Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-06-19
PRESIDENT OF NATIONAL SUGAR
COMPANY ADMITS EFFECTS
OF MERGERS.
Fifteen OR MORE MILLIONS
OF STOCK WAS WATERED
J. n. Post Reveals How Properties
Taken Over For $4,000, 900 to $4,ooo,-
600 Were Capitalized at $4,000, 900
After Competition Was Made
Impossible.

washington, June 19.-With two
separate committees of the house delv-
ing into the history and operation Of
the American Sugar Refining Company
and other sugar corporations, there
were brought out today surprising tales
| of riches. made over night, and sordid
stories of alleged fraud against the
| government
! The special sugar trust" investigat-
ing committee continued its inquiry in
| to the formation and workings Of the
big sugar corporations, having before
| it as witness James H. Post. presi-
! dent of the National Sugar Refining
/, Company, of New Jersey.
Mr.. Post told how III. 0. Hayemever
nad been rewarded for forming the Ma
tional Sugar Refining Company, of
New Jersey, by stock in the refinery
! worth $10,000.0o0, stock which since
had earned in dividends $4,000 900
more. Mr.. Post insisted that the s10,-
oo0,o0o represented only pro-
moter's profit. Pressed for some ex-
planation of what it did represent. he
finally answered.:
well, there were three ref1neriese
put together" Asked how Mr.. Have
meyer got possession of the stock, the
witness replied. II sent it to him a few
days after I received it,"
washington, June 19.-That the gov
ernment has erred in it's facts in the
formal petition seeking the dissolution
OF the American Sugar Refining Com
pany, was the declaration of James II.
Post, president Of the National Sugar
REFINING Company. Of New Jersey,
when he appeared today before the
house sugar trust" investigating COM
mittee.
Mr.. Post fatty denied the allegations
contained in the governments petition
that he was the agency thru which. in
1884 an attempt was made by two great
refining companies to control the
sugar market.
No Deal to Limit Output.
The denial came when Chairman
Hardwicl. Of the committee, question
ed Mr.. Post as to the alleged manner
in which he, as the head Of the Nation
al Sugar Refining Company in 1894. ef-
fected deal by which his company
and the American Sugar Refining Com
pany agreed to limit the output of re-
fined sugar. and fix prices
There is no foundation for that"
declared Mr.. Post.
Don't you know anything about such
an agreement? urged Chairman Hard
wick.
Il read that, but can't imagine to
what they referred"
$15,o0o,o0o in Water.
The organization of the New Jersey
corporation was taken up. The cap
italization Of the new company, Mr..
Post testified. was 100000 900, divided
equally between preferred and common
stock. The companies taken in were
capitalized at between s3.o00,o0O and
$4,ooo,ooo.
"And the difference was water?" in
quired Mr.. Hardwick.
'No, the companies had valuable
properties" was the reply.
Competition "Avoidsd."
The property Of tho New York Sugar
Refining Company. one Of the COM
panies bought. Mr.. Post said. was
worth $2,50o,oo0 while only $2.1e5, ,0eo
was paid for It.
"Why was that?" asked Chairman
Hardwick.
TT was because competition had been
keen."
And this organization was effected
to avoid competition!"
TT had that effect.