The Portland daily press., 1897-04-26
WAR is ON.
When Trusts Fall Out the Public Gets
Its Own.

= ''~
The feud of the Havemeyers and the
-Arbuckles-How the Sugar Trust
Fights the Coffee Trust.
New York, April 24.-The latest re-
duotion of one-half cent a pou nd in
roasted coffee brings 1t to 10 IL cents a
pound, less two Per cents, or 10 Ia cents
for cash to Wholesale dealers.
This is the lowest price ever touched
since the trade in packages Of the roasted
product was instituted, and marks a de-
cline of 5 1-2 cents pound since October
last, when the Havemeyers entered the
trade in competition with the Arbuckles.
Today's Herald says: AT that time
the Arbuckle people were making up
their minds that unless the sugar they
used in their package trade could be
obtained on better terms from the Trust
they would go Into the sugar business
and build the big refinery which they are
now constructing.
1t requires some time to create refn-
Ao"OVCiS ANU A-OhAi " hAISs UiAO
Havemeyers secured controlling inter-
est in the Woolston Spice Company of
Toledo-the Arbuckles's competitor In
the coffee business-and at once began
to increase its output and dispose Of the
product at lower prices. In his exami
nation before the Lexow COMMITTEES Mr..
Havemeyer, in response to a question
whether there was any business more
profitable than sugar refining, replied,
Eyes, the roasting Of Coffee
In the recent legal proceedings between
the, warning concerns at Toledo, Mr..
Arbuckle and Mr.. Jaryie. the manager
of the Arbuckle mile, testified that
the profits had not been excessive, and
Mr.. Jarvie also testified that the diyi-
dend on the Woolston Company stock
for the year of 1896 was $50 on each 500
share, which he thought was not large,
considering the accumulated capital
represented in the actual value of the
stock. 1t has since been affirmed, how
ever, that the profits for years past had
been enormous and that tho dividend for
1896 was not $50. but $1s7. SO per share.
The latest cut of half cent in roasted
coffee-like all preceding ones-was made
by the Woolston Company, and promptly
met by the Arbuckles.
The development of tho past few
months indicate that Mr.. Havemeyer knew
what he was talking about when he
spoke of the profitable nature of the
coffee roasting trade, for the manager
Of the Woolston Company made affidavit
in the Toledo suit that, notwithstanding
the enormous reductions in price, the
company since January had been earn-
ing satisfactory dividend. 10 some ex-
tent the Havemeyers have BEEN favored
in making their reductions by fall in
the price of raw or green coffee. In the
middle Of October last, the raw product
No. Rio on the spot-was ten cents a
pound, while roasted coffee was IS
cents. Comparing yesterdays prices
with these figures, raw coffee has fallen
1-2 cents, while the roasted product has
been reduced 1-a cents.
AS the reduction in roasted coffee has
thus been twice as great as the fall in
the raw article, the trade has reached
the conclusion that MIR. Havemeyer's
statement about the profits of the bust
ness were not exaggerated, and that the
competition which originated merely in
desire to retaliate upon the Arbuokles
is likely to be permanent, and the gains
of the industry have now been so wide
ly advertised among capitalists that con-
sumers can never again be made to pay
prices to yield such profits as were made
in the past A reduction of one.third in
the price of coffee in six months as tho
result of competition in coffee, excites
the hope of similar benefit to the con-
sumner as the result of competition in
the sugar industry when the retineries
being built by the Arbuckles and the
Doschers are completed. When trusts fall
out the public is liable to coma by Its
own. Previous to the present date the
lowest price for roasted coffee was in
February, 1886. when it sold for II IA
cents, when the raw product was quoted
at z Ia cents.