The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-02

sugar land holdings by other Americans.
GERMAN SUGAR PURCHASED.
Entering upon a brief explanation Of his
own. Mr.. Havemeyer said that along with
its Cuban purchases the sugar trust had
bought $1,000 tons Of beet sugar on its way
from Germany. 1T will. of course" he
said, be understood that this sugar was
not bought because of any prospective con-
cessions in that direction"
Here Senator Plat concluded his ques-
lions and Senator Teller took the witness,
bringing out at the beginning the fact that
the capital of the trust had been increased
In recent years from $l5.000,Co TO SS,OOO,Vo.
Are you aware" asked Mr.. Teller, that
at the time your company MADE TINS IN
crease or Sl5,0O0,oW the newspapers stated
that the increase had been made Tor the
purpose OF purchasing sugar lands In
Cuba"
The witness replied that he did not recall
the fact.
What then" asked the senator. was
the purpose of your company in this IN
crease?"
Our purpose was to increase our gen.
eral corporate interests. The company
never has directly or indirectly purchased
any sugar lands. except in Porto Rico. We
did have such a purpose there for a time,
but abandoned it"
In reply 10 a question concerning the sup
posititious condition OF poverty of the CUBAN
planters ana OF sugar producers SeltIdAef
Mr.. Havemeyer said he knew something OF
them. for" he said. II happen to be In
that category myself" He said he had not
advanced any money TO the sugar planters,
but he supposed that some advances had
been made TO them by the local banks, and
that no doubt advances also had been made
by American sugar brokers. While on this
point he said that he made his purchases
through Cuban brokers. but that so far as
he knew none OF them was a sugar owner
He added that he would not deal with
brokers who had sugar of their W 10
sell.
Going back TO his land holdings in Cuba,
Mr.. HaYemeyer said that the entire plant
at Trinidad was owned by Americans, Mr..
Atkinson holding IS per cent. of the stock,
Mr.. Zomp, of the trust. 40 per cent. and
himself the other 20. Speaking of other
sugar interests in the United States Mr..
Havemeyer said he had no understanding
with the other reineries except the Spreck-
els plant in California, which he held in
joint ownership with Mr.. Spreckels. All
other rehneries were absolutely independent
of the trust. The capacity OF the Spreck-
els refinery ne placed at 10000 pounds a
day.
FLUCTUATIONS IN PRICES.
Asked by Mr.. Teller whether he was still
buying sugar in Cuba he said: w are
still trying to buy, but we have not sue
ceeded in making any purchases since April
20. when the sugar was withdrawn from the
market on account of improved chances OF
securing the American concession"
How do you account for the fluctuations
in the price of Cuban sugar which you
have mentioned as having occurred within
the past few months?"
They are due to the changes in the beet
sugar market in Hamburg. There has beer
a constantly dropping market there on ac-
count OF the increased beet product. which
has amounted 10 about a million tons in
the past year"
Then you regard the beet sugar pro-
Gucers as competitors of yours?'
Il certainly do; there is what you might
call a commercial rivalry"
Last summer you fixed the price of re-
fined sugar at points in the Missouri valley
very low, did you not?'
Yes, we did,; we put ii at 5.102c per
pound whereas the price before had been
41kc, 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. Tn beet
sugar makers undertook 10 control the
market by contracts with dealers which L
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"
He denied having notified beet-sugar
producers that he intended to keep up the
war until he should drive them out of bust
ness. He had nothing to do with them, he
added.
In response to further questions Mr..
1ldN Il sol lEI A1A btGA n
tion of prices at Missouri-riYer points for
about six months, but that when the trade
was entirely restored to the trust, prices
had been restored 10 their normal status,
rates added.
Under these conditions asked Mr.. Tel
Ter, where are the beet-sugar men to sell
their p~roducts?"
NOT POSTING RIVALS.
81 don't know. That is their business
- a.. ----F& 41TI - $3.50 H. l~,--
that if they did 1 would get at them again
1 do not propose that they shall contro
the trade, and it is all that 1 can do t.
take care of the American Company.
trade"
Mr.. Havemeyer said that he had no in
tention of driving the beet-sugar industry
out of the country, but said that he haC
put down the price to less than cost il
order TO secure his share of trade. "Fo
that purpose" he said. II will go as fal
as my directors will allow me as long a.
there is any money in our treasury"
Further explaining his position, he saiC
that the beet-sugar producers had entered
into a contract with dealers giving then
the exclusive market, and to this he had
] objected because, after the heet-sugar mer
the trust would be comparatively unknown
and would be at a great disadvantage.
l06N look my CuSlOmeTS, he SdlQ, DN
unfair terms, agreeing to beat any price
that / would make. and that is what | OBJ
| jected to-"
Asked as to the control the sugar trust
exercised over the price of raw sugars
witness said: "It goes without saying thai
a company which produces s. per cent. oi
the refined sugar renders ii impossible fol
any competitor to secure a higher price foi
its product than it gets"
The examination drifting TO the asser.
ton of Mr.. H~avemeyer that Cuban sugar
could find a market in England. Mr.. Teller
asked: IF England is a good market fol
Cuban sugar, why has not the Cuban PROD
Gct sought that market in the past2'
Because, was the reply, the b~eet-sugal
product can be secured from Germany a
much lower freight rates
rs II not a fact that the United State:
affords the only market that Cuba hal
ever had?"
mo, the United States is not the only
market for Cuban sugar, but owing TO it,
geographical position this country is tn
principal market for il, but years agt
Cuba made large expectations TO England
Now the freight rate is in favor of TIL
United States and against England"
AT this point Mr.. Havemeyer was excuse,
until Monday. Tomorrow Messrs. Donne
\ and Mott will be heard.