The Topeka state journal., 1899-06-14
ATTACKS TARIFF.
H. o. Havemeyer, President of
the Sugar Trust,
Says the Tariff is the Mother
of Trusts.

Washington, June 14.-Mr- Henry Q.
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" becon-
ing such by providing ''inordinate pro-
lection to manufactured articles" The
attack was made in written state
ment which he read Mr.. HaYemeyer
asserted that tariff of 10 per cent was
as high as any tariff should be- He con-
tended that sugar is disseminated
against in the tariff in the interest OF
the Louisiana cane growers, the beet
sugar makers and the sugar growers OF
the Hawaiian islands. To these IN
terestS he cOntended the United States
contributed S24, ,000,0 900 which was taken
out of the pockets of the people. The
protection on sugar amounted TO only
Is of a cent a pound, or about 312 per
cent advalorem. 1t ought to be twice as
much.
What the sugar refining business has
paid 5sr is paying represents nothing
more than adequate return on the cap
ital invested he said. What congress
should have done was to have put an
internal revenue tax on the American
production of sugar. The representa-
trust" he declared, were untrue, and
if it were a fact that the people suf-
fered from trusts they must blame the
protective tariff system beyond the IS
of a cent given" He admitted freely
that the company did all possible to ad-
vance its own business interests He
did not think the corporations were un-
der obligations 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..
Havemeyer testified was to keep prices
at a minimum-nOt necessarily in the
interest of the consumer, but as a mat
ter of business. He referred to the
premium on dishonesty and specifying
the Missouri law said there were al
ways two classes of people in COM
munity-the industrious and those who
wanted to live off them
Replying to questions by Prof. jerks
after he had concluded the reading of
his paper, Mr.. Havemeyer said the
American company was capitaliZed for
much less than it was worth. But for
the clamOr against trusts he said, lit
could be sold for three times its capi-
talization-" Yet he thought the refner-
les could be duplicated for S35, 600, 600 or
$40, 900, 000 THE present capacity of
the trust is he said, "45 900 barrels a
day and the output 10000" He thought
the trust was refining about 80 per cent
of the sugar refined in the United
States. The witness spoke freely of
the methods of the company in pre-
serving and extending it's business. OF
the earlier history of the enterprise he
said he did not fight the Harrison re-
finery at Philadelphia. But we had
to fight SpreckeIs,'' he said, 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 re
finery." The late drop in the price of
sugar had been caused by the starting
of new refineries. which had threaten
ed to take so per cent of the business.
"It was a part of our policy to put
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 protect our
own business"
Mr.. Havemeyer went on to say that
what the company did, it did not do
from motives ON philanthropy; that it
had its own shareholders to protect
Anybody can buy our stock he con-
tinued, 'and as a consequence the pub
lie owns the stock But L dou bt whether
anyone would want any of the stock of
the independent refineries.''
How many stockholders have you?'
asked Prof. jerks.
About II, ,OOO," he replied, and added:
Enough to take Cuba-and they would
take it if they could"
The latter remark was made in a
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 8
cents a pound.
OF the coffee business Mr.. Havemeyer
said he was in the business, and in it
to stay.