The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1920-08-11
UTAH-DAHO SUGAR
COMPANY HEARING
Officials Held Under
Bonds to Appear at
Pocatello Aug. II

Charles w. Nibley, Stephen H
| Love, Thomas r. Cutler, James D
| Murdoch, w. s. Mccormick, Merrill
Nibley and w. H. Watts. officers
and directors Of the Utah-Idaho Sug
ar company. have been each placed
under bonds Of $4,000 to appear
before the United States distric,
court, Pocatello, Idaho, Monday, Oc
tober II, to answer to the charge o1
profiteering In an action brought by
the United States as plaintiff. The
case in which Heber J. Grant, presi
dent of the Utah-Idaho Sugar com
pany, Horace G. Whitney, secretary
and w. T. Pyper, assistant secretary
are made defendants, was, on motion
Of the government, dismissed.
The case in which President
Grant, Mr.. Whitney and Mr.. Pyper
are defendants was dismissed as to
Mr.. Grant because the records show
that he voted against the advance
in the price of sugar at the time
the board of directors took such &C.
tion. 1t was dismissed as to Mr.
Whitney and Mr.. Pyper because they
were not directors Of the company
and had no power to vote.
The actions were taken at the pre-
liminary hearing of the sugar cases
held yesterday morning before Unit
ed States Commissioner Henry v.
Van Pelt. The case in which the de-
PENDANTS Messrs. Grant, Whitney and
Pyper figured, is known as case No.
q; the case in which the court bound
the eight defendants over is desig-
mated as case No. 3.
The defendants in the case in
which testimony was taken yesterday
are charged as officers and directors
of the Utah-Idaho Sugar company,
with profiteering in sugar by "know-
ingly and willfully exacting an un-
just, unreasonable, exhorbitant and
excessive price for that commodity" +"
The complaint contains four specific
counts against each of the defend
ants, setting out in detail alleged
transactions whereby it is claimed
sugar that cost the company $9.44
per 100 pounds to produce was sold
at $24.081 and $23.8S1 per bag of
100 pounds.
All of the defendants, except c..
W. Nibley, Merrill Nibley and ]. D.
Murdock, were present yesterday
morning when the case was called
by Commissioner Van Pelt for hear
ing in the circuit courtroom of the
federal building. United States Dis
trict Attorney Isaac Blair Evans ap-
peared on behalf of the Government,
and the defendants were represented
by John A. Marshall, Thomas Mari
oneaux and Joel Nibley. Counsel
for the defense stipulated that the
record might show all of the defend
ants present.
County Clerk John e. Clark was
the first witness called at the hear
ing. He testified to the corporate
existence of the Utah-Idaho Sugar
company.
w. T. Pyper, assistant secretary
and treasurer of the defendant COM
pany, testified, identifying a copy Of
the minutes of a meeting Of board of
directors, held April 10, 1920. 1t
was brought out that Stephen A.
Love, sales and traffic manager of
the company, was not then a direc-
tor, he having been appointed on
the board about May 10.
J. P. Goddard of the Goddard
Abbey company, certified public ac-
countants, testified to making an
audit of the sugar company's books,
showing the cost of production of
the 1919-192O crop of sugar to be
$9.444 per 100-pound bag. He fur
ther said that the company had on
hand on May /, when the increase
became effective, 306,S72k bags Of
sugar.
Noah S. Pond, manager Of the
Pocatello, Idaho, 2. c. M. l. branch,
testified to the purchase of sugar
from the defendant company at $23.-
SS1 per bag and to buying sugar of
the same grade before May 1 at a
price Of Sab per bag.
W. P. Mcdonald Of the Idaho
Wholesale Grocery company, Poca-
tello, gave similar testimony.
Floyd T. Jackson, special agent of
the department of justice, in charge
of the bureau of investigation, told
Of his researches concerning the case,
testifying that the total production
Of the sugar company for 1919-1920
was about 1891, 900 bags; that the
company had on hand May I, about
100000 bags. He said that the price
of sugar was 13 cents per pound
from January rs to May 1, 1920,
when the price was advanced. He
said that the average price of the
1918-1919 crop was about 9 cents
per pound. .
Bills Of lading and invoices bear
ing out the testimony Of Mr.. Pond
and Mcdonald were introduced in