The Washington times., 1917-12-18
HOOVER RISAGA|N
DENIED HEARING
AT SUGAR INQUIRY

The Reed sugar investigating COM
mittee today again refused Herbert
Hoover's request for an immediate
hearing. Hoover. through Judge Cur
tbs II. Lindley, his counsel, asked that
he be allowed to testify today. because
he has to go to New York on busi-
ness.
"WeIl hear Mr.. Hoover when he
comes back from New York." ruled
Senator Reed, COMMITTEES chairman.
"He VIII be in town more than some
other witnesses" -
Broker Was Threatened.
In five minutes' testimony at the
opening Of today's session, Herbert
W. Bienenstok, Chicago, grain and
provision broker, said Louis Strauss,
Hoover's secretary, had threatened
to steam roll" A. H. Lamborn, q
sugar broker. eff he isn't careful"
'I offered my services to Strauss"
said Bienenstok. "In the course OF
the conversation, Strauss asked me II
1 knew any New York food dealers. /
mentioned A H. Lamborn. Strauss
said he was sorry I had done SO.
He said that while Hoover had
the highest regard for Lafnborn per-
sonally, yet Lamborn had better be
careful or the steam roller would run
over him."
what did Strauss mean by that?-'
asked Reed.
'I have no idea" replied the wit
ness.
STRAUSS didn't ten you why Lam
| born was to be steam rolledT' asked
Senator Vardaman.
i ., Anld
you," said BIenenstok. who was then
excused.
All. Lamborn & Co. are the agents
in this country for the British Royal
Commission, which has had charge
of sugar purchases for France and
| England
Strauss is TO be called to tell what
he meant by his statement to Bienen-
stok.
Babst Placed on stand.
Following Bienenstok's testimony,
Earl D. Babst, sugar trust head was
called. Babst said he was eager to
testify concerning charges that i'm
puRn nv honor" which he said Claus
A spreckels had made
| One of the first questions Senator
Reed asked Babst, was:
"Is the American Sugar Refining
Company q consolidation OF many
smaller ones?
Babst
HDon't you as president know Of
the organization of your company"
asked Reed.
"Well, all its subsidiary sugar re
fneries are operated as one COM
pany," Babst admitted.
"At how many places does it own
or control rehneries?" Reed asked
at has rehneries in its own name
at Boston, Jersey City and New Or.
leans, with subsidiary companies at
Philadelphia and Brooklyn. We have
two subsidiary refineries at Philadel-
phfa, the Spreckels and the Franklin
Refining Companies"
| Would Prove sSrrust."
Senator Reed. by cross-examination
J OF Babst, attempted TO show that the
American Sugar Refining Company
was a trust. Bapst insisted that his
company controls but 40 per cent OF
the cane sugar supply OF America and
one-third OF the beet sugar, BAbst
declared there was but one director
or officer of the company who is in
terested in sugar.
"One-half OF our stockholders are
women-new England school teach
ers," Babst declared. He admitted that
women, however. did not own half OF
the stock.
Babst said he held a conference
with Herbert Hoover within ten days
after his arrival from abroad, and
had held numerous conferences with
him since.
As arly as June, Babst said, he told
Hoover OF the possibilities Of a sugar
1 ahn NJ A.
peal of the drawback feature of the
tariff bill by the United States Senate
would open the Cuban market TO
other nations and deprive American
refiners OF a large source OF raw ma
terIal.
Tariff Reduced Supply.
England purchased 100000 tons OF
sugar in excess OF her normal de-
mands and deprived American refin-
ers of this amount, BAbst declared,
due to the repeal Of the tArtn draw
back.
The American Sugar Refining Com
pany adopted q policy Refining its
export business down and refused
shipments to neutral nations, Babst
said.
senator Reed asked Babst IL his
company did not declare last Febru-
ary that there was no sugar shortage.
Babst replied that there were adver-
tisements to this effect, but were put
out to counteract sensational stories"
put out by labor agitators. Senator
Reed and Babst were in continued
conflict as the Senator attempted to
confine Babst to answers.
There never was a real shortage or
pinch until what dAte?" asked Sen
ator Reed.
Early in October" declared Babst.
That was after what had hap
pened?"
No Cane, Cause Of Closing.
After the signing Of the agree
ment with the Food Administration"
But" continued Babst, all of the
|