The free lance. (Fredericksburg, Va.) 1885-1926, 1911-07-20
A REAL OCTOPUS.
thomas Tells How Sugar
Trust Grabbed Rivals.
tit DtFfNDS HAVE MtYtR
Witness Admits His Company II
interested IN the Suit to
Gel Control OF the Ma
uonal Company.

New York. July IS. - Washington
n Thomas. former president OF the
American Sugar Refining company anu
now chairman OF its board oil dlree
tors was the chief witness examined
when the congressional committee re-
sumed its investigation OF the meth
dds Of the so-called sugar trust.
Mr. Thomas said public opinion had
changed since the late II. U. Have
never was president OF the company
and ran il "as captain rules snip
lie told OF the warfare between the
,ompany and its chief rivals. the AT
buckles and the Spreckels, and ex
messed the opinion that those com
peti,ors ceased their opposition DE
cause they got tired Of losing money
An EFFORT was made TO get MI
Thnmas 10 tell how much money MS
company had contributed to political
campaigns. but he denied any knowl
edge of such expenditures.
Without explanation Mr. Thomas In
terrupted his testimony to defend the
memory of the late n. o. Hayemeyer
lie wished II understood that nothing
ho said or might say was to be inter
vrcted as an attack on Mr.. Have
never. MIR. Hayemeyer ran the com
pany." he explained. las captain
rules a ship. lie did what ne thought
was best for the stockholders Oh
course. public opinion has changed
since then You know Mr.. H1yemeyei
did not believe in letting the pubic
know what he was doing.
Mr. Thomas admitted that the
American company. after buying the
stock of the Baltimore Refining com
paiy. closed the refinery and shipped
the machinery to New Orleans, where
labor was cheaper.
After acquiring the Mollenhanei
and other rehneres, asked Mr. Hard
wick. did not Mr.. Havemeyer. James
n. Post. representing o.her refneries.
and one or two other men, meet ana
agree to limit the output Of sugar and
It's price," Not that I know o..
As a director. would you know
about such an agreement" Not ne
cessarily. Mr. Havemeyer did not tell
H. directors all he did"
,Ir Thomas said the American owns
much OF the preferred stock OF the
National Sugar Refining company, but
none of the common stock. The pres
ont suit in the court of chancery OF
New Jersey to inyalidate the common
stock Of the National company. he
admitted. would greatly enhance the
value Of the preferred stock.
Did the American instigate this
suit so that it could get better control
of its greatest competitor Mr.. Hard
wick asked. Mr.. Beck, Of counsel for
Thomas. objected. but the committee
ordered an answer. Mr.. Thomas an
swered that he was In Cuba when the
suit was begun and knew nothing
about il. When he returned Mr.. Beck
had told him about 1t and said he had
been retained as counsel for the com.
plainants in the case.
is the American paying the expense
of that SUITE" he was asked Not that
! know Of We have not been asked
to pay"
In 1898 did the American Sugar Re
aning company authorize Mr.. Have
never. Mr.. SEMI and YOU. Mr. Thorn
as. 10 purchase competitors at any
price you saw ct and to fix the price
OF sugar." Il don't believe We ever
obcrated under the authorization. !
have no recollection OF It"
What ended the war between
Spreckels. of California, and the
American company" They got tired
OF losing money. | guess"
What was the cause OF the sugar
war between Arbuckle and the Ameri'
can Sugar Refining company?" "Ar-
buckle wanted a discount on the sugar
he purchased and Havemeyer would
not give It. Arbuckle put up a sugar
refinery and we started in the coffee
business In Toledo. The war was OF
and II was a merry one
What brought It to an end?' !
guess they tired OF losing money
Did Arbuckle and Havemeyer have
conference just before the war was
ended?" yes. and we went out OF
The coffee business
And Arbuckle has been following
your sugar prices since?" Yes. no
makes his prices the same as ours