Arizona republican., 1911-06-16
\ DIRECTORS ADMISSION
Office of Committee Was to Buy or Arrange to Con trol Rival Plants by Agreement and Fix Prices of Sugar on Market.

Washington. D. c, June 15.-How the sugar interests combined in first one form and then another. and how the American Sugar Refining com pany achieved power in the sugar world. was the theme Of story to which the house sugar Investigating committee listened today.
 In point of interest. the story was rivalled in the days proceedings only by the refusal of the committee to excuse Joseph b Smith, head of the Mormon church. from responding to a subpoena to testify before the commit tee. AIr. Smith must appear next week.
 By far the most important witness before the committee today was Lowell NJ Palmer, a director of the Ameri- can Sugar Refining company from 1899 to 1905. and head Of the traffic department for years preceding that At the outset of his testimony Repre- sentative Madison of Kansas, who con- ducted the examination, introduced as a basis for his questions a page from a minute book of the cOmpany's board of directors. It bore the date of Sep tember 6. 10sO. and it's paramount fea- ture was an authorization of a com mittee to buy outside refineries.
 The page read: "On motion. d spe- cial committee. consisting of the presi- dent. vice president and Mir. Thomas. is appointed to fix the price of re- fined sugars: they are authorized in their discretion to make the price of granulated sugar not less than three eights Der cent above the price cen trifugals of 96 degree test, other re- fined sugars to correspond. They are empowered and authorized to purchase for account of the company, or hold any portion of outside refineries, at price and upon terms to be fixed by them in their discretion"
 With this as a basis with which to get at the policy of the American Sugar Refining company, Madison questioned the witness about the first combination of sugar refineries in 1887 and combinations or acquisitions during the period in which Palmer was a director. Incidentally, the witness told of rebates received by the com pany. claiming that it had merely got its sl.are of rebates in the days when such were in fashion. He also de- tended as legitimate the compapy's lighterage charges on the transfer of sugar shipments in New York harbor. Madison questioned the witness con- corning the formation of the National Sugar Refining company of New Jer- sey.
 Tt was organized for the purpose of buying four companies" said the
 a he had organized it with his own money and a little he got from the National City bank"
 Were not these companies com peting?"
 Yes, I think they were"
 Congressman Malby asked about the issuance of s5O. O.O00. 900 of stock by the American Sugar Refining company of which it had been said only s42000. GOO had been used in the purchase of plants. Have you any knowledge of what became of the ss,000.0O0 not so used2" inquired Malby.
 None whatever" The witness tes- tified that he believed the stock had been watered, but how much he was mt willing to state.
 Another section of the examination related to the best sugar industry Palmer was a member of the Ameri- can Sugar company committee ap- pointed to investigate the beet sugar refineries
 MT Willetts, representing a trade paper. made a trip through the west" he explained, "and when he' came back he told me that the beet sugar re- fineries were making sugar at less than we had thought they could. Il had him go the next day to talk with Havemeyer. The result was the ap- pointment of a committee to buy"
 Palmer added, "Willetts was sent out to round up the beet sugar people Cutler came on from Utah and as a result of the round up.' the first. purchase was made.
 Tt was big question in those days" added Palmer, whether we could get the beets grown and I was in favor of purchasing from the Nor mons first. because thought the Mormons could control their people"
 "There has been a statement that there was an alliance between the American Sugar Refining company and the Mormon church." said Judge Mad ison. Tell us about that Wasn't Cutler a bishop or something in the Mormon church?"
 q don't know; we dealt with Cutler