The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-09-10
THURSDAY September 10th
ABOUT THAT SUGAR CONTRACT.

It is amusing to read the "Ga-
zette's" articles on the new sugar
contract. One would imagine that
instead of being simple mercantile
transaction, it involved State secrets
and affected international interests
of the gravest character It says:
The change which has come across our
sugar interests is startling one. To q
large part of the community it has ccroe
almost as a thunderbolt out of clear sky.
The matter, of course, has been known to
those most deeply interested, but we are
told that it had not leaked out, even to such
a firm as Messrs. Irwin Co. It was we'll
kept secret.
This is all nonsense. The negotia-
tions, through every stage, were well
known to those whose interest in the
sugar business makes it of sufficient
Importance to them to keep fully adj
vised of what is going on in the San
Francisco and Eastern markets; and
it was likewise known in this city to
several people outside those engaged
in the negotiations. For ourselves,
the steamer which brought back
Messrs. Jones, Glade and Atherton,
brought us full details of their failure
to sell their sugars to the California
Refinery, and of their inchoate nego-
tiations with the American Refinery.
1t was not ga well-kept secret" there
fore. It was no secret at all; but be-
ing in the nature of a private bust
ness transaction, we did not deem it
a subject of newspaper mention until
it had been completed.
We were in error in matter of de-
tail, however, in our comments on
the transaction, which we corrected
the day following. The sugar is to
be paid for in gold as formerly. This
is SO far satisfactory; but there is a
'fcat in the meal tub" somewhere,
and for the sake of the planters whose
produce is to be handled by the
American Sugar Refinery, and of the
stockholders in that concern who
may invest on the strength of the
Hawaiian sugar contract, it should
be explained precisely what kind of
cat it is. We suspect that Pine
street experts would call it "wild
cat;" but they might be entirely
wrong, and to prevent misappre-
hension of any kind, we invite the
gentlemen who conducted these ne
gotiations to explain just what man.
ner of animal it is they have hidden
away. Mr.. P. @. Jones, in an inter
view in the Bulletin" published
last Monday, made the following
statement in answer to the printed
question:
SIS it true that you are not to receive
whole cash for your sugar, but must take
part payment in the stock of the American
Refnery2'
''It is entirely untrue. We are not
obliged to take any stock in the Company,
but we will share in the profits of the re-
fnery.',
Now, would Mr.. P. C. Jones kindly
explain the nature of the transaction
herein outlined, between himself and
other plantation agents and the
American Sugar Refinery Company,
reorganized. Let us state it as it
strikes our unsophisticated and I'M
commercial mind.
First, A undertakes to buy all the
sugar delivered by. B at San Fran
cisco and pay for the same in gold
coin, during q period of three years,
on the New York Cuba basis.
Second, B agrees to deliver all the
sugar produced by C (the planters)
and to receive therefor payment in
gold coin on the terms above stated.
Now, if A pays B the full market
value of C's sugar, for the sale of
which B is agent, and if neither B
nor C hold stock in A, company in
corporated and doing business under
the laws of the State of California,
how does it happen that B. or B and
G. should .'share in the profits of the
refinery A, in which neither have
one cent of capital invested?
This is the "cat in the meal tub"
which we want to have uncovered.