Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-06-16
Oh, SUGAR.
Continued from Page one)

stock of the National but when the
ouestfon of the legality of the common
| stock of the National came up, the
witness said that there he and ii. O.
Havemeyer broke.
"Hayemeyer brought up before the
board of directors OF the American the
question of the purchase of the COM
mon stock of the National and said
that he could not vote for the pur-
chase because he was interested in the
stock" said Mr.. Palmer. Il was not
in favor of the purchase. We never
had much to do with one another aft
er that"
Witness said he did not know how
Mr.. Havemeyer acquired the common
stock.
DO you know where the stock now
is ." he was asked. why, | under
stand that $7,600,000 value of it is in
the Hayemeyer family.
DO you know whether any money
or other valuable consideration was
ever paid BY Mr.. Havemeyer or MEM
bers of his family for the issuing of
this stock?' Il don't know anything
about that
He agreed the 100000 might have
been promoters profits.
In discussion of the issuance of the IA
nous $4,000 600 in common stock Con-
gresham Madison asked about the issu-
ance of the $50.Oo00 600 in stock by the
American Sugar Refining Co, of which
1t was said only S42, 900, 900 was used In
the purchase of plants.
Have you any knowledge of what he
came of the sS00o 000 not 50 used?" in
aured the congressman. None what
ever.
The witness testified that he believed
the stock was watered. but how much he
was not willing to estimate
Another section of the examination re-
lated 10 the beet sugar industry. Mr..
Palmer was a member of an American
Sugar Co. committee appointed to inves-
tgate beet sugar refineries.
Mr. Willets representing a trade pa
per made a trip through the West ex-
planned Mr.. Palmer, and when he came
back he told me mat the beet sugar re-
fineries were making sugar at less than
we had thought they could. l had him
go the next day to talk with Havemeyer.
The result was the appointment of
committee to buy
Mr.. Palmer added that Mr. Willets was
sent out to round up" the beet sugar
people Mr. Cutler came on from Utah
and as a result of the round up the
first purchase was made.
ut was big question in those days,
added Mr.. Palmer, whether we could
get the beets grown and l was in favor
of purchasing from the Mormons first.
because I thought that the Mormons
could control their people,
ooh, there has been the statement that
there was an alliance between the Amer
lean Sugar Refining Co. and the Mormon
church, said Madison. Tell US about
that Wasn't Cutler a bishop or some
thing in the Mormon church," 81 don't
know We dealt with Mr.. Cutler and he
was a very nice man.
I'VE will believe that. Wasn't Joseph
F. Smith. the head of the church, con-
sulted2t mo, not that 1 know; We dealt
with Cutler"
The witness told of purchases in Colo
RADIO, Michigan and California. He ad-
mitted that the refineries purchased We're
at times competing with the American
Co, that said that he went out of the
company before the consolidation of the
beet sugar refneries took place.
Rep Fordney asked Mr.. Palmer if the
beet sugar industry could survive without
a protective tariff.
at would be pretty close sailing was
the reply.
Charles r. Heike, for years secretary
of the American Sugar Refining Co, was
again a witness today. In beginning his
examination Chairman Hardwick told Mr..
Heike he wanted to inquire into his per-
| sonal knowledge and not his official re-
| lation with the American Sugar Refining
| Co.
Didn't you have at the time any idea
| of the purpose of the merger of the SUI
gar refineries?" Mr.. Hardwick asked. II
| knew less then than now replied Mr..
| Heike
"WelI, from your present knowledge
what would you say was the purpose
| "a large company can do business at a
| reduced COST
"And there is less competitions" sug-
gested Mr. Hardwick. Probably"
Chairman Hardwick asked Mr.. Heke
for his estimate of the holdings of Pres
ident Fl. o. Havemeyer in the American
| Sugar Co. at the time he swayed the
company.
"Oh. 100 or 200 shares in his own name, +"
was the response.
"Did his family hold more?" Probably
| 1000 shares"
"Did Havemeyer ever unload any of
| his stock?' AZ wouldn't say unload I
| would say sold He never owned much
| in his own name, anyway"
| Mr. Heke's concluding testimony stir
- ase Il
| said he favored free trade in raw sugar
| but would have the duty taken off slowly
over a period of 20 years
"Oh. h" exclaimed Rep Fordney of
Michigan "Half of us will be dead by
| that time