New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-13

ness said. that the New England stock
holders combined and obtained control
When they did so In 1910 they discovered
10 their establishment that H. o. Have
meyer. the presiding genius OF the organi-
cation. had maintained the supremacy with
only 1900 shares of stock.
The holdings Of Mr.. Havemeyer at the
time of his death Mr.. Atkins said, were
valued at about s2N,too Of a total of 5000
opD in the American Sugar Refining Com
pany.
That was a surprising discovery" he
declared. ut had been generally supposed
that Mr.. Havemeyer owned the greater
part Of the stock"
Mr. Atkins said the New England inter
csts obtained control after committee
discovered from an examination that Of the
stock owners of the American Sugar Re
fining Company. SO per cent were New
Englanders.
We found that there were eighteen thou
sand New England owners" said Mr.. At
kins. and ten thousand Of these were
women. They were helpless as far as
representation was concerned and was
urged to take a place on the board, which
! did"
He explained how control for the New
England holders was secured by his cleo
ton and the election also of Samuel Carr
Charles H. Allen. w. j. Thomas and Ed
ward Marston, all OF whom now represent
that majority OF. the stockholders known as
the New England syndicate.
Organization OF the Company.
Nr Atkins said the purpose Of tho forma-
ton of the American Sugar Refining Com
pany i'm 1857 was to put on their feet =
number of sugar refining companies that
had been operating AT a loss. lie said the
companies had been working without
profits for several years. The cost OF pro-
duction Of refined sugar had been so great,
said Mr. Atkins, that IT was believed 4
union of refneries would result In greatly
reducing this expense.
Did you expect through this means 10
avoid some of the competition" asked
Chairman Hardwick.
We'll. suppose II had some effect of
that kind"
The witness said that seventeen rehneries
Joined in this merger in 1887. which was ar
ranged by II. o. Havemeyer. Almost all
of them. he said, had been doing business
at an excessive cost and they were scat
tered throughout New York, New Jersey.
Massachusetts,. Maine, Pennsylvania. Lou
isiana and Missouri. He was unable to say
what percentage Of the refined sugar pro-
duCtiOn they controlled.
Mr.. Atkins was asked many questions
relative 10 the organization In 1857 of the
sugar refineries company which later be
came the American Sugar Refining COM
pany He said the organization was TO re-
duce the cost of production, and that ne
received for his concern. the Bay State Re
fning Company. which he valued at 500,
COO trust certificates OF the securities or
holding company OF value OF Se6or
Representative Madison, OF Kansas. asked
Mr.. Atkins If IL were not a fact that pre-
vious TO 1887 there was free and open com
PETITION in the buying Of raw and the sell
ing Of rehned sugar in this country.
Yes" Mr. Atkins said, there was free
competition
"Tha, competition YOU found to be oner-
Gus. didn't you?"
Yes II VAS"
You wished 10 avoid that competition,
Mr. Madison continued, and II vas for
that reason that Mr. Havemever gathered
together yourself and about dozen other
sugar manufacturers for the purpose OF
framing an agreement to eliminate this
competition. was 1t not?'
Well" Mr.. Atkins said. the principal
object was to reduce the cost OF produc-
ton"
There were three purposes, were there
not. that Influenced YOU first, to eliminate
/ competition: second. 10 obtain the best pos
sible prices for your products. and then t.
reduce the cost OF production?'
Il think the third reason was what was
in our minds primarily" said Mr.. Atkins
Mr. Madison asked him If it was not a
! fact that in 1857 the seventeen companies
combined were in control of 20 per cent of
the sugar business OF the United states
! Mr.. Atkins said he thought this an eXag-
geration and explained that the American
/ Sugar Refining Company WAS formed in
1891 10 succeed the trustees ~ the sugar
refineries company because tho legality Of
! the latter organization vas questioned.