The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1911-06-15
SUGAR TRUST HAS
AN INNING BEFORE
HOUSE COMMITTEE
officer Of Cant Octopus Says
It Was Formed to Reduce
Cost Of Refining.

American Sugar Refining company up
20 less than two years ago., e. Il. Atkins.
vice president and acting head of the
corporation told the House sugar trust
Investigating committee today, that
stockholders were accorded no inforna-
zion as to how that company was being
conducted.
The condition grew so onerous. the
witness said, that the New England
stock holders combined n obtained
control. When they did SO, in 1910.
.hey discovered to their establishment
that H. o. Havemeyer, the presiding
genius Of the organization. had main-
tanned his supremacy with only 1000
shares of stock.
The holdings of MIR. Havemeyer at
the time of his death, Mr.. Atkins said,
were valued at bou 100000 of a to-
tai of 500, 600, 900 in the American Sugar
Refining company.
Surprised the Stockholders.
THAT was a surprising discovery"
| ne declared. had been generally
supposed that Mr.. Havemeyer owned
the greater part of the stock"
Mr.. Atkins said the New England
interests obtained control after a COM
nittee discovered from an examination
that of the stock owners of the Amer
lean Sugar Refining to per
! cent We're New E~nSianders
we found there were $4,000 New
England owners said Mr.. Atkins,
and 10000 of these were m They
were helpless al far as representation
was concerned, and I was urged to
take a place on the board, which /
aid"
He explained how control for the
New England holders was secured by
mis- election. and the election also of
Samuel Carr, Charles II. Allen, Will
am B. Thomas and Edward Marston,,
all Of whom now represent that ma
,ority of the stockholders known as
The New England syndicate.
The committee first has taken up the
american Sugar Refining company to
determine whether the corporation is
,perating in violation Of the antitrust
II interstate commerce laws. James
d. Beck, formerly assistant attorney
General. appeared today as counsel for
he refining company, and EdWard e.
atkins, Of Boston, vice president ana
citing president of the American Sugar
tefning was the first wit
ess examined.
Why Trust Was Formed.
MI. Atkins said the purpose of the
ormation Of the American Sugar Re-
ming company in 1887 was to put on
heir feet a number Of sugar refineries
hat had been operating at a loss. The
ost Of production of refined sugar had
,een so great, said Mr.. Atkins, that it
vas believed a reunion of retinerles
would result in greatly reducing this
Expense.
Did you expect through this means
O avoid some of the competitions"
tsked Chairman Hardwick.
"We1l, I suppose it had some effect
If that kind"
h witness said that IT refineries
oined in this merger in 1887, which
was arranged by H. o. Havemeyer.
Almost all OF them, ne said, had been
doing business at an excessive cost and
lhey were scattered throughout New
Vcrlf Now JarSau M 9chl1S ntf G
Mains, Pennsylvania, Louisiana and
Missouri.
Mr.. Atkins said that when the sugar
refineries companies which later be-
came the American Sugar Refineries
company, was organized m 1887, that
lie received for his concern, the Bay
state Refining company, which he val
1ed at $500, 600, trust certificates Of the
securities or holding company Of q
value of 100000.
Competition Was Onerous.
Representative Madison, of Kansas
asked If it was not a fact that pre-
vious to 1887 there was free and open
competition in the buying of raw and
selling Of refined sugar in this
country.
yes" Mr.. Atkins said. "there was
free competition"
\ That competition you found to be
{ onerous, did you not?"
YES, it was"
you WlSneQ 10 aNOlu tHaC C0fnpe.
.ition?" Mr.. Madison continued, "an(
It was for that reason Mr.. Havemeyel
gathered together yourself and abou
a dozen other sugar manufacturers fol
The purpose of making an agreement
: to eliminate this competition. was |
not?"
\ WELL" Mr.. Atkins said, the prin
. cipal object was to reduce the cost o
: production"
j There were three purposes, wer,
y - 49, e.
20 eliminate competitions: second, t.
obtain the best prices for your prod
ucts, and third, to reduce the cost o
production? ?" >
." think the third reason was wha
was in our minds, primarily said M,
Atkins.
Monopoly Is Alleged.
Mr.. Madison asked him if IL was 10
4 fact that in 1857 the il conpanie
combined were in control of 80 pc
: cent of the sugar business of the Uni
: led States. Mr.. Atkins said h
u thought this an eXaggeration. Mr.. AT
Sins said he had been made vice presl
q tent of the American Sugar Refnin
: company at. the instance of New Eng
e and stockholders who a been un
8 able to secure information from tn
u company as TO the business it wa
doing.
Il often tried to get it," he sail
q sbut they always turned me off goo
naturedly. They never published an
le report. We knew they We're doing
good business because the dividend
were always paid"
Lorimer Subpoenas Out.
: The Lorimer investigating comniitte
has not yet definitely fixed the day *
= its next meeting. The members are &C
&c ing over the voluminous testimony tai
ls en- in the Illinois inquiry, and until tn
Is completed such meetings as are mex
n aSSary will he held merely for nIIl
e poses of organization.
The greatest secrecy is attached
The action by the special commit
Of eight senators having the investig;
ton in charge. 1t is understood, how
50 ever, that among the men to be sun
al nonel are Lee O'Neil Browne. demt
Y. cratic leader in the Illinois house; Ec
" ward Tilden, whose same was connec
IL ed with the 100000 fund alleged
n lave been collected for use in electir
q, Senator Lorimer n Clarence S. Fun
IN an officer Of the International Harve