The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1911-06-15
SUGAR TRUST HAS I
AN INNING BEFORE
HOUSE COMMITTEE
officer of Cant Octopus Says
It Was Formed to Reduce
Cost Of Refining.

vice president and acting head of the
corporation told the House sugar trust
investigating committee today, that
stockholders were accorded no informa-
lion as to how that company was being
conducted.
The condition grew so onerous. the
witness said, that the New England
stock holders combined and obtained
control. When they did so. In 1910.
hey discovered to their establishment
shat H. o. Havemeyer, the presiding
genius Of the organization, had MAIN
shares Of stock.
The holdings of. Mr.. Havemeyer at
the time of his death, Mr.. Atkins said.
were valued at about 100000 OF to-
.al Of 800, coo, 900 In the American Sugar
Refining company.
Surprised tho Stockholders.
THAT was a surprising discovery"
ne declared. 1T had been generally
supposed that Mr.. Havemeyer owned
the greater part Of the stock"
Mr.. Atkins said the New England
interests obtained control after a COM
mittee discovered from an examination
that Of the stock owners of the Amer
lean Sugar Refining company, 63 per
cent were New Englanders.
I'VE found there were $4,000 New
England owners" said Mr.. Atkins,
@and 10000 Of these We're women. They
were helpless as far as representation
was concerned, and ] was urged to
take place on the board, which L
did"
He explained how control for the
New England holders was secured by,
mis- election. and the election also of
Samuel Carr, Charles Fl. Allen. Will
am B. Thomas and Edward Marston,
Ill Of whom now represent that ma
,ority Of the stockholders known as
he New England syndicate.
The committee first has taken up the,
American Sugar Refining company to
determine whether the corporation Is
operating In violation Of the antitrust
II Interstate commerce laws. James
d. Beck formerly assistant attorney
General, appeared today as counsel for
he refining company, and Edward F.,
atkins of Boston. vice president and
citing president of the American Sugar
tefining company, was the first wit
ess examined.
Why Trust Was Formed.
Mr. Atkins said the purpose Of the
vrmation Of the American Sugar Re-
ming company in 1887 was to put Oh
heir feet q number OF sugar refineries
hat had been operating at a loss. The
ost of production OF refined sugar had
zen SO great, said Mr. Atkins, that it
vas believed reunion of refineries
would result in greatly reducing this
Expense.
did you expect through this means
avoid some of the competition 2"
| tsked Chairman HardWick.
We'll, l suppose 1t had some effect
| If that kind"
The witness said that II refineries'
| oined in this merger In 1887, which
was arranged by II. o. Havemeyer.
| Almost all of them. he said, had been
| aoing business at an excessive cost and
ltxA. bro
York, New Jersey, Massachusetts,
| Maine, Pennsylvania, Louisiana and
| Missouri.
| Mr.. Atkins said that when the sugar
| refineries companies which later be-
| came the American Sugar Refineres
| ne received for his concern, the Bay
| state Refining company, which he val
| 7ed at 100000, trust certificates of the
| securities or holding company of q
value Of 100000.
Composition Was Onerous.
Representative Madison, Of Kansas,
asked IL 1t was not fact that pre-
vious to 1887 there was free and open
| competition in the buying of raw and
| selling Of refined sugar in this
| country.
YES" Mr.. Atkins said. there was
free competition"
: THAT competition you found to be
| onerous, did you not?"
Yes, 1t was"
you wished to avoid that compe-
| .ition?" Mr.. Madison continued, "and
| It was for that reason Mr.. Havemeyer
| gathered together yourself and about
! dozen other sugar manufacturers for
me purpose of making an agreement
to eliminate this competition, was it
| uot?"
! We'll" Mr.. Atkins said. "the prin-
I n Of
| production"
/ There We're three purposes, were
there not, that influenced you; first,
| 20 eliminate competitions: second to
obtain the best prices for your prod
ucts, and third, to reduce the cost OF
productions"
| II think the third reason was what
was in our minds, primarily" said Mr.
Atkins.
Monopoly Is Alleged.
Mr.. Madison asked him If II was not
! fact that in 1887 the II companies
| combined were in control of 80 per
| cent of the sugar business of the Uni
| led States. Mr.. Atkins said he
, thought this an eXaggeration. Mr.. At
| xins said he had been made vice pres1-
| 1ent of the American Sugar Refining
| company at the instance of New Eng
! and stockholders who had been un-
| able to secure information from the
-OIupaHy DIS 10 the BUSINESS IL was
| doing.
! Il often tried to get it," he said,
| Sbut they always turned me off good
naturally. They never published any
| report. We knew they were doing a
| good business because the dividends
| were always paid"
Lormer Subpoenas Out.
The I.orimer investigating committee
| has not yet definitely fixed the day for
| It's next meeting. The members are 60
| ing over the voluminous testimony TAX
/ en- i'm the Illinois inquiry, and until this
, Is completed such meetings as are nee
essary will be held merely for pur-
poses OF organization.
| The greatest secrecy is attached to
! The action by the special committee
! Of eight senators having the investiga-
| tion in charge. 1t Is understood, how
ever, that among the men to be sum-
| nonel are Lee O'Neil Browne, demo-
cratic leader In the Illinois house; Ed
| ward Tilden. whose Same was connect
ed with the 100000 fund alleged to
nave been collected for use In electing
| Senator Lorimer and Clarence S. Funk,
an officer OF the International Harves-
| ,er company, whose fund was "a fea-
cure In the investigation by the Him
,is legislature.
Senator Lorimer. for the rstAtime