Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1911-07-22
Thomas Tells How Sugar
Trust Grabbed Rivals.
HE DfffNDS HAVE MEYER
Witness Admits His Company 10
interested In the SUIT TO
Get Control of the Ma
uonal Company

New York, July 49, Washington
b Thomas. former president Of the
American Sugar Refining company and
now chairman OF its board of direc
tors, was the chief witness examined
when the congressional committee re
sumed its Investigation of the meth
DDS Of the socalled sugar Hust.
MIR Thomas said public Opinion had
changed since the late III. o. Have
meyer was president of the company
and ran it as captain rules ship.
He told OF the warfare between the
company and its chief rivals. the Ar
buckles and the Spreckels, and ex
pressed the opinion that those com
petitors ceased their opposition be
cause they got tired Of losing money.
An effort was made TO get Mr.
Thomas to tell how much money his
company had contributed to political
campaigns. but he denied any knowl
edge of such expenditures.
Without explanation Mr. Thomas in.
terrupted his testimony to defend the
memory of the late III. O. Havemeyer.
He wished Ii understood that nothing
he said or might say was to be inter
preted as an attack on Mr.. Have
meyer. Mr., Havemeyer ran the com
pany," he explained, "as captain
rules ship. He did what he thought
was best for the stockholders Oh
course, public opinion has changed
since then You know Mr.. Havemeyei
did not believe in letting the public
know what he was doing"
Mr. Thomas admitted that the
American company, after buying the
stock of the Baltimore Refining com
paiy, closed the refinery and shipped
the machinery to New Orleans. where
labor was cheaper.
After acquiring the MollenhaueI
and other refineries," asked Mr.. Hard.
wick, did not Mr.. Havemeyer. James
III. Post, representing other refneriest
and one or two other men, meet and
agree to limit the output of sugar and
its price?" Not that know Of
AS a director, would you know
about such an agreement" mot ne
cessarily. Mr.. Havemeyer did not tell
the directors all he did"
Mr. Thomas said the American owns
much of the preferred stock OF the
National Sugar Refining company, but
none of the common stock The pres
ent suit in the court of chancery OF
New Jersey to invalidate the common
stock of the National company. he
admitted, would greatly enhance the
value of the preferred stock.
did the American instigate this
suit so that 1t could get better control
of it's greatest competitor" Mr.. Hard.
wick asked. Mr.. Beck. of counsel for
Thomas, objected, but the committee
ordered an answer. Mr.. Thomas an.
swered that he was in Cuba when the
suit was begun and knew nothing
about it, When he returned Mr.. Beck
had told him about 1t and said he had
been retained as counsel for the com
plainants in the case.
is the American paying the expense
OF that suit?" he was asked. mot that
know of We have not been asked
10 pay"
"In 1898 did the American Sugar Re
fining company authorize Mr. Have.
meyer, Mr.. SEMI and you, Mr. Thorn.
as, to purchase competitors at any
price you saw fit and to fix the price
OF sugar." II don't believe we ever
operated under the authorization. I
have no recollection OF It,"
What ended the war between
Spreckels. of California, and the
American company" They got tired
of losing money, | guess"
What was the cause of the sugar
war between Arbuckle and the Ameri
can Sugar Refining eompany?" "Ar
buckle wanted discount on the sugar
be purchased and Havemeyer would
not give IT, Arbuckle put up a sugar
refinery and we started in the coffee
business In Toledo The war was on
and il was a merry one"
What brought 1t to an end?" ]
guess they tired Of losing money"
did Arbuckle and Hayemeyer have
conference just before the war was
ended?" Yes, and we went out oil
the coffee business
"And Arbuckle has been following
your sugar prices since2" Yes. he
makes mis- prices the same as ours"