Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-06-13
Witness for American Rein.
ing Go. Declares Merger
in 1897 Was to Put Losing
Firms on Their Feet.
HAVEMEYER WORKED
BLUFF ON PARTNERS
Presiding Genius of Institu-
ton Maintained Suprem-
acy With Small Minority
of Stock Holdings.

,ihstoH, -. =. June 12.-SO care.
lully guarded were the operations OF
the american Sugar refining company.
up 10 Less than two years ago. r.. r.
sAtKins' vice president and acting head
OF the corporation told the house
sugar trust" Investigating commit
tee To-Day that stockholders we're ac
corded no information to how the com
pany was being conducted.
The condition grew so intolerent. tha
witness said, that the New England
stockholders combined and obtained
control. When they did so in 1891 they
discovered to their astonishment that
H. Q. Havemeyer. the presiding genius
OF the organization. had maintained
his supremacy with only 1000 shares
OF stock The holdings OF Mr.. Have.
meyer at the time Of hts death. Mr.s
Atkins said, were vAlued at about
100000 Of total of 500 0,0OO, 900 in the
American Sugar Refining company.
Mr.. Atkins said the New England
interests obtained control after com.
mittee discovered from an examination
that OF the stock-owners Of the Amert
can ~ugar Refining company, 63 per
cent were New Englandera s
eve found that there were 1s, 900
New England owners" said Mr.. Atkins.
"and 10000 Of these were women"
He explained how control for the New
England holders was secured by his
election and the election also OF
Samuel Carr, Chas. H. Allen, w. B.
Bomas and Edward Marston, all OF
whom now represented that majority
of the stockholders known as the New
England syndicate.
Representative Hardwick Of Georgia
is chairman Of the committee and ia
taking a leading part In the examina-
tion Of witnesses.
The committee first has taken up
the American Sugar Refining com.
pany. to determine whether the
corporation is operating in violation
.of the antitrust or interstate com.
merce law.
James M Beck, formerly assistant
attorney general, appeared today az
counsel for the refining company, and
Edwin F. Atkins Of Boston, vice presi-
dent and acting president OF the
American Sugar Refining company.
was the first witness examined.
Mr.. Atkins said the purpose of the
formation of the American Sugar Re
fining company in 1887 was to put on
their feet number Of sugar refineries
that had been operating at loss. He
said the companies had been working
without profits for number OF years.
The cost Of production OF refined
sugar has been so great, said Mr.. At
kins, that 1t was believed union Of
refneries would result In greatly re-
ducing this expense.
"Dld you expect through this means
to avoid some OF the competition 2"
asked Chairman Hardwick!
well, suppose it had some effect
Of that kind"
The witness said that seventeen re.
fineries joined in this merger In 1887.
which was arranged by III. O. Have
meyer. Almost all OF them, he said.
had been doing business at any Excess
sive cost, and they were scattered
throughout New York, New Jersey,
Massachusetts, Maine, Pennsylvania,
Louisiana and Missouri. He was un-
able to say what percentage OF the
refined sugar production they con-
trolled.
Moved to End Composition.
Mr.. Atkins was asked many Quee-
tions relative to the organization in
1887 of the sugar refinery companies
which later became the American
Sugar Refinery company. He said
the organization was to reduce the
cost of production and that he re.
ceived for his concern, the Bay State
Refining company, which he valued al
$500 900, trust certificates OF the secur.
tiles or holding company Of a value OF
100000.
Representative Madison Of Kansas
asked Mr.. Atkin IL it was not fact
that previous to 1887 there was free
and open competition In the buying OF
raw and the selling Of refined sugar
In this country.
"Yes,'' Mr.. Atkins said, there was
free competition
THAT competition you found to be
onerous, didn't your"
yes, 1t was"
1T was for that reason" Mr.. Madi-
son continued, that Mr. Havemeyer
gathered together yourselves and
about dozen other sugar manufac-
turers for the purpose of framing an