The Detroit times., 1911-06-12
TELLS SECRETS OF
SUGAR TRUST ON
WITNESS STAND
Edward F. Atkins, Acting President
Of Combine, Admits Purpose of
Merger Was To Do Away
With Rivalry.
Says Competition Was Destructive
and Cost of Production
Excessive.

WASHINGTON, June 12.-That the
stock Of the American Sugar Co.-the
sugar trusts now In the hands OF
10000 holders, more than half of them
women, who paid more for their inter
ests than the stock Is now worth, was
developed by the Hardwick sugar In
vestigating committee OF the house at
Its opening session today. Edwin f.
Atkins. first vice-president and acting
president OF the company, was on the
stand.
Atkins under cross-examination de-
-clared that when he entered the direc-
torate of the sugar company on Iacu-
,sry 1, 1910, he was surprised TO find
tlat the majority stock OF the COM
fany was not In the hands of the men
who controlled It, and that control had
passed to small stockholders. Asked
why the small stockholders had In
vested In an industry OF which they
knew nothing, Atkins said:
why they bought II, | suppose, be-
cause Of the natural desire Of ali peo-
pie to put their money In PROPOSE
tion OF which they knew nothing. Peo-
pie in the temperate zone are prone
TO invest In propositions that involve
operations in the torrid zone"
Atkins declared that the small
stockholders had bought their stock at
an average OF $3.50. 1t was now worth,
he said. $120 share.
Rep Madison, (Repn. Kas.), brought
out that during the last two years, the
company has been paid It's dividends
regularly and at the same time paid
the government and the Pennsylvania
Sugar Refining Co. s5,000,000 in penal.
ties or in settlement OF suits. taking
less than $2,000000 out of the con-
Germs surplus fund.
Atkins filed a statement which said
In part:
"The litigation In which the com.
pany has been involved within the last
few years has had reference almost
exclusively to transactions which
took place prior to January ], 1908,
and for which the present manage
ment OF the company is not re-
spensible."
Concerning the control exercised
over the industry by the company the
statement says:
During the year ending December
81, 1910, the company manufactured
slightly over az per cent OF the total
consumption of sugar in the United
States. II is estimated that domestic
beet sugar companies manufacture
fourteen per cent of the refined sugar
consumed in the United States. or
the 21 cane sugar refineries In the
United States, the company owns di-
rectly OF through subsidiary compan-
les seven, and has minority stock in
terest In four. 1t has no interest
whatever in the other ten refineries.
That the Havemeyer sugar combine
was formed to eliminate competi-
ton. obtain the highest possible price
for the product and reduce the cost
OF production, was admitted today oy
Edward F. Atkins, acting president OF
the American Sugar Refining Co, on
the witness stand before the special
, honse committee investigating the
sugar trust He said those conditions
existed prior to the reorganization N
1891, and gave many interesting de-
t1Ifs Of the growth Of the combination
Chairman Hardwick. (Dem. Ga), be.
gan the examination with questions re-
garding the organization OF the COM
binat,on by the Henry .. IIayeineyer
interests in 1887. Atkins said that
thc Havemeyer and Elder relnecy Il
New York. the Madison and Vickers
refinery of Jersey City. the Standard,
Continental. Boston and Bay ltate re-
ilner,es OF Boston, two or three small
or New York concerns; Harrisnn Eraz-
or aud Company, of Philadelphia, two
Louisiana companies. and Portland.
Me, company went into the coaibina-
tion. II was a pooling of stock in the
ban'is OF board Of trustees, FOR which
trust certificates were issued
Atkins said his company, the nay
State. OF Boston. was capitalized at
s5cC,000. but that It received 5000. 900
f. trust certificates. These, he said.
wcrt held until the organization ot The