The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-05-02
FIXED IN HAMBURG.
Havemeyer Says That is Where
Sugar Prices Are Made.


nning company as the first witness.
and all of the membe Of the sub
committee, MessFs Plat Comb Burn
ham and Teller, in attendance. Senator
Patterson also was present. Others
present with Mr.. Havemeyer were
Arthur Bonner, treasurer of the COM
pany, and Henry c. Mott. its new sugar
buyer. All of them were sworn.
Replying to questions by Senator
Platt Mr. Havemeyer said his COM
pany was generally known as the sugar
trust, and that its refineries are located
as follows: In New Jersey, one; New
ork, three; Massachusetts. two; Phila-
delphta, two; New Orleans. one.
win you" Senator Plat said, tell
the committee how much Cuban sugar.
If any, has been purchased and is now
held By your company"
Since early in February last we have
purchased 0,OO0 tons, or 256, 600 bags, or
about ten days supply" replied the
witness. "Of that quantity $4,000 tons
is now in process of shipment from
Cuba"
The prices paid had, he said, ranged
from S1.75 to S1.9S. the highest price be-
ing paid on March 10, and the lowest
on April %
Where did you buy your raw
'sAH over the world. in Cuba, Java.
Hamburg, Trieste, the British West In
dies. south Observation-Disclosures sugar is
grown"
represent Your entire purchases in Cuba
since the first of january"
NO; we have bought all told go, 600
tons OF cuban sugars during the pres
a months supply, our consumption be-
ing about 600 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 advances on any
Cuban sugar?"
None whatever
So that you wish to be understood
as saying that the amount you have
mentioned as having purchased repre-
sents your entire interest, direct and in
direct, in Cuban sugar2's
That is the statement make"
Continuing, Mr.. Havemeyer said the
entire Cuban sugar crop is about $50 900
tons but that much of it has been with
held from the market in view Of the
possible tariff concessions to be made
/ by congress. On this account his pur-
1 chases had been only about one-third
! Of the average OF other years On this
4 account, too, the purchases had been
/ made principally at Outports where the
/ storage facilities were poor, rather than
/ at Havana The purchases from the out
! ports had caused most of the shipments
! to be made from those ports rather than
/ from Havana, where the company now
has about $4,000 tons stored The pur-
I chases at the OutpOrts had caused the
sales there to be made on a parity with
the beet sugar prices. Speaking of the
capacity of his company he said that it
refined 66 per cent of the American re-
| fined product.
He added that the percentage of his
company's product compared to the en-
| tire sugar consumption of the United
States was about SO per cent. Last year
his company produced 200 900 tons of
h Atr
/ ton was 2. 100000 tons.
Returning to the purchases of Cuban
sugar for the present year. Mr.. Have
meyer gave figures OF purchases for
other years to show the relative volume
| of the current acquisitions, saying that
/ in 1892. Pa, 600 tons had been bought; in
/ 1893, $4,000 tons: in 1894, 321 900 tons
In reply to other questions he said
/ that the price of raw sugar in the Uni
/ ted States is fixed by the best market
! prices in Hamburg. The price there fixes
! the selling price for the entire world.
/ said he. On the subject of the price of
! Cuban sugars he said that his company
could not determine their prices. We
have" he said, no control over them
whatever; they don't belong to US
Cuba has to sell her sugar in this
! market hasn't she2"
NO. that is not true. She can sell in
/ England, for instance, If she is DESTROYS
to do so. England could take the entire
/ Cuban crop"
MI -ouppOSE the United states
/ should take a concession of say % per
cent in the tariff rates on Cuban sugar,
couldn't you refuse to buy the Cuban
| product except at your own rates, and
/ thus secure the benefit Of the cOnces-
| sion2
In no way" was the reply Cuba
/ would be under no obligations to sell to
us. because, as have said, the Cuban
producers could find other markets"
All the duty has been taken off of
Porto Rico sugar: do you get that
sugar any cheaper on that account?"
Not at all"
How about the Hawaiian product?''
I've are under contract for the entire
100000 tons produced in Hawaii There
IS no tariff on that product, but the
price is not affected by that circum-
stance
1T has been stated repeatedly that in
case the suggested concession IS made
the sugar trust viii be in a position to
Obl1ge producers to make such reduc-
lions that you will secure the entire ben
eft Of the legislation-is that true2"
We could not .oblige' any reduction
In case of q concession to Cuban sugar
the price might be lowered, say one
sixteenth Of a cent a pound. but that
would be nothing compared to the re-
duction in the tariff rate which would
amount to about One-third Of a cent per
pound. Even so great & reduction as
have mentioned would depend on the
necessity for marketing and If there
should be any pressure on that account
Tic AtEIC1Hily NOu4O LIZ That u Tic pAO-
dueers and would not be ours.
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 purchases there, but he did not con-
slider it legitimate to compel him to re-
ply to questions pertaining to these in
terests
"If.' he said. 'the committee compels me
to give the Information I can. of course.
do so. but I do not see what my private
I n Wit
Here Senator P1att concluded his ques-
tions and Senator Teller took the witness,
/ bringing out the fact that the capital
stock Of the trust had been increased in
1 recent years from $4,000 900 to $50 0o0. 600
Are you aware" asked Mr.. Teller. that
at the time your company made this in
/ crease of sl5.o00.O00 the newspapers stated
that the increase had been made for the
purpose of purchasing sugar lands in
Cuba2'