The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-06-29
this matter, and deep wrong to the
public. Turn in the light
PRESIDENT SMITHS TESTIMONY

Ni'u iOppStL w tHt lOCdl sugar
has been practically abortive, The very
things that were pertinent to the case,
and that the public supposed would be
brought out, were simply touched upon,
and then the inquiries drifted off. The
merger between the local sugar com
bine and the Havemeyer trust was fully
proved, it is true; also, the interest Of
the church in the ownership OF the
stock of the local combine.
But when it came to the merger Of
the Idaho and Utah sugar companies,
while it is true that this merger was
proved, and that Manager Cutler adj
mitted that there was water in the
stock the inquiry was not pursued as
TO how much the stock had been wa
tered. The understanding here is that
there have been at least two water
ings of the stock, and that those on the
inside have made large amounts of
money III this process. 1t was hoped
that full information upon this sub.
Jeet would be brought out in this in
curry; but 1t was not. And yet, that
was the very thing which it was sup
posed the committee intended to in
quire about. There seems to have
been no one present at the inquiry, how
ever, to take any particular interest in
this watering, and to develop the facts
In the case. The watering of the stock
was done for the purpose of concealing
the big percentage Of dividends which
are paid by the sugar companies. The
amounts Of these dividends were stated
by President Smith to be seven per
cent, but this seven per cent is on the
stock as twice or thrice watered; it
would be very much more on the origi
nal issue.
Manager Cutler was the one who evi
IDENTIFY knew all about this, and he
should have been questioned as to the
facts. We have no doubt that he
would have told it all accurately and
fairly, because his testimony, so far
as the inquiry of him was pursued,
seemed to be candid and entirely open.
The testimony of President Smith was
evidently prompted in very large de-
gree by those Utah people who sur
rounded him, and where his first an
swer appeared to contradict the evil
dence given by Manager Cutler, the
witness promptly yielded TO Cutler s
knowledge on the point inquired about,
and admitted that Cutler knew more
than he about it.
A very curious part of President
Smith S testimony is where he admit
ted that the stockholders were not
of the Utah Sugar Company with the
Haremeyer interests. President Smith
had no idea whether this merger with
the big sugar combine was viola
ton, of the Sherman ANTITRUST law or
not. He presumed, however, that com
petent legal advice had been taken on
this question; but he could not recall
the names of the members of The board
of directors at the time that the mer-
ger had been made. Neither did he
know the cost of making sugar, nor
whether the Utah Idaho company had
agents in New York and San Francisco
who advised ii as TO the selling price of
sugar from day TO day. He did NOT
know whether any quantity of sugar
was shipped into Utah from the outside
and in general he testified as every one
informed here supposed he would nee.
essarily do. that he knew very little
about the exact details of the sugar
COMPANY s business. A significant and
important statement was made by him.
however, in connection with the merger
of the local trust with the Havemeyer
trust when he said that the stockholders
Of the Utah company were. not consult
ed as to this merger. and, explaining
why, he stated that the merger Hwas
not regarded as Of sufficient Importance
to even submit to the board of fiftepn
directors; the Presidency made the deal.
Smith voting the church stock And
vet those who in fact made this merger
evidently considered that il was an act
Of the very highest Importance. This
was testified TO both by Manager Cut
Ter anu Dl PRESIDENT Smitn. 1T was
matter of the highest Importance for
the sugar company. it appears, and vet
not of Importance enough TO consult the
stockholders about. That is, the big
fish of the local combine dealt with
The big fish of the big combine, and
the minnows on either side were not
worth taking into the account 1t is
curious and yet instructive view OF
the way in which President Smith looks
at business matters The herd amounts
to nothing, but those in control are the
ones who count But the legality Of a
merger so made may some day be in
quired into.
And so the developments in the in
quiry amount TO but little, and the Con
gressional committee, while establish
ing the main facts of the merger
(Which evidently is all that the com
mittee had in mind), the local merger
the watering of stock, the real percent
aoe nf 5ivi1en6v and in fact al nf thf