Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-07-19
DENIES MONOPOLY CHARGE
Says American Makes Only Half Of
Total Product in Country.
WHY CAPITAL WAS INCREASED
Done in Order to Acquire Interest
in Thirty-Three Beet
Sugar Redneries.

NEW fOHh, July 19.-MOre secrets
OF the American Sugar Refining Com
pany. known as the sugar trust" were
expected to develop today. when WASH
tngton b. Thomas. chairman of the
board OF directors. resumed the stand
at the second days session Of the spe-
cial congressional committees investi-
cation. Several members Of the COM
mtttee were anxious to go further into
the details Of the conference between
H. o. Havemeyer and John Arbuckle
which terminated the great sugar war.
Mr.. Thomas testified yesterday that
he was at the Havemeyer home at the
time Of the conference. but did not
hear what was said. A subcommittee
buckles testimony. as he is too i'll to
appear here.
Before Representative Sulzer start
ed to question Mr.. Thomas, Chairman
Hardwick announced the appointment
OF subcommittee composed OF Rep
resentatives Sulzer. Malby. Jacoway
and Kinds, with authority to examine
ords and correspondence OF the Amer
lean Sugar Refining Company, wher-
ever located; to visit any plants or re-
fineries, and to employ any experts or
assistants necessary and to report to
the whole committee.
say that his company could manufac-
ture sugar here as cheap1y, or nearly
SO. as it could be made in any other
country. 1t was owing to the tariff
he thought; that the price Of sugar
here Is higher than in England.
Mr.. Thomas said the American made
less than SO per cent OF the sugar in
this country and that 1t, therefore. Is
not monopoly.
Capital Was Increased.
Representative Jacoway asked Mr..
Thomas why the American increased its
capital from SO. coo. 900 to sac. 600 900.
ITO take an interest in about thirty
three beet sugar refineries,'' was the
reply.
Mr.. Thomas said that the work OF
acquiring the beet SUGAR interests was
done exclusively by H. O. Havemeyer.
who was not in the habit Of consultins
any one else about sugar company trans
actions.
Mr.. Jacoway asked Mr.. Thomas If the
American was not in the habit Of boy
cotting any independent who went into
the Louisiana market to buy sugar.
Absolutely no. was the reply.
"Was not the object Of the American
refneries to absolutely control the out
put Of sugar IN this country
mot that I know Of
In reference to the agreement between
the American Sugar Refining Company
and the American Beet Sugar Company
in 1902 to pool selling interests Mr.
Thomas said John e. Paysons had told
his company that the agreement was
not in violation Of the Sherman anti
trust law. but that when Secretary Mac
eaeh informed his company 1t was a
violation of the law the agreement was
abrogated.
you have about 10000 woman stock
holders in New Engiand?'
Yes"
when prosecution threatened your
company did not you and your associ-
ates unload most of your own sugar
stock on these New England women"
Competition in Louisiana.
mot at ALL
Mr. Jacoway asked the witness If his
company was not In constant warfare
with the raw sugar producers Of Louis
lana.
''Yes. we are competitors
Us that why you advertised in the
trade paper that raw sugar is unhealthy
and has bug in it,
'I know nothing about the advertise
answered the witness. but he
was instructed to get the information for
the committee.
IT'S 1t not fact that there is Sc, 900. 900
Of water In the capital stock OF the
American company and that 1t has been
to pay dividends on 500 ono, 900
Of stock out Of earnings on not more
than 10000 600 Of actual property
"Oh. could not say that" said Mr..
Thomas.