The Birmingham age-herald., 1911-06-17
EXPLAINS TRIALS | OF SUGAR INDUSTRY
Henry Oxnard Tells of Half
 Million Deal
WAS GLAD TO SELL OUT
Cut throat Competition Existed and He and His Brother Were Glad to Sell Out to the First
 Trust" in 1887

Washington, June 1e.-The story of the birth of the beet sugar industry in Amer lea, its trials and temptations ever since. and how the Oxnard brothers were en- rched by more than $5o00O0 profit through the little transaction" of selling their cane sugar trust" in 1887 were the fea- first sugar trust in 1887 were the fea- lures in the testimony that Henry T. ox-
 hard gave today to the House sugar in
 vestigating committee.
 MT. Oxnard was on the stand all day
 and will be followed Monday by James | H. Post, president of the National Sugar Refining company.
 MT. Oxnard assigned as his reasons for
 attempting to introduce the making of
 sugar from beets in this country, the sale | to the trust" of his refinery at Brook | lyn and his belief that the introduction | of the beet sugar industry would be profitable and patriotic. He told the story of the organization of the American Beet l Sugar company.
 l Of that $20,000,0o0 company, he said, the | Oxnard brothers at one time owned 6C per cent, but now possess only 3 per cent. He would not admit this stock was watered. testifying that the value of the property was about $12,O0o,OO0, while the preferred stock today was worth about s, 5,OO0,0OO and the common about s7,500,0O0
 He was unable to tell why the capitalza- tion was fixed at s2O,0OO 600, saying that that was the bankers business" What induced you to sell your stock?" | asked Representative Jacoway of Arkan- sas.
 There was no inducement," was the reply.
 | The relations of the beet sugar indus try and particularly the American Beet Sugar company with the American Sugar Refining company was the subject of many questions.
 l At the afternoon session Representative Madison asked Mir Oxnard if in reality the American Sugar Refining company | had not tried to use it's power in 1901 l to drive the beet sugar refners out of business by cutting prices below cost in the Missouri river territory"
 T think it is a fair presumption that it was designed to drive us out" the wit ness said.
 why didn't they succeed?" continued
 the congressman.
 Saved By Open Market. well. our contracts with the grocers were to sell at a price less than the | open market price on the day of deilV- cry. The American Sugar Refining com | pany evidently thought by reducing the | price about the time of our delivery, | Id na contracts But the word open saved us We told the grocers sugar could not | he prrchased in the open market at the reduced price. If they could, we au- | thorized them as our agents 10 buy large quantity for us. They could not | do so."
 l MT. Oxnard said the only time the l American Beet Sugar company had any agreement with the American Sugar Re | dning company was in 1902, when the l former became the selling agency or | the latter That contract was cancelled | When Wayne MacVeagh, lawyer, Tn l 1906, gave an opinion that it would send them to the penitentiary if they con- | tinued it.
 1 He protested against the reduction Of the tariff on raw sugar. but added that 1 he would leave 1t to the 'refiners 10 1 fight for the duty on refined sugar. l Half a million dollars profit was gar | nered by the Oxnard Bros. almost over night when they put their Brooklyn sugar refinery, valued at s2o0.o0o, into the sugar trust" in 1887, according to the testi- l mony of MT Oxnard. Had the Oxnards | held their trust certificates until today, the witness said. the deal would have netted them $500, 900 besides the dividends | on the certificates. They sold the certih- cates two years after they received them
 for s750.00o.
 We were rather glad to sell out" saio | MT. Oxnard, "Cut-throat competition ex- isted in these days, and unless the beet sugar business turned out as we thought it would, it was a little doubtful about
 our keeping going"
 The witness said the capitalization ol
 the Brooklyn factory was only sl00,0OO, bua
 that the plant was worth Sal0,ON.
 MT OSnard 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 1000 shares of preferred and 800 to 1000 shares of common stock.
 Their largest holding he added were in a Louisiana can sugar refinery. in which
 they had invested about S1,00o,0o0.
 '''rhere, had been a big tariff on sugar l for % a 30 years" explained MT. OK nard. ''I thought 1t would be profitable l and patriotic to introduce the beet sugar | husfness into this country