The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-28
How Church Got Into Sugar.

President Smith said the church be-
came interested in the Utah Sugar com.
pany when many people who subscribed
failed to pay for their stock. and the
company, under bond to complete
beet sugar factory, were unable to do
1t. The church was appealed to by the
stockholders TO assist, which il did. to
the extent of $4,000.
Does the Utah-ldaho company pay
dividends?''
Yes, several per cent
How is that dividend used by the
church7'
"In promoting its religious inter
ests.
Did the church ever go into part
nership with Henry o. Havemeyeri'
The church never did, but the
stockholders did. We were striving TO
build up the best sugar business in
Utah under very great difficulties. We
were anxious TO obtain capital We
were given to understand that Mr..
Havemeyer had offered to take an in.
terest in our enterprise, and I, as one
of the stockholders, was glad to hear
of his offer, which was eventually &C"
cepted. / was willing TO sell my por-
tion of the stock to help make up the
half interest in the Havemeyers be
half"
Receive Two for One.
Representative Raker of California
asked why financial aid from Have
meyer was necessary
"The church had extended its credit
to borrow money! said Mr.. Smith,
I'VE gave notes to the banks as trus-
tee in trust and the church itself had
bonded Indebtedness Of more than
81 900, 900. ~
Mr. Smith said the church had been
able to get along without Japanese
and Hindu labor. He told of the OPP
portunities the sugar business gave the
people of Utah for earning money and
testified that the Mormon tithe of 10
per cent of the earnings, in prosperous
years amounted to $1,250,000 and ST.
100000.
Mr. Smith said he never negotiated
with Mr.. Havemeyer personally IN the
consolidation. the negotiations being
conducted by Thomas r. Cutler. busi-
ness manager of the Utah-Idaho Sugar
company He did not consider the
What would you consider profit
ablc?'
"If it paid 10 per cent.
"Before the American Sugar REIN
ing company acquired its holdings IN
the Utah. Idaho concern it was COM
petitor. was il not - inquired Mr..
Sulzer.
''Not in Utah. said Mr.. Smith; He
added that he thought this consollda-
tion was one of the greatest of bless
ings to the people of Utah and Idaho,
The price of sugar to consumers, ne
said: remained Just about the same
Bishop Nibley testified that he was
formerly interested in the American
Sugar company and in 1905 projected
The Lewiston Sugar company lie re"
lated how both of those concerns
eventually attracted the attention OF
the Havemeyer interests, who pur-
chased half Of the stock,
In selling the amalgamated stock TO
Havemeyer. Bishop Nlbley declared the
original owners received nearly Two
for one The company was then pay
ing dividend of s per cent.
''Did YOU think a man would go an
the way ont there from New York 9'
asked Representative Kinds of Maine.
'to pay two for one for 8 per cent
stock with no other object than to
make il a good paying business prop
ositjon7'' ,o.
"'Yes.' replied Bishop Nibley,. '.oi
course. I don 7 know what was In MI.
| Hayemeyer' mind, but L fancy. that
he thought the beet sugar industry
| would grow 70 a greater extent than
it ever will prove to do We all did
but we know now that we were much
mistaken and Mr., Havemeyer was also
mistaken.