The Indianapolis journal., 1897-01-04
SUGAR AND COFFEE FIGHT
AND HAVEMEYERS ARE
WAGING a RELENTLESS WAR.
How the Present Difficulty ORIGINATED
and Its Probable Effect on 9th
er American Businesses.
Chicago Chronicle.


both commodities unless a settlement OF
the trouble is not soon effected. 1t is a
fight in which thrifty housewives may well
resent the Interference of arbitrators and
following the example set by the old trap
per's spouse, cry with fervor Go it, old
man: go il. bear" There has been. as yet
no noticeable reduction in the price of
either sugar or coffee outside of the ter
ritcry In which the dispute began, but a
general slashing of the values of all grades
of both articles Is looked for by weIl-in-
formed dealers if the fight lasts much
longer
AS the contest goes on some of the hth-
erto well-kept secrets of the sugar trade
and the coffee trade, which are of interest
to the general public, as they illustrate the
business methods of the parties involved
are becoming known. For years the Ar
buckle brothers-John and Charles-were
kings in the package coffee business and
accumulated large fortunes. Charles, who
was a bachelor and of strongly convivial
disposition, achieved considerable notoriety
some years ago by playing one of the lead
ing parts in the celebrated Baby Bunt-
ing" scandal. The ridicue which was flung
at him from all sides, coupled with the
fact that he had to settle a judgment OBJ
tanned by the woman for something like
$4,000. drove him into retirement and a
few months ago he died. Since then the
control of the business has been entirely
in the hands of John Arbuckle, a shrewd.
keen-witted man of exemplary habits.
There are several stories in circulation con-
cerning the cause for the fight which is
now being made against the Havemeyer
syndicate, but the one most generally ac-
cepted in trade circles is that he is trying
TO butt his way" as the gamblers put it,
into the Sugar Trust on the ground floor
HOW THE FIGHT STARTED.
One of the principal features of the Ar
buckle outfit is a large wholesale and job
bing grocery house i'm Pittsburg, which is
used as a distributing agency for the
coffees handled by the firm. In connection
with this store is operated an ingenious
weighing and packing machine which puts
sugars, coffees. spices and similar goods
up in packages ready for the retail trade at
a small fraction of the cost which a SIM
liar process entails in other houses. This
machine is controlled exclusively by Ar
buckle. and it was in the operation of it,
so the story goes. that he IirSt saw an OPP
Dortunity TO bring the Havemeyer people
to terms. Securing an immense stock of
sugar, he packed il in small parcels and
put il out to the trade at cost or a trifie
less as a leader" to force the sales of his
coffee. Remonstrances from the trust were
of no avail. When his stock was exhausted
MIR. Arbuckle found he could no longer get
sugar on the terms which he thought the
magnitude of his order warranted. and he
bought up the product of the nontrust con-
Germs, and in addition TO this arranged to
import lot more. 1t was at this juncture
that Mr. Havemeyer took a hand in the
fight. Mr. Arbuckle began fitting up a
plant in Brooklyn in which to refine his
imported raw sugars. and the Havemeyers
retaliated by securing control of the Wool
son spice and coffee mills in Cleveland and
entering boldly into the sale of package
coffee in competition with the Arbuckle
brand.
1t was given out at the time the deal was
made that the Havemeyer syndicate had
actually bought the Woolson plant at big
price. but men in the trade think IL is be-
ing run on an option and Will pass back
into the possession OF the Original owners
as soon as a compromise is effected be-
tween the warning merchants. The Have
meyers. il is understood, bought at the out
set an option giving them the right TO take
leven-eighteeenths of the stock of the
WOolson Company at a stipulated price at
any time within ninety days, the product
of the mill to be in the meantime under
their control. Their first movement was 10
cut the price of package coffee cents "A
pound.
MINORITY SHAREHOLDERS OBJECT.
This brought signs of disapproval from
the minority shareholders who saw no rea-
son why their profits should be endangered
to advance the interests OF the Sugar Trust
and there was an intfmation that injunction
proceedings might be begun TO stop further
operations in this direction. To prevent a
move of this sort the Havemeyers bought
an option on the seven-eighteenths of the
stock which had been left out in the first
deal, and are now in full possession of the
plant and will be until the option expires.
If the little dispute with Mr.. Arbuckle is
not settled by that time. ii is possible the
A.g-fx- hf n sod iDh 4
peace is declared before the ninety days is
up. many dealers think ii will be. the
option will be cancelled. the mills Will re-
vert to the control of the shareholders and
the normal conditions of trade Will be re-
Sumed. In brief, according to the obServa-
tions of impartial merchants, Havemeyer Is
holding the Woolson mills as a club with
which to drive Arhuckle out of the sugf
trade. and the latter is using his projected
in Brooklyn as "A club to force
TO give him a share in the prof
its of the trust.
Arbuckle and Havemeyer are both men of
bulldog tenacity farseeing in business Ven
lures and of practically unlimited pital
A fight between them to a finish means
more than an ordinary cutting
of rates and trade disturbance. 1t involves
measures beyond The reach of any but
financial giants. and under other conditions
might affect lines of business which have
no visible connection with those over which
the dispute exists. But as IL is the only
men likely To suffer are those Immediately
involved and they and their associates are
we'll able to stand the loss. The more they
cut prices the better the consumers will
like it. The profits of the fighters may be
reduced for time. but the gen
eral public will benefit by it.
FEATURES OF THE TRADE.
The trade in package coffee is a peculiar
one. and at first sight seems to afford but
4 very narrow margin of profit. Such for
tunes as have been built UP by the Ar
buckles and others. however. give proof
that there is a great deal OF money in the
business. Coffee is sorted by the inspec-
tors into nine grades as follows:
No l. prime; No. >. good: No. 3. fair:
No T. low; No. ), good ordinary; No. 6,
No. :. low common: No s. strict
~ good common; No. 9, good common.
No. 4 is taken as the STANDARD for ba sing
prices on and the quotations made on the
New York city Coffee Exchange, both for
actual delivery and specula ton, are for
spot is now about 101s cents a pound No
prime is quoted at 4 cents over No. &
which would make the wholesale price of
the best coffee Obtainable through the or
1inary channels of trade little over II
cents a pound. II iS seldom, however. that
any No I. or even No. or 3. coffee reaches
the market, the quantity that is better
than No. being very small. This is the
sort generally sold at a fancy price by re-
ailers IL cosss on the wholesale market
L must be roasted. which Shrinks the
weight about one-iifth. anG this. with the
expense of roasting. makes the real cost
bout i6 cents. Most of the coffee used
outside of packages is of the grade known
20 the trade as good ordinary and costs
rs il leaves the roaster something like Is
,ents pound. BY the time il reaches the
consumer the price has advanced to at