Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-06-13
WOULD LET THEM ALONE
G. Waldo Smith Testi6es Regarding Great
Aggregations of Capital
Experience of the Wholesale Grocers
Dealing I'm Sugar Cheaper
ing Effect ON Prices.

n
dent of the American Grocers' Association
and a member of the firm of L. w &P
Armstrong, raw sugar importers was be-
fore the Industrial commission yesterday
afternoon.
He said that the association of which he
Is president attempted ten years ago to set
price on sugar SO that 1t could be sold by
the wholesale dealers at one-fourth of a
cent pro1t, and the agreement among them
as 10 price lasted for over year. The price
was then cut down by competition, and the
ASSOCIATION passed resolution declaring 1t
would not again attempt to limit the price
Of any article, as they could not maintain
the price.
Rebate From Rehners.
AT that time the American Sugar Com
pany was practically the only refiner of
sugar and the wholesale grocers arranged
with them for protection. This association
through Its members asked the American
sugar Rehnery Company to adopt certain
nxed terms OF sale. The grocers went TO
the ref1ners and asked them if they could
hot oy some way arrange that the whole
sale grocers could get profit out of the
sugar The refners finally agreed to bill
sugar to the wholesale dealers at : cents a
pound, with 1S24 cents per hundred rebate
II they could maintain the price of J cents
grocers in New York, as far as Pouph
heepsie, and in New Jersey as far as Pater-
son. Inc arrangement still exists, although
mere is no enforcement of it among the
siocers, ana II a man cuts the price he
stlli gets the rebate.
Profits Cut Out of Sugar.
Inc witness said that about last An
gust competition in the sugar industry had
come in through the refneries of Doscber
and Arbuckle he
were built and finished about that time
Inc prices of sugar were then cut, the
nrst cut being made by ArbucKle Tho
witness in his own business house ba,dlaS
the sugar of all four of the refineries-the
american, Doscher, Arbuckle and Molten
iiauf. Moiienhaur started business seven
years ago and worked in harmony with
the American Sugar Company Whether
lhe Two are really in one concern he did
not Know, but they worked in perfect har-
mony ''
The witness said that the agreement with
the American sugar refinery had come
ABOUT because many wholesale grocers
were losing money, and this fact was rep
resented to the refining company. This
disastrous condition of business was the
result OF the fact that the grocers handled
one-half to one-third of their goods under
cost The American sugar refinery was
tod that unless something was done by
which these wholesale men could get
That brought about the rebate on sugar
He said that so far as he was concerned
except during short period when they
actually received this rebate, he could not
tell whether or not there was single cent
in sugar in the way of profit. He had
handled sugar for twenty-five years AS a
wholesale grocer. Doscher and Arbuckle
both give the same rebate to wholesale
grocers as is allowed by the American
Sugar Refining Companies. The witness
said that it was impossible to get any
profit out of sugar because graduated
sugar was the same everywhere. Wher-
ever an article is the same beyond ques-
ton, a grocer could not get any profit from
it, unless such Is received Ivy means of a
rebate. He was ardent advocate OF
such rebate system. Where there are
differences in articles, as exist in coffees,
some profit can be secured as a grocer will
declare that his 1S-cent coffee, for in
stance, is better than coffee at the same
price sold by some one else, but there can
be no such argument in the case of granu-
lated sugar.
He believed that most of the combina-
tons of capital had been formed by neces-
sity, and that the speculation in stock
that had resulted from such movements
was incidental. He remembered the time
when the combination of sugar reineries
was formed there were seven offices of
different reflneries in Wall street. and they
would cut the price SO as to eliminate all
profit, in order to get business. For years
no profit He said there are now four re-
fneries, working pretty much along the
same lines as existed formerly.
Somebody he said has got to die;
that is ALL 1t was very unfortunate when
these refneries came into the market l
have no interest in it, but l said that at
the time"
CheapeninE Effect on Prices.
On the whole. he thought great aggre-
cations of capital are beneficial, The prices
Of necessities of life had been reduced so
that a workman now gets two and one-half
times as much shelter, clothing, etc, as he
did thirty years ago. He had been through
Mexico and in Egypt, and had seen Hour
in those countries ground In way that IL
required the work of one person during
two hours to supply family for day.
Now Mr.. Pillsbury grnds a barrel of flour
for 5 cents. He remembered the time,
when as farm boy, good part of his
work consisted of going to the mill Now
if profit of 21a cents on each barrel of
-four can be secured it is regarded as salts
factory. That he considered one of the
advantages of large capitalization.
When asked what legislation was neces-
sary to regulate large corporations Mr..
Smith said: ''On general principles l have a
profound conviction that these things will
take care of themselves, through natural
causes, a great deal better than through
legislation, and they will work out their
own destruction or salvation in their own
legitimate way