Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-06-16
CLEAR HALF MLLONPENR0SE HAS HOPES BRIBERY BILL HOLDS
Profitable Rapid Peter Thomson Must
Indictment
VOTE WR|GHS RULING
of Official Within
Worth
Per Cent o
the United States Car Papr.
Oxnard Brothers Profitable
Deal With Sugar Trust.
BROOKLYN REFINERY SALE
Total Of $3.50, 900 Realized on Plant
Worth $500, 900.
H. T. OxNARD's TESTIMONY
Declares Combine Controls Not More
Than 90 Per Cent of Beet
Industries.

Half a million dollars profit was gar
nered by the Oxnard Brothers almost
over night. when they put their Brook
lyn sugar refinery. valued at 100000.
into the sugar trust of 1887. accord
ing 10 testimony of Henry T. Oxnard
vice president of the American Beet
Sugar Company. before the House
sugar trust investigating committee
today. Had the Oxnards held their
trust" certificate until today. the wit
ness said. the deal would have netted
them 100000 besides the dividends on
the certificates. They sold the certifi-
Gates two years after they received
them for s75O,000.
We were glad to sell out" said Mr..
oxnard. "Cut-throat competition ex
listed in those days and unless the
beet sugar business turned out as we
though il would il was little doubt
full about our keeping going
Plant Worth $780, 900.
The witness said the capitalization of
the Brooklyn factory was only S1OO.OU,
but that the plant was worth $2oO,OOo
You would have been satisfied to get
out what you had put into 1t. wouldn't
you?" inquired Chairman Hardwick.
We'll. don't know" was the response.
'On this little transaction YOU cleaned
r;p half a million. Now. how much water
vas in the other deals? How much did
Capt. Thomas make?"
Il do not know. We were probably
treated a little better than the others"
Why"
They wanted the name" said Mr.. Ok
nard. They really bought out the OK
nard Brothers"
He said he did not stay with the
trust. but went abroad. and after study
ing the beet sugar industry in Europe
returned to America to engage in that
business in earnest opposition to the
trust
Interested in Beet Sugar.
Mr. Oxnard explained that he and his
brothers. Robert, Benjamin and James
c.. were interested in the American Beet
Sugar Company, but at present they
owned only about l.Voo shares of DIG
ferred and $50 to 1860 shares of common
stock, Their largest holdings. he added.
were in a Louisiana cane sugar refinery,
in which they had invested about $1,0OO,-
600.
There had been a big tariff on sugar
for twenty-five or thirty years, explained
Mr. Oxnard II thought 1t would be
profitable and patriotic to introduce the
beet sugar business into this country.
The witness said the American Beet
Sugar Company had never had any
connection with the American Sugar
1902 under which the latter became the.
selling agency" of the former.
New England Excepted.
Didn't 1t say where your sugar was
10 be sold?" inquired Chairman Hard
wick.
No." replied Mr.. Oxnard. There was
d provision that ii was to be sold
everywhere except in New England"
How about this phrase of the con-
tract?" and Mr. Hardwick read from an
alleged copy of the contract the follow
ing:
Care being taken by us (American
Beet Sugar Company exceut when
necessary TO avoid your markets"
Well. that was written in there by the
lawyers. They said that it was not
a matter of fact, IT never amounted TO
anything. for We sold where We wanted
TO-"
Why did you make it,?
Well. there was that war of sugar
companies once. and then we wanted the
advantage OF sales by their brokers'.
In Existence Three Years.
TIE witness said the contract was in
existence only three years, although il
was 10 run ten years.
You lived up TO the contract, didn't
you asked Chairman Hardwick.
Well. ] suppose So"
They lived up to it?'
They really had nothing TO do
Why did you go into IL, then? Wasn't
IL because of the American Sugar Com
pany cutting prices In Missouri river ter
rltory. in 1901 ??
Il don't know that that was the rea-
son. IL may have been one
Chairman Hardwick wanted TO know
why the contract was abandoned
Il ceased TO be president In 1886" said
Mr.. Oxnard My brother succeeded me
and Col. Duvail came on the board. The
colonel was familiar with the railroads
and the Sherman law. He said. Here.
this violates the Sherman antitrust law.
i told him the lawyers said IL was all
right; that John +. Parsons of the Amer
lean Sugar Refining Company said II
was legal
Wayne MacVeagh's Opinion.
.'He asked II would object to his
friend. Wayne Macveagh, looking at 1t.
Mr.. MacVeagh said ii was illegal So
of the American Sugar Refining Company
and told him the contract was Illegal. He
wanted il TO be continued through the
year. Mr.. Cutting said. No, this con.
tract ends today So that was amen
and the thing was dead from that day
After long discussion OF the beet
sugar industry and the tariff on raw and
refined sugar. Mr.. Oxnard asked TO b<
allowed to make statement.
quite a little has been said about the
trust controlling the beet sugar re.
tineries.' he said. The trust does not
control all told more than 20 per cent OF
the beet sugar industry and the beef
sugar people compete with the output oil
the other sugar refineries. There Is nc
such thing as restraint OF trade be
tween the beet sugar people and the other
people.
II think you should give the devil hi.
due. III the trust had not gone into the
beet sugar business in this country tn,
industry would not have advanced as i
has. 1t had the money and brains ant
chemists to put into the work"
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