Omaha daily bee., 1911-06-20
HOW THE TRloA WAS TURNED
James H. Post Organized National Re-
filming Co. at His Instance,
lMERICAN BUY lAE PREFERRED
Ten Million Common Stock is There
Turned Over to Havemeyer.
HIS FAMILY srlLL HOLDS IT
In the Meantime it has Paid Two "nd
Half millions In Dividends--
spItser Tells OF weisht


w
arate committees Of the house delving into
the history and operations Of the American
Sugar Refining company and other sugar
corporations there were brought out today
surprising tales Of riches made over night
and sordd stories Of alleged frauds against
the government
The special Sugar trust investigatinA
committee continued it's inquiry into the
formation and workings Of the big sugar
corporations having before II as a witness
James r. Post, president Of the National
Sugar Refining company Of New Jersey.
| The committee on expenditures in the
Treasury department began work on an
other angle of the investigation. that OF
the recent weighing frauds at the port OF
New York. questioning oliver Splitter, one
OF the Americans dock superintendents.
who was convicted and later pardoned by
the president.
Mr. Post told how H. O. Hsvemeyer had
been rewarded for forming the National
Sugar Refining company of New Jersey by
stock in the refinery worth tl0OoO,OoO, stock
which since had earned in dividends s., 5o0-
900 more. Mr. Post insisted that the $l0-
600 did not represent only promoters
profit Pressed for some explanation OF
what It did represent he finally answered:
Well here were three refineries put to-
gether."
! Asked how Havemeyer got possession of
the stock. the witness laconically replied;
| Il sent 1t to him a few days after 1 re-
ceived it,
| Splitter told the committee on expendi-
lures in the Treasury department the ems
tire history of the sugar weighing frauds.
describing dishonest weighing schemes en-
ployed on the sugar docks as far back at
1885 4H
Denies Attempt 60 Fix Prices.
! That the government has erred In its
facts in the formal petition seeking the
dissolution OF the American Sugar Refin-
ing company. was the declaration of James
H. Post, president OF the National Sugar
Refining company of New Jersey, when he
appeared today before the house Sugar
trust investigating committee.
Mr.. Post denied the allegation contained
I'm the governments petition that he was
the agency through which that In lse4 an
attempt was made oy Stw6 Sgreatarssiping
companies TO control the sugar market.
! Chairman Hardwick OF the committee
| questioned Eir. Post as TO the alleged man
ner in which he, the head Of the Ma
tional Sugar Refining company in 1884, ef-
fected a deal by which his company and
the American Sugar company agreed TO
limit the output of refined sugar and fix
| prices.
There is no foundation for that" de-
clared Mr.. Post.
Large Body of Water.
The organization of the New Jersey cor
poration was taken up. The capitaliz cation
of the new company, Mr.. Post testified.
was $50 OOO divided equally between pre-
ferred and common stock. The companies
taken in were capitalized at between SS.-
10000 and $OO0,O00.
And the difference was water?'' inquired
Mr. Hardwick.
NO" was the reply 1.-THE companies had
valuable properties"
The property of the New York Sugar
! Refining company, one of the companies
bought Mr.. Post said, was worth s2,5O00OO.
while only S2l25OOO was paid for 1t.
why was thatg" Chairman Hardwick
asked.
"It was because competition had been
keen"
And this organization was effected to
/ avoid competitions"
1T had that effect"
Ten million dollars OF common stock that
has earned S25O0,OOO OF dividends was the
personal reward given II. o. Havemeyer
for combining three very good refiner-
les" and thus creating the National sugar
| refining company, dCCOrOlnB 70 rust.
Post acted as Havemeyers agent in the
| organisation of the company.
When Mr.. Post was called upon to testify
about the issuance of the slo,ooO0Oo OF COM
mon stock. his attorney, A. II. Larhin,
objected
II recognise your power. but appeal to
your sense OF justice" said the attorney.
He explained that the validity Of the
$40. 100000 issue was now a subject of liti-
cation and the testimony of Mr.. Post might
prejudic the case.
Promoters Profit Large.
Chairman Hardwick retorted that there
had been an intlmation that the nO0oo0O
was promoters profit"
II believe that the American people are
entitled to know whether this stock haG
been watered," he added 1T seems TO me
that congress ought TO have this informa'
tion on which possibly TO base curatiw
legislation"
Representative Fordney was opposed U
requiring the witness 20 testify, but the
committee decided to require an answer.
Mr. Post then explained that he as un-
disclosed agent for MIR. Havemeyer, workeS