New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-05-04
ALLIES OF SUGAR TRUST
MEYER AND MCARREN.
" here Leaders of Democratic State
Cdmp0gn Stand.

with the American Sugar Refining Company
Inc declaration of the platform adopted by the
Albany convention on April Is in favor of "a
! reasonable revision of the tariff and free raw
material becomes Illuminating in view of the
election Of Cord Meyer to be chairman of the
Democratic State Committee and Senator P. H
McCarren to be chairman of the executive COM
nlttee, which will raise and spend the money
during the campaign
Mr. Meyer is a capitalist. and was Of the
original stockholders in the first organization of
the Sugar Trust. He was member of the firm
of Dick & Meyer with refineries in Brooklyn
that was swallowed in the Sugar Trusts first
organization. 1t Is to be presumed that Mr..
Meyer still retains his interests in the Sugar
Trust because Of the large dividends 1t has reg
ularly paid. During the great struggle the
sugar schedule in the Wilson bill in the first
year of Cleveland's second administration the
statement was made that the Sugar Trust had
contributed large sums Of money to the Demo-
cratic campaign fund Of 1892, not only to the
national committee but the State committees
Of New-York and Connecticut, in the expecta-
ton of favors yet 10 come. Mr. Havemeyer
practically admitted its truth by refusing to
testify to specific amounts. but he did testify
that he gave the Republicans nothing, because
he could see advantage in doing.
II was charged by the Republicans that the
Sugar Trust had received promise from the
Democrats that it would have the privilege of
writing its sugar schedule. 1t widely
published at the time that Cord Meyer waited
upon one of the members Of the Cabinet--it is
! understood to have been Daniel S. Lamont-and
asked whether the interests Of the Sugar Trust
were TO be looked after. 1t also widely pub
lished that Mr.. Havemeyer himself submitted to
Secretary Carlisle the sugar schedule which
taken to the Senate committee and substituted
for the schedule in the Wilson bill which the
Senate COMMITTEES had prepared.
SUGAR TRUST SCANDAL.
In the end the Sugar Trust had Its way. and
there great scandal surrounding the whole
negotiation. including the speculation in sugar
stocks by United States Senator's as disclosed
by the investigation. when Mr.. Havemeyer John
+. Searles and Elverton r. Chapman were re-
ported TO the District Attorney for being in con-
tempt of the Senate In refusing TO answer ques-
tons. Mr.. Havemeyer and Mr.. Searles were re-
leased by the court on the ground that any con-
tribut!ons they may have made to the Demo-
cratic campaign fuIid could not possibly have
concerned the election of any of its members.
notwithstanding the fact that in 1892 there
elected legislatures which seEt Edward Murphy.
jr, to the United States Senate from New York
and James Smith. jr.. from New-Jersey.
Senator McCarren. who has become the chair
man OF the New-York Democratic State execu-
tive committee. is the champion defender OF the
Sugar Trust in public life. In 1897 there was
investigation of the trust question by Joint
committee OF the New-York Senate and Assem-
bly, OF which Senator Clarence Lexow chair
man. Senator McCarren was the Democratic
member Of this committee the part OF the
Senate.
HISTORY OF THE TRUST TOLD.
The full history of the Sugar Trust was told to
IiE II +ba
was first organized in 1887 and consisted of six
teen refining companies that went into the com
bination, forming corporation the total value
Of which was $6590O00 The second company
on the list that went into this combination was
the Dick & Meyer Company in which Cord
Meyer, the chairman Of the Democratic
State Committee. interested The Dick &
Meyer Company put in at 100000 a total
OF SJOOO0OOO in certificates wac Issued 10 the
various corporations that were in this company.
Mr. Havemeyer testified that the object of form
ing this combination 10 control the price
and the production of sugar in the United States.
Evidence was presented that the Sugar Trust
controlled the business, down to the
taller by a system OF factors agreements. and
that grocers who would not sign these factors
agreements 10 sell sugar at the price dictated by
the trust had their supply of sugar shut off.
1t was also shown that the Sugar Trust.
with the tremendous capitalization at which it
was organized. frequently made dividends of II
per cent. 1t was also shown that several refn-
cries were shut down and a great many thou
sand men were thrown out oS employment.
FINDINGS OF THE COMMITTEE
The committee in its report. which dealt with
the Sugar Trust. the Tobacco Trust the Rubber
Trust and the Wall Paper Trust made long
report, from which is taken the following:
without going into unnecessary detail as to the
origin and development of particular combinations.
we may generaZe the situation In this way: In
every case of combination which presented Itself 10
your committee, Independent concerns represented
either by partnerships or py corporate organlza-
tions or both. had been competing against each
other the markets OF this state ana nation when
by promotion or otherwise they cohDlheC toSether'
generally under the laws of the state OF New
Jersey. into one large corporation controlling APP
proximatey 60 per cent OF the production OF par
ticular product OF common use. Every combination
thus made was accompanied by an enormous cap
italzation. and was generaIy toHowed by sue
cessfu to distribute its stock 10 the pubic
through the channels of speculation. Every such
combination was followed by the Closing ana as
rnantiing OF factories the discharge of labor and
the concentration OF business Of many separate or
CARNATIONS into FEW or the many factories coh-
trolled by the combination -,
Every such combna ton followed by the sub
stantial control of products and by the ability OF
the combination TO fix a price upon JUS own
product as well as that OF ostensiDl f,, COM
bV a system Of factors agreements which enabled
IL to control the means or distribution ano t,
a fixed price without regard to ostensDIe Co,npt d
tfon or to the normal rules of supply ana demand
Finally every such combination was Followed by
increasing difficulties or new competuoh pS obsorb
capital and Increased ability 10 destroy OF ABSORB
any existing competition or new compe'''ioh 'n1'
might arise.
MCARREN'S MINORITY REPORT
Senator p. H McCarren. who will conduct the
New-York campaign under the dlrectioh OF
State Chairman Cord Meyer, presented MINOR
itv renort from this investigating committee IN
which he dissented from the findings so lar as
thew reflected on the Sugar Trust ne sa4u'
The testimony elected the Investigation I shows
%I,a 1iZ 9t