Los Angeles daily herald., 1888-07-13
PACIFIC COAST.
Effect of Trusts Upon the
Sugar Interests.
CUT DIAM ONI
Shortage of Beet Sugar Crop in
Germany and Probable Rise
of Prices Here.
Associated Press Dispatches to the HERALD.

| Associated Press Dispatches to the HERALD.
SAN Francisco, July 1.-THE Cali
fornia and American sugar rein
cries, in harmony with the advance
made in New York, yesterday advanced
the price of granulated sugar one-fourtl
ola cent pound, and to-day an addi
tional half cent, making the present
price eight cents per pound. Represent.
atives of the refneries here say one o1
the chief causes of the advance is the
scarcity OF the beet crop in Germany and
| elsewhere. Another cause, however, as
stated by men conversant with the sub
ject, is that there is now in New York
very little sugar for future delivery.
In connection with this subject is the
interesting fact that when the Sugar
Trust was lately formed in the East the
Trust attempted to set the figure which
they would pay for raw sugar. There
upon the sugar brokers, who act as
middlemen between the growers and re-
finers, quietly tcld the Trust they would
not sell them any raw sugar. 1t would
seem that the brokers had gotten control
of the greater portion Of the future beet
crop.
Not long since the Sugar Trust, finding
themselves practically without the raw
article to keep their refineries in opera
ton, made proposal to the brokers to
buy raw sugar. The brokers then set
the price, which was high one, but the
refneries were obliged to pay it.
In brief the situation is about this
The beet crop in the countries where it
is usually the heaviest is light. This OF
itself would cause slight advance. The
brokers having secured control of what
ever crop was in sight, at once advanced
the price of raw sugar in order to put
money in their own pockets and at the
same time to punish the Trust that had
been 80 autocratic. As the Trust had to
pay high price for raw sugar, the Off
cials thereof advanced the price of re-
fined sugar. They, however, raised the
price high enough not only to reimburse
themselves for the excess paid to the
brokers, but also to make a profit them
selves. The sugar market on this coast
being controlled entirely by fluctuations
in the New York market, at once ad-
vanced prices to correspond.
Besides this there is local feature of
the subject that is interesting at this
time. Before the American Refinery
here joined the Sugar Trust the plan of
both refneries was to sell subject to the
state of tie market at the time of deliv
cry. For instance, B would contract
with the American Refinery for certain
amount of sugar at cents pound, this
being the market price on that day.
When the sugar was delivered, however,
be it few days or months, B was called
on to pay the market price on the day of
delivery, it being to the advantage Of B
if the market was low, and to the advan-
tage of the refinery if the market was
high. When, however, the American
Refinery joined the Trust, they decided
to abolish this plan to make contracts at
a certain price and sell at just that price
when the delivery was made, notwith-
standing the state of the market, whether
it was higher or lower.
A few days since, and just before the
raise, the American refinery contracted
to sell the full months output at 614
cents. Day by day the market went up,
and when to-day the price was quoted at
8 cents, the American refinery quietly
stated that they had work enough on
hand to keep them employed for some
time, and declined to accept further
orders.
The California refinery is, of course,
elated over the thought that its rival is
running its works night and day to turn
out sugar at 61a cents, when the market
price is 8 cents. The sugar men here
say that, as a matter of fact, there is
now little sugar on the Pacific Coast, the
extra demand from the fruit canneries,
etc., having lowered the supply, and it
would not be surprising if, before the
week closes, the California refinery, see-
ing the condition oi the American re-
finery, will advance the price of refined
sugar to 8 cents a pound and reap a
golden harvest of its own sowing.