The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-15
H.0. HAVEMEYER ON TRUSTS
READS STATEMENT BEFORE THE
INDUSTRIAL COMBUSTION

He Says tho Tariff Bill IL tho Mother of All
Trusts-The $40 Per Ton on Raw Sugar,
He Declares, Pays $40, Ooo, 900 Into the
Pockets of tho Louisiana Sugar Growers.
wAsHINGroN. June 14.-H. o. Havemeyer.
President OF the American Sugar Refining
Company. was witness before the Industrial
Commission this morning. He was by far the
most important parsonage who has 80 far APP
peared In the examination into the trusts. and
his testimony was the most interesting. Mr..
Havemeyer prefaced his remarks by reading
the following essay on Trusts:
The mother Of all trusts la the Customs
Tariff bill The existing bill and the proceed
ing one have been the occasion OF the forma-
ton OF all the large trusts. with very few ex-
ccrtions. inasmuch as they provide for an inor-
dinate protection to all the interests OF the
country. sugar refining excepted. Economic
advantages incident to the consolidation OF
large interests In the same line Of business are
a great incentive to their formation. but those
boar very insignificant proportion TO the adj
vantages granted In the way OF protection un-
der the customs tariff.
There probably is not an industry that re-
quires protection OF more than 10 per cent
ad valorem and u Ia to obtain what ia provided
over such percentage In the tariff that leads to
the formation ~ what are commonly spoken OF
trusts With 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 In cost
OF production and likewise act as protection
against surplus products OF foreign countries
being dumped In our local markets. thereby in
terfering with the regular and economic work.
ing OF our industries. Any advantages that
might then accrue to such combinations they
would be fully entitled to- and the public would
not he damaged thereby. az any expansion OF
price would be met By foreign competition and
relief.
have said that sugar was an exception.
The rate OF protection on sugar 10 an eighth OF
a cent per pound. which Is about 3H per cent.
ad valorem. and Is not the difference In the
cost OF refining between this and foreign coun-
tries. The least It should have is per cent.
or. in specific figures a quarter OF cent per
pound. The sugar refining industry Of this
country. no matter what form It's organiza-
ton. 10 entitled to adequate protection II any
Industry Is. There are at least 100000 peo-
pie dependent upon it. What 1t pays or has
paid to its stock holders in the past represents
nothing more than a fair return on the
capital invested. considering the extent Of the
business.
The United States Tariff bill. in assessing
about $40 per ton duty on imported sugar.
pays into the pockets Of a few Louisianians on
their annual crop OF 100000 tons. S1O000,0O0:
to the Hawaiian Islanders. probably repre-
scented by $50 foreigners. on their annual crop
OF 100000 tons. s10.0OO,o0O; say 100000 tons
produced elsewhere in the United States.
S40oO,OO0. Here you have $24 100000 ex-
tracted from the people Of the United States
for the sake Of getting the revenue which $40
per ton on foreign sugar provides This Is
merely illustrative OF the whole tarif-every
line OF it-and It's effect upon the people. In
fact. the Tariff bill clutches the people by the
throat. and then the Governors and the Attor-
nsys- General Of the several States take action.
not against the cause. but against the machin-
cry which the people employ to rife the pub
lies pockets.
There appears to be In the public mind q
distinction between robbery by an individual
and that by a corporation. What Is commend
able In an individual appears to be dishonest In
q corporation. l maintain that II Is immaterial
to the public in what form business Is done
whether by an individual. firm. corporation or
even trust. These are merely forms OF con-
Quoting business. or. in other words. machinery
for the operation OF business. 1t 10 the duty OF
the Government to see that under the tariff
laws they enact this machinery cannot in its
actions result to the detriment or impoverlsh-
ment Of the public.
1t would have been very easy and proper
for the Government to have put a correspond
ing internal revenue tax on sugar slmultane-
ousiy with the imposition OF the customs duty.
and have these $24. 900 900 which now 60 into
tho pockets Of a few individuals 60 into the
Treasury for the benefit OF the whole people.
II no exp enses OF the Government needed to be
provided for. and protection to American in
dastries was desired. the i'm position OF 10 per
cent. ad yalorem on all manufactured products
would have settled the matter. There is every
reason why. II revenue Is desired. that, with
duty on raw materials OF foreign production,
q corresponding internal revenue tax should
be levied on similar products and the protee-
ton OF mag ufacturers thereon limited 70 an ao-
W repeat that al this agitation aaa ., trusts
nioysd to taf esi from n the puSe what the Cow
eminent in It's tariff laws says 1t is proper and
they hoad hsvn wbeS pSDser.
the people an and tho trusts &C. are merely the
"Ths ststements made before the commit
tees in Congress- and the speeches against the
Sugar Refining Com pany are absolutely devoid
tention Of Congress-. however, TO enact some
thing into law contrary TO what the sugar re-
81 hs SPea nur snd
done, In the passage OF the existing sugar
Whether the Sugar Refining Company has
been benefit or injury TO the community can
be best expressed in the accompanying table,
showing the prices for q considerable period
prior to the form alton Of the trust and for
corresponding period subsequent The differ
ence since Its formation shows an advantage to
the consumer-note that consumer-of over
e-eiEhth OF a cent per pound.
1t Is my opinion that corporations are un-
der no obligation whatever to any OF the States
| for their existence Quite the reverse. the
| States are under obligations to them, II the
| plant OF those industries consolid dated was
capable Of being put on wheels and moved
| from State to State You would ind very active
| bidding for them. II Is not an unusual thing
| for certain localities to guarantee FREQ taxa
| ton for twenty years. free water. and In somo
| instances awe the land 10 corporations 70 have
them organize under their statutes and locate
| IN their Rtates.
Hostility to capital meets with its own con-
| domination. This Is illustrated by the situH-
ton in New York. whore Discrimination
| aGainst capital has prevented it's employment
! and driven II elsewhere. resulting in greatly
| increased tax rate and a tendency to increase
| the nun Der OF the unemployed.
All have to say about trade organizations
| aud strikes Is that without violence. they are
natural. They have one objection, however
their tendency to reduce all la Dor to low level.
Business is not philanthropy. Capital and
| iafa lnna Int NOS al va nna