The San Francisco call., 1910-04-27
SUGAR INQUIRY NOT
FISHING EXCURSION
Prosecutor Declares Government
Acts Only When Crime Is
Actually Suspected
Railroad Part in Traffic Agree
ments Probed Through
Colonel Loveland

That the United States government is
not merely on FISHING excursion in
It's investigation of the western sugar
companies now being conducted before
the federal grand jury was made plain
yesterday afternoon by the words OF
James II. Knapp, special prosecutor In
the Investigation, sent out here under
express orders of Attorney General
Wickersham.
The government does not go on fish
ing excursions,'" Knapp said. "A
grand jury is not summoned unless
there is the belief that a crime has been
committed. That is a general state
and not made especially in reference
to this case.
An intimation was given. in the call
ing of Colonel II. d. Loveland, that the
railroads part in the marketing of
sugar will be probed.
PROBES TARIFF AGREEMENTS
Colonel Loveland is the member of
the state railroad commission most
deeply versed, it is said. in the intricate
problem of traffic agreements made be-
tween the railroads and shippers. AS
an authority in such matters he was
examined for more than a half hour
Yesterday.
Loveland also was questioned con-
cerning his knowledge of the sugar
companies manner of doing business
gained when Loveldnd organized and
| directed the Pacific traffic and CONNER
cial association. seven years ago. This
| organization, which went TO the wall
in 1907. was in the na ture of a clear
ing house for retail dealers, and, act
ing as agent for them, purchased enor-
nous quantities of sugar. Because OF
| the low rate thus obtained from the
| refneries the association was able &c
sell to the small retailers at lower
price than they could get If ordering
| direct from the refineries in less thar
| carload lots.
! In all his questioning Knapp is con
! stantIy striving to obtain direct infor-
nation concerning the price sugar
brings in various sections of the coun'
try and the conditions, natural or arti'
| fcial that determine these prices. Iht
prosecutor, judging from the questions
! he fires at the witnesses, is strongly
of the opinion that the companies nave
a working agreement to keep out o.
each others territory.
Louis Saroni. big buyer and seller
of sugar and one of the most successful
| operators in the product, was another
| of the witnesses called yesterday after
noon.
What governs the sale of sugar,
he testified "and what governs the dis
trict in which it is sold is the rate o
freight demanded by the railroads. Th'
| matter is one of business only. III
dealer can ship to a certain point from
his base at a low freight charge ant
| YOU must pay higher rate to get from
! YOUR base to this certain point, then, o
/ course. you must be content with
| smaller profit; or if the difference il
charges is too great you must with
draw from the territory.
John A. Buck of Ohland & Buck. own
ers of the Honolulu sugar company AM
extensive planters and shippers, testi
| fed yesterday also, and George NJ
RoIph, manager of the California an
Hawaiian sugar refining company, wa
/ recalled to the stand. a. A. Brown 0
A. A. Brown Co, brokers for the Cali
fornia and Hawaiian company, also wa
put under the inquisition.
The inquiry will be continued thi
afternoon, and it promises to take u
the rest of the week. Those who will
interested in the beet sugar industry
4 in California. They are: T. f. Miller
secretary of the Los Alamitos suga
company; Walter j. Matson, secretar
of the Honolulu plantation company
Il. A. Pardee. secretary of the Sacra
mento Valley sugar company; j. A
Graves of Sacramento and j. Ross Clarl
of Los Angeles.
These men will appear with the book
Of their companies, prepared to la
bare the secrets of the trade
Friday the well known grocers, viii
liam Cluff, William Haas, Samuel Suss
! man. g. e. Jennings, III. p. Howard an
William Babcock, will be quiZzed con
cerning any agreements they may hav
with the sugar corporations.