Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1913-07-02
h WEDNEs DAY, JULY 2, 1918.
BEET SUGAR TRUST a GIe 4 n
, s; 5is TIC FRAUD

Del II 0O0Nn 49, - 7s - = #--'9CI.75
TIC FRAUD
fair Interpretation Of the Balti--
more platform pledges the; demo no cratic
party to both free wool and free
sugar, but whether the platform does ices
I 81 does not so declare the
4 people Of the United States will GER
tainly. be greatly benefited by the
removal 8of the tariff on these two
prime necessaries OF life. 5yS
No one need look any further than
the testimony Of H. 7. oxn ar
1 before the senate lobby investigating
committee. for ample proof that the l e:
beet sugar trust is "a gigantic fraud q.
on the American people.
N; According to his testimony MT.
\ Oxnard organized the American beet
sugar / company in 1898, with s, 0o0,-
d 900 shares Of preferred and 10000
900 shares Of common stock
The preferred stock u repres nj q
the only money invested. It was
furnished by Kuehn, Loeb & Company
and other bankers in New York, who
took over the preferred stock and an
equal ammonnt OF common stock.
The New York bankers then put
up 81, 0OO. 900 and were given 5,ooo.-
4 900 shares OF preferred stock and a
bonus for their accommodation OF
5000, 900 shares Of common stock.
Mr.. Oxnard then printed 10000, 900
shares more OF common stock for
himself and his associates in the
enterprise. VI n
The 5000, 900 furnished by the
New York bankers was invested in
beet sugar factories and the trust.
commenced to do business.
The trust has never paid less than
six per cent. annual dividends on
its preferred stock and sometimes
more than that. These dividends
during the past fifteen years have
amounted to more than $4,000, 900.
"A million dollars in dividends have
been paid on the common stock and
a surplus Of s2,5O0.OOO has been ac-
cumulated. Extensions and better
ments have been added out of the
earnings representing fully $4,000, 900.
I All this Mr.. Oxnard admitted under
oath. He admitted that he created
with lithogra phing press $4,000, 900
OF stock for which the company did
not receive a dollar. It represents
water and had nothing behind it ex-
cept blue sky.
The beet sugar trust cannot proper
" be called a fake. "A fake could
not take 5000. 900 Of preferred stock
OF the par value OF 81 each, and ex-
change the stock for SIS, 100000. then
run printing presses long enough to
create Il. 200. 900 shares Of common.
stock. give s. 600, 900 OF these shares
to the purchasers Of the preferred
stock. and then proceed to sell the.
remaining 10000. 900 shares to the
public and make the industry pay
dividends on 20.0OO,OOO shares Of
preferred and common stock. But
this association. or trust as it is
commonly called. while not fake,
ia 9 gigantic fraud when it claims
that it Will not be able to pay the
laborer and give the producer q prof
It" unless the government taxes; the
people Of the whole country for its
benefit And Mr.. Oxnard was forced
to admit even more. From the prof
Its OF his beet sugar factories he.
and his brother and other officers,
have been paid princely salaries,
$4,000 and $4,000 a year, and hun
dreds Of thousands Of dollars have
been used Tor the maintenance OF
lobbies to secure q continuance on
our statute books Of the special legis-
lation which has enabled the sugar
trust to exploit the American people.
I But MI. Oxnard and his associates,
in and out Of Congress. are fighting
a losing battle. The beet sugar trust
will continue to do business at a
fair profit, on the capital actually in
vested, but the end Of their extortion-
ate prices on necessary article of
I food for all the people is near at
hand. :,