to the formation of what commonly SPOKEN
of as trusts
With a protection to an industry not ex-
ceedng 10 per cent, all menace to the com
munity of trusts would cease. rms III per celi'
would represent the difference in cost OF pro
ductionand likewise act as protection agal il'
surplus products of foreign countries peine
dumped in our local markets, thereby interfering
with the regular and economic working Oh our
indus cries. Any advantage that might theh
accrue to such combinations they would be
fully entitled and the public would not De
damaged thereby, as any expansion VI Pr
would be met by foreign competition anu re-
lief .,..
Il have said that sugar was an exception:
The rate of protection on sugar is an elghtn
of a cent per pound, which Is apo9t S52 Pc ta
cent ad Valorem, and is not the difference ia
the cost of refining between TINS anu T., i0Ie nsr
countries. The least 1t should nave Is pei
cent or in specific figures Ia cents per
pound. The sugar refining industry OF tnls
country no matter what form its orsahlZdtl0I'
is entitled to adequate protection IL any III
dustry is. There are at least lVo,ooV peopIe ue
pendent upon it, What it pays or has PAID TO
It's stockh6lders in the past represents nothing
more than a fair return to the Calltal ~
vested. considering the extent OF the business,
The United States tariff BILL in assessing
about $40 per ton duty on imported su .ar
pays into the pockets of few Londs d ans
on their annual crop of 250uOO tons sIV,uuVVoy,
TO the Hawaiian Islanders, probably represented
by $50 foreigners on their annual crop OF Loo'I
elsewhere in the United states, SiWU.VVu ieIe
you have S24. 0G0, 900 extracted from the peopie
OF the United States for the sake OF get, l,aS
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 upon
the people. In fact the tariff bin clutches ths
people by the throat and then Governors ana
the Attorney Generals OF the southern STATES
take action. not against the cause but against
the machinery which the people employ 10 rlhe
There appears to be in the public mind
distinction between robbery by an Individual
and that by a corporation. What Is com
nendabIe in an individual appears to be ans
immaterial TO the public in what form business
is done whether by an individual, a hrnl,
corporation or even the trust These are mere
~ forms of conducting business OF IN Stng i
words machinery for the operation OF pusl-
see that under the tariff laws they enact TINS
machinery cannot, in its action result 70 the
detriment or mpoyerishment OF the pubic:
.It would have been very easy ana proper
for the Government 10 have put a correspond
ing internal revenue tax on sugar s lnlul-
taneousy with the customs duty, and nave
these s24 600 COO which 20 into the pockets
of a few individuals, go into the treasury LOT
,ba heneft Of the whole people. If the ex-
nnnses If tbe Government needed to be provided
Tor and protection to American industries maS
desired the imposition of 10 per cent al W.
en- on all manufactured products would nave
settled the matter. There is very reason why,
If revenue is desired. that with DUTY on
raw nteTnai revenue should be levied on
such products and the protection OF IlaiiI IA
facturers thereof limited to an auuitional ~
~ reneat that all this agitation against
trusts is against merely the business nachlhe cry
employed to take from the public, what ro Ine
and suitable they should have 1t Is me 10y
eminent through its tarln laws, "nreh ,,erav
ders the people, and the trusts eto'' "i' A'--'
the machinery for doing IL. 49,,
'.The statements made before the committee
in Congress and the speeches against tns
sugar refining company are absolutely devoid
of truth-uttery unworthy OF credit. Inc ~
tention of Congress, however 70 eaia sar re
thing into law contrary to what the sugar I re-
fnine industry property required resulted, IT.
respective of the great injury ana ln1us ,,lc
done, in the passage OF the e&istlhs SUB a.
schedule Whether the sugar refining company
has been benefit or injury to the coIn .I
can be best expressed in a table showing me
prices for a considerable period prior TO the
formation of the trust and for corresponu-
ing period subsequent. ., .,. a.,
advantage to the consumer-note that, CON
sumer-of over one-eighth OF cent per po AM
| ornra diSDurSe0
dends has been not because of any extreme
protection under the tariff, but out OF condl-
lions perfectly legitimate and commemorate
THE record shows conclusively that no adVan-
tage has been taken by the company OF
any protection in excess OF Ine pa oe tbe
claimed, that is, Ia cents per pound unoer the
tariff. ..,.
ceeding 10 per cent to any industry, so that,
irrespective of the form of doing business, in
dividual or corporation, the people, that Is
the consumer would be protected. AS the tariff
laws are and have been 1t is the consumer
that is the great mass of the people, who has
terribly suffered to the great advantage OF the
few of the business community
THE sugar company undoubtedly tries its
utmost to enlarge its business. but does it in
a way which 1t considers the only proper one,
that is. by making the price so low as to defy
competition.
! no obligation whatever to any of the States for
| their existence. Quite the reverse; the Sta ties
are under obligations to them If the plants
| of the industries consolidated were capable of
| being put on wheels and moved from State to
| state you would find very active bidding for
| them 1t is not an unusual thing for certain
| localities to guarantee free taxation for twenty
| years free water and in some instances give
| the land to corporations to have them organize
under their statutes and locate in their States.
Hostility to capital meets with its own con-
| demnation That is illustrated by the stua-
| ton in New York, where discrimination
| against capital has prevented it's employment
| and driven it elsewhere, resulting in a greatly
| increased tax rate and a tendency to increase
! the number of unemployed
| 'All l have to say about trade organizations
! and strikes is that, without violence, they are
| natural They have one objection. however,
their tendency to reduce all labor to a low level.
business is not philanthropy Capital and labor
will ad lust their relations If they are let
alone Interference always operates AGAINST
| one or the other. That means to the dsad-
vantage of both. There Is no such thing as
monopoly in these days except that which re-
| suits from patents and copyrights.
| s"The true communism of pelf' is the Gus
toms tariff bill 1t says to the people: Here
| is the law we have enacted for your robbery.
| DO not complain of 1t, 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 and enact laws that cause your i'm
poverishment and thus contribute to the greed
and avarice of the few.
There Is a prevailing hostility to wealth.
! This is perfectly illogical. Every one wants
money 1t is the abuse of money not its pos
session. which is opposed to public interest.
! This hostility finds its outlet in hostile legis-
lation in unequal and unjust taxation All