Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-19
Witnesses Tell of Immense
Fortunes Made Overnight.
HAvEMEYER'S BIG BLOCK
Received $1O,Ooo,OOo in Stock for
Combining Refineries.
TELLS OF WEIGHING FRAUDS
Oliver Splitter Describes Apparatus
by Which Government Was De-
frauded of Customs.

With two separate committees of the
House delving into the history and op-
erations of the American Sugar Re
rations. there were brought out today
surprising tales of riches made over
night and sordid stories OF alleged
frauds against the government.
The special sugar trust" investigat-
ing committee continued its inquiry
into the formation and workings OF the
big sugar corporations. having before
1T as witness James III. Post, president
Of the National Sugar Refining Com
pany OF New Jersey.
The committee on expenditures in the
Treasury Department began work on an
other angle Of the investigation, that OF
the recent weighing frauds at the port
of New York. questioning Oliver splitter.
one of the Americans dock superintend-
ents, who was convicted and later par
doned by the President.
Havemeyer's Big Fee.
Mr. Post told how II. O. Havemeyer
had been rewarded for forming the Ma
tional Sugar Refining Company of New
Jersey by stock in the refinery worth
$40, 100000. stock which since had earned
in dividends So 100000 more.
Mr. Post insisted that the S1OWOOo
did not represent only a promoters profit
Pressed for some explanation of what 1t
did represent. he finally answered.
We'll. here were three refineries put
together"
Asked how Havemeyer got possession
OF the stock, the witness laconically an
swered:
Il sent 1t to him few days after
received it."
xnll
lures in the Treasury Department the
entire history of the sugar weighing
frauds, describing dishonest weighing
schemes employed on the sugar docks as
far back as 1885.
Says Government Erred.
That the government has erred ia its
facts in the formal petition seeking the
dissolution of the American Sugar Re-
filming Company was the declaration of
President Post. when he appeared today
before the House sugar trust investi-
eating committee.
Mr. Post fatty denied the allegation
contained in the governments petition
that he was the agency through which in
1884 an attempt was made by two great
refining companies to control the sugar
market.
The denia came when Chairman Hard
| the alleged manner in which he, as the
head of the Nationa Sugar Refining Com
pany, in 1894 effected a deal by which
his company and the American Sugar
Refining Company agreed to limit the
output Of sugar and fix prices.
There is no foundation for that" de-
elared Mr.. Post.
Don't you know anything about such
an agreement" urged Chairman Hard
wick.
II read that. but 1 can't imagine to
what they refer"
Big Boost in Capital.
The organization OF the New Jersey
corporation was taken up. The capitalize
ton of the new company, Mr.. Post testi-
fed. was $2o,O0O.OOO. divided equally be-
tween preferred and common stock The
| companies taken In were capitalized al
between S3.O0OOO and 100000.
And the difference was water?" in
quired NIr. Hardwick.
No. was the response. THE COM
panieS had valuable properties
The property of the New York Sugar
| Refining Company, one of the companies
bought, Mr.. Post said. was worth 81
100000, while only s2.12oooo was paid
for it.
why was that?' Chairman Hardwick
asked.
1t was because competition had been
keen
And this organization was effected to
avoid competition"
1T had that effect"
Ten million dollarS Of common stock
that has earned SEo and one-half mil
lion dollars Of dividends was the per-
sonal rewa/n given III. .. Havemeyer
for cor>oining three very good re-
fineri>s, and thus creating the National
Sugar Refining Company, according to
Mr.. Post. Post acted as Havemeyers
agent in the organization Of the COM
bpany.
Objected to Question.
When Mr.. Post was called upon to
testify about the issuance of the
100000 of common stock his attorney,
A. H. Larkin objected.
Il recognize your power, but appeal
to your sense of justice" said the at
torney He explained that the validity
of the S10,0OO.00G was now subject OF
litigation, and the testimony OF Mr.
Post might prejudice the case.
Chairman Hardwick reported that
there had been an intimation that the
ten million was promoters profit"
Il believe that the American people
are entitled to know whether this stock
has been watered." he added. 1T seems
to me that Congress ought to have this
information, on which possibly to base
curative legislation"
Representative Fordney was opposed to
recurring the witness to testify, but at
an executive session the committee de-
cided to require an answer