People's Pilot, Volume 6, Number 41, Rensselaer, Jasper County, 1 April 1897 — THE SUGAR TRUST. [ARTICLE]

THE SUGAR TRUST.

Elicited at tie First Hearing 0 f the Lexow Investigating Committee. That the American sugar refineries company succeeded the sugar trust by purchasing the stock of the fifteen companies in the trust. That Henry O. Havemeyer, president of the refineries company, once declared, under oath, that the principal object of the refineries company was to control the output and price of sugar. That he now says, under oath, such was not Its object. That he admits that a man who controls 80 per cent of the output of sugar can control the price. That he concludes, therefore, that he controls the price of sugar. That he says the price of sugar to the consumer is less than it was before the formation of the trust. That, in his opinion, he would not have a monopoly of the sugar even if he controlled 99 per cent of the whole output. That the refineries company will porbably go into the coffee business, as it is immensely profitable; more so than sugar. That since his firm has been in the coffee business the profit on each pound sold has been reduced from 3 cents to 1 cent, thus benefiting the consumer. That he says Arbuckle Bros, were not threatened that if they went into the business of sugar refining the refineries company would embark in the coffee trade. That Mr. Arbuckle and his partner aver they were so threatened. That the refineries company was organized in New Jersey because, as Mr. Havemeyer says, there is “less scrutiny, examination and investigation of corporate acts” there - than in this state.

That Theodore A. Havemeyer says the price of sugar is lower now than it ever was. That the refineries company has for years paid a dividend of 12 per cent on its $37,500,000 of common stock and 7 per cent on the same amount of preferred stock. That Theodore A. Havemeyer would not go into any business that did not pay a profit of 15 or 16 per cent, at least. That there is that much profit in the coffee business, and that is why he is going into that business. That his brother Henry, fixes the price ct sugar. That Theodore attends solely to the refining, and that, on all other topics, he refers his questioners to his brother, Henry, or to “Mr. Searles.” That John E. Searles was declared in contempt of the investigating committee, because he did not respect its subpoenae and appear before it. That as the investigating committee must report to the legislature on March 1, and is to sit on only two days in each week, it has only seven more hearings in which to learn all about the trusts in this state.—N. Y, Journal.