The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1888-09-03
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SQUEEZING THE TRUST.
THE MEANING OF THE ERRATIC MOVE
MENTs IN THE SUGAR MARKET.

A curious sugar war is being car
ried on by the California Refinery
and IN the East by the trust and the
outside refiners. The local market
is being manipulated at will by the
California Company, the object be-
ing to cinch the American Company.
Prices go up and down every few
days in an exceedingly erratic man
ner. At present the market is stiff
ening, but q reaction is expected
next week. The fluctuations are a
part of the battle against the trust,
advantage being taken of a rule re-
garding prices and delivery recently
adopted by the local refinery in the
trust.
Some time ago the American Re-
tinery changed its rules regarding
the prices that should be charged to
pur chasers. 1t had always been
the custom to sell the sugar at the
fig ures ruling on the day of delivery,
an not the day that the order was
given. Thus, if a thousand barrels
of sugar was ordered on Monday
and not delivered until Friday, the
purchaser would have to pay the
prices current on Friday, whether
higher or lower than those of Mon
day.
When E. L. G. Steele retired from
the control of the American Com
pany, this rule was changed. 1t
was provided that the sugar should
be billed at Mondays prices il
ordered on Monday, and not accord
ing to the price of the day of deliv.
cry. This is where the opportunity
for the fight comes in, both here
and in the East.
At the time that Claus Spreckels
cornered the raw sugar market and
gagged the trust, their refneres
were loaded up with orders, but
they had little or no raw sugar. He
had them at his mercy and showed
up the price all around, while thu
trust refiners had to fill their order.
at the prices current when they
were given. In many instances
they had to buy raw sugar of Spree
kels at CT cents a pound, refine il
and sell it at the same figures.
Their losses were heavy, and fol
a week or so they carefully abstain
ed from accepting orders. Taking
advantage of the situation, Brazer
Harrison & Co., E. c. Knight
Sprecl1els and the outsiders gene
rally gathered in all the orders they
could, They had plenty of raw
sugar, but knew that before deliv
cry prices would go down. In thi
way they caught up plenty of busi
ness, the jobbers were not affected
much and the trust suffered badly
AS soon as the trust refiners sec
ured some raw sugar, they com
menced to receive orders again
, Prices, in the meantime, had fallen
and they offered to deliver sugar a
! the low quotations. This was
signal for Spreckels to put up prices
once more, so as to compel tn
: trust to deliver more sugar at n loss
, They are compelled to go TO hir
r for their supplies of the raw article
l he having control of the availabl
, raw sugar. This little sea-sawin
} game is likely to be carried on a
long as there is any chance to worr
the trust, which will be until the
: can get some sugar from abroad
: They are mad, but they are help
less.
l Since July 30th sugar has aC
vanced nearly every day, the il
! crease being about ] of cent a
around. Yesterday three advances
each of / cent, were made, and L
day the market was buoyant, wit
the chances favoring another ris'
Granuated sugar is Il cents
pound, with other grades of suga
corresponding. Claus SpreckeI
| gets his raw sugar from Manila fC
t about Al cents a pound, and as b
7 has 10000 tons to be delivered i
: San Francisco and New York hi
/, ability to squeeze the other side
S not Post,