The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-10-23
WARS" AmOne
SUGAR COMP An|ES
August Spreckels Tells of Fight
for Control of Large
Interests.
WITNESS IN FEDERAL SUIT
Contests Between Rivals in
Progress From 1876
to 1891.
WITNESS IN FEDERAL SUIT

New York. Octoter 25.-"Wars''
among sugar companies for the control
Of large interests and the regulation
of prices in this country from 1876 to
1891 were described at length to-day
by C. August Spreckels, president Of
the Federal Sugar Company. who was
q witness at the continued hearings
In the Federal suit to diss Dive the So
called sugar trust,
Mr.. Spreckels. q son OF Claus Spreck.
els. who founded the California Sugar
Company, was general manager Of that
company In 1888. he testified to-day.
when his refinery and . refinery OF
the American Sugar Refining Com
pany were the only two plants west OF
the Missouri River. For three years
the two worked under an agreement
by which his company sold four-hfths
OF the sugar in the territory mentioned
and the American one-tifth. with prices
held cents q pound above the New
York market through a freight rate
arrangement with the railroads.
In 1885 Hawaiian planters. said Mr..
Spreckels. got control OF the American
Sugar Refinery Company. and war
began on the Pacific slope that carried
prices below the cost OF pr oductton
Two years later. said the witness
John E. Searles proposed to Claus
Spreckels that the California company
20 into a new combination, to be called
the Sugar Refners' Company. ne
refused to join the new company. but
Informed Searles that II the sugar
Refners' Company would confine It's
operations to the territory east OF the
Missouri the California would agree
not to invade that territory.
Mr.. Spreckels said that nothing fur.
Their was heard from Searies, oue
shortly afterward the new combinatioh
bought the American Sugar Rennins
Company, with its plant west OF the
Miss ouri. and Immediately his father
retaliated by building the factory Oh
the Spreckels Sugar Refining Company
in Philadelphia. The witness SAID ne
was made general manager OF this ne"
plant and that another war was de-
clared. which kept sugar prices oelo"
cost until late in 1890.
About that time representative
from the Sugar Rehnerles petit'oneo
him for peace" the witness eontih, !,
ned and for six weeks prices scared
and both companies made money.
Then without warning the opposi..on
company suddenly broke the Market
ga later he learned that Francis y.
Ma1+hiesseh. the representative VINO
asked for peace" had been Iorceo "
break bss agreement through pressure
from Searles and the Havemeyer dhtel-
ests which threatened to organise
another sugar company II the nsn'
.rainst Spreckels was not continued.
later. said the witness. Searies' n.
n Havemeyer and T. A. Havemeyef
houpht as per cent Of the stock OF the
snreckels company. and the Western
sugar Eefning Company was organ
lied. Meanwhile the American sugar
Refining Company. the so-caiied tFust
was organized. Shortly afterwaro tne
witness resigned as general manager
Of his fathers company.
why did you quit?" asked Assistant
United states District Attorney Knapp.
well. 1t seemed" said Mr. spreck-
els that I did not please anybody
with my conduct of the company
business. so quit. My father wrote
me that the trust was complaining OF
NV refusal to heed suggestions as TO
prices and amount of MEETINGS. ana
said to myself that the minority new
er could control the majority. ano
when 1t did so 1T was time fer me u
get out"