New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-21
TELLS OF SUGAR MERGERS
Witness Aided Hayemeyer, Buy
inc Control of Western Plants.
LETTERS PUT IN EVIDENCE
rWEel I Send q Million TO Coio.'
RADIO Wan to Nnow Who Gets
IT," Sugar King Said.

~, sugar AluS Sdiu.
The >al.iag OF testimony m the govern.
Inent's dissolution 5Iis against enc hmeri~
can Sugar Refining Company continued yes
terday before Wilson X. Brice. special exc
aminer With Chester s. More. OF Dem
yer. president OF the Great Western Sugar
Company, on the witness stand all day.
James r. Knapp, Assistant United States
District Attorney, endeavored 10 learn how
the American company entered the West
and gained control OF the beet sugar indus
try.
The Great Western Sugar Company was
incorporated in New Jersey in January.
1866. by the merger Of six large sugar refin-
ing plants in Colorado. The government ex-
poets to prove that the Great Western COM
pany is dominated by American Sugar in
terests. and that the purpose in combining
the Colorado companies was to destroy
competition and establish a beet sugar
monopoly.
Mr. Morey described his visits to II. o.
Havemeyer, head of the American Sugar
Refining Company. in this city, In 1893.
when he talked with Mr.. Havemeyer about
the sale Of the sugar plant at Greeley. Col.
OF which the witness was president Tho
American company had purchased a sits
near the Greeley plant, evidently for tho
purpose of going into the beet sugar busi-
ness. and Mr.. Moreys business Judgment
led him to believe IL would be better to SELF
out to the American than TO try and conn
pete with them.
After meeting Of the stockholders OF the
Greeley company In the spring Of 1903, AZ
which a price was agreed on for the stock
It was arranged by ex-senator Wolcott. or
Colorado, counsel for the American Sugar
Refining Company. for Morey TO go 10 New
York and see Mr.. Havemeyer The witt
ness met Mr. Havemeyer at his ONCE and
offered the stock to him at fl5o shars.
but the latter thought that was too muchi
to ask for it. Morey said he was instructed
to take sl25 a share IL he couldn't get more
and that the business was quickly concludt
ed with Mr. Havemeyer on that basis
What do you mean by quickly conclude
-" asked Mr.. Knapp.
well, he didn't talk much about how
| much stock he would have TO have" eaid1
Morey. He asked me how much stock1
there was to sell at that price. and MEM
| toned some others and then told him that
II wanted to sell entirely. He said: MN
| Morey, / want you to keep your stock "
told him / knew nothing about the sugar
business, and was too old to learn. He am
swered: We can hire all the trained mem
| we need | want you to stay because q
have looked you up. When l send 81 ,000 o0n
| TO Colorado want to know the man that Ia
| to get 1t. '"
The witness said Mr.. Havemeyer goo
| Lob ba1 ~ of CrroelpYl
plant. Morey testified he had purchased
stock in other companies for Mr.. Have
meyer after that. Mr.. Knapp introduced inl
evidence several letters written by Have
meyer to Morey, which he Identified. In
one dated December IS, 1902, Mr.. Haye~
! meyer wrote:
| IL occurred 10 me to-day that you might,
probably be willing 10 assume confdential'
| relation between me and my associates IN,
| reference to a possible purchase OF thel
| stocks Of the different beet sugar corpora
tons in your state, perhaps the Lem
| Company, and perhaps the companies OF
which Mr.. Eccles is president.
! You would have TO employ somebody or
| course, in your interest and or absolute
the stock OF these different properties and
advise by telegram or letter. as the case
might be. OF the quantity and rate
It might be that you would prefer some
-
! ii would be necessary 10 state before you
! assume the relation what percentage, IL
any of the purchase you would like or the
! option on. No other party to be aware OF
| this relation but yourself. Your truly,
II. O. HAVEMEYER
Morey testified that he never assumed tho
confidential relation referred to In Mr..
Hayemeyer's letter. He admitted he pur-'
chased stock for him in various companies.
but said II was generally known for whom
he was acting. Mr.. Knapp wanted to know
II IT wasn't the purpose OF the American
companv at that time TO consolidate all
the Colorado beet sugar companies. Morey
said he did not believe that was the inten-
ton so early as that.
He named several companies in Colorado
which he said were not controlled by the
American Sugar Refining Company. Mr..
Morey became president OF most OF the
companies in which the American pur-
cha sed control. The witness had acted In
that capacity is so many companies that,
he had hard work in remembering them,s
and continually referred to notebook.
which he said had been compiled at his
office
Mr.. Knapp offered in evidence an inter-
esttng letter from Mr.. Havemeyer to Morey.
near the close OF the session. in which the
former wrote that he did not consider the
proposition unlawful for the stockholders
to shut down one plant and still draw divi-
dends on the stock Of the inactive plant
In answer to Mr.. Knapp's questions the
witness said the idea was to pay the stock
holders dividends from the profits of some
other company. He said that 1t worked
out no injustice. as all the plants had prac-
tically the same stockholders. He could
not recall. however, that he agreed with
Mr. Havemeyer on the proposition.
The hearing adjourned until to-day a.
II a. m.