The Birmingham age-herald., 1911-07-26
|MAVEMEYER MADE
 FAMILY TROUBLE
Caused Break Between
 Father and Son
MOTT MAKES DENIAL
Asserts American Company Never Discriminated Against Louisiana
 Sugar Planters and Never
 Fixed Raw Sugar Price

New York, July 25.-Before concluding it's New York sessions and returning to Washington this afternoon, the congress sional committee Investigating the so- called sugar trust heard Claus A. Spreck- els accus H. o. Havemeyer and the American Sugar Refining company in terests of causing the break which ex- brother for 15 years
 T was manager of the Spreckels re- finery in Philadelphia" MT. Spreckels said, and after the American Sugar Refining company had acquired a strong minority interest in it they tried to dic- tate Is policy. I refused to be dictated to and they carried stories. to my father in San Francisco which caused me to leave the refinery and brought about the break in our close family relations But a year before he died my father called imposed upon and that my conduct of the Philadelphia refinery had been justi- fed"
 MT. Spreclsels submitted in evidence d letter signed I'll. o. H. which he said
 was from Havemeyer. It urged him to get all he could for sugar and asked him to
 do nothing foolish about selling refined" below the price asked by the American.
 He also presented three letters from John E. Searles, then treasurer and sec
 retary of the American, indicating that the company had fixed certain prices for sugar on certain dates, 'and asking
 Sprsckels to see that his refinery did not
 undersell those prices. One letter conn plained that Spreckels was refining more sugar than Searies had understood had been agreed upon, and another stated that as Spreckels had cut the price of granu- lated, the American would do likewise. The letter concludes:
 ''This may be good business manage ment, but I do not believe 1t. I think you are simply throwing away money" The committee will meet in Washing ton next Monday. The subcommittee appointed to examine the books and records of the American Sugar Refin- ing company probably will employ eX
 perts within a few weeks and will be ready to report to the general committee early in the fell.
 Henry c. Mott, purchasing agent for director of the American Sugar Re- finng company, who was the first wit
 ness today before the committee, de- clared that in making purchases of sugar the company never discrlminated against any planters, never punished Louisiana planters for selling sugar to the inde- pendent refiners, and never arbitrarily fixed the purchasing price of sugar. Asked about the Americans purchases
 of sugar in Louisiana. MT. Mott said:-'
 eve paid the New York price, less the freight rate to New York. which is about 15 cents per 100 pounds
 "Yet you used much of that Louisiana sugar in your New Orleans refinery and T ,,nt fn Nov Xn,. "Oh. we sent great deal to New | York;
 Mr. Mott said he would guarantee to l purchase in Louisiana for any independ- | ent concern, all the sugar they wanted, | If they paid the American's price of 1-32
 more and had the cash. Other witnesses
 had said the planters were afraid to sell to the Independents because if they did they would be boycotted by the American, which is the largest purchaser
 MT. Mott insisted that if there had been any discrimination against any of the Louisiana planters or boycOtting of any of them. it had been done by the Amer ican Sugar Refining company's local pur-
 chasing agents there and not with the knowledge or consent of the company.
 "Why do you pay the Louisiana planters the New York price, less the freight "a te, when you refine most of that sugar in New Orleans?"
 we have to buy approximately 200,
 900 tons of the total crop of 300000 tons within three months. Our refining ca
 pacity at New Orleans is only 75,0OO tons for that time and the result Is that we have to store from 75,000 to 100000 tons of
 raw sugar. We must take all the risks of fire, deterioration and the change in marketing price. We figure that the
 freight rate pays us for this trouble, risk and expense
 l Mir. Mott said the worlds consumption of sugar was increasing rapidly and that | while at present the production was | greater than the consumption. the pro- | duction must be greatly increased to
 meet the constantly increasing world de-
 mand.
 l MT. Mott said he would like to have | freedom from hamperng laws that were
 keeping the company from doing business. | 'If the government would leave us alone
 we could get along very nicely he de-