The Washington times., 1894-03-22
FACTS ON THE SUGAR TRUST
c. p. HOmestan Gives Some interest
ing Inside Information.
ANNUAL PUBLIC TRIBUTE PAIB
1t Is Greater than the Interest on the Ma
tional Debt-Their Arbitrary Methods
Enormous Profits Accrued to the Trust
Mr.. Havemeyer as Lobbyist.

The sugar trust, writes C. P. Homestan to
THE TIMES, has evaded every species of direct
and indirect legislation that has been leveled
against it, and during its existence it has been
more autocratic and independent and held
more direct sway over the people Of the United
States than any half dozen sessions of Con-
gress put together. Now that there is another
change impending in the sugar schedule of
the tariff, we find the trust even more aggres-
sive and domineering than ever. That their
case is considered an urgent one is evident
from the fact that it has drawn Mr.. Theodore
Havemeyer to Washington, 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 deal
ings, or its methods. but / believe that care
full perusal OF what follows will well repay
every reader, and will supply him with inior-
nation that he ought to know but which be
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 Wash
ington who are now delving deeper into the
sugar barrel with view to learning Just what
is at the bottom OF il, and it is this sudden de-
sire for knowledge on the part of our law
makers and the fact that they are reaching
nearly to the bottom OF the sugar barrel which
induced Mr.. Theodore Havemeyer to break
his customary conservativeneSs and assume
the part of an active lobbyist in person
The total annual supply of sugar in the
United States is approximately / zoo, 900 tons,
of which the southern cane crop is 200, 900
tons. the beet sugar crop about 10000 tons,
and the Hawaiian crop 1900 tons. This
leaves 1,950,0O0 tons imported at Boston, New
York, and Philadelphia. but the entire guam
tity Of l, ,700, 900 tons is manipulated and sold
by the sugar trust in New York 4 compar-
ison of the prices for raw and refined sugar
as ruling from January to September, 1893,
showed that there was an average difference
during the nine months of LAPS 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 fiye-eighths of a cent. The
various discounts allowed to the trade, all Of
duce the difference in price between raw and
refined sugar TO 1.14s cents per pound, and
deducting half a cent for refining there was n
net profit of .64S of a cent on every pound of
sugar sold between January and September,
1893.
AS has been stated, the total quantity of
sugar handled by the trust is zoo. 900 tons
annually, and profit OF .64S of cent upon
each and every one of these 3,400. .000, 600
pounds gives total gross profit to the trust
of SD .032. 600 annually. This would seem to
be enough for a concern with property of an
actual cash value of but $40, 100000, profit
of 100 per cent. annually But the watered
capitalization is Ss5, ,000,0 600, which makes the
trusts profit over % per cent. upon the actual
property of 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 Hawaiian planters below the market
price in New York by quarter of a cent and
is sold TO the consumers at a cent pound
higher than the New York price on an aver
age. This makes little matter Of $500, 900
extra profit on the western trade. bringing
the gross profts..of the concern up to SIS, ,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 content to stop
at this. 1t NEEDLES, interferes with and checks
States. Congress endeavored to stimulate
the growth of our own sugar supply. but the
trust prevents il. Congress saw the import
ance 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 Congress gave bounty of two cents per
pound upon all raw sugar made in this coun-
try.
The building of best sugar factories, 1t was
thought. would enhance the value of farm
lands, provide good paying crop for the farm
ers. and promote new and large manufac-
turing industry. 1t was thought that beet
sugar factories studded throughout the coun-
try 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 the
different states would interfere with the busi-
ness of the trust; therefore they must be
checked-unless under the control of the
trust. In these days of improved methods
the beet sugar factories are able to make a
sugar very closely resembling granulated,
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
Wien Tue large ldcloIN WIS Uulil 'll CulIlO III
California. the trust stepped in and said:
1--WE 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 trusts refinery at San Francisco.
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 its product in the shape of granulated
sugar. The best sugar industry is checked,
but the trust is protected.
Senators have been investigating all of
these facts, and are better acquainted to-day
with the workings of. the sugar trust than
they have ever been. The opinion is growing
that there is but one way to promote the cul-
tivation and manufacture of the domestic
sugar industry, and that one way is to kill
the trust, which has hitherto defled all the
laws of the country. This can only be done
by placing duty on raw sugar in the inter
ests OF the domestic producer and by placing
precisely the same amount OF duty on refined