The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1911-06-27
PROPHET SMITH
TELLS MORMONS'
SUGAR PROFITS
Says His Church Was Gamer
BY Joining With
Trust.
NO DIVIDENDS TILL
MERGER WAS MADE
Says Church, Through Me as
Trustee" Holds Half Million
in Utah Company Stock.
Continued from First Page.)

IN Utan company Stock.
CONTINUED from First Page.)
one-tenth of his earnings?" asked
Hardwick.
Yes, theoretically" said the prophet.
Does the church invest in business
Hardwick.
No"
why did you invest in the beet sugar
company"
TO help out those who had invested;
large number of Mormons had put
money into the enterprise"
Church Got No Legal Advice.
Did you, as president of the church,
take legal advice, as to whether this
''The company did; the church did
not" said Mr.. Smith.
You are familiar with the existence
of the Sherman antitrust law"
Yes, 1 know of the law"
Merely an Investor.
81 want to say" continued the Nor
mon president, that the church has
nothing to do with business. AS
church, it has no more TO do with the
sugar business than you have. The
church is an investor only, and l am
the trustee of its holdings"
But, naturally. the church must take
some interest in this matter if 1t has
half million in stock" suggested Chair
man Hardwick.
"Oh, of course, 1 look out after the
stock as a trustee" said Prophet Smith.
Mr. Smith confirmed previous tesu-
mony that the American Sugar Renn-
ing Company owns so per cent Of the
Company.
Sulzer Questions Witness.
Representative Sulzer then took the
witness in hand and developed what
Prophet Smith does not know about the
details of the sugar business Presi-
dent Smith could give no figures as to
the cost per pound of beet sugar, the
cost of machinery, and the number OF
acres in cultivation.
What years did the Utah company
pay dividends prior to its amalgama-
ton in the Utah-Idaho company"
As to Dividends.
81 could answer better the years IT
didn't pay dividends" said the witness.
Members of the committee smiled. and
Prophet Smith stroked his long beard
thoughtfully. Mr.. Smith observed that
dividends were rather irregular until
the combine.
Calls 1t Blessing to Utah.
do you regard this combination as
being in restraint of trade?" asked
Representative Sulzer.
81 regard it as being in extension of
trade" emphatically responded the wit
ness. 1T has enhanced the value of
our farms, il has made possible the
cheaper production of beets, and 1t has
proved one of the greatest blessings
ever visited upon Utah and Idaho. 1
do not think that the combine has in
creased the price Of sugar to the con-
sumner one Bit
IF you had no sugar industry IN
Utah and Idaho, where would be your
nearest source of supply?" asked Rep
resentative Kinds.
"St Louis, nearly 1000 miles dis
tant," said the Mormon president.
Mr.. Kinds wanted to know what divi
dends had been promised those who
invested in the sugar business in Utah
and Idaho.
promised No Dividends"
They were promised no dividends |
They were promised only that the in
dustry would be for the good OF our |
people," answered President Smith. OF |
recent years, or since 1893, the witness
said, the business has paid an annual |
per cent dividend.
"Why don't you folks buy the Have
meyers out?" demanded Representative
Baker.
I'VE haven't got the money" laconi-
cAlly answered Mr.. Smith.
Says Church Borrowed Money.
The president of the church volun-
teered the information that the church
had borrowed money in order to help
out the Utah Sugar Company.
1.-The church had a bonded indebted
ness then of a million dollars, but
we borrowed more to help out the
haf |
that time been successful"
Through Me As Trustee"
How was the money borrower?
"By the church through me as
trustee" said Mr.. Smith.
Representative Raker attempted to
have the witness admit that he, as
'No, Sir" said Mr.. Smith. ct am
lust one of the board of directors.
AAO't dominate the company"
Havemeyer Wrote Once.
Didn't the secretary often write to
at your direction" asked
Mr.. Raker.
Never" said the prophet Il don't
think l ever had but one letter from
Henry Havemeyer in my life"
The virtual story of Mr.. Smiths life
was brought out by questions by Repre-
sentative Madison.
When did you first think of raising
beet sugar." asked Mr.. Madison
Brigham Young launched the indus
try in 1885," said Prophet Smith. I'VE
sent to France for the machinery, and
II was hauled across the plains. Our
efforts to make beet sugar was for
many years a failure. l have paid as
high as SO hundred for sugar, and II
was hauled across the plains from st.
Louis, nearly 1000 miles
A IL rs