The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1899-06-15
IF THE PEOPLE SUFFER
THE TRUSTS ARE ONLY THE
MACHINERY.
WANTS LABOR AND CAPITAL LET ALONE
In that Case they Could Adjust Their Own DIFF
fersnces, he Says. The Late Dropin
Sugar Caused by Starting ofs
New Refneries.

Washington, June 14-Mr. Henry O..
Havemeyer, President of the American
Sugar Refining Company, was examined
by the Industrial Commission today in
connection with its investigation of
trusts. His testimony related almost
wholly to the sugar industry, and he
opened with a vigorous attack upon the
customs tariff which he declared was
the mother of all trusts becoming
such by providing IAN inorlinate pro-
tection to manufactured articles.
Continuing his statement, he asserted
that a tariff of 10 per cent was as high
as any tariff should be. He contended
that sugar is Disseminated against i'll
the tariff in the interest of the Louis
lana cane growers, the beet sugar
makers and sugar growers of the Ha-
waiian Islands. To these interests, he
contended. the United States contribu-
ted S24.O00.0O0 which was taken an
nually out of the pockets of the peo-
pie. The protection on sugar amounted
TO only one-eighth of n cent Il pound,
or about 3la per cent al vaiorem. Ii
ought TO be twice as much.
What the sugar refining business
has paid. or is paying represents nothing
more than an adequate return on the
capital invested" he said.
What Congress should have done was
to have put an internal revenue tax
on the American production of sugar
The representations made In Congress
concerning the trust, he declared, were
untrue, and if it was a fact that the
people suffered from trusts they must
blame the protective tariff system OF
which the trusts We're merely the ma
chinery. 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 it's
own business interests. He did not
think the corporations were under obl-
cations to the different States. but
that the reverse was true.
Capital and labor" he stated, .'would
all adjust themselves if let alone.''
The only way to prevent competition,
Mr.. Hayemeyer testified. was to keep
prices at a minimum-Iot necessarily
in the interest Of the consumer, but
as a matter Of business
lie referred to the antitrust laws
Of some Of the States as premium
on dishonesty, specifying the Missouri
law. There We're always two classes OF
people in a communicable industrious
and those who wanted to live off them.
Replying to questions by Professor
jerks after he had concluded the read
ing of his paper. Mr.. Havemeyer said
the American Company was capitalized
for much less than it was worth.
But for the elamor against trusts"
he said. ''it could be sold for three times
its capitalization Yet he thought the
refineries could be duplicated for $780,
100000 or $40.OO0,0OO.
The present capacity of the trust is,
he said. $4,000 barrels day and the
output 10000. He thought the trust
was refining about so per cent of the
sugar refined in the United States.
The witness spoke very freely of the
methods of the company i'm preserving
and extending it's business. OF the earlier
history of the enterprise he said he did
not fight the Harrison Refinery at Phil
adephia.
But we had to fight Spreckles when be
came into the field with his enormous
plant. We had to do that or suspend
our dividends. We went into the fight
and we kept it up until we got the re-
fnery."
The late drop in the price Of sugar
had been caused by the starting OF new
refneries which had threatened to take
fifty per cent of the business.
1T was a 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.. Hayemeyer then went on to say
that what the company did it did not
for motives of philanthropy-th it had
its own shareholders to protect '.Any-
body can buy our stock" he continued.
''and as a consequence the public owns
the stock. But i doubt whether any one
would want any of the stock of the in
dependent refineres."
"HOw many stockholders have you?"
asked Professor jerks.
''About eleven thousand" he replied
and added:
Enough to take Cuba and they would
take it il they could"
The latter remark was made in light
vein. He stated as his opinion that the
Cuban sugar should be brought i'm free
of duty, and that this course would bring
refined sugar down to 3 cents pound
Speaking Of the coffee business, Mr..