Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-07-20
AFTER SUGAR COMBINE FACTS
subcommittee Appointed with Power
to Examine Books and Records.
MR.. THOMAS RESUMES STAND
President of American Sugar Conn
pany Says Tariff II Cause of
Higher Price for Sugar Here
Than in England.

NEW YORK, July 19.-More secrets OF
the American Sugar Refining company.
known as the sugar trust, were expected
to develop today when w. b. Thomas,
chairman of the board of directors, resumed
the stand at the second days session OF
the special congressional committees in
vestigation. Several members of the oom-
mittee were anxious to go further into the
details OF the conference between II. o.
Havemeyer and John Arbuckle, which ter
minated the great sugar war. Mr.. Thomas
testified yesterday that he was at the
Havemeyer home at the time OF the con-
ference. but did not hear what was said.
A subcommittee will go to Mohonk lake to
take Arbuckles testimony as he is too IL
to appear here
subcommittee Announced.
Before Congressman Sulzer started to
question Mr.. Thomas, Chairman Hardwtck
announced the appointment of a subcom-
mittee composed Of Representatives suizer
Malby. Jacoway and Kinds with authority
to examine and investigate all Of the books
records and correspondence OF the Ameri'
can Sugar Rsfining cornpSny wherever To-
Gated, to visit any plantnsSto employ any
experts or assistants necessary and report
to the whole committee.
Mr.. Sulzer got Mr.. Thomas first to say
that his company could manufacture sugar
here as cheaply, OF nearly so. as 1t could
be made in any other country. 1t was owing
to the tariff. he thought, that the price OF
sugar here is higher than in England.
Mr. Thomas said the American made less
than 30 per cent of the sugar in this coun-
try, and that It, therefore, Is not a
monopoly.
Representative JacowRy asked Mr.
Thomas why they increased its capita
from $75OOO,0OO to $sO.0Oo,OOO.
ITO take an interest In about thirty
three beet sugar refineries," was the reply
Mr.. Thomas said that the work of ac-
quiring the beet sugar interests was done
exclusively by H. o. Havemeyer, who
was not in the habit OF consulting anyone
else about sugar company transactions.
Does Not Boycott Independents.
Mr.. Jacoway asked Mr.. Thomas II the
American was not in the habit OF boycott
ting any Independent who went into the
Louisiana market to buy sugar.
Absolutely no." was the reply.
In reference to the agreement between
the American Sugar Refining company
and the American Beet Sugar company
in 1902 to pool selling interests, Mr.. Thomas
said John E. Parsons had told his company
that the agreement was not in violation Of
the Sherman antitrust law, but that wher
Secretary McVeagh informed his company
1t was a violation of the law the agree
ment was abrogated.
You have about 10000 women stock
holders in New England?"
when prosecution threatened your com
pany did not you and your associates un
load most OF your own sugar on these
New England women7"
Not at all"
Mr.. Jacoway asked the witness II hii
company was not in constant warfare will
the raw sugar production OF Louisiana
"Yes, we are competitors"
rs that why you advertised in trad'
papers that raw sugar Is unhealthy anC
has q bug in itT'
IT know nothing about these advertise
ments," answered the witness, but he wa
instructed to get the information for tn
committee.
''Is It not q fact that there 10 $4,000 o
water In the capital stock OF the American
company and that II has been attempting
to pay dividends on SsO0OO.OOO OF stock ou
of earnings on not more than s4O,OOoO0o o
actual property?'
"oh. 1 could not say that" said Mr
Thomas.
Denies Controlling Price.
Mr.. Thomas admitted that he had n
knowledge of any smaller company maxim
active war on the American in the las
twenty years. excepting the Arbuckles. bu
he would not admit that the American con
I trolled the price.
Are directors of the American who favo
selling that company's beet sugar stoc
in favor Of removing the tariff fror
sugar." asked Mr.. Malby.
"Yes. Certainly because the low tarit
on sugar would hurt bet sugar stock,
said Mr.. Malby.
Mr.. Thomas insisted the American di
not control the Great Western Beet Suga
company OF Colorado. but Mr.. Malb
brought out that with the holdings OF tn
Havemeyer estate they controlled Abou
two-thirds OF that company. The Ameri
can, said Mr.. Thomas. also holds so pc
cent OF the Spreckels interests In Califor
mia.
Mr.. Thomas said that any effort to con
troll the sugar business had been a complet
failure.
"Since we started to sell our beet suga
holdings We have sold 100000 OF ou
SIS Oo0.OO0 interests in such industry" sal
Mr.. Thomas. "Of this s12.OO0,O00 $4,000, q
was sold before Mr. Havemeyers death"