Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-04-12
THE TRUST TO FIX PRICES.
Wholesalers All Over the Country
Only Want a Rebate.
THEY REALLY AIDED TIE COMBINE.
How the American Refining Company Is
to Control the Market.
BROAD TERMS OF THE CAPITULATI0N

the Sugar Trust is weakening, absolute
proof was found in Pittsburg yesterday that
ali the wholesale and importing grocers of
the county are bowing their heads to the
great corporation and sre asking to be
taken care Of. The movement was started
in Philadelphia, and now the big grocers
all over the country are hustling TO get In
out of tie wet. The grocers recognize that
the Sugar Trust, known as the American
Sugar Refining Company, Of New York,
controls the market and they now bow in
submission. The trust is to have absolute
power in fixing the price of sugar and can
change it whenever its officers desire.
The plan of submission is in the shape of a
petition from each of the wholesale
grocers' associations of the country, pray
ing that the American Sugar Refining COM
pany establish a fixed price for this article
of food, and allow every so days o. three
months rebate to the wholesale dealers
which will give them at least a fair margin
of profit. The petition circulated here reads
as follows:
Grocers Cow in Submission to the Trust.
To the American Sugar Refining Company, New
York:
GESTLEMEN-We. the undersigned, whole
sale grocers of Pittsburg and Allegheny, do
respectfully appeal to you for such change
on your terms of sale as shall secure to the
wholesale trade a profit on sugar Mt least
sufficient to cover the cost of distribution
and collection.
This petition is signed by all the whole
sale grocers in the two cities, with two ex-
ceptions, and they will affix their sigma
lures later. The petition, with the names
attached, was sent to the Wholesale Gro
GERS Association of Philadelphia last nigEt
by Secretary Joseph Hunter, of the Pitts
burg Wholesale Grocers' Association. Sim
liar petitions from all the other principal
cities are being sent to Philadelphia, where
a committee will be appointed to await on
the officers of the trust about Saturday in
New York and lay before them the wall of
the sugar vendors.
The meetings in Philadelphia on this SUBJ
feet have been held behind closed doors and
it was reported there thai the Trust had
made overtures to them, but the reverse il
the truth of the affair. SecretaryJ Joseph Hun
ter, of the Wholesale Grocers' Association,
speaking of the move yesterday said:
The Trust Will Fix the Price,
'sThe wholesale grocers are forced to come
to the Sugar Trust. Sugar is now selling
for 81 4S per 100 pounds to the wholesalers,
and they have to sell it nov for "a so, Civ
ing gross profit of 2 cents on 10G pounds,
and after counting up the cost of distribu-
ton and collection the grocers just lose 4
Of a cent on every pound they handle. Our
aim now is to be able to handle sugar at a
Of q nf
We had some show until the Philadelphia
refineries wer;, merged into the trust
When Claus Spreckels, the Frank
lin and another refinery went into
the trust it shuts off everything but the
output of one refinery in Boston. All we
want is to sell sugar at moderate profit.
'The movement is being worked from Phil
adelphia and think il will be successful.
The idea is to allow the trust to put fixed
price on sugar but give a rebate of
about 4 to :. of cent per pound.
Then we would like to have a fixed
price of S4.75 hundred now with the above
rebate to be paid back to the wholesaler
every so or 80 days No one is to be allow
ed to sell below the price fixed by the trust
on penalty of forfeiting his rebates, and
anyone who does nos sign these petitions
will not be allowed to participate in the re-
bates. The retailers, however, are allowed to
get as much over the trust price as they can.
Grocers Have Been Aiding the Trust.
''We made a somewhat similar petition
several years ago. The President of the
trust said he would accept such a propo-
stion if the retailers would assist the trust
TO take in three-quarters of the refneries of
the county. This has been accomplished.
There is only one refinery now left on the
outside. ! firmly believe the trust will be
q good thing provided this arrangement is
effected because il will allow everybody to
make profit. and will establish a fixed
price"
The only thing now Worrying the trust is
the bill to take the tariff off refined sugar.
From the most accurate data obtainable it
is learned that since tire first intimations
were made that bill looking to the repeal
of the tariff on refined sugar would be taken
before Congress the stock of tine American
Sugar Refining Company has experienced
shrinkage of nearly 50, 600, coo.
The present price OF raw sugar, $50 CEN
trifugal test, 34 cents pound: the present
price of refined granulated sugar. Az cents
pound, which makes a difference of IL
cents pound. The cost of refining sugar
is not over e cent pound, which makes
net profit a pound on refined sugar of "a
cent giving a net profit per barrel of
81 031s. The net profit on Il, ,6O0, 900, which
is the minimum annual production is $25,-
593, 600. With the tariff off refined sugar
the net profit on the same amount would be
SO, 237, 800. The actual value of Sugar
Trust properties is abont S35 600. 900, which
allows rate of profit on actual valuation