Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-05-16
GEN.M ANDERSON HEARD
DETAILS HISTORY OF BEET
SUGAR INDUSTRY.
Fight With the Trust Over Contracts
With Southwestern Jobbers-Efect
of Proposed Reduction.

The Senate committee on relations with
Cuba today heard John Oehler of New
York city. who printed the publication
Facts About Sugar" compiled by Oscar
W. Bonner and consisting of reprints from
newspaper articles.
Mr. Oehler said that in January last he
was employed by Mr.. Bonner, advertising
agent of the sugar trust, to print this doc
ument, for which he received $3.50. This. ne
said, was the only printing OF this nature
which he had done for the sugar trust. The
edition numbered 100000 copies.
The witness then was excused and eX-
Senator Charles F. Henderson of Nebraska
called. He said he had acted as legal ad-
wiser Of the general manager of the Amer
lean Beet Sugar Company, E. c. Howe, and
the president of the Standard Beet Sugar
Company, Haywood G. Leavitt He pro-
duced two forms of contracts which these
companies had entered into during the
summer Of 1901 with the jobbers on the
Missouri river, one of which contained
provision that shipments would be billed at
10 cents per hundred pounds less than the
American Sugar Company's open price
for standard fine graduated that may De
in effect in Kansas City on date of arrival
of their sugar there, but that at no time
would the price exceed $5.37. In the other
form the words bona fide price were in
serted.
The Fight of the Corporations.
Mr. Henderson detailed the act of the
American Sugar Refining Company notify
ing the jobbers having contracts with the
beet sugar companies on Missouri river
points that they would furnish them with
sugar at $3.50 per hundred, and said he
was called upon to decide what to do I'M
der the contracts referred to. He had dis
covered that this sugar would only be
given in very small quantities. He said
that Immediately the brokers and whole
sale dealers attempted to buy sugar of the
refining company's agents at $3.50. The
American Beet Sugar Company, he said,
sought to buy at that price, but were re-
fused The established market price, he
said, continued at $5.121k. and the special
price was limited to a few people, which
caused him to decide that it was not an
open price nor a bona fide' price, as
contemplated by the beet sugar contracts,
and that the beet sugar companies were
not required to sell at $780,
He said his companies agreed to sell
sugar at s5O21a when the open price was
$5.121s, and when the price fuctuated they
even sold at 10 cents per hundred less tina n
that. but did not sell at this 10 cents re-
duction under the cut price fixed by the
refining company. Mr.. Henderson said that
this cut had In view no other object than
to break down the beet sugar industry in
the west, which would have been success
fui II the beet sugar people had been I'M
able to command the money with which
they could store their product.
History Of the Industry.
At the request of Senator Teller he gave
a history of the beet sugar industry A
condition now exists, said he, where there
is no more cheap land that Is arabic and
suited for the use of farmers. Already l5,-
600 farmers have left the state of Iowa and
gone into Canada and taken up the cheap
lands in Manitoba and adjoining territory
They represented 10000 to $4,000 people, A
similar movement had begun in Illinois,
Minnesota and Wisconsin. If the beet
capabilities that arise from irrigation this
emigration will be stopped to large ex-
tent.
Mr.. Henderson contended that every tar
if bill and the government experiments
nave been.invitations to embark in the beet
sugar industry. ITO injure it," said he "by
direct or indirect methods is to my mind as
Objectionable if not to say as criminal a
blow as this country could receive"
The Proposed Cut in Tariff.
The proposition for 20 per cent reduc-
ton. he said, had caused many prospective
beet sugar factories on irrigated land in the
west to be temporarily abandoned
Answering a question by Senator Platt,
Mr. Henderson said that if we AmericaniZe
Cuba either by annexation or any other
means there would be a rise in the price of
labor there which would raise the cost of
sugar production.
Senator Plat called attention to a COM
pilation extensiv ely circulated, attacking