The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-11
Big CORN PRODUCTS
RAKEOFF CHARGED
Documentary Evidence Intro
duccd i'm Federal Dis
solution Suit.
ORGANIZATION TAKEN UP
Rockefeller and Others Got In
side Profits, Govern
ment Alleges.
ORGANIZATION TAKEN UP

Documentary evidence was produced
before Special Examiner Roland ~ Phil
lips In the United States District Court
yesterday to show that william Rockefel-
ser. John d. Archbold Il. 4. Bedford and
the late II. II. Rogers made a large profit
through the formation OF the Corn Prod
ucts Refining Company, which the Gov
eminent regards as combination in vio-
lation OF the Sherman law. At the time
of the formation Of the company In 1906
all the men named were dominant figures
In the STANDARD Oil group. Mr.. Bedford
is now president of the Corn Products
company and is one of the defendants in
the Government suit
The Government Is seeking under the
Sherman law to dissolve the company and
its many subsidiaries into separate units.
on the theory that the combination con-
trolls &C per cent. OF the entire produc-
ton of starch and glucose made from corn
and so per cent. Of the Interstate trade In
mixed syrups.
The taking Of preliminary testimony in
the suit was begun before Examiner Phil
lips yesterday, with Jesse G. Adkin and
Van Sinderen Lindsey, special Assistant
Attorneys-General. representing the Gov
eminent and Preston Davle as attorney
for the defendants.
William Rockefeller and the other MEM
bers OF the Standard Oil group made mill
ions OF dollars, according 20 the Govern
ments charges, by selling to the Corn
Products Refining Company the majority
stock OF the old New York Glucose Com
pany. The men at the time were direc-
tors in the General Trading Company. the
holding corporation for the glucose COM
pany. According to evidence produced by
the Title Guarantee and Trust Company
they also controlled the majority OF the
glucose companys stock under a secret
trust agreement.
The Standard oil men. the prosecuting
attorneys say. held enough stock In the
glucose company to qualify as directors.
but In order to conceal their identity with
the concern put in dummy directors to
administer its affairs.
As an indication OF the substantial
price which the Standard oil men must
have asked for their stock when they sold
out to the Corn Products Company In
1906 the Federal authorities point out
that one year before the formation of the
Corn Products Refining Company the
General Trading Company paid a 60 per
cent. dividend to its stockholders AL
though this dividend was paid out OF the
earnings or the glucose company no part
Of II. the Government officials say. went
to the minority stockholders of that con-
Germ.
At future hearings. which have not been
definitely scheduled. the Government will
seek to show that the Corn Products Re-
timing Company Killed OFF competition by
fixing prices which the independents could
not meet by accepting rebates from rail-
roads until the Interstate Commerce COM
mission put "A stop to 1t, and by absorb
ing forty or more factories. all but
five OF which have either been dismantled
or sold on condition that the property
should not be used for the same business
The defendants say that the abandon
ment OF those plants was rendered nee
essary by the radical changes In the proc
ess OF manufacture and other conditions
brought about by the evolutionary devel-
opment of the trade They also insist
that they were able to OFFER their goods
~ lower price and will realize sub
stantial profit by reason of the scientific
methods adopted by the Corn Products
Refining Company after its organization
In 1906.
The Corn Products Company is capital
lied ut $50 200 0Gc and has its head
quarters AT Il Battery place.