New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-10-23
TELLS OF SUGAR WARS.
C. A. SpreckeIs Explains How
Great Refiners Sought Control.
UNDERSELLING A WEAPON
Various Forms Of Trust Agree.
ments Followed Price Cutting
Territory Divided.

c. August Spreckels, president Of the
Federal Sugar Company, which has re-
inery at Yonkers, told an interesting
story of the sugar wars in this country
between 1875 and 1891 at the hearing Of
Sugar Refining Company in the Postoffice
Building before Special Examiner Wilson
y. Brice yesterday. His story will be re-
sumed on Friday.
In answer to questions by Mr.. Knapp,
Assistant United States District Attorney,
Mr.. Spreckels said he entered the sugar
refining business In 1878, when he be-
came secretary Of the California Sugar
Company, founded by his father, Claus
Spreckels. Its raw sugar was purchased
in Hawaii, by contract, and sugar from
the Philippine Islands, Java and South
America was bought in the open market
and the refined product Of the company
was sold everywhere west Of the Missouri
River.
There were but two reineries in the
country west of the Missouri River, that
of the California company and OF the
American Sugar Refinery Company, the
witness said. Between them until 1885
there existed an agreement by which the
California company was TO sell four-ffths
OF the sugar sold in its section Of the
country and the American one-fifth
Prices held at two cents pound above
the New York market through an ar
rangement as to freight rates with the
railroads.
In 1885 the Hawaiian planters obtained
control OF the American Sugar Refinery
Company and a war was started on the
Pacific Slope, with prices cut below the
cost Of production.
In August, 1887, the witness said that
John f. Searles came to the Office Of the
California company, in San Francisco, and
asked Claus Spreckels, father OF the wilt
ness, to go into the Sugar Rehneries Com
pany, in process Of formation. The elder
Spreckels referred Mr.. Searles to the wit
ness. The witness said that he told Mr.
Searles that the California company would
not go into the new combination. but
would be glad 10 agree TO contine Its OPP
erations to the territory west Of the Mis-
souri, River. II the combination would
agree TO keep out Of that territory.
"Mr. Searles said he would report to his
associates, and that was the last heard
from him." said the witness, "but few
months later we learned that the new
combination had bought the American
Sugar Refinery Company, and immediate
ly my father decided to invade Philadel-
phia."
The witness then told OF building the
factory Of the Spreckels Sugar Refining
Company at Philadelphia, with a capacity
Of 1850 900 pounds day with himself as
general manager. The war went on, with
all hands in Philadelphia selling sugar at
prices below cost Of production until some
time late in 1890. The witness continued:
Francis o. Matthiessen came TO me at
that time and told me that the sugar
Rehneries Company could not stand the
loss any longer: that he had purchased
control Of the stock, and that he would
like 10 end the war / agreed that "
would be pleasanter to make money, ana
the following morning both 81 US ad-
vanced prices and for about six weeks
we made money Then suddenly ana
without warning the other side broke the
market and the war was on again.
About two years later I ran into MT.
Matth!essen one day and asked him why
he had cut the price that time, and ne