Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-18
Reason for Ending the War
Between Sugar Rivals.
Statement BY WITNESSES
Spreckels, tire Arbuckles and Ameri-
can Refining Company.
PROBE BY HOUSE COMMITTEE
Inquiry Begun In New York, Fol-
lowing Adjournment Of Proceed
ings In Washington.

NEW YORK, July 1s-Further details
of the fight between the American Sugar
Refining Company and its rivals will be
revealed at the governments investiga-
ton Of the so-called sugar trust. resumed
here today after adjournment in Wash
ington. Some Of the prospective witnesses
before the special congressional commit
tee are John Arbuckle. Claus Spreckels,
w. B. Thomas. president Of the American
Sugar Refining Company; John E. Par
sons. its attorney. and Arthus Donner
for many years its treasurer.
Mr.. Arbuckle, who was unable to attend
the hearings in Washington on. account
OF illness. was head OF the Arbuckle in
terests. which long waged war with their
larger opponents. Mr.. Spreckels is presi-
dent of the Federal Sugar Company. an
other Independent concern. which has its
plant at Yonkers.
Customs Employees Summoned.
In addition to the manufacturers the
committee expects to hear employees
of the customs service review charges
of fraud practiced by the sugar in
terests upon this branch Of the fed
eral service.
Among these employees is Richard
Parr, deputy surveyor of customs,
who received a large reward for re-
vealing the trick scales by which the
alleged trust defrauded the govern
ment of more than a million dollars
in duties on sugar imports. The hear
ing will be held at the custom house.
Representative Hardwick is chair
man Of the committee The other
members here are Representatives Ba-
ker, Garrett, Malby, Jacoway, Kinds,
Sulzer and Madison.
Washington B. Thomas, chairman Of
the board Of directors Of the American
Sugar Refining Company, was the first
witness After detailing the various Of
fees he had held with the company he
questions. that his father, Joseph B.
Thomas. had sold the Standard Sugar Re
f1nery in Boston to the American Com
pany in 1887. the year In which other
not recall what his father received for
the Standard. he was instructed to get
the facts from his Office in Boston.
Capitalization Figures.
Mr. Thomas said that in 1891 the
American company was capitalized at
$50 OOO,OO which was increased to $7b.-
100000 when the American took in the
Philadelphia rehneries. and to $4,000, 600
when it entered the beet sugar field.
Without explanation Mr.. Thomas in
terrupted his testimony to defend the
memory of the late H. o. Havemeyer.
He wished it understood that nothing he
said or might say was to be interpreted
as an attack on Mr.. Havemeyer.
''Mr. Havemeyer ran the company"
he explained, 'as a captain rules a ship.
He did what he thought was best for
the stockholders. OF course public opin-
lon has changed since then. You know
Mr.. Havemeyer did not believe in letting
the public know what he was doing"
Mr.. Thomas admitted that the Ameri-
can company, after buying the stock OF
the Baltimore refining company, closed
the refinery there and shipped the ma
chinery to New Orleans, where labor was
cheaper.
After acquiring the Mollenhauer
and other refinerieS," asked Mr.. Hard
wick. did not Mr.. Havemeyer. James
H. Post, representing other rehneries.
and one or two other men meet and
agree to limit the output Of sugar and
its price?"
Not that I knew Of"
LAS q director would you know
about such an agreement"
Not necessarily. Mr.. Havemeyer
did not tell the directors all that he
did"
Holds Only Preferred Stock.
Mr. Thomas said the American owns
much Of the preferred stock Of the Ma
tional Sugar Refining Company, but
none of the common stock. The pres
ent suit in the court Of chancery Of
New Jersey to fnvalidate the common
stock Of the National company. he ad-
mitted. would greatly enhance the
value Of the preferred stock.
did tho American instigate this suit So
that It could get better control Of it's
greatest competitor? Mr.. Hardwick
asked.
Mr. Beck of counsel for Thomas OBJ
jected, but the committee ordered an an
swer.
Mr.. Thomas answered that he was in
Cuba when the suit was begun and knew
nothing about It When he returned Mr..
Beck had told him about it. and said he
had been retained as counsel for the
complainants in the case.
rs the American paying the expense OF
that suit7' he was asked
Not that know of. We have not been
asked to pay"
I'm 1908 did the American Sugar Re-
fining Company authorize Mr.. Havemeyer.
Mr.. Senff and you, Mr.. Thomas, to pur-
chase competitors at any price you saw
mt and to f1X the price OF sugar!
81 don't believe we ever operated under
the authorization. 1 have no recollection
Of it,
Tire Of Losing Money.
what ended the war between Spreckels
Of California and the American COM
pany?"
They got tired of losing money I
guess
"What was the cause of the sugar war
between Arbuckle and the American SuG-
ar Refining Company?"
..Arbuckle wanted a discount on the
sugar he purchased. and Havemeyer
would not give 1t. Arbuckle put up q
sugar refinery, and we started In the cof-
fee business in Toledo. The war was on.
and it was a merry one
what brough 1t to an endr
81 guess they got tired of losing money
Did Arbuckle and Havemeyer have
conference just before the war was
ended?'
business.
"And Arbuckle has been following
vour sugar prices SINGER"
eyes. He makes his prices the same as
OURS