The herald., 1894-12-17

each OF whom, both against his rivals in
bis own business, and in combination
with them against those in the other.
aimed to extend his field of operations
and profit. Each, in his way. was striv-
ing to outdo others in cheaply serving
the public and compelling Others to do
so. The margin of expense and profit,
both in the refining and in the distribu-
tion of sugar, was less than ever before
or since, the difference between the cost
at which the refiner purchased his CEN
trifugals, raw sugars. and the price at
which the retail dealer recsived from the
iobber his standard refined granu!ated
being frequently not more than three~
fourths OF cent per pound.
From such conditions has grown the
mbine. by which. az direct employees
of the trust in the majority of cases. the
Wholesale grocers of the United States
that trade upon which moro than
upon any other our people are depend.
ent for their food eupply-have COM
bned with the sugar trust to control
the moet important item of their sup.
ply, to limit production, raise prices.
double, treble and ouadruple profits.
and boycott and drive from the business
any dealer who dares attempt to serve
the public more chesply. At this date,
in spite of the extraordinary cheaper.
ing OF transport during the last few
years. and the great cheapening in
the cost OF raw sugars. which would
make the old margin an exoroitant
one now, the difference, east of the
paid by the refner for 96 deg, centrif-
ugals and that paid by the retailer to
the jobber for standard granulaied in
l 5 Sc per pound, in addition to freights
and charges, and q much higher figure
westward to the Pacific coast; while
this margin is no longer Offset, as a. the
earlier period was frequently the Gaze,
by special discounts offered By compes-
ing jobbers-the larger profit now being
as rigidly, as invaria bly, and as success
fully exacted as the similar profit at the
earlier date was frequently reduced.
Leaving these last out OF the question.
however. as the result of excessive riv>
airy, the net gain through the combine
in the extent to which its normal pro-
fits have been increased is equivalent
to at least ZIG OF cent, making, upon
the present basis of consumption. at
least sl7, 5000 in addition to what in
fnOoo form a normal hnoi-
ness profit, and what today with the
narrowing margins OF oil business.
would be most libsral margin. OF
this, somewhat less than one-third is
extra bonus received by the grocers as
the result of the combine, and the re-
msinder is the "lion's share" exac ted
by the trust as it's prerogative-this in
addition to the greatly increased pro-
fits, which by its enterprise in other d.
rections and cheapened processes it
would be in any case able to rsalizs
from the old margin.
And once for all. it is noted here, in
answer to those who figure out the low
per cent margin upon which the sugar
OuoihCpo 10 GOhCs tbnb thio VI huo 10 Ooh
Quoted in such aystematio way and SO
largely as ''cash" cuslness, that 80
days would be an extraordinary length
OF time to estimate a5 the average period
during which the funds involved in
any one transaction are held idle, while
the discounts for cash and for large
orders, not noted above but universally
allowed jobbsrs, are such as, ii they
choose to do short-credit business
with the retailer, amply to pay average
expenses and insure against average
losses as we'll as reimburse current
interest. To charge against sugar sales
any considerable proportion of general
expenses is unfair, for the reason that
such general expenses are Incurred on
behalf OF matters other than sugar. and
that under the "equity plan" now 30
generally in vogue, the moot of the gen.
eral expense which might otherwise
have been taken into account, is done
away with, and with a comparatively
small etorehouee, a clerk and Q book
keeper, large wholesale business in
sugar can be done. The bulk OF general
expenses is directly or indirectly
necessitated by attempts to realize large
on the other goods, to which
they should be charged.
The plea, therefore, now go frequently
made. that the arrangement with the
rust insures the grocers only or per
cent net profit on sugars (Which is not
ar from correct if these trade and cash /
discounts are omitted from the caicula-
on) is really equal to an admission OF
let profits of from 40 to 80 per cent per
Innum on the capital used in handling
hem.
The sugar distribution combine has
ust passed successfully most trying
risis. The trust naturally took advant-
SO OF the few months before the Wilson
ill went into effect so to rush importa-
ion and refining as to accumulate great
tocks of refined sugar. to market which
offered every induoement to the whole.
ale grocers. The result was that dur
ng September and October the sugar
market was 30 glutted that there ensued
throughout the trade en- eRgsrness to
ell which, for the time being, broke all
and forced refined sugars
o lower price in comparison with raws
han before OF late years. But by shut
ing down the refineries until after elec.