The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-08-03

ing the trust produce two-thirds of
the refined sugar of this country.
Among the declared objects of the
deed were to communicate to all the
processes or appliances possessed by
any: to maintain the standard of re-
fined sugars; to promote economies,
so as to keep the price of sugar as
low as consistent with reasonable
profit, and to protect against unlaw-
full combinations of labor.
ITS PROFESSIONS AND PRACTICES.
The deed under which the sugar
trust was formed, while more clear
and explicit in many respects than
its prototype, was more general in
prescribing the duties of the trus-
tees, doubtless to avoid any conflict
with the laws against combinations
in the State of New York. Its trus-
tees denied, with much emphasis,
any attempt or purpose to control
production or enhance prices, but a
few facts cannot be explained in any
other way. Here were sixteen of
the largest refineries in the country,
engaged in eager competition in the
manufacture and sale of sugar, that
by a single agreement entered into
"trust." Almost Immediately five
of these refineries were closed, three
in New York and two in Boston.
One of the New York refineries, the
North river, was sold to the city for
park purposes, another and very
large one, the Oxnard, was directed
to be dismantled. Various excuses
were alleged for this prompt dimi-
mutton of production, but it is hard
to explain why the only shutting
down in the country was among the
trust refineries. Another immediate
result of this combination of late ri
walls to maintain the standard of re-
fined sugars'was an increase in its
cost to the consumer. When the
trust was formed the difference be-
tween the price of fair refining raw
sugar and refined graduated sugar
was one and nine sixteenths cents
per pound difference, which an ex-
animation of corresponding prices in
London, allowing all that was claim
ed for increased cost of production
IN America, would afford fair profit
to the refiner. In three months
time the difference had become 9 |
10 cents per pound, or one-half cent
more, for which there can be no ex-
PLANTATION except the power of the
trust to increase the price of its pro
duct to the consumer, especially
when the government stands guard
to keep away all outside relief that
cannot leap over a high protecting
wall. Let us see what an additional |
half cent pound meant. We con
sumo annually about three thousand
million pounds of sugar OF this
quantity the refineries in the trust |
produce, nearly, if not quite two
thirds, the other third being pro
duced by outside refineries, the SUI
gar houses of Louisiana and a few
unimportant molasses houses. An
increase of half cent pound on two
thirds of our consumption, to wit,
on two thousand million pounds. |
would give an added profit of ten
million dollars, which is twenty per
cent. on the certificate capital of the
sugar trust.
ITS ENORMOUS PROFITS
The quotations in New York for
June 20 of the present year show
difference between the two grades of
sugar | have selected, which are
standard grades for comparison, of
2s cents per pound, which is even
greater than the amount above sta
ted, and shows the steady mainten-
ance of the power of the trust. In
deed its pecuniary success has been
not less brilliant than that of the
original trust. 1t was capitalized
at $50,O00,000 As the quota allot-
ted to the North River Refinery,
which subsequently sold in open
market for $325,000. was 800 900,
IN certificates, and it's owners were
dissatisfied with their share as com
pared with others, it is safe to say
that this capitalization was nearly
If not twice the actual value of the
put into the trust. The
certificates began at $40, and reach
ed at one time 1926, although a later
reaction brought them some points
lower in anticipation of an adverse
decision in a case affecting the trust.
of which | shall hereafter speak.
After payment of dividends last
year it had, according to the circular
OF Messers. Willett d Hamlin, quoted
in Bradstreet of June 30, surplus
of $l0,0OO,000 in it's treasury. The
same authority gives its earnings
between January l, 1889, and June
IL as Sl3,000000 more. Thus it's
surplus from last year, with it's net
cash profit for less than six months
OF the present year, amount to $23.-
100000, probably the full value of
the plants put into the trust, and
nearly fifty per cent. ON it's watered
capital. No wonder the other indus
tries Of the country are rushing pell-
nell for this new invention which in
a single year showers upon those
who can skillfully and effectively
use it riches not only greater than
the ordinary profits of legitimate in
dustry, but even beyond the wild
dreams OF speculative adventure.
But who can effectually use it, and
more important still, who pays the
piper?
VIM. L. WILSON
At Work In Nicaragua.