The Birmingham age-herald., 1911-06-22
WARREN TEST|F|ES
 IN SUGAR PROBE
Says American Controlled
 Michigan Company
TRUSTS ARE DEFENDED
Young Horace Havemeyer Says the Sugar Industry Is Better Off for Reasonable Combinations-Eng-
 land Has Cheap Sugar

Washington, June H.-That the Amer ican Sugar Refining company owns 37 per cent of the common stock and 55 per cent of the preferred stock of the Michigan Sugar Refining company, a beet sugar corporation controlling six refineries in Michigan, was declared today by c. B. Warren, president and general counsel of the beet sugar concern, in testimony be- fore the House sugar trust" committee of inquiry
 The Michigan company was organized l in 1s06, according to MT. Warren, six in- dependent companies having been anal gamated with a capitalization of about | @, ,OO0,O00 issued, and an authorized capi- l tai of s12oO0,OOo. Henry o. Havemeyer was interested in acquiring large blocks of shares of stock in the independent companies before the formation of the company, he said, but the controlling in- terest always has remained with the Michigan investors, who still hold 63 per cent of the stock.
 Did you represent the American Sugar Refining company, or MT. Henry O. Havemeyer in seeking to bring about a
  panies of Michigan in 1sos?" asked Chair man Hardwick.
 "All of these companies sought to have outside capital brought to Michigan for their benfit." said MT. Warren
 "They approached MT. Havemeyer or his representatives in every instance ex- cept one, and those interests paid par for all the stock purchased.''
 Did you advise MT. Havemeyer In the negotiations?'
 "Yes: I advised him as to the condi- ton of the companies and matters of that kind.''
 "Did you ever advise him as tc whether or not the efforts of the Amer ican Sugar Refining company in that matter might be involved as violations of the Sherman antitrust law" No"
 The admission by officers of the Michi- gan company that the sugar trust con- | trolled 37 per cent of their stock, it was pointed out today by members of the | committee before the House two years r1ents made by representatives of that company before the ways and means | comhmittee before the House two years ago. It was then maintained that the American Sugar Refining company. had no interest in the Michigan beet Sugar | corporation. Other officials of the Mich igan company are v follow MT. Warren on the stand.
 MT. Warren also testified that Arthur | Donner and Charles R. Heike. formerly
 of the American Sugar Refining com | pany, accumulated approximately 33,00 | shares of stock in the Michigan beet su-
 gar companies which were merged into 1 the Michigan Sugar Refining company. | Do you ever receive any suggestions from the American Sugar Refining com- pany as to what Your business policy
 should be?" Chairman Hardwick In
 quired.
 No Suggestions We have never received any sugges-
 tions whatever from the American Sugar Refining company since MT Thomas has been in charge" replied Mir. Warren.
 l Did you receive suggestions before that?"
 When MT. Havemeyer was president of the American, he occasionally wrote letters to express whether he thought the price of sugar was going up or | down."
 President Warren submitted figures | to show the increase in the business of the Michigan companies since the form | | first year of the new company, the six plants used 3o5.o2o tons of beets and manufactured 72,295,160 pounds of sugar. In 1910 they used 511,261 tons of beets and manufactured 124,344,545 pounds of sugar, nearly doubling the | output without materially increasing | the origial capacity of the plants. Abil- | ity to get more beets and improved ma chinery were given as factors in the big | increase.
 Earlier in the day Horace Havemeyer | son of the late sugar king, closed his testimony before the committee, con tinuing his description of the National Sugar Refining company Elaborating his defense of trusts and | the combinations of sugar companies, | MT. Havemeyer, son of the late H. O. | Havemeyer, organizer of the so-called | sugar trust" limited his approval to | reasonable combinations" He de- clared that combinations were reasona- | ble when they took in small companies | that were liable to go into bankruptcy. He classed the National Sugar Refin- | ing company, in which he Is seeking in the courts to establish his control as l reasonable"
 Mir Havemeyer again expressed be- lief that the sugar industry had bene- | fitted by the creation of combinations because the producing cost has been re- duced. In response to Representative Fordney the witness said the consumer certainly was paying no more for sugar | than he did before the combinations. "The price of sugar is governed by 1 the law of supply and demand" de- | clared MT. Havemeyer
 England is the cheapest place in the world In which sugar may be pur- l chased, the witness said. | why is that because of free trader" inquired Representative Ford | ney.
 Well I don't know-I haven't made a study of that" remarked the young | millionaire.