The Washington times., 1902-05-06
Senators Learn Many I'M
portant Facts Concern
ing Big Industry.
TRADE STRUGGLE IS FIERCE
Mr.. Teller Asks Many Pertinent Ques-
tions Tending to Show That Opposition
Is Crushed Out-United States Natural
Market for Cuban Product.

President Henry o. Havemeyer, Of the
American Sugar Refining Company. known
as the sugar trust, was again before the
sugar investigation subcommittee Of the
Senate Committee on Relations with Cuba
yesterday.
Senator Teller began the examination OF
Mr.. Havemeyer ty requesting him to name
the point In the Missouri River country
where last summer the company reduced
| the price of refined sugar 1 cent or more
below the price elsewhere
The price had been reduced. he said. at
Kansas City. Lincoln. Fremont, Council
Bluffs. Sioux City, and Omaha. which were
distributing points. The beet sugar manu-
fncturers in that district. he said. put the
price 10 points below cane, and made con-
tracts to handle beet sugar exclusively.
Admits a Cut.
Under questions by Mr.. Teller, the wit
ness acknowledged that the price of beet
In that territory had been 10 points below
cane ever since the beet industry had been
firmly established. The real point of the
tight. he asserted. was the exclusiveness Of
the contracts made by the beet peoplo
wnicn attempted to bar out cane sugar en-
tirely. His company wanted its lust share
OF the trade. and did not propose 10 te
frozen out.
Mr.. Teller was going into the beet
sugar question rather extensively when
Chairman Platt suggested that with the
view OF finishing the inquiry as soon as
hl
named in the resolution, the ownership OF
Cuban sugar and lands.
Mr. Teller thought 1t was quite material
TO nave the information regarding the
hight between the trust and the beet man
ufacturers. as it was the general i'm
preston the trust had endeayored To
destroy the beet industry.
Cubans Would Profit.
Mr.. Teller returned to the question of
sugar purchases In Cuba. and in response
to questions Mr.. Havemeyer made a de-
tailed explanation. The proposed reduc-
tion OF the duty on Cuban sugar, Mr..
Havemeyer continued, would not affect
the price paid for it by the trust. They
would pay the market price fixed by beet
sugar and the cubans would profit by the
difference in duty.
SuPPoSe, dsheQ MT. IelIer. the duty
should be taken of Cuban sugar entirely.
would you still have to pay the same
price,
Undoubtedly" was Mr.. Havemeyer's
reply.
Suppose we added 25 per cent to the
duty on Cuban sugar, would the price re-
main the same?'
Undoubtedly. And the Cubans would
lose the difference. The price would be
approximately the same as beet sugar in
Hamburg
America Their Market.
The reason Cuban sugar did not go to
other than the United States. he
said. was its geographical position.
Freights from Cuba to the United States
They do not go to France or Germany
because of the duty charged there. Their
natural market is the United States.
Responding to other inquiries, Mr..
Havemeyer stated that the output of the
independent refners was sold in the same
way the trust sold its product. except
that the former made greater concessions
to the trade. The trust now made no ex-
elusive contracts with its customers that
the latter should handle none but trust
sugar. That plan was tried some years
ago. but was abandoned.
The trust. Mr.. HavemeyeT said was in
terested in but one beet sugar factory
the ''Spreckles.' in California, which pro-
duced annually 2s.O00 tons. He person
ally. however. had an interest in several
other beet factories.
Sugar Trust Attacked.
Something having been said about the
efforts made by Mr.. Bass. of Demerara,
to have the customs classification of su-
gars changed so as to favor Demerara su-
gars, Mr.. Havemeyer said that in all
these efforts the sugar trust was at
tackled and made the stool pigeon to get
in outside sugars.
Mr.. Teller-If the tariff were reduced
70 per cent would the consumer receive
my advantage of the reduction? ..5.S
Mr.. Havemeyer-None whatever.
Mr.. Teller-Would the trust?
Mr.. Havemeyer-None whatever. Tho
trust buys it's sugar at the duty paid
price and the duty makes no difference
10 us.
Mr.. Teller asked IL the Cubans held
back their sugar. where the trust would
get its supplies and the witness said in
Porto Rico. South America, or in Europe.
where the supply of beet sugar was al
most inexhaustible During the year OF
he Spanish war the trust had purchased
100. 900 tons OF foreign beet sugar.
The Cubans. he said. could not hold
heir crop until the next session of Con-
;ress. but would have to sell for fnan-
ial reasons, lack of storage facilities.
nd the less that would come from shrink
ge and deterioration. II no concessions
n tariff were made the reiners would get
he crop at the relative price of beet
ugar.
Mr.. Teller Doubtful.
Mr.. Teller. returning again to the posi-
ion Of the Cubans. expressed some doubt
S to their receiving the advantage of any
roposed concession. contending they
'ould get just what the trust gave them.
Ir. Havemeyer then remarked that if Mr.
eller had already such firm convictions 1t
'ould be useless to attempt to change
hem.
Mr.. Havemeyer was on the stand until
Don. when he was excused from further
tendance on the committee.
Mr.. Mott. the raw sugar buyer for the
rust. will finish his testimony today.
Senators Platt and Telle< will both be
ut of the city during the latter part OF
ne week, and the hearings will be srs-
ended
UNDFRTAKEPS