Daily Kennebec journal., 1894-12-08
SUGAR Trust in Stock Exchange.

It appears that the sugar trust has been
making several millions on the stock ex-
change the past few days by means OF
simple manipulations, which SO far as
learned were not injured but were de-
cidedly helped by the Presidents message.
Mr. Havemeyer waved his hand and the
refineries shut down. Then the President
said the differential duty should be abro-
gated Comparatively few knew that such
advice would not be followed for the pres
ent at least, when the revenues of the gov
ernment are so far below the expendi-
lures. The sugar trust kept it well in
mind, however. Meanwhile sugar stock
got to be unpopular and went down to 80
and was of course gobblcd by the mem
bers of the trust The usual IL per cent
dividend was declared upon the common
stock and it went up with bound. The
stock editor of the New York World of
Thursday, has this to say concerning the
recent "dcal''
"The gigantic turn had been made and
the country now sees II per cent. stock
selling at less than 90 while an s per
cent stock, such as the New York. New
Haven and Hartford, is quoted at 1913.
The difference in these figures measures
the dstrllst which the investing public
have for Havemeycr and his partners
This dividend keeps the sugar trust in
the II per cent class and shows what a
fine, fat mine this monopoly is. Five
years ago 100, 900 worth of sugar stock at
par might have been bought at 20; that is,
$40. 600 would have been the actual invest
ment In that time rs per cent. has been
handed out in dividends, or S7S, 900 has
been paid over to the stock holder, who
still has his $4,000 face value of stock,
which he can sell at 50 or better at any
moment. So the account would stand:
Face-value stock, 100000
Cost, OUVO
Dividends received 7S 600
Present selling price, $4,000
This is one of the fattest monopolies the
world has ever known. Not content with
this rich crop of returns, Havcmeyer and
his co-monopolists have been working the
market as well. 1t is said that they hold
u majority of the common stock. This
big batch doled out to the street at 1l5 or
better and gathered in at S5 or better,
would yield net profit of $50 per share,
or scoop of about $6,000,000 All that
was necessary to have as capital was an
unscrupulous grasping disposition and a
seat inside the board from which to work
on the advance information, and the
whole trick was done. A monopoly which
admits of speculative profit of millions
in few months in these times, even with
legislative assistance, is a very fine field to
work, and the Havemeyer people are work
ing it for all it is worth. Assuming a
trust holding, including Mr.. Havemeyer's
followers and friends, of 200, 900 shares,
then five years showing would stand thus
Face value, 1000 shares, 10000, ,Ooc
Cost five years ago, 14,OUo,oOl
Dividends, 15,6OO,oO,
Present selling value, 1880 00'
Profit accrued to the holders in the
ring, independent of stock -jobbng
operations, 10, 400 OO'
This is on the assumption no doubt g
violent one. that the Havemeyers started
in at 20 in sugar. They were no doubt fai
below this. Then, too, the stock haI
been kept in most violent cbullition or
the stock exchange, and Havcmeycr has
always been on the winning side there, Sc
that grand profit of $50, 100000 woult
not be out of the way as representing
what sugar has brought to the Havcmcyel
purse.