The Idaho Springs siftings-news., 1912-05-25
SUGAR FACTORY TAKEN OVER BY
TRUST BEFORE COMPILE
TlON, is CHARGE.
TELEGRAM INTRODUCED
DENVER MAN SAYS CONSOLiDA.
TioN WAS TO MAKE BEET
PRICES UNIFORM.


New York-A copy OF a telegram
sent by Henry o. Havemeyer TO Sam
uel C. Hooker. his personal agent at
Denver. was introduced in the govern
ment's dissolution suit against the So
called sugar trust by Assistant Dis
trict Attorney Knapp to support the
charge that Mr.. Havemeyer had pre-
pared to crush by competition. the tn-
dependent beet sugar plant Of the
Greeley Sugar Company. then build
ing The telegram read:
GO TO Greeley and secure a good
site on options"
Chester S. Morey of Denver and
chief agent of Havemeyer in acquir-
ing control OF Colorado companies,
testified that the site was procured
and not long after this Mr.. Havemeyer
bought an interest in the Greeley COM
pany.
A letter from Hooker to Havemeyer,
written November %, 1902. was then
introduced. 1t suggested that Mr..
Havemeyer rent the site for pastur.
age for a year and said that per
cent net return could be realized II
this was done.
ut is probably as favorable an op-
portunity as can be obtained at the
present time" the letter concluded.
Mr.. Morey said the various beet SUI
gar companies with which he had been
identified, were merged into the Great
Western Company, New Jersey cor
poration, in 1905, although the formal
dissolution did not occur until April
29. 1907.
The history OF the companies was
traced up to when they were merged
in 1905, into the Great Western Sugar
Company at New Jersey, and to their
dissolution into separate corporations
in April. 1907.
Mr.. Knapp introduced into the rec
ord a letter from Mr.. Havemeyer 20
Mr.. Morey, dated January 5, 1904, re-
questing that Mr.. Morey act as agent
for him and his associates for the ell
suing year at salary of $4,000.
Mr.. Morey could not remember
when the consolidation of all these
plants was first mentioned. Mr.. Knapp
produced a letter dated October IA,
1902, from Mr.. Morey to Mr.. Have
meyer, in which the cooperation of
the plants then existing was stated as
desirable.
The witness explained that the ear
liest idea was to consolidation of the
Greeley, Loveland and Eaton plants.
The purpose of the consolidation in
December. 1902, was to save duplca-
ton in labor, office work, manage
ment and to run more economically.
Quoting from a letter to Mr. Morey
from Mr.. Havemeyer, dated December
Is. 1902. Mr.. Knapp asked:
Are you sure the purpose was not
the establishment of uniform price
for beets in order to eliminate possible
senseless competition in the purchase
OF them"
THE establishment of uniform price
OF beets," answered Mr.. Morey,
would stop expensive, unfriendly, in
furious competition in certain fields"
Replying to a question from Mr..
Knspp, Mr.. Morey said there was
never any competition among the
Colorado factories.
There is not to-day" he added,
"our competition comes chiefly from
the manufacturers in Utah and Cali
fornia."
Another letter from Mr. Havemeyer,
dated January IA, 1904, to Mr.. Morey,
In which he vas informed that hold
ing company would be formed Octo-
ber /, 1904, to acquire the stock is
sued by the Colorado plants, was read
Mr. Morey said the holding company
was never formed.
He explained that company was or
ganized instead to take over the prop
erty Of the companies, instead of the
stock. He said that all stock owned
by outsiders was purchased. IN
some cases the sellers were told that
a consolidation was to be formed. In
exchange for his stock Mr. Morey ex-
planned he received preferred and
common stock of the Great Western
Company.