The Birmingham age-herald., 1911-06-29
WRECkING OF TRUST COMPANY BY SUGAR
 TRUST IS RECALLED
.CoNTINUED FROM PAGE n


 ~--->~-->~>>-->>>-->>>>"-> >@->>>-->>>--~-~ eral court of the southern district of New York.
 MT. Bonaparte never submitted any thing except briefs favorable to the American Sugar Refining company, and they were very bad briefs at that" MT. Earle declared.
 Mr. Earle related the history of. the case of the Pennsylvania Sugar Refining company organized by Philadelphia cap italists and how Adolph Segal borrowed money on his stock from Gustav Kis- sell, who turned out to he an agent for the American Sugar Refining company. He will resume his testimony tomorrow.
 Arbuckles' Competition
 William G. Gilmore, managing partner of Arbuc<le Bros, of Brooklyn, resumed the stand today in the House sugar trust investigation, and described the war made upon the American Sugar Refining company by his firm in 19os-1909 The Ar buckles began manufacturing refined su- gar in 1898 and since then have been in- dependent of the trust.
 "We cut the price 9 points under the trust price soon after we started in West Virginia and Ohio," said MT. Gilmore. because the trust sought to induce the wholesale grocers In those states to buy sugar exclusively from the American. This was In 1903.
 We kept the price down four or five months and got the business in those states. Eventually the price returned to normal but the American never did get back all it's business in these states
 The American first cut the price under Arbuckles. the witness said, from 10 to l5 points, and when this was met the trust began campaign to procure ex- elusive contracts. Drastic price cutting ceased about the close of 1899. During that period MT. Gilmore said his firm lost in the sugar business about S GOO. The witness also related after how the Arbuckles went into the sugar business, the American engaged in the coffee busi- ness and began a coffee plant at Toledo, O. This relation was under the direction of H. O. Havemeyer he claimed.
 'It was intended as destructive compe- tition" MT Gilmore said. ito discredit the package coffee business, and they ran 1t Into the ground in four or five years"
 Armed Neutrality Now"
 "Is that sugar war between you and the American going on now?" asked Chairman Hardwick.
 NO" MT Gilmore answered There is no war, but there Is an armed neutrality. We are watching the other fellow and do ing the best we can for ourselves. We make no cuts now that we don't think necessary for our business. No other cuts are made because the trust does not at- tack us.'
 That there ever had been during the war any conference of the Arbuckle firm and H. o. Havemeyr to secure working agreement MT. Gilmore denied. q never heard of such a thing, and am morally certain that no such conference ever oc- cured" MT. Gilmore said.
 Gilmore told the committee that condi- tions in the trade were very fair, though not ideal.
 Where does the condition fall short?" Representative Madison asked. The sugar refners are not making enough money"
 He, attributed this to over-production too much refining capacity and to the beet sugar industry as now protected
 If we took the duty off sugar. what would happen?'
 Cheaper sugar. We'd operate with half the capacity and the beat sugar people would be kept at home.
 Free Trade Beneficial
 William A Jamison, another member of Arbuckle Brothers, and nephew of John Arbuclsle, was also a witness. He testi- fled that in his opinion free trade in raw sugar would enable his firm to operate constantly and more cheaply. He admit ted that the beet sugar manufacturers might not get along so we'll
 We certainly don't believe, however" said Mir Jamison, that the beet sugar men need as much protection as they have today At least a cent pound could be taken off the sugar tariff with out -injuring the beet sugar people,
 "Waiving solicitude for the producers of Louisiana and the beet producers and considering only the cane refiner,' Rep resentative Madison suggested, what would be the effect of removing all tariff?'
 "He would sell more sugar said Mfr. Jamson
 That being true, you'd be willing that the sugar dfferential in favor of the re- finer might go?' MT Madison continued. 'Yes," ," was the reply. Free trade in sugar would not only be beneficial to us. but to others as well' today from Enterprise, where the latter has been recuDeratinp for some lime