The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1891-04-11
Our san FRANCISCO LETTER.
Per Steamer Mariposa, San Francisco,
April 3, 1891.
(From our special correspondent
Su5ar

NEW YORK, April 5, 1891, Cuban CEN
trifugals 80 degs. $685. graduated AZ.
The most interesting event pertaining
TO the sugar market, that las occurred
on this coast in many years occurred
during the past week and proved de-
clded surprise not only 10 jobbers but to
all classes OF consumers. During the
past month the iobbers have been very
light buyers on account of the expected
drop IN sugar which was to take place
when the Mckinley tariff bill went into
effect. 1t was known that the California
and American refneries were loaded I'D
with immense stocks, and it was natur-
ally that when these rival companies
began to unload there would be q great
rivalry and cut in prices al along the
line; and IN this conn ection Is where
the surprise came in. During the past
week Secretary Searles OF the Sugar
Trust, and j. G. Havemeyer have been
IN the city and it is stated that these
gentlemen had q conference with the
Messrs. Spreckels What the purpose
of this meeting was is not known to out
side parties, but the meeting resulted in
some sort OF an agreement between the
two great concerns, the nature of which
| rs also unknown. Mr.. Adolph Spreckels
| when interviewed on the subject stated
that there had been an agreement ar
rived at but that the terms were "per-
sonal and confidential" He however
denied that his house had agreed to q
| division of territory with the Have
meyers. When asked if the agreement
would affect prices, Mr.. Spreckels is re-
ported as having said: while there is
an understanding / am not at liberty to
state what it is. AS to the price OF sugar
| it will OF course be regulated by supply
and demands. Everybody expects a
reduction and prices may 60 down, say
about cent, but l cannot say what
prices will be after April lst."
This interview took place on March
30th. On the following day dispatch
came from New York in which the officers
of the Trust denied that there had been
an arrangement made with the Spreckels
refDeries' people dividing territory and
ending competition. II. y. Hayemeyer
said: There is not one word of truth
in it. There has never been a war with
Claus Spreckels There has been no
compact made and no division of terri
tory. Ii anything has been done it is a
private matter with Havemeyer and
Elder, and has nothing to do with the
American Company"
When the morning OF April 1st arrived
there was much excitement In CONNER
cial circles As to what course would be
adopted by the refneries and the result
was rather an All Fools day disappoint-
ment to buyers who have been holding
of SO long against the expected two cent
drop. Early on that morning the Cali
lorna people took the initiative by an
nouncing new schedule All the grades
except dry grSnulated were reduced 50
cents, and granulated went down "a of a
cent. Yellow sugars were advanced.
Extra G and Golden c were each ad-
vanced Il OF cent, the former from Az
cents to cents, and the latter from
AZ to 42l.
The American Company have as vet
shown no evidence OF going under these
Ir.ces and it Is believed that the prices
Will be IN future established BY
the California Company and followed by
their former rivals. In New York on
April lst raw sugar was reduced TO 31s
net Tor fair refining, 31a net for 81 test
centrifugal, Is Is a 1915 for mo-
lasses, while refined was down to cents
for cut loaf and crushed, Az for DOW
dered and p for graduated.
The reason for the agreement between
the two companies is explained as fol-
lows by the Post OF this city:
In order to properly define the rag
sons which have led to this arrangement
1t is necessary TO 20 back to the time
when 1t was Erst definitely known that
the tWe Cent duty on sugar was to be
eoooiished on April /. Knowing that
this xas to happen the Hawaiian sugar
planters rushed their raw material into
this country just as rapidly as possible,
in order to take advantage of the extra
price IL would bring before the duty was
dropped. Under the existing state of
affairs the Hawaiian sugar has had the
advantage OF no duty, and could there
fore very successfully compete with the
Cuban article which was brought into
New York and which was forced to paw
duty OF two cents. After u O'Clock
10 night that tariff drops, thus placing the
Cuban plsnters on a par with those OF
Hawaii
So, as before stated, the Hawaiian
sugar raisers have crowded every pound
Of raw material into this market that
they could get transportation for. As
both the trust and Spreckels were under
contract TO buy, they were forced to take
it all, no matter how fast it arrived,
Consequently every steamer that has
arrived here from Honolulu for weeks
past has been heavily laden with the
saccharine substance, and every tramp
ship or vessel that could be chartered
has been drawn into the service. Within
the past few DAYS several "tramps" have
sailed into this harbor with immense
cargoes and only yesterday the steamer
Iealandia arrived with something like
$500 tons. All OF this fast accommodating
| stock is now In the hands OF these two
great firms. for which they have paid the
price which can only exist until the tariff
is removed.
1t IS therefore very easy to understand
how very strong their common interests
/ became. Holding this immense stock
which cost them two cents more than if
win after to-day, and then 60 into COM
petition one with the other and throw
off the two cents in price which con-
sumers have been looking for as soon as
the duty was removed 1t meant very
heavy loss. There was but one way to
avert it, and that was to Join together
and keep the price up until this high
priced stock had been disposed of.
This had TO be done or their great in
/ terests would be seriously imperiled