Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1911-07-23
HAVEMEYER
V|OL|N|ST
He Won The Admiration Of
John ArbuCkIe
MIR. SPRECKELS SPEAKS
Tells Committee Investigat-
ing Sugar Trust How the
Sugar War Came to an
End-His Own Troubles
as Independent Refiner.

New York, July 22.-Claus Angus
tus Spreckels. son of the late Claus
Spreckels of California. the principal
owner of the FedaraI Sugar Refining
Company. Of Yonkcrs, today gave the
most sensational testimony that has
been developed by the congressional
committee investigating the sugar
trust. during the hearings here.
Besides throwing an important side
light on the conference between John
ArbuckIe and the late II. o. Have
meyer. which is believed to have end
ed the great sugar war, he described
under oath the Vicissitudes of the in
dependent sugar refinCr and said his
plant at Philadelphia before II was
controlled by the trust had been
put out Of commission several times
by persons who threw sand into the
machinery bearings and otherwise
wrecked the plant.
lie swore that at the Nonkers re-
finery after it had turned down the
trust ovcrturcs, dead rats were
placed in barrels of sugar ready for
shipment and TIE whole watts of liquid
sugar had been drained off in the
night into sewers.
The nuisance of dead rats continued
untn private detectives pointed out
the. several of his employees whom
he discharged. refusing to pay their
-rages I'm the hope that they would
sue him and thus enable him to ques-
ton them under oath as to who en-
ployed them. Much to his disap-
poiutment he was never sued.
SpreckIes declared that ii. o Have
never. Theodore Havemeyer and John
Z Searles. all officers of the Ameri-
can Sugar Refining company and
now dead. purchased a half interest
in the California refineries to end
the Spreckles sugar war. for $2,225,OoO
in cash and six months later sold
this interest to the American Sugar
Refining company for $5,000,OOO in
preferred stock which at the time was
worth s120 per share or S6,0oO,OoO-
Interesting points of Spreckles' tes-
ti,nony included the assertion that
in four years he made $2,0OO,OOo in
the Hawaiian sugar plantations on a
cash Investment of $4,000. Since
starting the Federal Refinery ten
wears ago by a cash payment OF
q 500 0O0 for equipment. he has paid
six per cent dividends on that $500
o00 regularly. he said, representing
nreferred stock. and has turned earn
ings amounting to equal that amount
hack into the Improvement OF the
plant.
. Representative Garrett, OF Tennes-
see asked Spreckles If he knew any
thing about the conference between
John Arbuclle and H o. have
never which is supposed to have
ended the sugar war.
Yes. something" he said soon
after the conference John Ar
buckle came TO me and said: I've
iust had a little talk with Henry ..
Havcmeyer He said an understand
inc had been reached; there was an
overproduction of sugar and he asked
me if I would reduce the output Oh
the Federal. / told him the Federal
would work to full capacity. lie Salu
.You have misunderstood HaVemeyer
lust like I did. lie is fine, cul1-
yated-why he plays the violin.
so did Nero play the violin saio
and Rome burned He told me
we ought to reduce the output. that
there was too much sugar. that py
reducing the output. we could reduce
expenses. keep up the price OF sugar
and thus make more money. he
said that was what the American
was going to do"
Did YOU understand from John
Arbuckle that he had reached an
agreement with Havemeyer and the
American that the production of sugar
was TO be reduced?'
Yes He said that he and the
American had buried the hatchet."
Did anyone else try to get you
TO reduce the production of sugar.?
Yes. Mr. Warner. of the American
company He said it would create
better feeling among the refiners
generally and that an understanding
could he reached. ] think both Ar
buckle and Warner were sent by the
American Sugar Refining company to
get me to enter into the agreement.