Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1911-07-23
81 PRECKELS TELLS
OF PERSECUTION
By TRUST
DEAD RATS PLACED
IN HIS SUGAR BARRELS
Machinery Sanded and VatS
Drained by Minions of Mon |
OpOy Californian Tells House
Investigating Committee.
ny Morning Journal Special Leased wIrsl

fBy Morning Journal Special Leased Wirel
New York. July 22.-Claus Angus
tus Spreckeis. son Of the late Claus
Spreckels of California. and principal
owner OF the Federal Sugar Refining
company of Yonkers. n. Y, today
gave the most sensational testimony
that has been developed by the con-
gressional committee investigating
the sugar trust during the hearings
here.
Besides giving an important stdelight
on the conference between John Ar
buckle and the late III. O, Havemeyer,
which is believed to have ended the
great sugar war, he described under
oath, the vicissltudes of an independ,
ent sugar refiner. lie said his plant
in Philadelphia before 1t was con-
trolled by the trust had been put out
of commission several times by per-
sons who threw sand I'm the machinery
bearings and otherwise wrecked the
plant.
He swore that at the Yonkers re-
finery after he had turned down trust
overtures, dead rats were placed In
barrels of sugar ready for shipment
and that whole vats of liquid sugar
had been drained off in the night into
the sewers. The nuisance of dead
rats continued until private detectives
pointed out several Of his employees
whom he discharged refusing to
pay their wages in the hope that they
would sue him and thus enable him
to question them. under oath as to
who had employed them. Much to his
disappointment he was never sued.
Mr.. Spreekels declared that II. q.
Havemeyer, Theodore Havcmeyer and
John f.. Searles, all then officers off
the American Sugar Refining COM
pany and now dead, purchased a half
interest In the California Rofnerles. to
end the Spreckels' sugar war. for
s2.225,000 in cash and six months
later sold this interest to the Amcri-
can Sugar Refining company for s5,-
100000 in preferred stock whcih at
that time was worth SEQ a share. or
Sc. 100000.
Interesting points in Mr.. Spreckels
testimony included his assertion that
in four years he has made $4,000, 900
In Hawaiian sugar plantation on a
cash investment of $4,000. Since
starting the Federal Refinery ten
years ago by cash payment off $3,-
100000 for equipment, he has paid
six per cent dividends on that S3,-
5000 regularly, he said. represent
ing the preferred stock, and has turn
ed earnings amounting to an equal
amount back into the Improvement
of the plant.
Representative Garrett OF Tennes-
see asked Mr.. Spreckels If he knew
anything about the conference between
John Arbuckle and II. o. llavemeyer
which was supposed to have ended
the sugar war.
Yes something he said, soon af-
ter that conference John Arbucltle
came to me and said
I've just had a little talk with
Henry O. Havemeyer. lie said an un-
derstanding had bccn reached that
there was an overproduction of sugar
anu bShcu lIic III Nbuih ltuuNt NuS
output Of the Federal. | told him the
Federal would work its full capacity
forever. He said You misunderstood
Havemeyer, Just like | did. He Is "a
fine cultivated man--why, he plays
the violin.
80 So did Nero play the violin said
l. and Rome burned.
''Ile told me that We ought to re-
duce our output. that there was too
much sugar, that by reducing the out
put we could reduce expenses, keep
up the price of sugar and thus make
more money. He said that that was
what the American was going to do.
Did you understand from John
Arbuekle that he had reached an
agreement with Iavemeyer and the
American Sugar Refining company
that the production of sugar was to-
be reduced"
"Yes. he said he and the American
had buried the Ratchet
Did anyone else ever try to get
YOU to reduce the production OF su-
gar"
"Yes, Mr. Warner Of the American
company. He said It would create bet
ter feeling among the refiners Bener-
ally and that an understanding could
be reached. 1 think that both Ar
buckle and Warner were sent to The
American Sugar Refining company to
get me to enter an agreement"
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DESP0NOENT SERGEANT
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