The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-06-15
TARIFF MAKES TRUSTS
so ASSERTED SUGAR KING HAVE
MEYER BEFORE THE INDUS
TRIAL COMMISSION
NOVEL ARGUMENT SET FORTH
Business Is Not Philanthropy, Said
Mr.. Havemeyer-CapitaI and La
Dor Will Adjust Differences If
Left AIOne-Witness COntended
That Combinations owe Nothing
to States-PubIic Is Interested.


industrial commission today, Henry O.
HaVemeyer, president of the American
Sugar Refining company, testified as to
the sugar industry. He vigorously at
tackled the customs tariff. which, he de-
ciared, was the mother of all trusts"
Mr.. Havemeyer's statement was present.
ed in writing. was volumincus, and was
listened to with interest by the members
of the commission. Mr.. Havemeyer said:
THE mother of all trusts is the Gus
toms tariff bill. The existing bill and the
preceding one have been the occasion for
the formation of all the large trusts, with
very few exceptions, inasmuch as they
provide for an inordinate protection to all
the interests of the cOuntry-sugar refin-
ing excepted. Economic advantages incl
dent to the consolidation of large inter
ests in the same line of business are q
great incentive to their formation, but
these bear very insignificant proportion
10 the advantages granted in the way of
protection under the customs tariff
There probably is not an industry that
requires protection Of more than 10 per
cent ad valorem, and it is to obtain what
Is provided over such percentage in the
tariff that leads to the formation of what
are commonly spoken of as trusts
With a protection to an industry not
exceeding 10 per cent, all menace to the
community of trusts would cease. This 10
per cent would represent the difference
III COSl VI pfOUuCllOn, ana likewise act
a protection against surface products of
foreign countries being dumped on our To-
cal markets, teFeby interfering with the
regular and economic working of our in
dustrleS Any advantages that might
then accrue to such combination they
would be fully entitled to, and the public
would not be damaged thereby, as any
expansion of price would be met by for
eign competition and relief
Il nave said that sugar was an excep-
uon. Inc rate of protection on sugar is
an eighth of cent per pound, which is
about 31a per cent ad valorem, and is not
the dlHerence in the cost of refining be-
tween this and foreign countries The
least 1t should have is per cent, or, IN
specinc ngureS, "A per cent per pound The
sugar refining industry Of this country,
no matter what form it's organization, is
entitled to adequate protection if any in
dustry is. There are at least 100. 900 peo-
pie dependent upon it, What it paws or
has paid to its stockholders in the past
represents nothing but fair return on
the capital invested considering the ex-
tent of the business
The United States tariff BILL in as
sesslng ABOUT $40 per ton duty on import
e f sugar pays into the pockets of few
LoulSlananS on their annual crop of $50 coo
tons, $l0, 600 600; to the Hawaiian island
ers, probably represented by 150 foreign
e e1o no on their annual crop of 900 tons,
10000 600; say 100000 tons produced else
where in the United States, 81, 0OO. 900. Here
you have $240OO,000 extracted from the
people OF the United States for the sake
on foreign sugar provides. This is mere
~ illustrative of the whole tariff-everv
I1ne or 1t-and its effect upon the peopIe
In II, Iact' the tariff bill clutches the people
by the throat, and then the governors
ana attorney generals of the several
states take action, not against the cause
put against the machinery which the peo
pie employ to rifle the public's pockets
DISTINCTION AS TO ROBBERY.
There appears to be in the public m nd
d QlSJInCf1On
o1Vlonal and that by a corporation. What
IS commemorate in an tndivi }ual appears
10 pc dlshonest in a corporation.
maintain that it is immate~iaI IN
the pubic in what form business is done
E-.whether by an individual, firm, corpora
ZION fn or even trust. These are merely
iornS OF conducting business, or in other
words, machinery for the operation of
business. 1t is the duty of the govern
m 1l to see that under the tariff laws
they enact, this machinery cannot IN IFS
actions, result to the detriment or impoy
er1Shment of the public
II would nave been very asy and prop
er Tor the government to have put a cor
responding internal revenue tax on sugar
simultaneously with the imposition of tie
customs duty, and have these S24. OOn 900
which now go into the pockets of a few
Denent OF the whole people If no ex-
penses Of the government was needed to
pc provided for, and protection to Amer
lean Industries was desired the imposi-
ton of 10 per cent ad valorem on all man
ufactured products would have settled
the matter. There is every reason why.
II revenue is desired, that with duty
on raw materials of foreign production
a. corresponding internal revenue tax
should be levied on similar products and
the production to manufacturers thereof
limited to an additional 10 per cent.
repeat that all this agitation against
trusts is against merely the business ma
6ehinery employed to take from the pub
lie what the government in its tariff laws
says 1t is proper and suitable they should
have: 1t is the government through i s
tariff laws which plumbers the people and
the trusts, ETC., are merely the machinery
for doing it.
THE statements made before the COM
mittee in congress and the speeches
against the sugar refining company are
absolutely devoid of truth and utterly un-
worhthy of creadit. The intention of en-
gress, however, to enact something into
law~contrary to what the sugar refining
industry properly required. resulted, ir-
respective of the great injury and injus-
uce done in the passage of the existing
sugar schedule.
Whether the sugar refining company
has been a benefit or injury to the com
munity, can be best expressed in a table
showing the prices for a considerable
period prior to the formation of the