The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1885-09-07
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MONDAY
NEW SUGAR CONTRACT.

NEW SUGAR CONTRACT.
We devote a good deal of space to-
day to particulars regarding the con-
tract between the American Sugar
Refinery Company of California and
the agents of certain planters on these
Islands for the purchase of their crop
for the next three years. If our
space had permitted, we would have
printed everything that appeared in
the Coast papers on this subject. AS
a first installment, however, to-day's
publication will do.
We sincerely hope and trust that
the new departure may be for the
good of all concerned. By that we
mean that the planters will derive
advantage from the new arrangement
to compensate them for the risk and
uncertainty attending all sudden dis
ruptions of established business con-
nections which have proved salts
factory over a series of years. And
that Hawaiian planters have had rea-
son to be satisfied with their business
relations with Colonel Spreckels and
the California Refinery, no unpreju-
diced person will attempt to deny. 1t
was a business arrangement, however,
and the planters, through their agents,
had right to make the best terms
they could for the disposal of their
produce. And they are undoubtedly
judges of what is best for themselves.
AS we understand the contract, it
is to be for three years on the Cuban
basis athat is, the price of duty paid
Cuban sugar at New York less Z
cent. This was the rate of the last
September contract, and it is therefore
no special advantage to planters.
Indeed, at the request of the planters
themselves the California Refinery
changed the basis from Cuba to
Manila just as they thought it would
be best for their interests, so that in
any case they have had no reasonable
complaint to make against Colonel
SpreckeIs or the refinery of whic h he
is the head.
The planters under this contract
have the right to choose their own
shippers of freight. This may suggest
that the Oceanic Company cinched
the planters in freight charges. This
is not the case, however. Two years
ago Messrs. Spreckels reduced steamer
freight from So per ton by the Pacific
Mail Company to SIS by the Oceanic
Company, and from SIS to 81 per ton
by sailing vessel. If the new COM
binatiOn will do as much for the
Island trade as the Oceanic Company
has done in the matter of freight, we
shall be the first to recognize it's
merit.
Another point should be mentioned,
and we commend it to the thought
full attention of the planters who are
pecuniarly concerned. Whereas
Messrs. Spreckels paid in gold coin
for all sugar from the Islands,
amounting roughly to five million
odd dollars year, it is understood
that the new arrangement provides
for part payment in coin and part in
stock IN the American Sugar Refinery
Company, which has been reorgan-
lied with capital of $1,00O,OO on
the strength of this Hawaiian con-
tract. The old company had capital
stock of $500, 600, and since the new
deal the old shareholders are said to
be preparing to realize on the Island
boom. The idea of floating stock in
q California company by impounding
part of the price of the sugar sold to
it is certainly novel one. 1t may
be successful also, but unless the
planters who are to be incorporated
ia this way absolutely control the
concern, by holding the majority of
the stock, they are at the mercy of
those who are in that position. OF
course, everything may go along
smoothly and well, and the planters
NAV find assessable American Re-
fnery stock more profitable than TAX
ing payment in cash for their sugar.
We sincerely hope they may. Time
will tell, however. Meanwhile we