The age-herald., 1902-05-02
Questioned Closely Regarding
 Fight on Beet Industry
II IS A BATTLE FOR TRADE
Regards the Beet Sugar Producers as Competitors of American Sugar Refining Co.-Buys Raw Su-
 gar All Over the World.

Washington, May 1.-The inquiry into the present holding of Cuban sugar and sugar lands, ordered by the Senate, was begun today by the subcommittee on Gu ban relations. President Henry O. Have meyer of the American Sugar Refining Company was the first witness, and all of the members of the subcommittee, Messrs. Platt. Connecticuti Burnham and Teller were in attendance. Senator Pat terson was also present. Others present with MT. Havemeyer were Arthur Don ner, treasurer of the company, and Henry 0. Mott. It's raw sugar buyer. All of them were sworn. Replying to questions by Senator Platt, MT. Havemeyer said his company was generally known as the sugar trust, and that its refineries are lo- cated as follows:
 In Jersey, 1; New York; 8; Massachu- setts, 2; Pennsylvania, 2, and in New Orleans.
 "Will you" Senator Platt asked, tell the committee how much Cuban sugar, if any, has been purchased and is now held by your companyr Since early III eDTudIy ldSb5 WO AietNO purchased 5O,0OO tons, or 25e,0O0 bags, or about ten days supply" replied the wit ness.
 "of that quantity 2sOOO tons Is now in process of shipment from Cuba"
 The prices paid, had, he said, ranged from 1.75 to 1.9S, the highest prices being paid on March IS and the lowest on Ap- Til 22
 Buys Raw Sugar All Over World.
 "Where do you buy your raw sugar."
 "AIl over the world. In Cuba, Java, Hamburg Trieste, the British West h. dies, South America, wherever sugar is grown"
 Docs the O.oOO tons you mention rep resent your entire purchases in Cuba since the first of January?"
 ''No; we have bought all told 5000 tons of Cuban sugars during the present year; or about three-fourts of a months supply, our consumption being about 35. 900 tons per week.
 Do you control any sugar in Cuba oth- CT than that purchased?"
 ''None whatever, in any manner"
 Have you taken any options on Cuban sugar."
 "I have not"
 How do you account for the fluctua- tions in the price of Cuban sugar which you have mentioned as having occurred within the past few months7" asked MT. Teller.
 "rhey are due to the changes of the beet sugar market in Hamburg. There has been a constantly dropping market there on account of the increased beet production which has amounted to about a million tons in the past year,
 'Then you regard the beet sugar pro- ducers as competitors of yours?
 T certainly do; there is what you might call commercial rivalry"
 Last summ CT you fixed the price of re- fined sugar at points in the Missouri val ley very low, did you not?'
 'Yes we did; we put it at 3103c per pound, whereas the price before had been 42c and the price in Atlantic coast points was still maintained at the higher figure"
 How long did you keep the price down."
 Until we recovered our trade. The beet sugar makers undertook to control the market by contracts with dealers which 1 considered in restraint of trade. Conse- quently we reduced the price until our trade was restored to us, keeping it down to the lowest point for about two weeks"
 Not Trying to Kill Beet Sugar.
 MT Havenmeyer declared however, that he had had no intention of driving the beet sugar industry out of the country, but said that he had put down the price to less than cost In order to secure his share of trade. For that purpose" he said, q will go as far as my directors will allow me, as long as there is any money in our treasury"
 After further explaining his position he said the beet sugar producers had entered into a contract with dealers, giving them the exclusive market and to this he had objected because after the beet sugar men had sold their entire crop the brands of the trust would be comparatively un- known and would be at a great disad- vantage. "They took my customers" he said ''by unfair terms, agreeing to beat any price that would make, and that Is | what l objected to-" Asked as to the control the sugar trust exercised over the price of raw sugars, witness said:
 Tt goes without saying that a company which produces 65 per cent of the refined sugar renders 1t impossible for any com petitor to secure a higher price for it's product than 1t gets"
 The examination drifting to the asser- tion of MT Havemeyer that Cuban sugar could find a market in England, MT. Tel Ter asked 'if England is a good market for Cuban sugar, why has not the Gu ban product sought that market in the past?"
 Because" was the reply, 'the beet sugar product can be secured from Ger many at much lower freight rates"
 "Is it not a fact that the United States affords the only market that Cuba has ever had?"
 No. the United States is not the only market for Cuban sugar, but owing to It's geographical position this country is the principal market for it, but years ago Cuba made large expectations to England. Now the freight rate is in fa- vor of the United States against Eng land"
 At this point Mir. Havemeyer was ex cused until Monday. Tomorrow Messrs. Donner and Mott | will be heard.