Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-17
REPORT is MADE TO HOUSE
Recommendation for Breaking Up
Monopoly Is Lacking.
KEEPS PRICE UP, Is BELIEF
Promoters Severely Condemned, But
Stockholders Are Not Held
Responsible.


most continuous work since last May. re-
ported to the House today that a sugar
trust exists. The report, which is signed
by all the members of the committee. re-
publicans as we'll as democrats, makes no
rec commentator whatever as to how the
alleged trust and those responsible for it
shall be dealt with, suggesting that this
phase of the situation is one to be han
died by standing committee of the
House.
AS to the effect of the combine on the
cost of sugar to the consumer, the COM
mittee expresses the belief that monopoly
keeps the price up, but makes no attempl
to fix accurately the extent to which rea-
sonable prices that might exist under
report severely condemns the original
promoters of the sugar trust, but de-
scribes the 1900 present owners of the
stock of the American Sugar Refining
Company as innocent purchasers" of
profitable stock which was unloaded on
them by the few men who organized the
sugar trust.
Henry o. Havemeyer is given credit for
the organization of the combination, and
of him the report says:
Havemeyer Given Credit.
THAT this colossal speculation has
come through with success and today
stands on an established business basis Is
due to the genius of it's architect rather
than to any of the restra ming powers Of
society as expressed in law"
I'VE find strfkngly developed in the
sugar Industry several evils" says the
committee. aside from the primary one
Of sitting competition, which seem to de.
mand careful consideration and remedial
legislation by Congress.
LAS this matter belongs to the jurisdic-
ton of a great standing committee of the
committee
as a committee. undertake to present
bill on the subject or to further elaborate
the idea herein suggested, being conndent
the entire subject matter Will receive
careful and prompt cons. Iteration by the
standing committee having Jurisdiction
thereof
Early in the report the prosecutions of
the sugar industry by the federal govern
the first sugar combine in 1887 Is taken
up and the two actions of the govern
metlt set forth. OF the suit brought
against the sugar trust in New York In
November, 1910, the report says:
1T is but simple Justice to say that
this bill seems to be both carefully and
ably drawn, to be comprehensive ana
we'll adapted to the purpose at Whlcn II
aims 1t is now pending in the circuit
court"
Repeatedly Violated Law"
The committee charges that since the
organization of the American Sugar Re
fining Company, in 1891. it has repeat
edly violated the Sherman law. "At the
time it was chartered the Sherman law
had been in force more than six months,
and both its organization and existence.
coupled with it's methods of doing bust-
ness, were, as the testimony seems to In
dicate to your committee, a palpable and
continuing violation of the Sherman law,
the report continues. And yet no Sc
rious attempt was made prior TO NO
vember, 1910. to invoke the civil remedies
provided by the antitrust law against
the corporation. 1t is also to be noted
that the government has not even up
to the present time, so far as has ap-
peaTed. made any effort to enforce the
penal provisions OF the Sherman law.
Twenty-cne actions in the organization
and operatio nof the sugar trust which
the committee believes were violations OF
the Sherman law are enumerated, ana
after tracing the growth of the American
Sugar Refining ompany and discussing
it's alleged overcapitalization and sale to
its present owners, the report says:
Government Could Dissolve Trust.
these salient facts Indicate with su-
preme emphasis the basic condition Of
the problem uncovered by this commit
tee-that we have in this government am
pie machinery for rigid inquisition into
the property of these $4,000 people. and
for suits to decompose that property into
its original parts by the destruction of its
organization. but there is no arrangement
of government whereby any one of these
1000 people might have Informed him.
self definitely of the hazards into which
he or she was buying"
The report discusses the doctrine or
government regulation of prices, but dis
courages 1t, saying competition and In
dividuality are the great remedies that
have been sufficient through all the ages
to protect us from the evils that now
threaten. We are not yet ready to write
an epitaph over either.
The committee estimates that 62.39 per
cent of the sugar business is controlled by
the combine. 1t Slso finds that the
trust has a large interest in the beet
sugar end of the business. With it's
strongest competitor, Arbuckle Bros,
there is said to be condition of armed
neutrality.
No Credit for Reduction.
The refining margin on sugar has
reached a trife over 81 cents hundred
pounds, according to the report. The
committee gives no credit to the trust for
reducing the cost of sugar, but reports
that I'm 1870 sugar cost 1914 cents a pound
and in 1911 the price of sugar was 4.87
cents a pound. 1t reports that in 1910 the
worlds supply of sugar was 100000
tons, of which 5O.5 per cent was beet SUI
gar.
The largest sugar consuming countries
of the world were the United Kingdom
'tS63 pounds per capita) and the United
States (Sl.6 pounds per capital.
The committee followed instructions i'm
reporting whether the existence of a
trust had any tendency to decrease the
price of sugar cane and beets to the pro-
ducer. 1t reported that the Louisiana
cane grower is Disseminated against by
an arbitrary ruling of the trust, but that
the Hawaiian planter is Independent. OF
| the beet sugar growers the report says:
Your committee reports that the evil
dence as taken does not disclose combina-
tions between manufacturers in the beet
sugar industry that have caused or had a
| tendency to cause a decrease In the cost
of sugar beets
Report Amuses Wickersham.
ST. LOUIS, February 17.-After Mr.
| Wickersham had read, the report of the
Hardwick committee. he laughed heartily
| and said:
| $50 Congress has walked up, has it?''
! he said between laughs. Congress is