Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-08-03

the price paid by the sugar trast to
close the California Hawaiian Sugar
Company's refinery at Crockett in the
years 1903, 1904 and 1905 1t was the
last of the important sugar coace. rs
that stood in the. way OF the sugar
trust 8 scheme to elevate prices.
The story OF the deal was Told yes
terday on the witness stand by Will
liam H. Hannah, secretary Of the
Spreckels' sugar corporation, in the
equity suit against the sugar t. ust
which is being prosecuted by the Unit
ed States before Special Examiner
Wilson B. Brice in the Postofice build
Ing. 1t is a contribution of the Gov
ernment's suit to dissolve the ust
commenced nearly two years ago in
New York. 49, a.
After the story of the California
Hawaiian deal had been reluctantly
dried fiom the lips of Hannam tele-
gram announcing a raise of SO cents
a hundred pounds on sugar sent by
him to Henry o. Havemeyer, late
head Of the sugar trust, was introduc-
Ell as an exhibit in evidence ty James
Il Knapp, the assistant United States
Attorney who is handling the suit.
Row Deal Ended.
For three years the Calicorr a fIa-
waiian company closed it's Crockett
plant and remained out of the sugar
business. Then it resumed its ole a.
ttions. How and why the, agreement
was repealed will be broue @out, 1t is
expected, by the Governments prob
ing in the next few days of the heal.
ina 49, ~
Avery Ingenious method of t.ans-
ferrfng money was adopted by the
Western Sugar Refining Company End
the Spreckels Sugar Refining Com
pany, which were then half owned by
the sugar trust and put through the
deal with the independent company.
The agreement was made with the
officers of the Independent company.
II was agreed that each OF the Spreck.
els concerns should pay 100000 a
year each ,f.. Fz-q..s -, 80, .:sz..ss.,...s,s
= The money was paid in the form OF
salary increases to the chief officers
OF the Spreckels corporations Each
salary was raised $4,000 s.-sear. The
officers did not keep the money; they
paid ft'loverF Ito John d. Spreckels.
Spreckels paid 1t over to Morrison and
Cope. his attorneys, and by them 1T
was turned into the hands Of Donald
Campbell, attorney for the Closed
down Hawaiian Company. S -.
1eils OF fransfers. - ,ssssss u.
Under the agreement the Calico
nia-Hawaiian Company shut down for
three years for 100000 a year, did
Il moi? 2" questioned Knapp IS L Z
Yes, replied Hannah. S. =,
eventually the payment reached
the hands Of John D.. Spreekels, d.
ftp, - - ~ r.. = :,
Yes ,..g.s p =. Ill. w., ~
To whom did he nay it?
think to Judge Cope. "5<ta = l:na
To whom did Cope pay it,"
To Donald Y. Campbell" - j
He was the attornev for the Cali
fornia- Hawaiian Sugar Company T..
Yes s>,-...
did the California Hawaiian Com.
PAW cease to operate after that?" =
yes" . .-.f. - .:... ~.
Was the reason for making the
payments this way SO that the books
would contain no entries that would
show the making of the arrange
ment? >-s. ...s.. :. -
Hannah hesitated. Knapp pressed
him hard for categorical answer, of
ives" or mo" Hanuam's emtarrass-.
ment increased so much that he had
to have the question read to him three
times. Then he answered mo" Il
We're not these payments made be-
cause it was desired to maint,in as
much secrecy as possib1e?"
) Yes. because they asked US to have
1t that way, was Hannam's response.
is there any book OF the Western
Sugar Refining Company that truthful
~ shows the whole of that transaction
and the purpose for which it was
nade" continued Knapp.
4 think it did. 1t wa book espe-
cially kept for this pur.a Sc. =.
ut was a book kept for the part Gu
lar nurposes of this transaction?
yes" - -.
The book was destroyed in the fire
Of 1896. Hannah admitted that there
had been no entries concerning the
in the regular books OF the
and that the special book
he'd been kept by George w. Herrold
and he alone had access to it. Hannah
did not see it. ~@- -. ~
After Knapp had concluded this line
o. investigation he offered in evidence
a telegram from Hannah to Have
meyer, head Of the American Suear
Refining Company, parent corporation
of the trust, which was dated March
1903. and read: -
Effective this afternoon; all grades
advanced so points; adjusted praeti-
cally as outlined in my letter March
2" 4
The larger part Of yesterdays hear
ing was occupied with the introduc-
ton of letters and kilograms which