The daily banner. (Cambridge, Md.) 1897-2008, 1911-06-21
HAVEMEYER Got
.$1o,ooo,o0OEASY
pocketed Watered Stock For
Promoting Sugar Deal.
POST TELLS The STORY
Received Holdings Which Drew DiVi-
bends of $2,5oO.o0o For Promoting
National Sugar Company Merger.


bends of $2,5oo.ooo For Promoting
National Sugar Company Merger.
Washington, June pa story OF
high finance was told before the Hard
wick committee investigating the su,
gar industry by James H. Post presl
dent of the National Sugar Refining
company.
Mr.. Post testified how the lac H
o. Havemeyer furnished tie money
for the organization Of the NatiOna
company, and he admitted that the
$10,000,000 of common stock OF the
company was issued as promoter 5
bonus" Besides this stock. dividends
amounting to S2,5O00O0 had been paid
to MI Havemeyer upon the stock, all
of which was delivered to Mr. Have
meyer by Mr. Post.
Later Mr.. Havemeyer, Mr.. Post said
promised him 5000 shares of this stock
in return for his services in organizing
the National company, but actual de
livery was never made.
Mr.. Post insisted that the $4,000,
900 did not represent only promo
er's profit. Pressed for some eypllna'
ton of what it did represent, he finally
answered:
We'll. here were three refneries
put together
Asked how Havemeyer got posse
sion of the stock, the witness lacOnl
cally replied: Il sent it to HIM d lew
days after | received it."
Post answered the searching qUes-
ton only after his counsels objey n?
had been overruled by the commit ea
who met behind closed doors to debate
the question.
Post said the s10,0O0,000 stock had
been issued to him and that he haG
turned it over to Havemeyer, whose
estate holds it to this day, although
the stock is still in Posts name. A
the last Meeting of the directors OF tie
company Post admitted he had refused
to vote the stock so that a quorum
would not be present and that the oil
members of the company named b.
him and Havemeyer had continued III
Office.
That the government had erred in
it's facts in the formal petition seek
ing the dissolution of the American
Sugar Refining company, was the dec,
laration of Mr.. psf
Mr.. Post fatty denied the allegation
ton that he was the agency through
which, in 1894, an attempt was made
by two great refining companies to
control the sugar market.
The denial came when Mr.. Hard
wick, chairman of the coInmi tee,
manner in which he, as the head OF
the National Sugar Refining company,
in 1894 effected a deal by which his
company and the American Sugar Re
ining company agreed to limit the
output of refined sugar and fix prices.
There is no foundation for that,
DECLARED Me- Post
Don you nuuw any rr.4-e,-i-yUut such
an agreement urged Mr.. Hardwick
81 read that, but cant imagine t.
what they refer
The organization of the New Jerse
corporation was taken up. The capitai
ization of the new company, Mr.. Pos
testified, was $20,O00,00O, divided
equally between preferred and com
mon stock. The companies taken in
were capitalized at between $1,000, 0i0
and $4,Q00,0O0.
"Apd tho diffarpnca u-ac IUaIpr2' in.
quired Mr.. Hardwick. No" was the
response. The companies had valu-
able properties
The property of the New FORK Su
gar Refining company, one of the com
panies bought, Mr.. Post said, was
worth $2,50o,000, while only S2,125, 900
was paid for it.
why was that?" Chairman Hard
wick asked 1T was because compe
tition had been keen"
And this organization was effected
to avoid competition 1T had shat
effect"
Mr.. Post then explained that lie, as
undisclosed agent for Mr.. Havemeyer,
worked for three years to combine
the New York Sugar Refining com.
pany, the Mollenhauer Sugar Refining
company and the National Sugar Re
6ning company of New York into =
new National Sugar Refining Company
of New Jersey. He obtained options gu
majority of the stock Of these com.
panies and organized the new com
pany in 1900 The $4,000, 900 common
stock was all issued 20 himself, be
said
cit was promoters profit, wasn't it,
asked Chairman Hardwick. Not en-
tirely."
What else?" Well. here We're
three refneries put together"
The witness said Mr.. Havemeyer
had the American Sugar Refining
company, of which he was president,
buy a majority of the preferred stock
of the new National Sugar Refining
company.
LAS fact the American Sugar Re
fning company was entitled to the
common stock" suggested Mr.. Hard
wick, for it was it's money that was
used to Buy the stock on which yon
as agent for Havemeyer, had taken up
the options on the stock in the tire
companies, wasn't it?" The American
Sugar company did not want t was
the response.