The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1911-07-21
BY AasocIatad Prean.

New York, July 20.-In an academic
discussion Of the governments rela-
tions to corporations this afternoon,
John Z. Parsons, former president OF
the American Bar Association and for
mer counsel Of the American Sugsr Re-
inning Company, declared 10 the con
gressional committee vcstigstinE the
sugar trust that the proposition OF f.
II. Gary, chairman OF the United
states Steel Corporation, for govern.
ment control Of business combinations
war cocialist1c and added that in HIS
opinion congress should place no re-
striction whatever on trade. He de-
clared the government should permit
commerce to take it's own course and
that great corporation cannot be or
ganized merely on valuations in dol
lars and cents of its own physical
properties but that the men behind 1t
must be capitalists. He said II con-
gress should pass a law conforming to
Justice Harlan's dissenting opinion IN
the Standard OH and tobacco trust
cases II would cause the countrys
greatest disaster.
TELLS OF FORMATION.
Mr.. Parsons told the committee his
version of the formation of the sugar
combine. He said at first that he was
willing to share all the blame, 'if there
is any"
The mysterious resolution which H.
Q. Havemeyer put through the board Of
directors Of the American Sugar Re
tining Company in 1891 approving zap
plioations made by political parties" is
strangely lost The committee instruc-
ted Secretary Freeman of the company,
to produce the resolution, but Freeman
today opened the proceedings by say
Ing his search for 1t had failed.
Mr.. Parsons followed Mr.. Freeman
on the stand.
Il am willing to take the blame for
originating the idea of consolidating
the sugar interests into the big COM
pany in 1887" said Mr.. Parsons.
Mr.. Parsons went further and said
that the sugar combination was the
first big combination, even preceding
the Standard on Company.
who suggested to you the idea OF
bringing these independent companies
together in 1887 into the sugar re-
fineries company?"
well, I think 1t was in all their
minds. I'm the man, yl<ough, who de-
serves the credit or the blame for ac-
tually forming that company, which
under reorganization because of the
Sherman antitrust law, became the
present American Sugar Refining Com
pany. thoroughly believe in the com
bination Of capital, of labor or for any
OlneT llIISS Ol LlOsS lubSTebIeQ Wnen IL
is legal"
How long did the rehneries com
pany last?"
-Ths change IN its affairs began
when a political party began suit TO
disorganize the North River Refinery
Company" said Mr.. Parsons.
What party7" cried most OF the
congressman.
we call It Tammany Hail."
aII ~ - g.
why.
'weIl, that was about the opening
shot Of a political party against the
trusts and both parties have kept II
up ever since. That's why am not a
good party man now"
The court, Mr.. Parsons said, dis
solved the North River Company be-
cause II was a corporation and had no
right to join a partnership. which was
the form Of the sugar reflnertes com
pany.
Mr.. Parsons explained how John z
Searles had paid 800, 900 for the $780,
900 North River property and disman-
tied the refinery. Then Searies, after
killing the North River Company's ac-
tual self" he said. entered IN as q
partner In the sugar reflneries COM
pany. This the court Of appeals de-
clared TO be illgal, thus killing a body
that had alrady committd suicid."
80 you see" continued Parsons,
there is even a lot of buncombe in
our own highest court"