New-York tribune., 1911-04-04
HAVEMEYERS FILE ANSWER
Heirs of Sugar Man Deny Gov.
ernment's Allegations in Suit.
NO CONSPIRACY, THEY AVER
Purchase of Stock Of New Ma.
tional by American in 1900 Is
Explained in Action.

The heirs Of Henry o. Havemeyer. Louis
ire w. Havemeyer. his widow, and her chill
dren, Horace II. Uavemeyer Adeine FIRE.
linghuysen and Electra II. Webb, filed a
Joint answer yesterday in the United States
Circuit Court. 10 the suit Of the government
brought under the Sherman antitrust law
TO dissolve the American Sugar Refining
Company as an Illegal combination in re-
straint of interstate trade.
The defendants deny that the late II. o.
HayemCyer ever entered into plan with
others to destroy competition between the
American Sugar Refining Company and the
National Sugar Refining Company. the New
York Sugar Refining Company and the Mol
lerhauer Sugar Refining Company.
The answer states that in May. lSco II. o.
Havemeyer Informed the board of directors
of the American Sugar Refining Company
Of the intended purchase Of several sugar
rehneries. which were to h. taken over by
the new National Sugar Refining Company
of New Jersey. with a capital stock OF &c..
co, FER cent cumulative preferred stock
and an equal amount of common stock.
The board adopted resolutions authorizing
the treasurer of the American Sugar Re
fning Company to invest in all s.250.to0. and
James II. Post procured that amount of
preferred stock.
The defendants deny that the 10000
shares Of common stock of the National
were issued contrary to law or without
sufficient consideration. They state that
the company was incorporated by author
ity of an agreement between the persons
interested. and that at meeting of the
directors Of the National company on June
,. 1900 it was decided to purchase from
James H. Post 1000 shares OF the old Ma
ticna Sugar Refining Company. 10.Oo
shares o fthe Mofienhauer company, 500
shares OF the New York Sugar Refining
Company and the per cent bonds Of that
company Of par value of $4,000, for
total Of SIS. 10000. This amount was 10 be
made up of 10000 shares Of the preferred
and $1,000 shares of the common stock OF
the new National company. On the same
day J. H. Post vas elected president.
The National Sugar Refining Company"
the answer continues. could not have ac-
auired them on any terms less favorable
10 the owners Of them under the said
agreements than we're offered by them 10
the said company and accepted by it. In
the sugar refinery business reasonable
and customary net profit upon raw sugar
melted is % cents per loo pounds Such
minimum profit IL equivalent upon the
actual average annual MEETINGS Of the Ma
tiona Sugar Refining Company, of New
jersey. during the years 1902 70 1910 10
total annual net profit Of sl,6o2. go.
This amount, it Is explained. would have
sufficed TO pay each year the per cent
dividend on the preferred stock and I
per cent dividend on the common stock,
and still leave an annual surplus Of *W,-
go These facts, it is averred. were well
known TO the directors who voted the issue
, of sls,ooo.0oo Of stock.
The defendants state that Immediately
upon receipt of the certificates for 10000
shares of the common stock James ".
Post Endorsed them in blank and turned
them over 10 Henry Q. Havemcyer and
Lowell NJ. Palmer. as trustees. under n
Voting trust agreement They admit that
in January. 1901. II. @. Havemeyer acquired
| the interest of John L. Parsons and i. NJ.
/ Palmer In the voting trust certificates. but
say that ii vas not until April llS)@. that
the interest Of Washington r. Thomas
! therein was transferred 10 II. -. Have
meyer.
The answer tells OF the sun pip"sh' ''
the Chsncery Court 1T Trenton. \. j. for
the recovery from lanes II. Post and the
Hsvemeyer family ~ the lN.o0 shares OF
National common stock The defendants
ssv that this suit Was brought at the IN
stance of the American Sugar Reilnins
Company in an effort to get absolute CON
irol of the National compans
IN denying that they are participants III
any conspiracy Ia restrain trade the de-
fendents give the holdings OF sugar stocks
OF the Havemeyer family. besides the S,"N
shares common of the National. as follows:
Shares.
Great Western Sugar compant. common = irl
C;roai Western Sugar COMPANY preferred ~ ~
/. M Idaho Sugar COMPANY prefcrred ... ~ =
Cuhsn-Arerican Sugar Company. common Z! 80
CIten-American Sugar Conlan. preferred 80
Continental Sugar Company, common --.-. 5'c"'
The answer filed in behalf Of the defend