The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-09-08
THE SUGAR CHANGE.
New Contract for the Sale of Ha-
waiian Raws.
Relative Capacities'Of the California
of Interest to Planters. Etc.
From the San Francisco g Merchant"
August 18th.


Francisco grocery circles, also in the future
trade relations of some of the Hawaiian
planters with this city. 1t has hitherto been
customary for most of the Island sugar
growers or their agents to sell their produce
to the California Refinery, receiving cash on
arrival of their sugars at this port accord
ing to the market quotations of the basis on
which they are sold. This basis has been
changed from time to time, from Manila to
Cuba, and back again, at the request Of the
planters themselves, as they thought that
the market would rule in their favor. Some
times they have benefited by the change,
and sometimes they have lost by it. Accord
ing to published statement in one daily
paper, which is as unreliable in its informa-
ton concerning Hawaiian affairs as it is
possible to be, the American Refinery of
this city has now entered the so-called field
of monopolists, and controls the Hawaiian
sugar product, having purchased, by con-
tract, some $4,000 tons of the coming crop.
This, it is supposed, will leave only 10000
tons for the opera tons of the California
Refinery.
Granting, for the sake -of argument, that
the American Refinery does purchase $1,000
tons of sugar within the next year, part of
which will arrive in about four months, we
should like to know what they propose to do
with it. With its present facilities this re-
finery can turn out about $50 barrels of
sugar a day, each of the average weight of
$50 pounds. This means 81 tons day, or
say 80 tons, which will amount to 10000
tons per annum. A very slight arithmetical
computation gives the result that 1T will
take five years for the American Refinery to
manufacture the one years crop of Ha-
waiian sugar that it is now said to monopo-
lie. 1t is only reasonable to presume that
very large extensions and improvements will
be made in the American Refinery. But
these will cost money. The expense in
Cured by the owners of the California Re-
finery in bringing their institution to its
present effective condition, so that it can
turn out $500 barrels of sugar per day, was
somewhere in the neighborhood of $780,
600. The American Refinery has capital
stock of 81 Zoo, 900, besides it's machinery
and buildings, both of which must be ex-
tensively improved in order to prevent them
from getting five years behind. Further
than this, there is the important necessity
of cash payments to the Hawaiian planters
Immediately on receipt of the sugars, for we
do not presume that these gentlemen have
entered into an ''irODclad compact" which
would be ''ironclad'' only at this end. They
are far too shrewd men of business. This
$1,000 tons of sugar to I've paid for in cash
81 = IoI-s IL,
rate at 500 per ton. 1t may be that the
agents in Honolulu are becoming so opnlent
that they can afford to wait for the money,
and even make advances to the planters,
who are not always overburdened with
wealth.
This new monopoly may prove benefit to
the Islands, and we hope it will do so. But
we doubt it. That it will not affect the
California Refinery in the slightest degree
is self-evident. It's owners will have at
least some 5000 tons of sugar from the
Islands, and it seems strange that up to the
last minute almost, overtures were made to
them for purchasing the balance of the crop
which overtures were refused. 1t seems
then almost as if the American Refinery
was used as ''stop gap so to speak, which
would hardly be fattering to those gentle |
men who are it's Directors and Trustees. In |
previous sugar transactions the new Island !
planter monOpolists have been accustomed !
to have their own way. When they desired |
to change the Manila basis their proposals
were again accepted. Not content with the |
continually made to them they I
have so antagonized the best friend the |
Islands ever had as to induce him, though |
very reluctantly, to refuse purchasing fu-
ture sugar crops. Hence the offer to the
American Refinery. It has been even stated |
hat the planters proposed to sell to East
ern refners. Such an egregious piece of
oily on their part is inconceivable. Ex-
were once made in shipping sugar
10 New York and we believe they proved a
complete failure. This would ent tail long
,oyage round the Horn, higher freights, a
in the quality of the sugar and
IN average delay of twelve months in OBJ
aiming returns, which would leave lower net
profits than they have been accustomed to.
It has been insinuated that the California
Refinery will have to suspend operations.
such is not the case. It is on the contrary
Increasing it's facilities for manufacturing
ugar. There is plenty of sugar obtainable
10Th from Manila or Central America which
an be landed, duty paid, in San Francisco,
heaper than the Hawaiian product. Ocean
is no drawback. With its
xcellent wharfage accommodation and
arrangements, with perfect
lastery of the business which has been re-
uced to a science, it is extremely probable
hat tl:e owners of the California Refinery
lay be able to manufacture sugar cheaper
nan ever and still at profit. The Cali
ornia Refinery certainly can have no OBJ
'ctiOn to the transaction in question, espe-
tally as the parties interested cannot be
reverted from launching their capital
pom the venture, whether such course be
bjected to or approved by any party not in
crested. The carrying out of the proposed
eheme will prove to certainty, to those
ho were not aware of it before, that the
urcliase by aud sale to the California Re-
merry of the Island Supars il MT md Daver