Omaha daily bee., 1911-06-13
TO SHUT OUT COMPETITION
Investigation Into Purpose Of 0rgani-
cation of Sugar Trust Begins.
HOUSE COMMITTEE STARTS PROBE
vice President Atkins of American
sugar Refining Company Tells
OF the Merger Of the
Refiueries.

ouiry into the sugar business OF the coun-
try conducted by a special committee for
maly began today. Witnesses from the
leading sugar refineries in the east have
been summoned 20 appear before the COM
mlttee and will be followed by those In
terested in other lines Of the sugar busi-
ness. The committee has announced Its
purpose TO make lone of the most thorough
investigations ever conducted Of a great
business by congress.
Representative Hardwick of Georgia is
chairman Of the committee and is expected
TO take a leading part In the examination
OF tho witnesses.
The committee first has taken up the
American Sugar Refining company to de-
termine whether the corporation is oper-
ating in violation of the antitrust or Inter
state Commerce laws
James NJ Beck. formerly assistant at
torney general, appeared today as counsel
for the refining company, and Edwin f.
Atkins of Boston, vice president and act
ing president Of the American Sugar Re-
filming company, was the first witness ex-
amined.
To Put Refineries ON Their Feet.
Mr.. Atkins said the purpose of the forma-
ton of the American Sugar Refining COM
pany, which was organized in 1887 was to
put on their feet a number Of sugar re-
finierles that had been operating at a loss
THE cost of production of refined sugar
had been so great" said Mr.. Atkins, that
IT was believed that union of refineries
would result in greatly reducing this ex-
pense.''
Ibid you expect through this means to
avoid some of the competition asked
Chairman Hardwick.
well, l suppose 1t had some effect Of
that kind
The witness said that seventeen refin-
cries Joined in this merger in 1887, which
was arranged by H., o. Havemeyer. Almost
all Of them. he said. had been doing bust
ness at an excessive cost and they were
scattered throughout New York, New Jer-
sey, Massachusetts,, Maine, Pennsylvania.
Louisiana and Missouri.
Mr.. Atkins said that when the sugar re-
finery companies, which later became the
American Sugar Refinery company, was
organized in 1887, that he received for his
concern, the Bay State Refining company
which he valued at $4,000. trust GER
tificates OF the securities or holding COM
pany of a value Of 100000.
Competition Was OnerOus.
Representative Madison of Kansas asked
IL 1t was not fact that previous to 1887
there was free and open competition in the
buying of raw and the selling of refined
sugar in this country.
YES" Mr.. Atkins said, there was free
competition"
''That competition you found to be oner-
ous didn't your
N'sFes, 1t was"
''You wished to avoid that competition
Mr.. Madison continued, land 1t was for
that reason that Mr.. Havemeyer gathered
together you and about dozen other
sugar manufacturers fur the purpose OF
making an agreement to eliminate. this
eompetition, was 1t motif ~, -
fwell," Mr.. Atkins said, sthe principal
object was to reduce the cost OF produc-
ton"
+ There were three purposes, were there
not that influenced you First. to eliminate
composition; second. to obtain the best
possible price for your products. and third,
to reduce the cost OF production?"
II think the third reason was what was
in our minds primarily" said Mr.. Atkins.
Mr.. Madison asked him II It was not a
fact that in 1887 the seventeen companies
combined were in control Of 90 per cent Of
the sugar business OF the United States.
Mr.. Atkins said he thought this was an
exaggeration.
Mr.. Atkins testified that he had been
made vice president of the American Sugar
Refining company two years ago at the
insistence OF New England stockholders,
who has been unable to secure information
from the companies to the business 1t was
doing.
Il often tried to get It," he said. but
they always turned me off good naturedly.
They never published any report. We knew
they were doing good business because
the dividends were always paid"
Conditions Grow Onerous.
The conditions grew so onerous, the wit
ness said, that the New England stock
holders combined and obtained control
When they did so in 1910 they discovered
to their establishment that H. o. Have
meyer. the presiding genius OF the or
ganiEation. had maintained his supremacy
with only 1900 shares OF stock.
The holdings OF Mr.. Havemeyer at the
time of his death, Mr.. Atkins said, were
valued at about $4,000 of a total OF
t9o.OOo.oOo In the American Sugar Refining
company.
THAT was a surprising discovery" he
OoclaISu II mao been BeuSTaly supposed
that Mr.. Havemeyer owned the greater
part OF the stock"
Mr.. Atkins said the New England inter
ests obtained control after q oomniittee
discovered from an examination that OF
the stock owners OF the American Sugar
Refining company, 6s per cent were New
Englanders.
I'VE found there were 1900 New Eng
land owners" said Mr. Afkins land IN O0n
OF these were women. They were helpless
a. far as representation was concerned
and 1 was urged to take a place on the
board. which 1 did,
He explained how control for the New
England holders was secured by his cleo
ton and also the election OF Samuel Carr.
Charles II. Allen. William b. Thomas and
Edward Marston. all OF when represent
that majority OF the stockholders known
as the New England syndicate.