The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1888-12-18

SAN FRANCISCO, Dec. 9Th.
The American Trust refinery is IN
difficulties. 1t has not got itself
into trouble by building churches
or other benevolent enterprises
which might be construed into
breach of trust, but on a charge of
vulgar attempt to defraud the United
States revenue. This is net surpris-
ing in the case of The Trust, but
considering the constitution of the
American Refinery Company it GER
tainly is an unexpected and aston
ishing development. The facts in
the case are as follow:
The British steamer Westmeath
arrived from Batavia last Monday
with cargo of Java sugar consist
ing of about $500 short tons for
the American refinery. AS this was
the biggest cargo of sugar ever i'm
ported at San Francisco, and the
first Java produce landed here for
about twenty years the arrival ex-
cited considerable interest in the
jobbing trade. 1t was new de-
parture, and seemed to promise an
unlimited supply of raw sugar with
corresponding advantages to job
bers, because the American reduced
the price of refined the day the
Westmeath arrived by 18th cent per
pound. On that occasion the Cali
fornia refinery did not follow the
,.o,o of Oh. A ,,,o,;..o, but q 5barol
to its price of 81 cents for granu-
lated. AS the American was cent
per pound lower on the entire list
the jobbers took their orders to it.
The result has been that the Ameri-
can is loaded up with contracts
which it cannot fill, thus leaving the
market to the almost exclusive con.
troll of the California refinery.
This situation will be appreciated
by business men, when it is stated
that the stock in jobber's hands IS
unusually low, and that very
active holiday trade has set in on
the Coast.
The Trust management has itself
entirely to blame. 1t appears to
have resorted TO peculiar practices
to increase its profits, hence its
present trouble. On the arrival of
the Westmeath they entered the
cargo at under ID Dutch standard,
which is covered by duty of 1872
check fer 100000 odd at the Gus
tom House for duty.
The work of discharging and
warehousing cargo was begun, and
for time everything appeared to
work like charm. But Uncle Sam
has staff of vigilant officers at
San Francisco, and among the. most
capable and alert is Appraiser Beck.
The fact that Java sugar, which
usually polarizes about 81 should
only polarizes at So was a suspicious
circumstances in itself, and the
Appraiser had samples of the West
meath's cargo tested by the United
States chemist.
This officers repeated tests con-
firmed the suspicious of the APP
praiser, as it was clearly demon
strated that the sugar was of far
higher grade than represented, and
had been arificially colored. Re-
peated tests with Hawaiian sugar of
the same grades as the Java sugar
had been ell .ered at, showed un-
colored crystals in the Islands sam
Piles, while in every test of the Java
the alcohol washed away yellow
coloring matter leaving beautiful
white crystals, which would easily
came up to No. 20 Dutch standard,
the duty upon which would be three
cents per pound-an apparent fraud
of LOS cents per pound.
This discovery was reported by
w. Beck, the appraiser, to Collec-
tor I ager, oIe of the most cautious
of men and lawyer of eminence.
The chemists repo with sam , 'es
of Java sugar taken from the cargo
and Barehouse, were forwarded to
the Secretary of the Treasury at
Wash 1gton yesterday, December
9Th, and the Collector ordered de-
livery stopped, and placed the Java
sugar ashore and afoat in the GUS
tody of United States officers.
This action by the Collector of
the Port wi hdraws the Westmeath's
sugar as effcc;ually from the mar
ket from present use as if it were at
the DO tom of the sea. The Collec-
tor will be guided by instructions
from the Secretary of the Treasury,
and his decision will depend upon
the report of the Chemist of the De-
partment. There can be very little
doubt of the result, as an interview
with the Custom-house officers con-
cerned shows that they are very
confident of their ground. Should
the San Franc SEQ chemists test be
sustained by The experts at the East
the cargo will be seized and confis-
Gated, together with the check of
$40, 900, and the managers of the
Refinery, or those responsible, are
liable to fine and imprisonment.
Meanwhile the sugar is Withdrawn
from sale for an indefinite period,
and is steadily deteriorating, while
the Westmeath is running up q