Evening star., 1902-05-01

CUBAN SUGAR SALES
Inquiry Begun by Senate
Committee.
MR.. HAVEMEYER HEARD
THE TRUST HAS NO OPTIONS ON
THE PRODUCT.
Prices Are Fixed in Hamburg-Efect
of the Proposed Cut in
the Tariff.
Mr.. HAVEMEYER HEARD

dent Henry o. Hayemeyer of the American
Sugar Refining Company was the first wit
ness, and ali Of the members of the sub
committee. Messrs. PIatt Comm, Burnham
and Teller, were in attendance. Senator
Patterson also was present. Others pres
ent with Mr.. Havemeyer We're Arthur Dom
ner, treasurer of the company, and Henry
c. Mott its raw sugar buyer. All of them
We're sworn.
Replying TO questions by Senator Plat.
Mr.. Havemeyer said his company was gem
orally known the sugar trust, and that
it's refireries are located as follows: In
New Jersey. one; New York. three; Mas
sachusetts. two; Philadelphia two. and one
in New Orleans
Cuban Sugar Purchased.
viii you" Senator Platt asked. tell the
committee how much Cuban sugar if any.
has been purchased and is now held by your
company
"SinCe early in February last have
purchased $1,000 tons. or 2j6,01O bags, or
about ten days supply replied the wit
ness "Of that quantity $4,000 tons is ROW
in process of shipment from Cuba"
The prices paid had, he said. ranged from
S1.15 to Sl.93 the highest price being paid
on March L. and the lowest on April -.
Where do you buy your raw sugar.
"All over the world. in Cuba, Java, Ham
South America, wherever sugar is grown"
DO the $1,000 tons You mention represent
your entire purchases in Cuba since the 1st
of January
of Cuban sugar during the present year,
or about three-fourths of a months sup
ply. our consumption being about % go
tons per week"
DO you control any sugar in Cuba other
than that purchased?'
None whatever in any manner
Have you taken any options on Cuban
sugars?''
Il have not
Have you made any advance on any
Cuban sugar.
so that you wish to be understood as
saying that the amount you have men
TONED as having purchased represents your
entire interest, direct and indirect, in Gu
ban sugar.
That is the statement I make"
Purchases Less Than Usual.
Continuing Mr.. Havemeyer said the en-
tire Cuban sugar crop is about 10000 tons
but that much of 1t has been withheld
from the market in view of possible tariff
concessions to be made by Congress. on
this account his purchases had been only
about One-thiTd of the average of other
years On this account. too, the purchases
had been made principally at outports,
where the storage facilities were poor,
rather than at Havana. The purchases
from the Outports had caused most of the
shipments to be made from those ports
rather than from Havana, where the COM
pany has about 5000 tons now stored. The
purchases at the Outports had caused the
sales there TO be made on parity with the
beet sugar prices.
Speaking of the capacity of his COMPANY
he said that It refined 10 per cent of the
American refined product.
He added that the percentage of this
companys 5 product compared to the entire
sugar consumption of the United States
was about 30 per cent. Last year his com
pany produced 12t1GO tons of the refined
sugar while the consumption was 100000
tons.
Returning to the purchases of Cuban SUI
gar for the present year, Mr. HaVemeyer
gave figures of purchases for other wears to
show the relative volume of the current ac-
questions. saying that in 1892 23i $50 tons
had been bought; in 1893, 10000 tons: in
1891 81 600 tons
Prices Fixed at Hamburg.
In reply to other questions he said that
the price of raw sugar in the United States
is fixed by the beet market prices in Ham
burg. The price there fixes the selling
price for the entire world. said Mr. Have
meyer. ON the subject of the price OF Gu
ban sugars he sJid that his company could
not determine their price. We have" he
said. no control over them whatever
They don't belong To us
Cuba has 10 sell her sugar in this mar
ket. hasn't she2''
NO. that is not true. She can sell in
England, for instance, if she desires to do
so England could take The entire Cuban
Effect of Tariff Reduction.
Mr. Pia;. then asked. Suppose thc United
States should make concession of. saw
~ or - per cent in the tariff rates on Gu
ban sugar. couldn't YOU refuse to buy the
Cuban product except AT your own rates
and thus secure the benefit Of the conces-
SION?
In no way. was the reply. Cuba would
De under no obligations to sell 10 us be-
Cause. as have said. the Cuban producers
could find other markets
"Ail the duty has been taken off of Porto
R!can sugar: do YOU get that sugar any
cheaper on that account?''
How about the Hawaiian product
I'VE are under contract for the entire
SI0h" tons produced in Hawaii. There is
no tariff on that product, bul the price is
not affected by that circumstance"
1T has been stated repeatedly that In
case the suggested concession is made the
sugar trust will be in position to oblige
producers 10 make such reductions that YOU
Will secure the entire benefit of the legisla-
tion-is that true?''
We could not 'oblige' ary reduction In
case OF concession to Cuban sugar the
price might be lowered. say, 1-16 of a cent
a pound, but that would be nothing as COM
pared to the reduction in the tariff rate
which would amount to about = of a cent
pound Even great a reduction as |
have mentioned would depend on the neces-
sfty for marketing. and if there should be
any pressure on that account the necessity
would be that of the producers and would
not be ours"
Sugar Lands Held.
In reply to another series of questions
Mr.. Havemeyer said that his company. as
such, holds no sugar lands in Cuba, but he
added that he had himself made some pur-
chases there, but that he did not consider 1t
legitimate to compel him to reply to ques-
tions pertaining to these interests. If
he said, the committee compels Ype to give
the information | can, of course, do so but
] do not see what my private interests
have to do with this inquiry"
Proceeding, he said that some FIVE or six
!