Rock Island Argus., 1911-06-16
Sugar Trust Paid $780,
600 for a $780,
000 Plant,
FORMER OWNER SAYS
Claimed That Havemeyer Was
Given $1O,OOO,OOo Bonus
For His Work.

Washington, June 16.-Halr a
million dollars profit was guaranteed
by Oxnard brothers almost overnight
when they put their Brooklyn sugar
refinery. valued at 100000. into the
sugar trust" in 1887. according to
the testimony of Henry T. Oxnard.
vice president OF the American Beet
Sugar company, before the sugar
trust investigating committee today
Had the Oxnards held their Ntrust''
certificates until today, witness said,
the deal would have netted them
100000 besides dividends on GER
tificates. They sold the certificates
two years after they received them
for $750,000.
GLAD TO SELL.
1--WE were glad to sell out" said
Oxnard. "Cut throat competition ax-
listed in those days and unless the
beet sugar business turned out as
we thought it would, 1t was doubtful
about our keeping going"
Witness said the capitalization OF
the Brooklyn factory was only $780,
600, but the plant was worth $780,
900.
You would have been satisfied to
get out what you had put into It.
wouldn't you?" inquired Chairman
Hardwick
We'll, I don't know" was the re-
sponse.
WANTED THE NAME
ION this little transaction you
cleaned up half a million. Now, how
much water was in the other deals?
How much did Captain Thomas
make?"
''I don't know. We probably were
treated little better than the
others"
"why?"
'They wanted the name" said Ok
nard. 'They really bought out the
Oxnard Brothers"
He said he did not stay with the
trust" but went abroad and after
studying the beet sugar industry in
Europe returned TO .merica TO en-
gage in that business In earnest op-
position to the "trust."
tON
After long discussion OF the beet
suger industry and the tariff on raw
and refined sugar. Oxnard asked to
be allowed to make a statement.
"Quite a little has been said about
the trust controlling beet sugar re-
fineries," he said. "The trust does
not control all told more than 90
per cent of the beet sugar and the
beet sugar people compete with the
output Of the other sugar refining
companies. There is no such thing
sugar and the other people.
CREDIT WHERE DUE.
81 think you should give the devil
his due. If the trust had not gone
into the beet sugar business In this
country It would not have advanced
as IT has. 1t had money and brains
and chemists to put into the work
BIG BONUS TO HAvEMEYER.
Lowell NJ. Palmer, a director of the
American Sugar Refining company,
hinted before the house investigating
committee yesterday that $10.000,000
worth of stock of the National Sugar
Refining company of New Jersey had
gone to II. o. Havemeyer as promo
ter's fees. Mr. Palmer also said he
that $7.6OO.0O0 value of It
was still In the possession of the
family.
In connection with the Issuance OF
$50. 900, 900 common stock of the Amer
lean company, Mr.. Palmer confessed
that he did not know what became Of
IS ,00O, 900 of IT, He said he believed
the stock Of the American had been
watered, but he was not willing to es-
Innate how much.
Mr.. Palmer told in detail how the
sugar interests combined in first one
form and then another, and how the
American Sugar Refining company
achieved power In the sugar world.
MORMON LEADER CALLED.
In point OF interest this story was
-ivalled in the days proceedings only
by the refusal of the committee TO ex-
suse Joseph F. Smith, head OF the
Mormon church, from responding to
he subpoena to testify before the com
nittee. He must appear next week.
Senator Smoot made a vain effort 10
save Smith excused.