The Washington herald., 1911-06-13
SAYS FEAR MADE
OWNERS ENTER
SUGAR COMBINE
E. F. Atkins Before Hard
wick Special Committee.
SUGAR TRUST PROBE ON

That the American Sugar Rein
ing Company-the sugar trust
was organized partly, at least, TO
avoid the free competition then ex-
isting; that desire to raise the
price of the product actuated, in
large part, the originators of the
scheme, and that at the time of the
combination he himself was in
duced to enter largely through fear
of disastrous consequences If he
stayed outside, are some of the ad-
missions obtained from Edward r.
Atkins, of Boston, vice president
and acting president Of the Amer
ican Sugar Refining Company, who
testified on the opening day of the
sugar trust investigation yesterday.
SHAREHOLDERS IGNORANT.
The investigation is being conducted by
the Hardwick special committee, elected
by the House of Representatives for that
purpose. The public hearings began yes
terday morning.
Mr.. Atkins further testified that Of the
nearly 10000 shareholders in the company.
less than a dozen were familiar with the
sugar business.
Did the desire to avoid competition
between the seventeen companies that
went into the Sugar Refineries Company
have anything to do with its formation
Representative Hardwick. chairman of
the committee, inquired.
Il suppose It did," Mr.. Atkins replied.
rs IT not true" suggested Representa-
tive Madison, Of Kansas, that up to
1887 there was free competition both in
the buying OF raw and the selling of re-
fined sugar.
Yes" said Mr.. Atkins. adding in re-
ply TO another query by Mr.. Madison.
that both competition and the high cost
of production were burdensome on the
refiner.
To Avoid Competition.
You wanted TO avoid that competi-
tion." said Judge Madison, and under
stand that Havemeyer got eleven of you
gentlemen together to form an agreement
to eliminate competition. Isn't that so?''
partly to reduce the cost of production"
And also to raise the price of your
product?'' Mr. Madison inquired
"Oh, I suppose so,' said Mr.. Atkins,
although the high cost of production
was really the chief reason for forming
the combination"
Did the prospective formation Of this
great sugar company strike you as a
formidable proposition in the event
that you remained outsider?
The witness said he could not recall.
He did believe. however. that he en-
tered the combination through fear OF
destructive competition. II his concern
and two or three others had refused to
join the trust the new combination
would not have been formed.
The witness told the committee that
about 10000 persons hold stock in the
company. The average number held by
each person is 43 shares. OF the nearly
10000 shareholders, Mr.. Atkins testi-
fed that less than a dozen are familiar
with the sugar business.
What induced these people who are
unfamiliar with the sugar business to
make these Investments"
Romantic Investors.
People seem to make investments in
propositions they know nothing about"
Mr.. Atkins replied. There's something
of romance about IT. An Engllshman
will invest in South Africa"
Questions by Representative Madison
brought a statement from Mr.. Atkins
that the earnings of the company lasC
year paid less than half the dividends.
The remainder was supplied by funds
coming from 'other investments" DIV
idends were paid last year aggregating
$500. 900.
Mr.. Atkins submitted figures showing
that the American Sugar Refining Com
pany contributes 61.21 per cent OF the
total annual production of refined sugar
in this country. OF this, 1927 per cent
is turned out by the company refineries.
and the remainder by factories in
which the company is interested. In
cluded in the company's resources are
eleven beet sugar concerns, which pro-