Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-12
ALL ON THE QUIET
American Sugar Refining
Operations Carefully Guarded.
TESTIMONY OF WITNESS
Edward F. Atkins Says Stockholders
Were Kept in Ignorance.
HAVEMEYER'S SMALL HOLDING
Controlled Company With Only
1000 Shares Of Stock-Trust
Under Investigation.
HAvEMEYER'S SMALL HOLDING

When they did so I'm 1910 they discov-
cred to their establishment that II. O.
organization. had maintained his suprem-
acy with only 1000 shares of stock.
The holdings of Mr.. Havemeyer at the
time Of his death. Mr.. Atkins said, We're
valued at about $aO.oO of a total OF
$40, Cl0 600 in the American Sugar Rein
ing Company.
THAT was a surprising discovery.
he declared. ut had been generally
supposed that Mr.. Havemeyer owned
the greater part OF the stock
New England in Control.
Mr.. Atkins said the New England in
terests obtained control after a COM
mittee discovered from an examina-
ton that of the stock owners OF the
American Sugar Refining Company s.
per cent were New Englanders.
I'VE found that there were 5000 New
England owners" said Mr.. Atkins, and
10000 of these were women. They were
helpless as far as representation was
concerned, and l was urged to take a
place on the board, which l did.
He explained how control for New Eng
land holders was secured by his election
and the election also Of Samuel Carr.
Charles II. Allen. w. r.. Thomas and
Edward Marston, all OF whom now repre-
sent that majority of the stockholders
known as the New England syndicate.
First to Testify.
Mr. Atkins was the first witness today.
Public hearings before the committee be-
gan at 1920 O'Clock this morning.
Chairman Hardwick, to establish before
the committee a basis for the inquiry.
got the witness to trace the combination
Of sugar refiners from the organization
Of the Sugar Refineries Company, hold
ing concern. in 1887. and the formation In
1891 of the American Sugar Refining
Company, which succeeded the holding
concern, up to the present time
-Juring his testimony Mr.. Atkins de-
clared that the desire to lower the ex-
listing high cost OF production was the
first thing that brought the refiners
together, although he admitted that
the desire to eliminate competition and
the hope of raising prices also cut
some figure.
Member Since Organization.
Answering questions by Chairman Hard.
wick, Mr. Atkins said he had been a
member Of the American Sugar Refining
Company since its organization, but de-
clined to say how much stock he owned
He added that for personal reasons the
stock was not held in his name.
did the desire to avoid competition
between the seventeen companies thai
went into the Sugar Refinertes Compan,
have anything to do with its formation?'
Mr. Hardwick inquired.
Il suppose 1t did Mr.. Atkins replied
He added that he could not even ap-
proximate the percentage of the tota
refining business of the country handled
by these seventeen concerns at the time
NJ thar copSo1ida fiop in 1897
Mr.. Hardwick asked why the American
Sugar Refining Company had beer
formed in 1891 to take the place of the
holding company under which the COM
bination had operated up to that time
1T was on the advice of counsel the
witness answered. He could not recolec'
that a suit pending in the New York
courts at the time against refinery
which had Joined the Sugar Refinerie:
Company. which suit raised the question
of the legality OF the holding company
had anything to do with the change ir
the form Of the organization.
Bay States Interests.
Representative Hines OF Maine ques-
toned Mr.. Atkins in some detail concern
ing the Bay State sugar refinery in
Boston, which, owned by Mr.. Atkins and
his father. and capitalized at s5o0.00a
had been taken over by the Sugar Re-
f1neries Company. when this first COM
bination was formed. at $9O0.OO0.
Mr.. Atkins had just testified that the
sugar refining business was in bad way
at the time and that competition and the
high cost of production had been de-
structive of profit. Mr.. Hines asked him
IL he would have taken $JO0,0O0 for the
Bay State company if he couldn't have
secured any more.
Il can't say what I would have done
= ,f~xxy Atkins
He replied in similar vein to Mr.. Hines
question as to how high price he would
have put on the Bay State company.
had Its business been paying at the time.
rs It not true" suggested Representa,
1887 there was free competition both in
the buying Of raw and the selling Of re-
fined SUGAR.
Yes" said MI. Atkins. adding, in re-
ply to another query by Mr.. Madison,
of production were burdensome on the
refner.
But Partly True.
you wanted to avoid that competi-
ton" said Judge Madison, land under
stand that Havemeyer got eleven Of you
gentlemen together to form an agree
ment to eliminate competition. Isn't that
SOP"
Partly" responded Mr.. Atkins. land
partly to reduce the cost Of production"
"And also to raise the price Of your
product?" Mr.. Madison inquired.
"Oh, I suppose so,'' said Mr.. Atkins.
although the high cost Of production
was really the chief reason for form
ing the combination"
Then" said Mr.. Madison. this was
benehcent organization for the ben
eft Of the people"
mo, that was not the purpose Of It,"
Mr.. Atkins rejoined with a smile. al
though 1t did work that way"
Judge Madison suggested that the three
main reasons for the formation Of the
Sugar Reineries Company were to elimi-
nate competition, to enable the refiners
to obtain the best prices for their prod
uct and to make possible the economical
production Of refined sugar.
Desire for Economy.
Mr.. Atkins answered the last PROPOSE
ton in the affirmative, but continued
to insist that the desire OF the re-
finers to produce their product economic
ally. and not their idea Of eliminating
all competition. was the principal OBJ
ject involved in the formation Of the
original combination.
In view OF the fact that in 1857 seven
teen OF the twenty three refining concerns
then in existence formed the Sugar Re-
fners Company. Judge Madison asked
the witness IL those seventeen did not
produce 30 per cent Of the refined sugar
at that time. Mr.. Atkins replied that he
did not know. Then Judge Madison asked
him II the American Sugar Refining Com
pany did not control 50 per cent or the
o,,tyo,t ana rArnfvAA tha sanA nanlY.