The Washington times., 1894-04-07
Robinson, Cherry & Co.
Twelfth and F SITS. N. w.
METHODS OF THE SUGAR TRUST
Hon. John De Witt Warner Discusses an
Important Thought or Two.

Hon. John De Witt Warner Discusses an
Important Thought or Two.
The sugar trust may expect little consid-
Grafton in the House ifthe Senate bill in its
present form should be passed. Representa-
tive Warner, Of New York, who made and
won the fight to place all sugar on the free
list, has prepared a statement for the Senate
Finance Committee showing the unusual
profits Of the trust and its methods OF dis
tributing It's profits. Mr. Warner says:
'The actual results for the year 1891, as
shown by their tables on page OF the Sugar
Trade Journal for February 8, 1894, were 0. .s23
cent margin. or 0.328 cent instead OF one
fifth cent net profit, or actual net profits of
between $4,000. coo and $4,000, 900 on total
investment claimed OF SIC, 900, 900, OF which
but $1,000, 600 was even available assets, not
to say actual cash. For 1892 the margin, after
all possible deduction, as given
of February s, 1894, was 1.035, which.
deducting the one-half cent estimated by
itself as the cost Of refining in 1891, leaves
O.535 cent as the net profit, even il refining
processes had not been improved, or more than
l50per cent. net profit in one year upon the
total necessary investment. In 1893 on the same
authority and by a similar calculation we
find the net profit, without allowance for the
65 Ier cent. in one year upon necessary in
vestments.
''It is true that meanwhile S25. .OOO, 900 addi-
tional stock has been issued, but it is also
true that. comparatively small as was the cost
of the Spreckels and other refneries thus Sc
cured, their worth to the trust. being new, Of
great capacity and refining more cheaply
than most of those of the trust, was even
greater in proportion to the exorbitant price
paid for them than was the worth of the
original trust property. when compared with
the so, 900 900 Of bonds and $50 ,000, 900 Of
stock issued upon it, 80 that the net profits Of
the trust, except so far as they may have been
reduced by blackmail to rivals and subsidies
in the shape of sinecure salaries, fraudulent
contracts, etc., to those in the inner circle,
were above rather than below the astonish-
ing figures above noted.
..It must be remembered that the trust is q
blind pool-that the holders of its stock have
no more access to its accounts and are no bet
ter informed than is the most ignorant out
sider: SO that ii has become the great specu-
lative mystery. and is now held only by the
few on the inside who control it and the
many on the outside who gamble in it. Not
even a pretense is made Of furnishing iegiti-
mate information. The date for the last an
nual meeting fell during the discussion Of the
tariff bill in the House. For that reason, as
openly charged by the leading business and
financial papers OF New York. the meeting was
adjourned In order that Congress might not
at this critical time get sight at its extor-
tons for the past year. The matter still being
pending in the Senate. when the time for the
next monthly meeting came about the di-
reetors simply stayed away; SO that up to date
every definite figure as to the results OF last
wears business has been suppressed. A meet
ing has lately been held. and per cent.
quarterly dividend declared on the common
stock. but no information given as to the un-
divided surplus. Outside investors are be-
coming somewhat impatient. and it will be
hard much longer to withhold the informa-
ton so long suppressed"