Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1911-06-13
SUGAR TRUST INQUIRY
IS FORMALLY OPENED
Witnesses From Leading Re-
fineries of the Country Are
Called to Testify


WASHINGTON. June $50 carefully
guarded were the operations of the
American Sugar Refining company up TO
less than two years ago. K. F. Atkins
vice president and acting head of the
corporation, told the house sugar trust
Investigating committee today that stock
holders were accorded no information OF
the company's conduct.
The condition grew so onerous, the Wit
ness said. that the New England stock
holders combined and obtained control.
When they did so in 1910. the discovered
TO their establishment that II. o. Have
meyer, the presiding genius of the or
ganization, had maintained his suprem-
acy with only 1000 shares Of stock.
The holdings OF Mr.. Havemeyer at the
time OF his death. Mr.. Atkins said. were
valued at only about $4,000 of total
OF ssO.OOo,ooO in the American Sugar Re-
fining company. That was a surprising
discovery" he declared 1t had been
generally supposed that Mr.. Havemeyer
owned the greater part of the stock.
Mr.. Atkins said the New England In
terests obtained control after a commit
tee discovered. from an examination,
that of the stock owners of the American
Sugar Refining company. 60 per cent
were lew Englanders.
I'VE found that there were $4,000 New
England owners" said Mr.. Atkins, land
lOe 900 OF these were women. They were
helpless as far as representation was
concerned, and 1 was urged TO take a
place on the board, which l did"
witnesses of the leading sugar refiner-
les in the east have been summoned to
appear before the comittee and will be
followed by those interested in other
lines - the sugar business.
HardWfck al Georgia,
is chairman Of the committee.
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 in
terstate commerce laws. James NJ
Beck formerly assistant attorney gener-
al, appeared today as counsel for the
refining company.
Edwin F. Atkins, Of Boston, vice pres
ident and acting president of the Amer
lean Sugar Refining company. the first
witness examined. said the purpose OF
the formation OF the American Sugar Re-
timing company in 1887 was to put on
their feet a number OF sugar refneries
that had been operating at loss with
out profits for a number of years, and
the cost of refined sugar had been SO
great that it would be union refineries
would result in greatly reducing this ex-
pense.
Did you expect through this means to
avoid some of the ompetition?" asked
Chairman Hardwick.
well, 1 suppose it had some effect OF
that kind"
The witness said that II rehneries poin-
Cd in this merger in 1857. which was ar
ranged by II. o. Havemeyer. They were
scattered throughout New York. New
Jersey, Massachusetts,, Maine, Pennsyl-
vania, Louisiana and Missouri.
Mt Atkins said that he received fol
his concern. the Bay State Refining com
pany. which he valued at $4,000. trust
certificates OF the securities OF the hold
ing company of a value of 100000
Representative Madison. OF Kansas.
asked Mr. Atkins whether. previous 70
1857, there was free and open competi-
ton in the buying of raw and the sell
ing of refined sugar in this country.
Yes" Mr.. Atkins said, there was
free competition"
That competition you found to be
onerous, didn't your"
Yes"
You wished to avoid that competi-
tion," Mr.. Madison continued, and IT
was for that reason Mr.. Havemeyer
gathered together yourself and about a
dozen other sugar manufacturers for the
purpose OF framing an agreement to
eliminate this competition, was 1t not?
We'll" Mr. Atkins said. the principal
object was to reduce the cost Of produc-
| ton"
Mr. Madison asked Atkins whether, in
1887, the II companies combined were In
control of 30 per cent OF the sugar bust
ness Of the United States. Mr.. Atkins
said he thought this an exaggeration
and explained that the American Sugar
Refining Company was formed In l&l
10 succeed the trustees Of the sugar re-
ineries companies because the legality
OF the latter organization was ques-
| toned.
Mr.. Atkins testified that ne had beer
made president of the American Sugar
Refining company two years ago at the
inslstence of New England stock hold
ers. who had been unable to secure in
formation from the company as to the
business It was doing.