The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-23
HOW MORMON HEAD
GOT IN SUGAR TRUST
TOLD BY. CUTLER
Way to Popularity and
Economy Seen in the
Combination.

At the suggestion Of Thomas r. Cut
Ter, the late H. o. Havemeyer permitted
Joseph f. Smith, head Of the Mormon
Church, to become president of the
Utah-Idaho Sugar Company, according
to the testimony of Cutler before the
Hardwick Committee today. They con-
solidated all the Mormon Church sugar
interests into a $l3, 900 company, one
half of the stock Of which was taken
by H. o. Havemeyer, of the American
Sugar Refinery Company.
Il was in New York City when Mr..
Havemeyer received a letter from Jo-
seph F. Smith relating to the organiza-
ton Of the Utah-Idaho company" said
Cutler, who is vice president and gene
raj manager of the Utah-Idaho COM
pany. Stockholders in the various
companies taken in by the Utah-Idaho
feared that the purpose of Mr.. Have
meyer and the American Sugar Rein
ing Company in taking the stock in the
Utah-Idaho company was to thereby
gain contlGI.
Writes to Havemeyer.
ITO quiet the fears of these stock
holders, President Smith, as head of
the Mormon church, wrote Mr.. Have
meyer. A. SOSSSob4Oh
named six directors, to whom he agreed
and then he asked me who we wanted
for president.
81 told him the Mormon people would
have greater confidence in the COM
pany If oJseph Smith became president
of the Uta.h-Idaho Sugar Company. He
agreed without question"
Mr.. Cutler said the purpose of organ
izing all the sugar companies In which
MoFmons were interested into one COM
pany was for the purpose of economy.
Before that time l drew salaries
from three companies as general man
ager,'' said Mr.. Cutler" Now l draw
one"
President Smith as trustee for the
Mormon Church holds 49,Sl5 shares
of stock in the Utah-Idaho Company.
Havemeyer, Cutler said, at first OPP
posed the consolidation of the Nor
mon sugar interests. Previous to the
said there was no competition be-
tween the various Mormon factories
because the officers and directors were
all the same. The stockholders in
these companies, he said. were not
all Mormons, nor were the directors.
Railroad Interest.
Mr.. Cutler said he did not know
whether the Mormon Church owned
stock in the Union Pacific railroad,
but he understood President Smith
was a director of this railroad. He
said he did not know just what in
terests President Smith held in other
business as trustee for the Norman
Church.
Because granuIated sugar made from
beets has not vet been perfected in his
opinion and In the general opinion of
the public, the beet sugar manufacturer,
according to Mr.. Cutler. is compelled to
sell under the cane sugar manufacturer.
Ills company, he said, constantly sold
twenty points under cane sugar.
The IJtah-Idaho Company sells Is per
cent Of it's output in Utah and 6 per
cent in Idaho, Cutler said. The COM
pany owns 10000 acros Of beet land to
protect their factories should the farm
ers fail in their supply. Mormon girls
sometimes work in the beet factories,
Mr.. Cutler said
Trouble of Marketing.
Because of competition and freight
rates and not because of any agree
ments with other sugar companies. Mr..
Cutler said, It was almost impossible
for his company to market sugar either
East of the Mississippi and Missouri
rivers or on the Pacific coast.
In the immediate territory Of the
Utah-Idaho Company, Mr.. Cutler said,
there was also an amalgamated sugar
company in which the American Sugar
Refinery Company also owns a half in
terest. Cutler said that so far as he
was concerned there was competition
between his company and the Amalga-
mated.
Representative Malby led Mr.. Cutler
IN the tariff questions.
Long-Stahding Price.
For FIVE years we have marketed
our products at from 80 cents to 81 prof
It per hundredweight," said Cutler. "Of
that sum 1t requires Y cents to pa
dividends, maintenance, etc. The bal
ance goes into a depreciation fund.
eff there were a reduction of one iota
on the tariff we could not continue in