The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1911-06-16

BIG TRUST
Director of American Sugar Co
Tells of MethOds-HOw Rivals
We're Bought Up.
MORMON CHURCH Is
DRAWN INTO INQUIRY
Peculiar Finances Gone Into In
Detail and Terminating
Record is Produced.

WASHINGTON. June 15.-How the
sugar interests combined in first one
form and then another and how the
American Sugar Refining company
achieved power in the sugar world
was the theme OF the story to
which the house sugar investigation
committee listened today.
In point of interest that story was
rivaled in the days proceedings only
by the refusal OF the committee TO
excuse Joseph F. Smith. head of the
Mormon church, from responding TO
the subpoena TO testify before the
committee. He must appear next
week.
BY far the most important witness
before the committee today was Lo-
well VI. Palmer. director OF the
American Sugar Refining company,
from 1899 to 1905, and head OF its
traffic department for years preceding
that.
At the outset OF his testimony. Rep
resentative Madison of Kansas, who
conducted the examination, intro
duced as basis OF his questions a
page from the minute boks of the
company's board of directors. II bore
the date of September +. 1898. and its
]
ization of a committee TO buy outside
refineries.
The page read:
"On motion. a special committee
consisting OF the President. vice
president and Nr Thomas. were ap-
sugars: they were authorised in their
discretion. To make the price or
Eranulatcd not less than a. above
tho price of centrifugals OF ss de-
gree test. other refined sugars to
correspond. They were authorized
and empowered 10 purchase for ac-
portion ~ outside refineries. at
price and upon terms 10 be fixed by
them iu their discretion"
First Combination.
With this as a basis from which 10
get al the policy OF the American Su-
gar Refining Company. Judge Madison
/ questioned the witness about the first
/ combination OF sugar refineries in
] 1857. and combinations or acquisi-
tions during the period Mr. Palmer
was a director. Incidentally the wit
ness told Of the rebates received by
/ the company. claiming that II had
merely gotten its share of the rebates
[ in the days when such were in
| fashion. lie also defended as legiti-
mate tho company's literage charges
D
York harbor. Judge Madison ques-
/ toned the witness concerning the for
nation OF the National Sugar Refining
I Company OF New Jersey.
1T was organized for the purpose Of
I buying four companies" said the wit
/ ness. Mr.. Havemeycr told me he
/ had organized II with his own money
and a little he had gotten from the
I National city Bank"
Were not these companies COM
' pcting?"
Yes. think they were"
The witness said the American Com
pany procured a majority OF the pre-
/ ferred stock OF the National. but when
the question Of the legality Of the
common stock OF the National came
mp. the witness said that there he and
+ H. O. iiavemeyer broke.
Eight Million Missing.
Congressman Malty asked about the
issuance Of the S5O0o0. 600 OF stock by
the American Sugar Refining com
pany. of which 10 had been said only
Sf2 .0Du. 900 had been used in the pur-
chase of plants.
Have YOU any knowledge Of what
became Of the 5000 GOO not so used?'
inquired Mt Nalby.
"Nouc whatever"
Tho witness testified that he be-
licycd the stock had been watered,
but how much he was not willing TO
estimate.
Another section of the examination
related 20 the beet sugar Industry.
Mr. Palmer was q member Of an
American Sugar company committee
appointed to investigate beet sugar
re6ucriea.
"Mr Willctts. representing a trade
paper made "a "trip through tho west"
explained Mr. Palmer "and when he
came back ho told mo that the beet
SUGAR rcfucrics were making sugar az
less than we had thought they could.
Continued on Third PaEsJ