The Hawaiian gazette., 1891-04-14
OUR SAN FRANCISCO LETTER.
Per steamer Msriposa. San Francisco.
April ;. 1891.
CFrOm our special correspondentl
Sugar.

/ 70 tue sugar maTket, tn1t haS ocCutreu
on this coast in many years occurred
during the past week and proved de-
cided surprise not only to jobbers but to
all classes of consumers. During the
past month the jobbers 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 retineries were loaded up
with immense stocks, and ii was natur-
ally that when these rival companies
began to unload there would be a great
| rivalry and q cut in prices all along the
line; and in this connection is where
the surprise came in. During the past
week Secretary Searles of the Sugar
Trust, and ]. C. Havemeyer have been
! in the city and it is stated that these
gentlemen had 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
is 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 l 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 go down, say
about cent, but l cannot say what
| prices will be after April lst."
This interview took place on March
S0th. 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
retineries' people dividing territory and
ending competition. H. U. Havemeyer
said: There is not one word of truth
in it, There has never been 4 war with
Claus Spreckels. There has been no
compact made and no division OF terri
tory. Ii anything has been done it is
private matter with Havemeyer and
Elder, and has nothing to do with the
American Company"
When the morning o. April LIST arrived
there was much excitement in CONNER
cial circles as to what course would be
adopted by the refineries and the result
was rather an All Fools day disappoint-
ment to buyers who have been holding
off so long against the expected two cent
drop. Early on that morning the Cali
fornia people took the initiative by an
nouneing a new schedule All the grades
except dry granulated were reduced s.
cents, and granulated went down q OF
cent. Yellow sugars were advanced.
Extra G and Golden G were each adj
vanced Il OF a cent, the former from 434
cents to cents, and the latter from
AZ to AZ.
The American Company have as yet
shown no evidence OF going under these
prices and 1t 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 1st raw sug4r vas reduced to SIS
net Tor fair refining, 31s net Tor SO test
centrifugal, 1916 a 15-16 for mo-
lasses, while refined was down to cents
for cut loaf and crushed, AZ for pow
deFed and ~ for gTanulated.
the reason for the agreement between
the two companies IS explained as iol-
lows by the Post OF this city:
In order 10 properly define the rea-
sons which have led 10 this arrangement
it is necessary to 90 back to the time
when it was first definitely known that
the two-cent duty on sugar was to be
abolished on April l. Knowing that
this vas 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 it 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 70 pay
2 duty OF two cents After y o'clock
| 20 night that tariff drops, thus placing the
Cuban planters On 9 pa. with those Of
| Hawaii
So, as before stated, the Hawaiian
sugar raiseFs have crowded every pound
| Of raw material INTO this market that
| they could get transportation f0r. As
| bath the trust and Spreckels were under
| contract 10 buy, they we're forced to take
/ Il al, 10 matter how fast It arrived.
| Consequently every steamer that las
| arrived here from Honolulu for weeks
/ past has been heavily laden with the
sacchzTine substance, and every tramp
| ship OF vessel that could be chartered
I 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
Zealandiz arrived with something ike
$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
Il s therefore very easy 10 understand
| hoE very strong their common interests
| became Holding this immense stock
which cost them two cents more than it
viii after to-day, and then 20 into COM
petition one with the other and throw
Of the two cents in price which con-
sumers have been looking for as soon as
the duty was removed It meant a very
heavy loss. There was but one Eav to
avert II, and that was to Join together
and keep the price up until this high
priced stock had been disposed Of.
= l.