The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-11-16
SUGAR TRUST IN DANGER
Causes at Work Which May Result
in It's Collapse.


New York, Nov. 16.-Twenty thous-
and shares of American Sugar refining
stock, worth at the market price 81
100000, long held by relatives and
friends of H. o. Havemeyer, have been
sold in the Stock exchange within the
last 10 days The decline in the stock
was not due entirely to short selling, -
as some of the maniDulators would
have it appear, but rather to the selling
out of persons in position to know all
the ms and outs of the trust.
1t was announced on July 10 that the
Standard Oil clique had bought the
control of the Sugar trust. This fact
was again made evident when Wall
street was recently shocked by the an
nouncement of H. O. Havemeyer's Sc
rious illness. Sugar stock tumbled
rapidly from LA to 123, and even then
it appeared that the bottom had not
been reached. In order to stay the de-
cline a semi official statement was is
sued to the effect that HaVemeyer'S
illness could not affect the Sugar trust
because H o. Havemeyer held only
enough stock to enable him to qualify
as q director"
As the ownership of ten shares only
is necessary for director of the Amer
lean Sugar Refining company. it
seemed hardly credible that Mr.. Have
meyers holdings in the gigantic COM
bination, which he himself engineered,
could have dwindled to such an extent.
But this is literally true. The head
of the trust, whose careful manage
ment alone enabled it to hold the trade,
earn handsome dividends and accumu-
late a surplus, today is a mere figure
head
The stock in the last week, under the
influence of inside selling, dropped even
lower than IL did while startling ru-
mors were being circulated concerning
Mr.. HaVemeyer'S health. Down it
went from 1872 to 1853
While the Havemeyer following were
selling out the bears took advantage
of the movement by selling the stock
short" Having been successful in
their trading they began to cover in
order to turn paper profits into actual
cash. Buying for this purpose hOisted
the stock to its closing price on Satur-
day of 1905.
The trust now has a fight on hand for
its very existence. 1t is only by hold
ing absolute control of the manufact-
ure of sugar that it can continue to
pay dividends of u per cent on its i'm
mense capital of $4,000, 900. The mar
gin of profit is extremely small 1t re
quires close figuring and careful man
agement to earn such dividends and
maintain the treasury reserve" of the
trust. New opposition is coming into
the field and the question which is ag-
itating Wall street is whether Mr. Hav-
emeyer viii retain the presidency of the
company in which he has small pecu-
MARY interest.
The opposition to the trust is growing
apace. All over the west beet sugar
refneries are springing up like mush-
rooms. The steady price of sugar
which the trust has maintained has
helped to foster the beet sugar indus
try. OF course, it is only during four
months Of the year that these refneries
can be operated, but during this brief
period the output of sugar is large and
increasing every year. Farmers have
learned that the raising of beet roots
is very profitable. and the acreage is
growing rapidly. The profits to the re
fners are also very tempting. Several
refiners in Nebraska and Kansas are
making annually 40 per cent on the
money invested. This is a much larger
percentage of profit than the trust can
possibly obtain, and any fight urged
against the beet sugar refneries would
be found to result disastrously for the
trust.