The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1912-02-21
Committee of Investigation Re-
ports That Such Trust Exists
In Violation of Law
MONOPOLY KEEPS PRICE
UP TO ULTIMATE CONSUMER
Committee Estimates That 62.39
Per Cent of the Sugar Business
Is Controlled by This Combine
and Can Give 1t No Credit

WASHINGTON, d. c., Feb. H.
The Hardwick sugar trust investigat
ing committee, after many weeks o
omen hearings here and in New
York, and almost continuous wori
since last May, reported to th'
house today that a sugar trust exists
The report, which is signed by al
members of the committee, repubi
cans and democrats, makes no recon
mendation as to how the alleged trus
and those responsible for it shall bt
dealt with. suggesting that thi:
phase of the situation be handled by
a standing committee of the, -Aouse.
AS to the effect of the com bine or
the cost of sugar to the consumer the
committee expresses the belief that
monopoly keeps the price up, but
makes no attempt to fix accurately
the extent to which reasonable prices
under competitive conditions are
exceeded.
Owners Innocent Purchasers
The report condemns the Original
promoters Of the sugar trust. but de-
scribes the $4,000 present owners 81
the stock Of American Sugar Refining
company as innocent purchasers OF
the profitable stock which was I'M
loaded on them by the few men who
organized the sugar trust
Henry o. Havemeyer is given credit
for the orga nization, and of him the
report says:
THAT this colossal speculation has
come through with success and today
stands on an established business ba-
sis is due to the genius of its archi-
tect rather than to any of the re-
straining powers of society as ex-
pressed in the law
1--WE find strfkingly developed in
the sugar industry several evils, y
says the committee. "aside from the
primary one of sitting competition.
which seem to demand careful con-
sideration and remedial legislati ton by
congress.
LAS this matter belongs to tho tu-
risdiction of a great standing COM
mittee of the house, your special
committee wiil not undertake to pre-
sent a bill on the subject or to elab-
crate the idea herein suggested, be-
ing confident that the entire subject
mattr will receive careful and prompt
consideration by the standing COM
mittee having Jurisdiction thereof"
Early in the report the prosecutions
of the sugar industry by the federal
government are reviewed. The organ
ization of the first sugar combine in
1887 is taken up and the two ac-
tons of the government are set forth.
OF the suit brought against the sugar
trust in New York in November In
1910 the report says:
1T is but simple justice to say that
this bill seems to be both carefully
and ably drawn. comprehensive and
well adapted to the purpose at which
aims. 1t is now pending in the cir
cult court"
Frequently Violates Law
The committee charges that since
the organization of the American
Sugar Refining Co. in 1891 it has
violated the Sherman law repeatedly.
AT the time it was chartered, the
Sherman law had been in force more
than six months and both its organiza-
methods OF doing business, was, as
the testimony seems to indicate to
your committee, a palpable and con-
tinuing violation of the Sherma n
law
The report continues, land yet no
serious attempt was made (prior to
November, 1870 TO invoke the civil
remedies provided by the antitrust
law against the corpora ton. 1t also
is TO be noted that the government
has not even up to the present time,
so far as has appeared. made any
effort to enforce the penal provisions
of the Sherman law"
Twenty-one actions in the organi-
cation and operation of the sugar
trust, given as violations of the Sher-
man law, are enumerated and after
tracing the growth of the American
Sugar Refining company and discuss
ing its alleged ovenca pitalization and
sale to its present owners, the report
says:
These salient facts indicate with
supreme emphasis the basic condition
of the problem uncovered by this
committee:
THAT we have in this government
ample machinery for rigid inquisition
into the property OF these $4,000 peo-
pie, and for suits to decompose that
property into its original parts by de-
struction of its organization; but
there is no arrangement of govern
ment whereby one of these $4,000
people might have informed himself
definitely of the hazards into which
he or she was buying
Competition the Remedy
The report discusses the doctrine OF
government regulation of prices, but
discourages it, saying, Competition
and individuality are the great rem
edies that have been sufficient
through all ages to protect Us from
the evils that now threaten We are
not yet ready TO write an epitaph
over either.
The committee estimates tht 62.39
per cent of the sugar business is con-
trolled by the com bine 1t also finds
that the trust has a large interest
IN the beet sugar end OF the business
with its strongest competitor, Ar