OCR Text |
Show Thomas Cutler of Salt .Lake Tells of Utah Sugar Industry tWahslngtou, June 23. Henry C. Havomeyer, during all his connection r1th the Utah-Idaho Sugar company, of which Jos F. Smith, head of the Mormon church, Is president, never ag a director or officer of lhat corporation, cor-poration, declared Vice-President Thomas R. Cutler of that company, b'eforc the House Sugar Trust commutes commu-tes of Inquiry today. Mr. Cutler testified that Havemcycr who had acquired Interests In several sev-eral of the original .Mormon companies, compan-ies, at first objected to the consolidation consolida-tion of the Utah-Idaho company. f'Mr. Havemeyer was very much opposed op-posed to the proposed merger at first," sold Mr. Cutler, "He said he preferred pre-ferred to have his stock in the various vari-ous companies remain as it was. It .d(& make considerable difference with the western stockholders and our peo-jjp peo-jjp and It took a great deal of argument, argu-ment, stretching over several months, to1 convince Mr. Havemeyer thaL the consolidation effected in 1907 was beneficial. Some of the stockholders feared tnat .Mr Havemeyer and the American Ameri-can .Sugar Refining company sought to get control. For this reason an '.agreement was drawn up which Mr. Havemeyer was askod to sign, providing pro-viding that the original stockholders should name three directors, the eastern east-ern interests three and these six a boventh. 'T asked Mr. Havemeyer next about the' seventh man, or who should be -president. 1 told him that, If agreeable agree-able to him, we would very much de- -side that tho President of the Mor- in'on church be president of the com-pany, com-pany, on account of his Influence with the people and his deep Interest hvthe business enterprises of the people.'" peo-ple.'" '".'All right. Mr Cutler, Havemeyer at once replied. 'That Is all right: just the .thing President Smith was named president of tho company and MroHavemoyor-never afterwards suggested sug-gested an officer or director." Mr. Cutler said that only about thlr- potrenljLthexstock -ofMhe-conv !pRny "lffola -oy TcjfSTons anU some of the directors are not Mormons Washington. June 23 Thomas R Cutler of Salt Lake, general manager of the Utah-Idaho Sugar company. In his testimony before the house committee com-mittee of Inquiry Into the sugar trust, Btated thar the earnings of Mr Smith's holdings go to the church Mr Cutler was not sure that some of the earnings were not used for any commercial purpose He suggested that the present bishop of the church, Charles W Nibley, might know. Mr. Nlbley, he said, is a director in the Utah-Idaho company, president of the Lewis ton company and a director In the Amalgamated company. "When did OU start to make sugar?" su-gar?" asked Representative Garrett of Tennessee, who conducted the examination exam-ination of Mr. Cutler. "In tho early '50s, Brlgham Young sont to France for machinery and tried, to make sugar," said Mr. Cutler. Cut-ler. "This proved a failure because we did not know how to grow the beets. The next effort was made In 1SS9. ami it had to be abandoned Wo tried It again In 1S91, and ran a factor- at Lehi. Utah In 1902. we irrigated irri-gated about 30,000 acres and built our second factory in 1903. The original company was the Utah Sugar company,, com-pany,, with 3500,000 capital. The church had to come to the rescue of tho original company." (Continued on Pago Four.) CHURCH AND SUGAR TRUST (Continued from Pago One.) WASHINGTON, June 22 Inquiry Into the relationship between tho Mormon Mor-mon church nnd the American Sup''" ' Refining com- C( i&v il i ""y todny y jR&w the house com- E mittee ot Inquiry H ( i"to tho sugar Hll. .trust disclosed HTV (that Henry 0. KX, Hncmeyer's first H) ; dealings In the TBHlipS!! ' beet sugar indur.- fW' )try wero w,tn JtJ5 I the Utah Sugar M& , I company In which Hg? . i 1 the Church of Jc-R Jc-R , t t sus Christ of Lat-IHk Lat-IHk KV tcr Day faints K i4 i was interested. Hkm&'fi Thomas R. Cut- HBBBKffJ 1 lor of Salt Lake, v y 1 vlco president JlH iJ2CITfi. i an(i general manager man-ager ot the Utah-Idaho Sugar Refining company, and former bishop of the Mormon church, appeared before the commit tee. He disclosed that, of the approx- ' Imately $9,500,000 paid up stock of the Utah-Idaho company, the American Refining company controls $-1,650,050, or IG5.050 Bhares; Joseph F. Smith, president of the Mormon church, as trustee for the church, 19.815 shares, the ostato of Henry O. Havemeyer 23,17-1 shares, and the balance Is ownod by l,49o Individual stockholders. stockhold-ers. President Smith is En Route East. Mr. Smith, who has been summoned as a witness , sent word today that ho was on his way to Washington and would arrive hore Monday, to supplement supple-ment testimony given by Mr. Cutler, who will continue beforo the commit- tee tomorrow. Mr. Cutler related to the committee the early history of the beet sugar Industry In Utah, dating back many years up to the time of the organization organiza-tion of the Utah Sugar company In 1SS9 and the Idaho eompay in 1903 The Mormon church became interested interest-ed first by Indorsing notes of the orlt innl company and purchasing bonds, and later was Induced to buy stock, ' ' ' ' gggg.BiJ-J Jill III BE he said. Representative Garrott ot Tennessee, who conducted the examination exami-nation of Mr. Cutler, asked about the first entrance of Mr. Havemeyer Into the affairs of the company. '"In 1902." said the witness, "1 first met Mr. H. O. Havemeyer " "Did you approach him or did he approach you9" asked Mr. Garrett. Havemeyer and Utah Company "Mr. Havemeyer approached mo," was the reply, "and it was for a different differ-ent purpose than generally supposed. I had been hunting capital for years for tho sugar interest in which we had been interested and had been In the oast many times. Mr. Havemeyer had heard of mo and he sent an agent to Utah to see me. He sent William P. "Wlllotts. I was just going to California Cali-fornia and Mr. Willetts accompanied me thoro and arranged for me to go to Now York to see Mr Havemeyer. "I went to New York and though Mr. Havemeyer was the only man I met. at that time, I judged that he was negotiating for the American Sugar Sug-ar Refining company because he used the word 'we' In all his conversation. Mr Havemeyer said to me, 'We have decided to go Into the beet sugar business. busi-ness. We think it is bound to becomp one of the great industries of this J country and ve have heard of your success In the west. We sent for you to see If you couldn't help us in establishing estab-lishing beet sugar plants in any good locations In the United States.' "I told him that I was in a position to accept such a proposition and 1 said that what I wanted was financial help in our own enterprise. Then he made a proposition to simply one half of all the capital "we would need In extending our business In good territory terri-tory If we would agree to furnish the other half, and he proposed to start the deal that our stockholders sell the American company one-half of our company." Made Six Trips. Before Deal Closed. Mr. Cutler explained that this was tnken up with the stockholders and that It was after he had made six trips between New York and Utah that deal was c'osed with Mr Havemoyor. The committee had just begun its examination ex-amination of the witness when adjournment ad-journment was taken for the dav The committee concluded the examination of Charles B Warren, president of tho Michigan Sugar Refining company During his examination Former Senator Sena-tor Burrows of Michigan was referred to Chairman Hardwlck asked If Senator Sen-ator Burrows, In a tariff speech in tho senate In 1909, had not "assured the senate that the American Sugar Refining Re-fining copany had nothing to do with Michigan refining companj', and had read a letter to that effect from officers of-ficers of the latter company "I' don't think he made such a statement," state-ment," said Mr Warren. "I think he read letters from ' other beet sugar companies in .Michigan denyino that the American company had Interests in them Of our company, he said that it was controlled by Michigan men, that It was managed by local people, and that was not denying that tho American Sugar Refining compnny had stock In the company." orv- |