Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-07-20
COMMITTEE MAY PROBE
REAL VALUE OF STOCKS
Chairman Thomas Contrasts
Present Methods With Those
in Vogue During OeSpOtic
Reign of H, 0, Havemeyer
iBy Morning Journal Special Leased wire,

ingtOn b. Thomas the present chair
man Of the board was elected mem
ber Of a special committee with II.
.. Havemeyer and Mr.. Senff to ac-
qure sugar refineries. Mr.. Thomas
today told the special congressional
committee investigating the so-called
sugar trust" that he knew nothing
about it until ne read of it in the
government report at Washington a
few days ago.
Didn't Mr.. Havemeyer notify you
that you were member of the COM
mittee TO purchase Independent beet
sugar interests throughout the coun-
try?"NChairman Hardwick asked him.
Not that | remember"
"As a member of such committee.
did you ever participate in the pur-
chase of such interests?"
II don't think SO.
But the records show that you, as
a member OF the committee, joined in
these $S5, 100000 purchases of in
dependents
Il have no recollection of it. Mr..
Havemeyer always attended to these
matters alone and never consulted
anyone
Mr. Thomas told bf his financial
interest in the American Sugar Re
filming company. His stock. he said,
amounted to about 1900 shares with
a book value of about $4,000 and
the holding of the members of his
family, including his own are be-
tween 5000 and 10000 shares, with
a value OF between $1,600,000 and
$1,000, 900.
Mr.. Havemeyer, when he died, had
only about 1885 shares Of stock, but
for many years had thoroughly dom
mated the company, the witness said.
Mr. Thomas said the S90,00000O
stock of the company was represented
by real property with a book value of
$135, for every 100 shares of stock.
Chairman Hardwick said he would
not accept the eompanys book value
as correct.
Anybody can figure book value"
he said; what ] want is actual value
by unprejudiced experts" and it was
Cndeavor to arrive at such a valuation
by the employment of experts to APP
praise the value of the property.
In reply to Representative Madison
Mr.. Thomas went into the formation
OF the original
The refineries composing the first
company, were capitalized at $6,500,-
600 and were given $50,0OOOOO of
sugar trust stock for their properties,
were they not?"
Il believe not
That's a whole lot of moisture,
was it not?"
II guess So
DO you not know that much Of the
stock is now water?
Mr.. Thomas admitted that this
might be true.
"ln the reforms you inaugurated
about the time of Mr.. Havemeyers'
death, did you reduce salaries?'
II did In my case"
What are you getting?"
twenty-five thousand a year"
What was Mr., Havemeyers sal
ary?"
"One hundred thousand"
WAS not John e. Parsons, as
counsel, paid 100000 for his SER
vices in bringing in the Philadelphia
refineries?'
Yes, but we have cut out such mat
ters now"
Mr.. Thomas added that Vice Presi-
dent Atkins, although taking a very
active interest in the affairs of the
company, receives no salary. He ex-
planned this by saying that Mr.. Atkins
liked to work.
Among the reforms to be nstitut
ed by the company, according to Mr..
Thomas is a pension system for en-
ployes.
Mr' Madison, who took a hand in
the questioning, said he believed the
common stock OF the National Sugar
Refining company in the New Jersey
suit. would be invaidated. "as the is
suing of that stock was terrible
steal and that this would give the
American company control. thus in
creasing its output to nearly sixty
per cent OF the country's product.
This, with the Americans large
interest in the beet sugar industry,
would make the American most
formidable corporation absolutely
controlling one of the country's
necessities.
DO you not think congress should
control such powerful organiza-
tion?" he asked.
Il think II would be a good thing"
rpn1ipd thn yvftnaea