The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-03-10
UNPROFITABLE SUGAR
Wholesale Grocers Formulate a Plan
to Correct an Abuse.

to Correct an Abuse.
PHILADELPHIA. March 9-The announce
ment Of the adoption by the Wholesale
Grocers' National Association of rebate
plan for the maintenance of a uniform
price on refined sugars has aroused con-
siderable discussion among those interested
in the trade.
Jobbers. without exception, consider the
innovation q good idea for all concerned.
They contend that it will lead to the break
ing up of the existing practice of sellin &
sugar merely as a ''leader," and it will,
among othsr manifold advantages, place
them in a position in which they may
secure fair margin of profit on that staple
as well as on others. 1t is a fact that the
great ma ority of jobbsrs handle the sweet
necessity at loss.
The new plan is already operated with
success in New York and New England,
minus the telegraph system. Its present
agitation is largely confined to New York
city, but will ultimately embrace the whole
country.
WHAT THE PLAN IS.
The plan which it is hoped to perfect, and
which would prove of incalculable benefit
to wholesale handlers Of sugar, provides
SUBSTANTIALLY bu6 llAlUk ny bI6 T6ilioi . VI
a daily schedule of prices, at which jobbers
are authorized to sell during the ensuing
twenty four hours. This schedule will be
sent out daily to all the firms in the United
States by telegraph. The wholesalers agree
to stick to this schedule and not to undersell
each other. so that the practical effect will
be that sugar will be sold everywhere at a
uniform rate.
Jobbers who maintain the official figures
and do not attempt to undersell will be al
| lowed a rebate from the refiners of Il cent
per pound on all the sugar they buy, this
rebate to be paid at stated intervals. The
guarantee Of the rebate it is also expected
will put stop to the haoit of discounts for
cash, which will prove standing financial
relief to the wholesalers.
The question of freight charges will be
| taken into consideration in fixing the rates
of sale for various parts of the union, so
that there will be a slight variation in the
| price at which sugar is sold in different
places. To obviate the possibility of any
| house cutting" a stringent rule is made
whereby the backslider will be charged the
! retail price.
RETAILERS NOT AFFECTED
No attempt will be mad to regulate the
retail prices. It is und erstood that the
| cooperation Of the New Y ork refiners, both
trust and antitrust firms, has been secured,
/ anu inc u0W pan Will D6 Carried OuG, nOU
| only among the members of the association,
| but among those VINO are not members. 1t
is argued by the jobbers that the change
| which has taken place in the sugar trade
| demands new methods. Twenty years ago
| over 60 per cent. of the entire amount con-
sumed was soft sugars, and the many grades
afforded opportunity for fair profit, while
the almost uniform character of hard
sugars, which are now most used, operates
in just a reverse way.
AN OLD BODY WITH NEW FACE.
| Philadelphia's wholesale grocers are by
no means ignorant of this important move,
and are fully alive to its possibilities. 1t is
in some respects an old body with a new
face for the subject was fairly discussed
several months ago, when the proposition
| provided for a general advance of one
fourth of a cent per pound in rates.
Through the dissension of few the scheme
fell through, and now the preseat project is
welcomed with open arms.
| A. l.. Hess a member of the firm OF
Coyle, McCandlish & Co., of 615 Market
street, said that efforts in the direction of
the new cheme had frequently been thought
of by tho firm, who are large handlers of
sugar, and he declared its adoption would
be Of inestimable benefit to them. awe
are heartily in favor of IT. he said, "anC
would assist it in every way. We are sell
ing sugar at cost, and the handling of it il
accompanied by loss of interest on money
invested. | think its adoption would leave
a small margin of profit and prevent thu
cutting evil. We must sell sugar for the
obvious reason that we may lose a whole
order of other staples by failure to keep i
in stock. No, l do not think the consumer
will suffer; we are now selling sugar at g..
cents for which we should be getting 8"
|