New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-20
THOMAS AGAIN TARGET
IN SUGAR CO. PROBE
Advocates the Regulation OF
All Corporations by
Legislation.
CONCERN NOT A MONOPOLY
Witness Says Those Now in Con-
troll Have Instituted Many
Reforms-Parsons on
Stand To- day.

SCdnu To-Day,
Washington 3. Thomas, chairman OF
The board Of directors Of the American
Sugar Refining Company. went on rec
ord yesterday in testifying before the
Congressional committee investigating
the so-called Sugar Trust as an advo-
cate Of legislation regulating the business
affairs Of the large corporations. He also
EXPRESSED the opinion that legislation
" hich would do away with the paying or
large bonuses 10 promoters and others.
ut the inception Of the formation or
large industrial combinations would very
materially reduce the number Of so-cslled
trusts He characterized such legislation
rs admirable"
Mr. Thomas was on the witness stand
al day Tuesday. and his testimony was
not completed until the adjournment OF
the committee late yesterday afternoon.
Chairman Hardwick announced that
John F. Parsons. formerly general coun-
sci for the American Sugar Refining
Company. would he the first witness
called when the sessions are resumed to-
day.
Nearly ell the members Of the commit
tee took a hand IN examining the head
Of the American company yesterday. He
was questioned closely from all angles in
en- effort to show that his company stlll
dominated the sugar industry In this
country to the extent Of debating prices.
He insisted. however. that the American
company was not a MONOPOLY as u
controlled only AZ per cent Of the sugar
business Of the country, and that ITS
present policy toward competitors was
that OF tive and let live"
Not in Accord with Old Regime.
The witness explained in detail many
reforms that had been instituted by the
MANAGEMENT Of the company since the
Death Of Henry q. Havemeyer, three
years ago. who was its president. While
desiring that his testimony should not
he construed as a reflection on Mr.. Have
never. as he wished to be loyal n his
,oemorv." he admitted he Thomas, was
the last member Of the board Of directors
Of any length Of standing under the old
IIavemeyer regime and that the present
management was not in accord with Ger
tain policies Of the past
While a great deal Of water may have
been in the stock when the company Was
first organized by Mr.. Havemeyer. the
witness said that it all had been
squeezed out. and that for every dollar
Of the S9O.0OO,0OO Of outstanding stock
at the present time there was 81 81 OF
visible physical assets. He said there
were 1900 or 10000 stockholders. and
the average amount Of an individual
holding was forty-fvo shares. He held
three thousand shares himself. he tesh-
ned, and the total holdings of he
Thomas family aggregated between To-
GOO and 10000 shares, representing a
money value Of something over 5000
600
The witness characterized the cutting
down of his own salary from SlOooD
10 S25 900 as one reform he had IN
stjtutcd He said the personnel Of the
COMPANY had been almost completely
changed since MIR. Havemeyer's death.
Jrbe heads of the various departments
were men who could be trusted to keep
strictly within the law and work for the
pest interests Of the stockholders. he de-
cIared. They were rapidly charging
upon the publicity idea in the business.
which Mr.. Havemeyer strongly opposed
They also intended to Introduce sys-
tenn of pensions for their employees. he
said.
I'VE are doing all we can in the light
Of the hest public opinion" he asserted
REPRESENTATIVE Z. II. Madison, Of Kan
sas who had been appointed member
Of the subcommittee to look through
the minutes Of the board Of directors or
the company. sought 10 show from his
questions 10 the witness that the Ameri-
can company was apparently working
hack into a position where It would COM
rletely dominate the sugar Industry
throughout the United States.
II the suit in equity now pending In
tho chancery courts Of New Jersey TO
cancel the common stock in the National
Sugar Refining Company were success
full. as Dir. Madison thought IL would De-
ne pointed out that the American
through its admitted control Of the pre-
ferred stock Of the National company,
would get control OF that company, ana
thereby acquire another 10 per cent OF
the sugar business Of the country. the
Nationals share Of the business at the
present time
This would give the American 81 per