The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-11-05

and exclusive stockholders of them all,
elect their directors and receive all
the dividends, out of which IN turn
they declare and pay any DIVIDENDS
on the trust certificates. ,
The parties executing the or1glnal
agreement included nine In New
York, headed by the great Havemyer
& Elder concern, whose retinerles
have a capacity of 5000 barrels, or
nearly two and a half million pounds
daily, and three in Boston. Later 1t
was signed by one in St. Louis, two
in New Orleans and one in Portland,
Me, and possibly others IN recent
months.
These sixteen refineries first form
Jog the trust produces wo,thlrds OF
the refined sugar of this country.
Among the declared objects of the
deed were to communicate to all the
processes or appliances possessed oy
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 unla wful COM
binations of labor.
IT'S PROGRESSION N PRACTICES.
The deed under which the sugar
trust was formed, while more clear
and explicit in many respects than its
prototype, was o general in pre-
scribing the duties of the trustees,
doubtless to avoid any conflict with
the laws against combinations in the
State of New York. Its trustees de-
MED, with much emphasis, any at
tempt or purpose to control produc-
ton or enhance prices, but a few facts
cannot be explained in any other way.
Here were sixteen of the largest re-
fneries in the country, engaged in
eager competition in the manufacture
and sale of sugars, that by a single
agreement entered into a "trust." AL
most immediately five of these rein
cries were closed, three in New York
and two in Boston. One of the New
York refneries, the North river, was
sold to the city for park purposes,
another very large one, the Oxford,
was d rected to be dismantled. Vari-
Gus excuses were alleged for this
prompt diminution 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 rivals to maintain the stan
dard of refined sugar" was an increase
in it's cost to the consumer. When the
trust was formed the difference be-
tween the price of fair refining raw
sugar and refined granulated sugar
was 1916 cents per pound, a differ
ence, which an examination of cor
responding prices in London, allowing
all that was claimed for increased cost
of production in America, would
afford fair profit to the refiner. In
three months time the difference had
become 2 Liz cents per pound, or
one-half cent more, for which there
can be no explanation except the
power of the trust to increase the
price Of its product 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 a pound means.
We consume annually about three
thousand million pounds of sugar. Of
this quantity the ~reineries in the trust
produce, nearly, if not quite two
thirds, the other third being produced
by outside refneries, the sugar houses
of Louisiana and a few unimportant
molasses houses. An increase of half
cent a pound on two-thirds of u
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 a
difference between the two grades of
sugar | have selected, which are stand
ard grades for comparison, of 2 l-8
cents per pound, which is even greater
than the amount above stated, and
shows the steady maintenance of the
power of the trust. Indeed its pecu-
mary success has been not less bril-
liant than that Of the original trust.
1t was capitalized at $50, 600, 900. AS
the quota allotted TO the North River
Refinery, which subsequently, sold in
open market for $685. 900, was $780,:
900 in certificates, and its owners we're
dissatisfied with their share 40 com.
pared with others, it is safe to say that
this capitalization was nearly If not
twice the actual value of the properties
put into the trust. The certificates
began at $40, and reached at one
time 1926, although a later reaction