The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-06-12
CORN PRODUCTS HEAD
DENIES SECRET DEAL
Not True That the "Insidcrs
Made Millions" Says
+. II. Bedford.
TELLS OF CONSOLIDATION
Government Attorneys Unfair,
He Asserts, in Statement
About Suit.

Il. T. Bedford, president OF the Corn
Products Refining Company, challenged
yesterday certain OF the statements cred
tied to the Government attorneys in re-
gard to a Federal suit under the sher-
man law. charging restraint of trade.
He objected particularly to what he said
were unfair and untruhtful differences
that Standard Oil men. including WILL
lam Rockefeller. John ID. Archbold, the
late III. II. Rogers and Mr.. Bedford, held
enough stock In the New York Glucose
Company to qualify as directors but hid
their identity through dummy directors
and obtained large secret profit when
New York Glucose Company shares were
sold to the Corn Products Refining Com
pany. MIR. Bedford said:
''The facts are that 40 per cent. of the
shares OF the New York Glucose Com
pany were sold to the Corn Products RE-
timing Company and 81 per cent. ro-
tained by the original holders of the 100
per cent This stock was neld by the
General Trading Company. whose capt.
talization was but s12.750. This COM
pany was organized to hold this interest
and the dividends as paid we're again
paid out by the General Trading Com
as much as so per cent. share, as
against the 1 per cent declared on the
S2,5OO.OOO capitalization OF the New York
Glucose Company.
THE total dividends paid during the
existence OF this company were S275,-
600. The minority stock owners. those
holding the - per cent, received $l34-
$50 out of this and the General Trading
Company $14O.250.
The directors OF the company were
T.. T Bedford, W. J. Matheson, l.. r.
Bedford. r. q. Barstow and W. H.
Nichols. and II must be admitted that
they were not dummy directors.
II is also stated in the report OF the
Government hearing that large amount
OF money was made. This was true only
as relating to those who were fortunate
enough to sell their shares when the
market value was ut least so per cent
higher than at present As a matter OF
fact those in the management OF the COM
pany did not sell out their shares, but
added to them, showing at this time
heavy losses resulting from their pur-
chases."
Preston Davie, attorney for the com
pany, said that the action against the
Corn Products Refining Company charges
II solely with restraining trade, which the
company denies
There Is no charge whatever" he said.
sin the Governments bill that the Gem
cral Trading Company ever made millions
OF dollars selling stock of the New York
Glucose Company to the Corn Products
Refining Company Any such evidence
would be entirely beside the issue.
During the period from February.
1904, until March. 1906. something over
two years, the New York Glucose Com
pany paid total dividends amounting to
5h2 per cent. per annum upon its capital
stock. and every one OF Its shareholders
received this dividend and no more
"Since the New York Glucose Com
pany's stock turned over was of the par
value of 500 and the par value OF the
General Trading Company's stock was
only 81 per share. the 5i2 per cent.
dividend received from the New York
Glucose Companys stock represented, OF
course, a very large dividend per share
by reason OF the small capitalization"
Mr.. Davie said that II was not true
that william Rockefeller. John u, Arch
bold or II. ri. Rogers were ever directors
in any OF the companies mentioned.