The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-05-29
HOW THE SUGAR
TRUST DID 1T
Some Inside History of Deals
For Control of Beet Factories.
THREATS TO START A FIGHT
UTAH HOLDERS IN COLORADO
CONCERN INDUCED TO SELL.


w listed that the sugar trust has un-
dertaken to control the beet
sugar-making industry in Utah and
Colorado and other states will be dis
PEELED when men familiar with the sit
uation are heard to express themselves.
as David Evans did yesterday, to The
Herald, after his return from Greeley.
Colo, where he went few days ago to
attend the annual meeting of the
shareholders of the Greeley Sugar COM
pany. At this meeting 7. r. Cutler.
manager of the Utah Sugar company.
resigned the presidency of the Greeley
company, and c. S. Morey, a wealthy
wholesale grocer of Denver, succeeded
him.
There is no use Disgusting the fact
that the sugar trust has got us" said
MT Evans we were compelled TO sell
out to the Havemeyer interests OF. suf-
fer the consequences. That is. the tr1ist
submitted the ultimatum that we must
accept 1925 a share for half of our
stock so that the cane sugar interests
would have equal say with us. All Of
the principal shareholders agreed to
TINS, and an opportunity viii be given
TO the smaller holders to come in al
the same figure.
Ultimatum From Trust.
AT first 1 was against selling ont
but when I learned the situation
yielded. / was informed by unques-
TONED authority that Mr.. Cutler was
IN New York consulting with ar.
Havemeyer, and while our meeting was
IN session a telegram was received
from Mr.. Cutler, telling what the
trusts ultimatum was, to sell nalf The
stock at $25 above par. You are prob
ably not aware that Havemeyer con-
trolls the Eaton factory, which is eight
miles north of the Greeley factory. and
he had bought 100 acres for a factory
site alongside ours. and intended build
ing factory there.
The Eaton factory is paving s. a
ton for beets, and the trust could, and
probably would, if things had not come
its way, raise the price of beets from
farmers TO a price at which our fac
tory could not compete. Even If the
trust had let US alone there would have
been much uncertainty about the fu-
ture.
Cutler Sugar Trusts Agent.
There can be no doubt that Mr.. Cut
Ter is the confidential agent of the
sugar trust, and that he passed over
TO the same people who are getting
control Of the Greeley factory the con-
trol OF the Utah cOmpany's factory.
Mr.. Havemeyer, the recognized head
OF the trust, has become interested In
the beet sugar industry. President
M0rey informed me that he had re-
Gently had talk with Mr.. Havemever.
and that the latter informed him thar
formerly he paid but little attention to
the beet factories, but he was forced
10 the conclusion that the industry was
making such rapid strides that the
cane sugar interests mrst give the new
and fast growing rivaf serious atten-
ton.
AS told TO me by President AIorev.
Mr.. Havemeyer's purpose in becoming
interested in the beet factories was to
regulate the price of both kinds OF
sugar, to fix the price of beets raised
by the farmers, and to prevent the
cane and beet interests from cutting
each others threats.
Follows Utah's Example.
'Of course. the trust agreed 10 let
the Greeley shareholders have the ma
jority Of the directors and the manage
ment for a certain period. Just as was
done with reference to the Utah Sugar
company, when the trust bought halr
The stock. Messrs. Granger, Thatcher
and Dyer of Colorado. three of our new
directors are going to New York 10
see Mr.. Havemeyer. and TO arrange the
details of letting him have half of the
stock"
Speaking of the agreement to increase
the capital stock of the Greeley Sugar
e -
Evans stated that by agreement of the
shareholders the trust viii be permitted
to take the increased capital at par
and the stockholders Will yield two
ffths Of the original shares, thus max
ing the Havemeyer interests the own
ers of half Of the capital.
This is not Watered stock con-
tinued Mr.. Evans. When the Greeley
enterprise was started a year ago Il
was intended TO build a 700 ton factory.
which would cost $500. 900. requiring the
borrowing of 500, 900 10 meet the cost
in excess of the capital. All Of the
shareholders are able to take the addi-
tiOnal stock issue, even if the trust had
not agreed to take it, thus leaving the
property free from debt.
Success Predicted.
The factory will be completed in
August and from the 10000 tons or
beets TO be harvested there ought to be
produced this season 20.0OO.0O0 pounds
of sugar. The beets planted by the
Greeley farmers are looking in splendid
condition, and the factory run will be
an undoUbted success.
THE country around Greeley is ex-
ceptiOnally and peculiarly adapted 20
the culture Of sugar beets. The farm
ers are the best class Of wealthy, intel
ligent agriculturalists ] have ever seen.
They take a pride in the factory and
the growing Of beets. which are high in
saccharine matter. and run from s. TO
% per cent in purity"
Among the Utah holders of Greeley
sugar stock who, it is said. have been
approached by Mr.. Cutler to give him
an option on all or part of their hold
ings al S115 or more per share, are
David Evans, Mosiah Evans, George
Austin. John. c. Cutler. II. @. Whitney.
William Mcintyre and L. S. Hills The
latter was with Mr. Evans at the
meeting held on Monday at Greeley.