Waterbury evening Democrat., 1894-03-06
TIE SUGAR TRUST.
How 1t Has Made Gross Profit of Over
&2S, 900, OO0 Annually.

of a change in the tariff there is always
considerably more than less heard of the
sugar industry and the sugar refining in
terests. The Sugar trust has evaded every
species of direct and indirect legislation
that has been leveled against it, and dur
ing its existence it has been more auto
cratic and independent and held more di-
rect sway over the people of the United
States than any half dozen sessions of con-
gress put together Now that there is an
other change impending in the sugar sched-
ule of the tariff, we find the trust even
more aggressive and domineering than
ever That their case is considered an ur-
gent one is evident from the fact that it has
drawn Mr.. Theodore Havemeyer to Wash
ington, and Mr.. Theodore Havemeyer has
never before been known to have taken any
personal active part in sugar politics.
1t seems hardly possible that anything
new can be written about the Sugar trust,
its dealings or it's methods, but believe
that a careful perusal of what follows will
we'll repay every reader and will supply him
with information that he ought to know,
but which he does not know. The sugar
news heretofore published has emanated
mostly from the trust ITSELF the officials
giving out just what was to their interest
and leaving the public to guess at the rest.
There are many senators at Washington
who are now delving deeper into the sugar
barrel with Il view to learning just what is
at the bottom of it, and it is this sudden
desire for knowledge on the part of our
lawmakers and the fact that they are reach
ing nearly to the bottom of the sugar bar
rel which induced Mr.. Theodore Have
meyer to break his customary conservative
ness and assume the part of an active lob
byist in person.
The total annual supply of sugar in the
United States is approximately 100000
tons, of which the southern cane crop is
200 900 tons, the beet sugar crop about 90
600 IONS and fhe Hawaiian crop 100, 900
tons. This leaves 1,350,00O tons imported
at Boston, New York and Philadelphia, but
the entire quantity of / 100000 tons is ma
nipulated and sold by the Sugar trust in
New York. I A comparison of the prices for
raw and reiihtd sugar as ruling from Janu-
airy to September $685. showed that there
was an average difference during he nine
months of 1.42S cents per pound between
the value of the raw product as imported
and of the refined article as sold by the
trust.
The cost of refining does not exceed half
a cent per pound, though the trust always
has claimed it to be five-eighths of cent.
The various discounts allowed to the trade,
al OL WHICH nave 10 DE palO by IQ6 con-
sumner, reduce the difference in price be-
tween raw and refined sugar down to 1.14S
cents per pound, and deducting half a cent
for refining there was a net profit of .64S of
a cent ON every pound of sugar sold be-
tween January and September, 1898.
AS has been stated, the total quantity
OF sugar handled by the trust is loo, 900
tons annually, and profit of GAS of cent
upon each and every one of these 100000
600 pounds gives total gross profit to the
trust of So, OBJ 900 annually. This would
seem to be enough for a concern with prop
erty of an actual cash value of but $40 000,-
600, profit of 100 per cent annually But
the watered capitalization is $50, 900, 900,
which makes the trusts profit over 25 per
cent upon the actual property and its very
liberal dilution of water. But even this is
not all The price of sugar i'll San Francisco
is not regulated by the eastern price. The
raw sugar is there bought from the Hawai-
ian planters below the market price in New
York by a quarter of a cent and is sold to
the consumers at cent a pound higher
than the New York price on an average
This makes a little matter of st, SOC, 900 ex-
ira profit ON the western trade, bringing
the gross profits of the concern up to $2S,-
532, 900, or total of 80 per cent per annum
on the capital stock, water thrown in.
So much for the buying and selling of
sugar by the trust, which is not even con-
tent to stop at this. 1t NEEDLES, interferes
with and checks the sugar producing indus
try of the United States. Congress endeav-
ored to stimulate the growth of our own
sugar supply, but the trust prevents it.
Congress saw the Importance of our being
Independent of the rest of the world for this
necessary staple article of food, for which
the American people pay out more money
annually than they do for wheat, and con-
gress gave a bounty of 2 cents per pound
upon all raw sugar made in this country.
The building of beet sugar factories, it
was thought, would enhance the value of
farm lands, provide Il good paying crop for
the farmers and promote Il new and large
manufacturing industry. 1t was thought
that beet sugar factories studded through
out the country in different states would
supply their local markets with sugar and
that the people could see the sugar made at
their doors, so to speak, and buy it there.
The Sugar trust thought this too. The
trust did more thinking. Local beet sugar
factories supplying towns and cities in
different states would interfere with the
business of the trust; therefore they must
be checked-unless under the control of
the trust. In these days of improved meth
DDS the beet sugar factories are able to
make n sugar very closely resembling gran
ulated, and which sells as granulated in
the ordinary market. This is what the
trust objects to. The factories in Utah
and Nebraska are able to do this and are
permitted to do it, but when the large fac
tory was built at Chino, in California the
trust stepped in and said, I'VE will buy
your raw sugar"
1t was no use protesting. The trust in
sisted, and the Chino beet factory is allowed
to make only raw sugar and is compelled
to ship it to the trust S refinery Mt San Fran
cisco. The freight on the raw sugar thus
shipped has to be paid by the factory, and
its profits are further diminished through
not being able to sell it's product in the shape
of granuated sugar The beet sugar indus
try is checked, but the trust is protected.
Senators have been Investigating all of
these facts and are better acquainted today
with the workings of the Sugar trust than
they have ever been. The opinion is grow
ing that there is but one way to promote
the cultivation and manufacture of the do
nestle sugar industry, and that one way is
to kill the trust which has hitherto defied
all the laws of the country This can only
be done by placing a duty on raw sugar in
the interests of the domestic producer and
by placing precisely the same amount OF
duty upon refined sugar, so that no protec-
ton will be afforded to the retiners, who
must sell at precisely the same price as for.
eign refined sugar can be sold at.
For the current fiscal year the secretary
of the treasury has estimated the interest,"
on the national debt at 500 500. 900, which
would be only 40 cents per capita of The
population. For the year ending June 10,
1899, the per capita of interest was only "a
cents, SO that it appears that the Sugar
trust makes more profit per capita out of
the American people than they are called
upon to contribute to pay interest on the
national debt. c. u. HOMESTAN.
Dynamos.