Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-06-20
One Committee Questions
President of Combine,
While Another Investi-
gates Underweighing.
HAVEMEYER MADE
FORTUNE IN DEAL
Post Testifies That Presid-
ing Genius of Sugar At
fairs Got $lO,00O,O0O for
Promoting Merger.

Washington, d. c., June 19.--With
two separate committees of the house
delving into the history and operations
Of the American Sugar Refining COM
pany, and other sugar corporations,
there were brought out today surpris-
ing tales of riches made over night
and sordid stories of alleged frauds
against the government.
The special sugar trust" investigat-
ing committee continued its inquiry
into the formation and workings Of the
big sugar corporations, having before
it as witness James H. Post, presi-
dent of the National Sugar Refining
company of New Jersey. The COM
mittee on expenditures In the treas
ury department began work on anoth-
er angle Of the investigation, that OF
the recent weighing fraud at the port
of New York, questioning Oliver Spit
zer, one Of the Americas dock super
intendents, who was convicted and
later pardoned by the president.
Mr. Post told how H. o. Havemeyer
had been rewarded for forming the
National Sugar Refining company OF
New Jersey by stock in the refinery
worth $10,000,000, stock which since
had earned in dividends $2,500, 900
more. Mr.. Post insisted that the $10,-
600, 900 did not represent only pro-
moter's profits. Pressed for some ex-
PLANTATION of what 1t did represent, he
finally answered:
"Well, here were three reflneries
put together"
Asked how Mr.. Havemeyer got pos
session of the stock, the witness :,
piled: II sent 1t to him few days
after received it,
Spitzer told the committee on ex-
penditures in the treasury depart
ment the entire history of the
sugar weighing frauds describing diff
ferent weighing schemes employed on
the sugar docks as far back as 1895.
That the government has erred in
it's facts In the petition seeking dis.
solution of the American Sugar REIN
ing company, was the declaration Of
James H. Post, president Of the Ma
tional Sugar Refining company, Of New
Jersey when he appeared today be-
fore the house sugar trust" investi-
eating committee
Mr.. Post fatty denied the allegation
contained in the governments petit
ton that he was the agency through
which in 1894 an attempt was made by
two great refining companies to con-
troll the sugar market.
The denial came when Chairman
Hardwick of the committee questioned
Mr.. Post as to the alleged manner in
which he, as the head Of the National
Sugar Refining company, In 1894 ef-
fected deal by which his company
and the American Sugar company
agreed to limit the output of refined
sugar and fixed prices.
There is no foundation for that"
declared Mr.. Post Don't you know
anything about such an agreement"
asked Chairman Hardwick.
II read that, but I can't imagine to
what they refer"
The organization Of the New Jersey
was taken up. The CAPT
Of the new company, Mr..
Post testified, was $2o,0o0,000, divided
equally between preferred and COM
mon stock The companies taken in
were capitalized at between 100000
and $4,0O0,00O.
"And the differecne was water?" in
quired Mr.. Hardwick.
NO was the reply. "The compan-
les had valuable property"
The property of the New York Sugar
Refining company, one of the COM
panies bought, Mr.. Post said, was
worth $2,50O,0OO while only $2,125,000
was paid for 1t.
why was that?" Chairman Hard
wick asked.
ut was because competition had
been keen"
'And this organization was effected
to avoid competition
"It had that effect"
Mr.. Post then explained that he, as
agent for Mr.. Havemeyer, worked for