The Wichita daily eagle., 1894-03-02
THE SUGAR TRUST.
Row 1t Has Made a Gross Profit of Over
S2S 600. 600 Annually.

THE SUGAR TRUST.
Row 1t Has Made a Gross Profit of Over
$685. 900 Annually.
Especial Correspondence
CHICAGO, Feb. 27.-Upon every occasion
of a change in the tariff there is always
considerably more than less heard of the
sugar industry and the sugar refining IL
terests. The Sugar trust has evaded every
species of direct and indirect legislation
that has been leyeled 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 its methods, but believe
that careful perusal of what follows will
well 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 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
1000 tons, the beet sugar crop about 90
900 tons and the Hawaiian crop 10000
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. A comparison of the prices for
raw and refined sugar as ruling from Janu-
was an average difference during the 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 of yvn hay tn ha 1,u@
sumner, reduce the difference in price be-
tween raw and refined sugar down to l. 14S
cents per pound, and deducting half cent
for refining there was net profit of .64S of
a cent On every pound of sugar sold be-
tween January and September, 1893.
As has been stated, the total quantity
Of sugar handled by the trust is 100000
tons annually, and profit of .64S of cent
upon each and every one of these 3, ,400O O00,-
600 pounds gives a total gross profit to the
trust of s22 032 600 annually. This would
seem to be enough for concern with prop
erty of an actual cash value of but 800 OOO- !
600, profit OF 100 per cent annually But
the watered capitalization is $50, ,000, 900, !
which makes the trusts profit over IS per
cent upon the actual property and its very |
liberal dilution OF water. But even this is !
not all The price of sugar in 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 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 little matter of SS, ,5O0, 900 ex- !
ira profit on the western trade bringing |
the gross profits of the concern up to $685. |
532, 600, 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 bounty of 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 good paying crop for
the farmers and promote a 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 madeat
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
ods the beet sugar factories are able to
make 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 ana ara
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"
III WAS no uSe protesting. The trust in
sisted, and the Chino beet factory is allowed
TO make only raw sugar and is compelled
30 ship 1t TO the trust S refinery at San Fran
cisco. Inc 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 its product in the shane
OF granuiated 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
mestic sugar industry, and that one wav is
tc Kill the trust which has hitherto defied
all the laws of the country This co,, -, |
oe done by placing a duty on raw sugar in