The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-06-05
ABOUT THE SUGAR TRUST.

Seven years ago a syndicate Of sugar re-
fners who found too much competition in
their business conceived the scheme OF
forming themselves into a company. Plants
which originally had a capital stock Of
SIS, $50 900 were put in at $500. 900. and re-
ineries which had been capitalized at S.
10000 were closed and disposed of. That is,
a capital of ss,9oO,OOO was made to control
the sugar refining of the United States.
Upon this valuation of less than 100000
the syndicate organized a company known
American Sugar Refining Company. but
now popularity known as the Sugar Trust
Upon this valuation Of $500, 900 the COM
pany issued $S7.5OO,00 Of preferred stock,
bearing z per cent. interest. $37. 500, 600 of
common stock, upon which dividends are
declared. and S10.O00.O 900 of six-per-cent.
bonds-a total capitalization of $4,000, 600.
That is. the trust sold more than enough
bonds to purchase its plant, and issued
$751; 900 of stock, entirely water or wind.
In 1888 the trust paid 100000 in dividends,
while the trust earnings from refining that
year equaled 27.5 per cent. on the certif-
Gates. The next year 100000 of cash divi-
dends were made and s per cent. in certifi-
Gates. while the Sugar Trust earnings
equaled 23.9 per cent. in the certificates.
The same amount Of dividends was paid in
1890, while the net earnings from refining
rate of dividend was kept up until March
Of this year, when a resolution was adopt
ed by the. company or trust declaring a
quarterly dividend Of 3 per cent. on the
common stock and an extra dividend of 10
per cent. on the common stock from the
surplus earnings Of 1891 and 1892, and
a dividend Of Ia per cent. on the preferred
stock of the company entitled to quarterly
ENTHUSIASTICALLY assured z per cent. 1t
was officially stated that after making
these large dividends on stock which, to
the trust had a surplus of S5,O0O.O0O of net
earnings.
Let US consider the import of this last
vote of the Sugar Trust. There are sS7,-
10000 of common stock, upon which there
was a quarterly dividend Of 3 per cent. or
II per cent. a year voted, which would call
for 81. 800. 600; the preferred stock, carrying
Z per cent. is $s7.5OO.OOO. and the extra
dividend of IA makes the dividend S%. cali
ing for 1921 $50. To these series add the
interest on $40, 600, 900 of six-per-cent. bonds,
and the aggregate of the dividends and inter
est on the years business is IS. 1881. $50. Add
to this the extra dividend on the common
stock of 10 per cent. from the net earnings
of 1891 and 1892, and the distribution of
money by the trust the present year ag-
gregates s12, $50. On a bona ide capitali-
zation of $50. 600. 900 this would be equivalent
of the capitalization being fictitious, the
dividend and interest for the current year
is s12. 131, $50 on a plant and property cost
ing less than $40. OC0,0 coo, or Il, per cent!
OF course, the stocks are now held in
part by those who paid the market value
for them. but the Havemyers and others
forming the Sugar Refining Company have
realized $40, COO on what cost them S.
900. 600. To every dollar actually invested
they have added more than seven bogus
dollars. and upon this compound of one
rooI an1 ~ox-ar 1870 n a. 80. A.
wringing a return Of from 10 to IL per cent.
per annum from the sugar consumers of
the country. And this is the trust which
seems to have led every Democratic Sena-
tor captive, including our own renowned
trust smasher, Daniel Wolsey Voorhees,.