Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-26
TELLS OF COMBINE
John D. SpreckeIs a Witness
in Sugar Trust Inquiry.
PACT OF TWO COMPANIES
One Keeps Out Of the Market for
Three Years.
AGREEMENT MADE IN 1908
Progress Of the Investigation by
House Committee-Mormon
Prophet to Be Heard.
PACT OF TWO COMPANIES
AGREEMENT MADE IN 1908

President John D. Spreckels OF the
Western Sugar Refining Company of Cal
ifornia told the House sugar trust invest.
igating committee today that his com.
pany In 1903 entered into an agreemen,
with the California and .Hawaiin Suga,
Company closing down the latters suga,
factory and keeping it out Of the cane
sugar market for three years.
This is one Of the allegations in the
governments bill In the sugar trus,
case. Mr.. Spreckels said counsel he
consulted assured him the transaction
was entirely legal.
Then you did have some doubt
man antitrust law?'' asked Chairman
Hardwick.
i wanted to be sure"
Suffered Heavy Losses.
The California Hawaiian Company, he
said. had lost about 100000 the year
before. They had heavy raw sugar
holdings in Hawaii and wanted to close
down their plant.
They asked us to lease their plant
for three years. and with 1t their con-
tracts for Hawaiian sugar" said Mr.
Spreckels. Il agreed to lease 1t. with
the proviso that we get all their sugar.
about $4,000 tons, a year. and I paid
the company $1JO,O0O a year for the
plant. They had been cutting prices
and lost money, until they wanted to
get out. We received during that
period all their raw sugar from Hawaii.
,F<1 A,,v, ~
no refined sugar during that period
The company operated as beet COM
pany part of that period"
WAS there an agreement that, II nee
essary. you could go In and use the rae
toryy' asked Representative Madison.
could use that factory"
Mr.. Spreckels said he feared that lease
was destroyed in the San Francisco
earthquake and fire. He agreed with
of the sugar tariff would ruin the beet
sugar industry.
Take part Of the tariff on he said
land only the larger companies would
survive. Even they eventually would be
forced to the wall.
Cane and Beet Interests.
The story Of the relations Of the Cali
fornia cane and beet sugar interests and
the so-called sugar trust, the American
Sugar Refining Company. was told before
the House committee on investigation OF
sugar trust affairs today by John D.
Spreckels Of San Francisco. Mr.. Spreck-
els represented the Western Sugar Re-
lining Company Of California, cane
sugar enterprise. and the Spreckels
Sugar Company, q beet sugar plant He
was formerly connected with the Spreck-
els Philadelphia sugar plant. which was
sold to the American Sugar Refining
Company in the nineties.
In expectancy of the appearance OF
Prophet" Joseph F. Smith. president OF
the Mormon Church and head Of the
Utah-Idah Sugar Company, women
were present at today's hearing.
Prophet" Smith. however. was not call
ed as a witness. and 1T was stated that
he probably would not testify until to-
morrow, the committee wishing to pro-
coed with Mr.. Spreckels.
President Smith arrived here TO-DAY
after a hot journey across country. He
went directly to Senator Shoots house,
and will be his guest while here.
II am ready to appear whenever ! am
wanted" said Mr.. Smith, land have SO
notified the committee"