The free lance. (Fredericksburg, Va.) 1885-1926, 1911-06-22
Hayemeyer Got $4,000.
900 in Sugar Deal.
HIS COMPANY'S ORGANIZATION
Received Personal Reward, Which
Paid $4,000 in Dividends.
For Engineering National
Sugar Co. Merger.

Washington, June 2O.-When James
H. Post. president OF the National
Sugar Refining Company OF New Jer
sey went on the witness stand In the
sugar trust investigation he made no
effort to conceal from the special
house committee the fact that there
is sio.OOO.OOO Of wxiA In the capital.
zailon OF his compdaiy.
The water Is there. he said. because
Henry O. Havemeyer demanded that
amount as bonus for his part IN pro
noting the organization Of the com
pany The $4,000. 900 Of common stock
IA now In the possession OF the Have
meyer estate.
The hearing furnished the best Illus
tration thus far Afforded OF the man
ner In which Hayemeyer bought up
the competitors OF the sugar trust and
at the same time made enormous
pr0hl on the side.
Mr.. Post insisted that the $4,000.
900 did not represent only a prOmot.
er's profit Pressed for some eVpAnl.
ton OF what II did represent. he finally
answered
We'll. here we're three rehneres
put together
Asked how Havemeyer got posses
sion OF the stock. the witness laconi.
cally replied: Il sent It to him few
days after | received II"
Post answered the searching ques'
ton only after his counsel's objections
had been overruled by the committee.
who met behind closed doors to debate
the question.
Post said the slO.0OO,OOO stock had
been issued to him and that he had
turned IL over 10 Havemeyer. whose
estate holds II to this day. although
the stock Is still In Posts name AT
the last meeting Of the directors OF the
company Post admitted he had refused
to vote the stock so that quorum
would not be present and that the old
members OF the company named by
him and Hayemeyer had continued In
Office.
That the government had erred in
its 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
contained in the governments pell
ton that he was the agency through
which, In 1894. an attempt was made
by two great refining companies t.
control the sugar market
The denial came when Mr. Hard
wick. chairman OF the committee,
questioned Mr. Post as to the alleged
manner In which he. as the head oil
the National Sugar Refining company
In 1894 effected a deal by which hi
company and the American Sugar Re
lining company agreed TO limit he
output Of refined sugar and fix prices.
There Is no foundation for tat.
declared Mr.. Post.
Don't you know anything about such
an agreement" urged Mr. Hardwick
Il read that. but can't imagine 10
what they refer"
The organization Of the New Jersey
corporation was taken up. The capital
lzation OF the new company. Mr.. Post
testified. was s2O.OOOOO0. divided
equally between preferred and com
mon stock. The companies taken In
we're capitalized at between $4,000, OeO
and s4.0OO,OOO.
And the difference was wster?' In
qulred Mr.. Hardwick. NO" was the
response. The companies had yalu.
able properties"
The property OF the New Iork Su
gar Refining company, one OF the com
panles bought. Mr. Post said. was
worth $500. 700. while only s2,l25,OOO
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 that
effect"
Mr Post then explained that he. as
undlsclOsed 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
nning company OF New York into 8
new National Sugar Refining Company
OF New Jersey. He obtained options on
majority Of the stock Of these com
panles and organized the new com
pany in 1900. The $lO.OOO.OOO common
stock was all Issued to himself. he
said
1T was promoters profit wasn't M"
asked Chairman Hardwick. Not en-
tlfcly."
what else?" well. here were
three refineries 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 Sugf Refining
company.
AS a fact the American. sugar Re
6ning company was entitled TO the
common stock" suggested Mr.. Hard
wick. for It was its money that was
used to buy the stock on which you,
as agent for HIavemeyer, had taken mp
the options on the stock in the three
companies, wasn't it," THE American
Sugar company did not want It," was
the response.