Southwest-sentinel. [volume] (Silver City, N.M.) 1883-189?, 1892-09-13

mn Views % Hon. Owen suotts a Con-
rressman from Illinois.

Ehn Views 81 Hon. Owen scott q Cen
rreasman from Illinois.
The following Is an extract from the
speech Of the Hon. Owen Scott, Of nli-
nois, IN the national house Of representa-
tivoss
Every pouEd Of raw sugar bought,
whether produced here or abroad, Is
bought by the trust and all the refined
sugar sold passes through their hands
and pays tribute to this conscienceless
corporation. In increasing its capital IL
also provided for $4,000, 900 Of 0 per
cent. bonds with which to operate the
business and TO silence the competition
Of any refinery which might hereafter
make II interesting. Not only has the
Sugar trust succeeded in destroying all
competition, bat II has, at. tho same
time, prepared the means for perpetually
preventing competition.
The result Of this has been to depress
the price OF all raw sugar and TO largely
increase the price Of refined. Prior 70
this absorption Of refneries and destruc-
ton Of competition It was not believed
by any one ct all well informed that the
Sugar trust or those engaged In refining
sugar were not making large profits.
On the contrary, there was every evt'
dence that sugar refining was q most
lucrative business. The present prices
Of raw sugar, 90 dogs. centrifugal,
and refined, graduated, have been 80
adjusted by the trust that the net profits
are ~ cents per pound. The cost Of re
timing does not exceed at the most Ave
eighths Of a cent, and the best equipped
refneries can produce It at one-halI
cent. This changed condition between
raw and refined, made possible by the
absorption by the trust Of the outside
~re6neries, has given them enormously
increased profits.
There is a net increased profit of 1--WE
eighth Of q cent per pound, or $2.03 pe,
barrel. On q minimum yearly prodlc-
ton Of 10, 600, 900 barrels this amounts Il
the enormous sum Of over &25, 800, 900, OF
a little more than the amount Of the in.
creased capital Of the trust employed
to destroy competition.
Experts place the actual value Of
Sugar trust properties at $35, 200, 900, sc
that the rate Of profit on actual valua-
ton is o little over IS per cent. After
paying Z per cent. on $37, SOC, 900 Of pre-
ferred stock and 8 per cent. interest on
the soc OO 900 of bonds the above rate
Of profit would yield almost 90 per cent
on the common stock.
Such enormous profits are only posi-.
BILE by giving exclusive and sole control
Of the market for this commodity, which
is a necessity in every household in the
land. At the time Of the formation Of
the trust in 1887 the actual value Of the
establishments taken In was estimated
to be about $15, 000, 900. Additions since
and changes made In the plans, in thu
opinion Of experts, make the property o.
the trust worth about $35, 000, 900. Tit
remainder Of the $50, zoo, 900 capita
prior to the recent increase represent
undistributed earnings, good will an(
plenty Of water.
To illustrate the wonderful profit tina
is made by these refiners mention ma,
be made Of the largest-that Of Have
meyer g. Elders Sugar Refining com
pany, Brooklyn. 1t is estimated by goo'
authority that the properties and equip
ments cost not to exceed $4,000, 900. 1t
capacity is 5000 barrels per day, givinl
In one year Of 300 days a production o
2,40O, 600 barrels, or $50, 900, 900 pounds
Even allowing q net profit Of one-hal
cent per pound, the exact amount o
tariff on refined sugar, 1t will be seen tina
the annual profit is the enormous sum 0
So, 900, 900, being almost if not quite 10
per cent. on the cost of the works.