The Sentinel=record. (Hot Springs, Ark.) 1900-current, 1911-06-17
SUGAR TRUST
EASY MONEY
oxNARD BROTHERS CLEANED UP
HALF A MILLION ON REFiN-
ERY DEAL.
Hidth of Beet Sugar Industry Relas
ed Before Sugar investigation
Committee at Wash.
ton.

washington, June 16.-The story of
the birth of the beet sugar industry in
America, its trials and temptations
ever since. and how the Oxnard
Brothers were enriched by more than
half million dollars profit through
the little transaction" of selling
their cane sugar refinery in Brooklyn
to the first sugar trust" in 1887.
were the features in the testimony
that Henry T. Oxnard gave today to
the sugar Investigating committee.
Mr.. Oxnard was on the stand all
day and will be followed Monday by
James II. Post, president of the Ma
tional Sugar Refining Company.
Mr.. Oxnard assigned as his reason
for attempting to introduce the max
Ing of sngar from beets in this coun-
try, the sale to the trust" of his re-
finery at Brooklyn and his belief that
the introduction of the beet sugar in
dustry would be profitable and
patriotic. He told the story of the
organization of the American Btet
Sugar Company.
OF that $20.000,0OO company. he
said, the Oxnard Brothers at one time
owned sixty per cent but now poss-
sess only three per cent. He would
not admit this stock was waterea.
testifying that tht value of the prop
erty was about sl2,0oO,OOO. while the
preferred stock was worth about s5,-
100000 and the commin stock about
$7.500,000. He was unable to tell why
the capitalization was fixed at s20,-
100000. saying that that was the
bankers business"
What induced you to sell your
stock?' asked RIP. Jacoway, of Ar
kansas.
There was no lnducement,r was
the reply.
The relation of the beet sugar in
dustry and particularly the Ameri-
can Beet Sugar Company with the
American ydgar Refining Company
was the subject of many questions.
At the afternoon session Represen-
tatiye Madison asked Mr.. Oxnard If
in reality the American Sugar Refin-
ing Company had not tried to use
its power in 1901 to daive the beet
sngar refinere ou' of business by
cutting prices below cost in the Mis-
souri, River territory"
Il think it is a fair presumption
that 1t was designed TO drive us out,
the witness said.
Why did they not succeed?" con-
tinued the congressman.
We'll, our contracts with the gro
GERS were TO sell at price less than
the open market price on the day of
delivery. The American Sugar Re-
fining Company evidently thought by
reducing the prices about the time of
our deliveries that we would be un-
abe to fill our contracts. But that
word open market saved US.
We told the grocers sugar could
not be purchased in the 'openmarket
at the reduced price. If they could,
We authorized them as our agents to
buy large quantity for us. They
could not do so.
Mr.. Oxnard said the only time the
American Beet Sugar Company had
any agreement with the American
Sugar Company was 1902, when the
former became the selling agency"
Tor the latter. That contract was eau
celled, he said, when Wayne Mac
Veagh, lawyer, in 1906 gave an
opinion that 1t would send them to
ihe pen of they continued It.
He protested against the reduction
fthe tariff on raw sugar but added
mat he would leave 1t TO the re
liners to fight for the duty on re-
fined sugar.
COOKE TRIAL CT OsiNG