The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1899-06-15
Henry Q. Hayemeyer Testifies
Before the Industrial
Commission
In Connection With It's iInvesti.
cation Of Trusts..-I1 His
I. &. Opinion
The Present Tariff Law IS the
Mother of All Trusts and
Combines.
II Raw Sugar Were Free, Refined
Would Soon Sell at 8 Cents
. Pound.

. Pound.
WASHINGTON, June 15.-Mr Henry
y. Havemeyer, president Of the Ameri-
can Sugar Refining company, was ex-
amined by the industrial commission in
connection with its investigation of
trusts. His testimony related almost
solely to the sugar industry, and he
opened with a 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 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 commended the United States
contributed $24,OO0,OO which was
taken out of the pockets Of the people.
The protection on sugar amounted to
only one-eighth of cent per pound, or
about 81 per cent ad valorem. It
ought to be twice as much.
What the sugar refining business
has paid or is paying represents
nothing more than an adequate return
on the capital invested, he said. What
congress should have done, was to put
an internal revenue tax on the Ameri-
can production Of sugar. The repre-
sensations made in congress regarding
the trust, he declared, were untrue, and
If it was fact that people suffered
from trusts, they must blame the pro-
4ectlve tariff system, Of which the trusts
were merely machinery. No advantage
had ever been taken by his company of
the protective system, beyond the one
eighth of a cent given. He admitted
freely that the company did all possible
to advance its own business interests.
He did not think the corporations were
under obligations to the different
states, but that the reverse was true.
Would Adjust Themselves.
Capital and labor, . he said, 1s.would
all adjust themselves if. let alone.''.
The only way to prevent competition,
Mr.. Havemeyer testified, was to keep
prices at a minimum, not necessarily
in the interest Of the consumer, but as
a.matter Of business. He referred to
the trust laws of some states as putting
a premium on dishonesty, and specify
ing the Missouri law. There were al
ways two classes Of people in com
munity-the Industrious and those who
wanted to live off them. .$*. IS H..
Replying to questions by Professor
jerks, after he had concluded the read
in5 of his paper, Mr. Havemeyer said
the American company was capitalized
for much less than it was worth.
'tBut for the clamor against trusts
he said, lit could be sold for three
times its capitalization Yet he
thought the refneries could be dupli-
Gated for 100000 900 or $40, 0OO, 900.
The present capacity of the trust is, he
said, 45, 900 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 Harrison refinery at Philadel-
phia. But we had to fight Spreckels
when he 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 refinery - :
The late drop in the price of sugar
had been caused by the starting of new
retineries which had threatened to take
80 per cent Of the business. cit 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. 1--WE must protect our own bust
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-
tlnued, "and5 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.
81 'About II 900, "hereplied, and added,
''enough to take Cuba and they would
take it if they could.
y 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, IS,
General Woods Proposed Trip. &
SANTIAGO DE CUBA, June 15.-Gen-
eral Leonard Wood, military governor
of the province of Santiago, and the
mem bers Of his family will leave 1 3tba