New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-23

make a more substantial offer Later
on the elder Spreckels wanted Searles to
go to San Francisco and see him. nnt
Searles said ne could not go to san
Francisco because he was in contempt
Of court there, according to the witness
Spreckels and Searles finally met at
Coronado Beach, Cal. and the organlza
tlon Of the Western Sugar Company fo'-
lowed. This, the witness said, was
holding company to operate the TWO
plants on the coast or not to operate
them. as the American saw Mt. Inc
American plant was shut down ana Only
the Spreckels plant was operated, he
said.
Mr.. Spreckels came East to denver 'he
stock. he said, and was surprised, on
meeting Theodore Havemeyer. Henry y.
Havemeyer and Searles, to have them
tell him they wanted the stock for thefn-
selves. The witness supposed the Amer
lean company was to have IT. HIS
father told him. he said, that he dldnt
know who his partners were: whether
these three men or the American com
pany.
Forty-five per cent Of the stock was
turned over TO the Havemeyers on TO
tai valuation Of $5,I0.OW, he SAID
Later the American took over the ma
iority still held by the Spreckels inter
ests for q consideration Of S5,OoO.OOO pre-
ferred and S5,OOO.O00 common stock IN
the American. This represented a pront
Of 100 per cent In about three nortne'
tho witness said. His father had un-
loaded the American stock ms fast as he
could. getting an average OF si-V
share.
"couIdnt Work with the Crowd
Tho American acquired a. per cent
interest in the Philadelphia refinery ana
tho witness soon resigned as manager OF
,be n,ant Asked why. he said he
oo,,,dn', work with the crowd. partlCu-
larry Mr.. searles. who wanted MN TO re-
duce the output and get bigger prices
The witness remained out OF the sugar
h,siness for two years, and then went 10
Hawaii and bought the largest sugar
u,o,,,atiop tbere-about forty Thousand
acres-pavins 10 cents share for inc
stock. or about $1,000 in all.
In less than five years. he sa'h' No p'''
off q bonded debt on the plantation III
Hawaii and sold out with q net prom "
more than S2OOO.OoO. He then went 10
Europe for a vacation. He came oacA -
this country and started the teoeral re-
erer,, et Workers in 1902 with captain
cation Of S1O.OO0Oo0. He and his partner
Mr. Nackav. of California. put in 81
nno ooo in cash, and the S6oo0.ooo was
water" he admitted. They had put the
profits back into the business since 10 an
extent 20 double the cash capitalization
en- that there was A dollar for dollar
value hack If All the stock at the pres
ent time.
Mr.. sprAckels said that he had peen
unable m buv a pound Of raw sugar IN
Hawaii or the Louisiana marker Tor uie
last ten years because Of the raminca-
+ions Of the American company. he IN
t,msted that the railroads were stu pay
ing sorne rebates I'm the West He had
tested the matter by ordering ten thou-
sand tons of sugar 10 be shipped from
the Missouri River 10 san Francisco, he
said. The trust" had declined 10 ship 1t,
he said. unless he prepaid the freight
THAT meant one Of two things" said
the witness Either they were receiv-
ing rebates or they were afraid the sugar
would not be reshipped from San Fran
cisco, but sold there and upset the mar
ket."
Mr.. Sprecke1s disagreed with the
American company witnesses who said
that the removal of the tariff on sugar
teets would kill that industry. He advo-
Gated free trade in respect 10 sugar and
other necessary commodities. He said
that beet sugar could be refined in this
country for net cost OF less than three
cents a pound. Cane sugar could be re-
fined AT the same price, or less The re-
moval Of the tariff would reduce the cost
Of sugar 70 the consumer about two
cents q pound. he contended. That
would mean saving 70 the consumers
of this country of $15O.ocO.0nO 2 year, az
J, frttre6