The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1888-04-24
Philanthropy and Sugar.


East and declared an intention to
build in some seaboard city a great
sugar refinery which should be oper-
ated Independently and for the dis
comfture of the Sugar Trust. Mr..
| Spreckels has made some noise since
his arrival in this region, and has
posed as the friend of consumers of
sugar. He testified before the House
Committee on Manufactures on the
23rd inst with regard to sugar and
his own philanthropic impulses.
There are two refneries in San Fran
cisco, and there is no other west of
the Rocky Mountains One of these
belongs to Mr. Spreckels and the
other has entered the Trust. Spreck-
els was asked to come into the ring,
but he preferred to stay out. It is
suggested that he would like to have
a refinery in the East, so that he could
fight the Trust in its own territory if
the Trust should wage war upon him
on the Pacific slope through the
agency of its refinery there. That
may be so. But neither Congress nor
the people can find in the history of
Spreckels's career any warrant for the
supposition that he will continue in
the sugar business as philanthropist
who is determined to bring relief to
consumers oppressed by ring.
Spreckels knows something about
sugar monopolies. For years he mon
opolized the sugar trade west of the
Rocky Mountains, procuring his sugar
from the Sandwich Islands duty free,
under the treaty and there compelling
consumers who, had no other source
of supply to pay prices much higher
than those paid in the East for sugar
on which duty of about so per cent
had been paid The following from
the San Francisco Chronicle of the
10Th inst. may recall the statements
repeatedly made in past years when
ever the Hawaiian treaty or the duties
on sugar were the subject of discus
sion at Washington
"The idea of Sugar Trusts is not
new TO the people of the Pacific
coast, where, until four years ago,
one had existed for about eighteen
years. The first Trust formed was
between the California Refinery
[owned by Spreckels and the San
Francisco and Pacific Refinery. These
institutions, having an eye to the
pecuniary advantages of monopoly
of trade, paid heavy monthly sub
sidy to the Bay Refinery to remain
idle and desert the competitive field.
The result was a sudden upward
lunge of prices, which were steadily
maintained for three years, or until
the formation Of second Trust be-
tween the California Refinery and
the Bay Refinery, which subsidized
both the San Francisco and Pacific
and the Golden Gate Refneries.
Business was proftably conducted
under the new arrangements until
1881, when the California and Amer
lean Refneries pooled issues, a bust
ness arrangement which continued
until 1885, when it was abandoned
During all these years jobbers and
local buyers were at the mercy of the
retiners, who absolutely controlled
the market As an illustration of the
effect of Trusts on the local trade, it
may here be remarked that at the
time of the last Trust, prices here
were 2 cents above New York quota
tons"
For years the price of refined
sugars on the Pacific slope was about
2 cents higher than the price of the
same sugars in the East, although,
under the operation of the treaty, it
should have been much lower than
the Eastern price. We understand
that at one time, about six years ago,
the ring price on the Pacific coast
was from q to 81 cents a pound
higher than the price of duty-paid
sugars here. Consumers were forced
to pay the prices of the Spreckels
or go without sugar The
freight rate on the transcontinental
roads were a kind of prohibitory
Tariff against the importation of
sugar from the East, and the combi-
nation worked its territory for all
hat it was worth. Wholesale and
retail merchants were at the mercy
If the monopoly and were required
20 maintain the rings prices. Re
,ently there has been competition be-
ween the two refneries owing to
5preckels' quarrel with the Hawaiian
King and some of the sugar planters
IN the islands. These planters be
yan to send their sugar to the Ameri-
IAN refinery, which used part of it
md shipped the remainder to re-
ineries in the East Prices on the
Pacific coast are now even a shade
over than prices here But it would
lot be impossible to form a new com
,ination.
The people can reasonably hope
or no relief through the agency of a
elmer who for years monopolized
he supply of the Pacific slope and
y his exactions built up an enorm-
MS fortune Relief can he Ohtained