The Daily bulletin., 1889-11-25
THE SUGAR SITUATION.
views Of Col. Spreckois on the Mar
ket and the Trust.


Claus Spreckels, in an interview
with the Philadelphia Telegraph,
throws a great deal of light on the
sugar situation, and the Trust, and
this also should be interesting read
ing to the enterprising gentlemen
who struck hands with Hayemeyer
and Searle to plunder the American
people and crowd Spreckels to the
wall. He is top of the heap, how
ever, and is likely to remain there.
Claus Spreckels said:
"The sugar market is now in q
demoralized condition. There was
a drop yesterday In the price of re.
fined sugar of ] of cent pound,
making the price a cents pound.
Every decline of 1 means decrease
in the income of the Trust of S10,-
600 day. / look for q drop of l
cent pound in the price of sugar
in the next thirty days. This means
decrease of $50, 900 more q day in
the income of the Trust. Sugar
must drop. If the sugar people
here refuse TO lower prices, sugar
will be sent here from England and
all parts of Europe.
"rhere has been q great deal of
talk" said Mr.. Spreckels, "about
the recent big drop in the price of
Sugar Trust certificates and the
cause. l think | can throw some
light on the matter. The property
of the Trust was worth about $751;
600, 900 when it was started, and
certificates to the amount of $49,-
600, 900 were issued. The Trust is
loaded up with q lot of high-priced
sugar, and the market is in q bad
condition, and that is why the in
sders have been sliding out of their
certificates. Two months ago the
Trust paid for raw material 81 cents
a pound more than they could buy
it for to-day. They laid in stock
$4,000 tons of raw sugar for which
they paid 81 cents a pound. To-day
the nominal price of raw sugar is 6
cents. The loss to the Trust (ex-
elusive of interest on the money in
vested and storage charges) is S2,-
025, 200 on this transaction. The
insiders in the Trust, of course,
know this, and probably that is one
of the reasons for the drop in the
certificates. There will be another
drop soon, and this means further
loss to the Trust.
The Trust recently had four re-
tineries situated in New York, Bos-
ton, New Orleans and San Fran
cisco. The refinery in San Fran
cisco was sold very quietly by the
Trust a short time ago to Havemeyer
& Elder. This refinery represents
about one-sixth of the Trust output.
l believe that the balance of the
working refineries will be turned
over to individuals in some way.
The older refineries which were
closed by the Trust when it started
are now lying idle and are being
rapidly dismantled, The wear and
tear on these refineries is very great
and before long they will be practic-
ally worthless. 1 don't know how
much Havemeyer & Elder paid for
the California refinery. 1t is not
likely, however, that they paid an
cxorbitant price, or that the Trust
will exact very big price for the
remaining refineries. When they
are all sold the certificates will re-
present nothing except the money
paid for the retineries, or what may
be left of it, and the idle and dis
mantled retineries.
"The Trust has lost so much mon
ey because Of the big crop abroad.
That caused the drop IN the price
of sugar. The refineries outside of
the Trust made money until recently
because the Trust closed n number
of refineries, and the outsiders sup
piled the deficiency, selling their
product at the high prices which the
Trust made. Both Harrison, Fra
zier & Co. and E. G. Knight & Co.,
of this city, made q large amount
of money recently"
AS Mr.. Spreckels has said many
times, he expects through the big
production of his refinery now about
to start, and which he Will duplicate,
to make things more unpleasant
still for the Sugar Trust, and as he
has hitherto done, find that their
losSis his gain.
1t is notorious in New York that
Havemeyer, Searle and the Sugar
Trust ring are at their wits end, ,and
are prepared to make any terms
with Spreckels. They would give
up the American refinery, buy up
the Philadelphia and give several
millions besides if Sprcckels would
draw off. But they can't get in
their work. They are the under
dog in the fight now, and nothing
can save them. Public opinion i,
dead set against them, and Spreck'
els and the outside re6ners show
far greater business capacity than
the ringsters.