Democratic Sentinel, Volume 15, Number 7, Rensselaer, Jasper County, 6 March 1891 — SUGAR TRUST IN HIDING [ARTICLE]

SUGAR TRUST IN HIDING

HOW THE OFFICERS OF THE TRUST AVOID EXAMINATION. The Treasurer Off on Business—President Not to Be Found—Great Profits of the Trust—Watering Stock to Deceive tho Public—How the Tariff Helps the Trust. A committee of the New York Legislature has been investigating the affairs of the sugar trust. T This trust has for some years been one of the greediest and best fed among tho many combinations which have been begotten and nurtured by our tariff laws. It was stated some time ago, by Messrs. Willet & Gray, the highest authority upon matters pertaining to tho sugar trade, that the profits of the sugar trust have been $10,000,000 per annum. This is a profit of 30 per cent, on the capital, which is $50,000,000. But this capital is the result of watering its stock. How this stock watering went on may be seen from the testimony of Mr. John Moller, of Brooklyn, N. Y. Mr. Moller said that he had been a stockholder in the Baltimore Sugar Refining Company. This company was absorbed by the sugar trust in October, 1887, and the stockholders received in payment U 1,050,000 in sugar trust certificates The amount of actual capital represented by the various concerns which were absorbed by the trust was $15,000,000, the remaining $35,000,000 being watered stock. This watering was of course done to disguise from the public the enormous gains which the trust was making. Now an operation in simple arithmetic will show the actual profits of this tariff trust. A profit of $10,000,000 on a watered capital of $50,000,000 is equal to 20 per cent, earnings; but on the actual

value of the capital, which is $15,000,000, the profits were 66 per cent. It is no wonder that the officers of the trust got out of the way in order to avoid the examination into its affairs. Thp secretary and treasurer, it was announced, had gone to New Orleans “on business,” a thing which he had done on a previous occasion when the trust wa,s about to be investigated. It was stated by the committee’s sergeant-at-arms that he could not find Mr. Searles, the treasurer of the trust anywhere, that all search for him had been in vain. The officer had also made attempts to serve subpoenas on Mr. Havemeyer, the President of the trust. Th s Mr. Moller testified that the Baltimore company hal just been closed up by the trust in order to limit the production of sugar, and thus raise the price. This was actually done, but the trust did not (succeed in keeping tlje prices up as high as it had put them. One of the stockholders of the trust testified that the competition from Claus Spreekels and the other independent refiners had prevented the trust from maintaining the prices at the point to which it had raised them. As the time draws near when raw sugar is to be admitted into the country free of duty, it is well for the people to be reminded that they will not yet escape from the grasp of the trust. Although raw sugar goes on the free list, the duty on refined sugar will be 50 cents a hundred weight, which is actually higher protection than the trust had under the old law. Claus iSpreckels said that 40 cents a hundred afforded him ample protection, and McKinley fixed the duty on rosined sugar at this point in the bill as it passed tho Home. The Senate raised the duty to 60 cents. When, however, the bill was in conference committee there was a long wrangle over the sugar duty. The New York Tribune, one of the most extreme hightariff papers in thd land, reported during that wrangle that one of the moss conspicuous lobbyists seen flitting back and forth about the doors of the conference committee rooms was this same John E. Searles who now hurries off to New Orleans when the trust is under investigation. His chief “counsel.” on this occasion was the notorious Col. W. VV. Dudley, of bleckg-of-tive fame. The result was that the Senate and House split the difference, and refined sugar was put at 50 cents a hundred. As the trust was able to make 66 per cent, under tho old law, it ought to have no difficulty in making still more under the McKinley law. bo, although sugar will be much cheapen- at an early day, the trust will be in a better position than ever to gather in its tariff spoils. The trust may have a legal right to its existence and to its higher profits due to protection; but the people are fools to continue voting for members of Congress who go to Washington and pass tariff laws in the interests of rich and powerful monopolies.