The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1888-08-27
SQUEEZING THE TRUST.
THE MEANING OF THE ERRATIC MOVE
OrENTs IN THE SUGAR MARKET.

\ curious sugar war is being car
nied on by the California Refinery
and IN the East by the trust and the
outside reiiners. 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 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-
fnery changed its rules regarding
the prices that should be charged to
purchasers. 1t had always been
the custom to sell the sugar at the
fig ures ruling on the day of delivery,
and not the day that the order was
given. Thus, if 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 if
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 refneries
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 the
trust reiiners had to fill their orders
at the prices current when they
were given. In many instances
they had to buy raw sugar of Spree
kels at ct cents pound, refine it
and sell it at the same figures.
Their losses were heavy, and for
a week or so they carefully abstain
ed from accepting orders. Taking
advantage of the situation, Frazer,
Harrison e Co., +. c. knight,
Spreckels and the outsiders. gene
rally gathered in all the orders thew
could. They had plenty of raw
sugar, but knew that before deliv.
cry prices would go down, In this
way they caught up plenty of busi-
ness, the jobbers we're 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 at
the low quotations.. This was q
signal for Spreckels to put up prices
once more, so as to compel the
trust TO deliver more sugar at a loss.
They are compelled to go to him
for their supplies of the raw article,
he having control of the available
raw sugar. This little sea- saving
game is likely to be carried on as
long as there is any chance to worry
the trust, which will be until they
) can get some sugar from abroad
, They are mad, but they are help
less.
Since July 3Oth sugar has ad
yanced nearly every day, the in
crease being about 1 of cent al
=, around. Yesterday three advances
each Of / cent, were made, and 10
4, day the market was buoyant, wit
y the chances favoring another rise
= Granulated sugar is II cents
l. pound, with other grades Of suga
3 corresponding. Claus Spreckel
J. gets his raw sugar from Manila TO
y about At cents pound, and as h
s. has 10000 tons to be delivered il
" San Francisco and New York hi
~ ability to squeeze the other side i
y not questioned Post.