The Birmingham age-herald., 1911-06-16
Committee Demands Head of the Mormon Church
 Shall Appear
SAYS COMPETITORS
 WERE BOUGHT OUT
Details of First Merger in 1887 Ex- plained-Investigate Alleged AL liance Between Church
 and Sugar People

Washington, June 15-How the sugar in- terests combined in first one form and then another and how the American Sugar Refining company achieved power in the sugar world was the theme of the story to which the House sugar Investigating committee listened today. In point of in- terest that story was rivalled Tn the days proceedings only by the refusal of the committee to excuse Joseph r. Smith, head of the Mormon church, from re- spending to the subpoena to testify before | the committee. He must appear next week.
 | By far the most important witness be-
 fore the committee today was Lowell M
 Palmer, director of the American Sugar
 Refining company from 1899 to 1905, and
 head of it's traffic department for years preceding that
 At the outset of his testimony Repre- sentative Madison of Kansas, who con- ducted the examination, introduced as a basis of his questions a page from the minute books of the company's board of directors. It bore the date of September s, 1898, and it's paramount feature was tho authorization of a committee to buy out side refineries The page read: "On motion, a special committee. con- sisting of the president, vice president and Mir. Thomas were appointed to fix the price of raw sugar; they were authorized in their discretion to make the price of granulated not less than ss cbove the price of centrifugals of 96 degree test, other refined sugars to correspond. They were authorized and empowered to pur- chase for account of the company or hold any portion of outside refneries at a price and upon terms to be fixed by them in their discretion"
 l With this as a basis from which to get at the policy of the American Sugar Re- lining company, Judge Madison questioned the witness about the first combination of sugar rehneries in 1887 and combinations
 or acquisitions during the period Mir.
 Palmer was a director. Incidentally the
 witness told of the rebates received by the company, claiming it had merely got it's share of the rebates in the lays when such were in fashion He also defended as legitimate the company's lighteras. charges on transfer of sugar shipments in New York harbor. Mir Palmer told about his work for the company in arranging traffic rates. He took up the so-called "Reilley letters which appeared in a grand jury investiga- ton in New York.
 Received Their Share
 "On occasions when rebates were be- ing given to others, Reilley, my sub ordinate. and I generally got what was coming to us,' explained MT. Palmer.
 The witness said that in 1886 H. O. Hayemeyer drove Theodore A. Have meyer out of the firm of Harrison & Havemeyer of Philadelphia because Theodore had made an advantageous rate agreement with the Pennsylvania railroad This agreement. he said, was harmful to the Brooklyn refineries Former Senator Depew, he said was the only man now living who knew of the manner in which the New York Central had come to the rescue of the Havemeyers at times. | He told of how competing interests were brought together in the first sugar combination in 1SS7 H. 0. l Havemeyer said Searles and Theodore | Havemeyer were crazy" to go into com mbination, declared MT Palmer. He said he was not so crazy 1T he could get the Harrisons of Philadelphia-the l Harrisons were keen sugar men-and | Captain Thomas of Boston, very
 wealthy man, worth about $30,000,0O
 or s400000 900 and president of the l Standard Sugar Refining company at
 Boston, to go into 1t with him. He
 said Theodore would try to get the Harrisons, and he offered to give me ] s1OO,OOo if would get Captain l Thomas h."
 Did you get him in?" inquired Rep resentatiye Madison. The witness said Thomas objection was H. O. Havemeyer. He said he thought he could get along with Searles and Theodore. but he was not sure about H. O. I told him that H. o. was the best man of the three. Finally he came in.'
 Did II. O. tell you what the object of the combipation was?'
 'rNo he never talked much" Judge Madison questioned the witness concerning the formation of the Ma tional Refining company of New Jersey.
 Tt was organized to buy four com panies,' said the witness. MT. Have meyer told me he had organized 1t with his own money and a little he had got from the National City bank"
 Merges Competing Companies Were not these companies com peting?"
 Yes, I think they were" | The witness said the American com l pany procured a majority of the pre- l ferred stock of the National, but when l the question of the legality or the com | mon stock of the National came up, the witness said that there he and H. O. l Havemeyer broke. | "Havemeyer brought up before tho l board of directors of the American the question of the purchase of the common stock of the National, and said he could not vote for the purchase because he was | interested in the stock" said MT. Palmer. | q was not in favor of the purchase. We never had much to do with one another | after that
 Representative Malby wanted to know l if the common stock of the National was
 issued at the same time the preferred
 was,
 "I do not know anything about that ex-
 cept what MT. Havemeyer told me-"
 "What did he tell you?' .'I asked him what had been done with the common stock and he replied it was in the hands of friends and he would see
 me later about it."
 "Then you did not have any information
 or knowledge as to how MT Havemeyer i acquired it?''
 l "No sir
 | DO you know where the stock now Is? 2" |
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