The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-06-17
Oxnards Pick Up Half
Million in Little
Transaction. "
BIG PROFIT IN
REFINERY SALE
Witness Tells of Birth of Beet
3 Sugar Industry in America, It's
Trials and Temptations.
Asks That It Be Given
Chance to Compete
With World.

Washington, June l6.-The storyIo of
the birth of the beet sugar Industry
in America. It's trials and tempta lions
ever since and how the Oxnard Broth
ers were enriched oy more than half
a million dollars profit through "the
little transaction" Of selling their cane
sugar refinery in Brooklyn. valued ar
100000. to the first sugar trust In
1887. were the features in the lesti-
mony that Henry T. Oxnard gave to-
day TO the House sugar investigate
committee
Mr.. oynard was on the stand all day,
and will be followed Monday by James
II. Post. president of the National
Sugar Refinery. Mr.. Oxnard assigned
as his reason for attempting to in
troduce the making OF sugar from
beets In this country the sale to the
trust of his refinery at Brooklyn, and
his belief that the introduction OF the
beet sugar industry would be prof :
table and patriotic" He then told the
story of the organization OF the Amer
lean Beet Sugar Company. or that
$50. 100000 company, he said the
Oxnard Brothers L one time owned
60 per cent. He would not admit that
this stock was watered, testifying that
the valuation of tho property was
about sl2.ooo.0o0. while the preferred
stock to-day was worth about $4,000
600 and the common about $500. 900.
He was unable to tell why the capt.
taliza ton was fixed at so0,000,O0U, say
Ing that was the bankers business"
What induced YOU to sell your
stock % asked Representative Jacoway,
OF Arkansas
There was no inducement' was the
response.
Representative Madison asked Mr..
Oxnard IL in reality the American
Sugar Rehning Company had not
tried to use Its power In 1901 TO drive
the beet sussE- refners out OF business
By unfair com. etition. that is. cutting
below cost in the Missouri River ter
rItory?"
Il think it is fair presumption that
II was designed to drive us out" re-
piled Mr.. Oxnard.
Why did not they succeed?" con-
tinued the Congressman
We'll. our contracts with the groc-
ers were 60 sell al a price less than
the open market price on the day Of
delivery. The American Sugar Rem
ing Company evidently thought by re-
ducing the price about the time OF our
deliveries that we would be unable to
NIL our contracts. but that word open
saved us. We told the srocers sugar
could not be purchased in the open
market at the reduced price. If they
could. we authorized them as our
agents to buy. large quantity for us.
They could not do So"
Mr.. ONnard said that the only time
the American Beet Sugar Refining Com
pany had any agreement with the
American Refining Company was In
1902 when the former became the
selling agency of the latter. That
contract was cancelled. he said, when
Wayne MacBeagh. lawyer In 1906,
gave an opinion that 1t would send
them TO the penitentiary If they con
tinued it.
He protested against the reduction
OF the tariff on raw sugar, but added
that he would-leave 1t to the "refiners''
TO night for the duty on refined sugar.
What will make sugar cheaper?'
asked Chairman Hardwick.
Give Industry n Chance.
Leaving IL alone until the beet
sugar Industry is able to compete with
the world. The advances in the. Industry
have been rapid here. and they will go
ON If you give the industry a chance
After long discussion OF the beet
sugar industry and the tariff on raw
and refined sugar, Mr. OXnard asked
to be allowed to make a statement.
Quite 4 little has been said about
The trust controlling the beet sugar
refneries.' he said. THE trust does
not control all told more than 90 per
cent of the beet sugar industry, and
the beet sugar people compete with
the output of the other sugar reiner-
les There is no such thing as a re-
strafnt Of trade between the beet sugar
people and the other people.
II think you should give the devil
his due. If the trust had not gone into
the beet sugar business in this coun-
try. the industry would not have adj
vanced as II has. 1t had the money
and brains and chemists to put into