Evening capital. (Annapolis, Md.) 1884-1910, 1892-09-12
ANNAPOLIS ND MONDAY EVENING, SEPTEMBER
CHEAP SUGAR.
The Views of Hon. Owen Scott, . Com
gresham from Illinois.

The Views of Hon. Owen Scott, . Com
gresham from Illinois.
The following is an extract from the
speech of the Hon. Owen Scott, of nh-
nois, in the national house of representa-
tives:
Every pound 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 constituencies
corporation. In increasing its capital it
also provided for 10000, 900 of per
cent. bonds with which to operate the
business and to silence the competition
of any refinery which might hereafter
make it interesting. Not only has the
Sugar trust succeeded in destroying all
competition, but it has, at the 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 to
this absorption of refneries and destruc-
ton of competition it was not believed
by any one at all well informed that the
Sugar trust or those engaged in refining
sugar were not making large profits.
On the contrary, there was every evil
dence that sugar refining was q most
lucrative business. The present prices
of raw sugar, 90 dogs. centrifugal,
and refined, graduated, have been so
adjusted by the trust that the net profits
are / II cents per pound. The cost of re-
timing does not exceed at the most FIVE
eighths of cent, and the best equipped
refineries can produce 1t at one-half
cent. This changed condition between
raw and refined, made possible by the
absorption by the trust of the outside
refineries, has given them enormously
increased profits.
There is net increased profit of FIVE
eighth of cent per pound, or $2.03 per
barrel. On minimum yearly produc-
ton of IL, 5000 barrels this amounts to
the enormous sum of over SCI, 500, 900, or
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 So, 200, 900, SO
that the rate of profit on actual valua-
ton is little over 70 per cent. After
paying per cent. on $37 800, 900 Of pre-
ferred stock and 6 per cent. interest on
the so, 0O0, 900 of bonds the above rate
of profit would yield almost 60 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 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 $40, GOO, 900. Additions since
and changes made in the plans, in the
opinion of experts, make the property of
the trust worth about $35 200, 900. The
remainder of the 100000 capital
prior to the recent increase represents
undistributed earnings, good will and
plenty of water.
To illustrate the wonderful profit that
is made by these refiners mention may
be made of the largest-that of Have
meyer & Elders Sugar Refining COM
pany, Brooklyn. 1t is estimated by good
authority that the properties and equip
ments cost not to exceed $4,000,000. Its
capacity is 5000 barrels per day, giving
in one year of 800 days production of
2,400, 1000 barrels, or $50, 100000 pounds.
Even allowing net profit of one-half
cent per pound, the exact amount of
tariff on refined sugar, it will be seen that
the annual profit is the enormous sum of
So, 900, 900, being almost if not quite 100
per cent. on the cost of the works.