Connecticut western news., 1897-02-11
THEBIG SUGARTRUST
HOW THE HUGE COMBINATION DE
 sTRoYEp COMPETITION.

GO SShF lllloNs
 List of Redneries Which Entered Into the
 Trust Agreement or Have Since Been
 Acquired-Msny- Plants Abandoned and
 workmen Thrown Out of Employment
 NEW YORK, Feb. io-The Herald this morning publishes the following in regard to the Sugar trust, which is being investi gated by the Lexow committee:
 The reluctant testimony given by the pilots of tho Sugar trust before the legisla. tive Investigating committee has afforded glimpscs of the purpose behind the huge combination of capital which controls the price of refined sugar in the United States. The story of how the trust came to be formed, and of Its operation in regard to prices, will indicate what the committee Is trying to compel the trust to confess.
 The profit in the business of refining sugar began to decline In 1884, when the difference between tho price paid for raw sugar and the price received for the refined fell to .ql3 of Q cent pound, owing to the rivalry between the rofiners. The decrease in the margin out of which the reflneries made their profit continued to decline, un- til 1t reached .76s of a cent a pound In 1887. In that year the trust was formed and the decline was stopped. Tho margin under tho operation of the trust and of the American Sugar Reflneries company of New Jersey, which succeeded 1t, has never fallen SO low as 1t was during the last years of free competition.
 The trust managers point with pride to the fact that the average margin between the cost of raw and refined sugar for eight Iafp hn aed yUa 1.065 cents pound, and that for the nine years since 1t has been only .9s6 of cent, a decline of .079 of a cent pound. The average for the four years immediately preceding the trust, however, was only .793 of a cent, or .193 of a cent loss than 1t has been since.
 The Renneries Closed.
 The refineries which were incorporated and which signed the original trust agree ment were Hayemeyers & Elder of Brook lyn, De Castro & Donner of Brooklyn, owning three reflneries; Brooklyn Sugar Refinery company, F o. Mntthlesen S wiechcrs of Jersey City, Havomeyer Sugar Refining company of Long Island City, Oxnard Bros. of Brooklyn, Dick & Meyer of Brooklyn, Moller, Siorck & Co. of Brooklyn, North River of Corlears Hook, the Standard, the Bay State, Continental, Boston and Revere of Boston. In addition the trust now controls the St. Louis Re- ining company, the Planters and LouIsi- ana of New Orleans, the Franklin. Knight, Delaware and Spreckels of Philadelphia and an interest of $500, 900 In the Western 4 San Francisco. .. .-.l
 After the formation of the trust the re. Tlneries closed were Oxnard Brothers, Decastro & Donner's three, the St Louis and the Bay State. The Havemeyer Re- fining company and Dick & Myers were destroyed by fire. The Hayemeyer has been rebuilt and equipped, but is not used. The North river was condemned for Cor Tears Hook park, and passed out of exist ence.
 Capacity of RefnerIes.
 It Is on record that the capacity of the refneries joining the trust was S2, GOO barrels day, and that the capacity of the trust companies now operating is 2s, GOO barrels day. The managers of the trust declare that the output of the reflneries which they still operate has been Increased, so that the men thrown out of employ ment by the closing of some of the re- fineries have been employed in the others. This statement is contradicted by tho workingmen themselves. John Bergen, who has been in the employ of the Have meyers for years, says that between 5000 and 6, GOO workmon In Brooklyn were de- prlyed of employment when the trust was formed, and have since scattered over the country. #...... a. e..# -...#
 What prevents the trust from still fur ther increasing Its margin of profit, which now yields 9h per cent on a capitalism ton of S75, ,000, 900, is the existence of competing reflneries, which, though their product is relatively small, undersell the trust whenever conditions enable them to do SO. They are the Mollhenhauer refinery of Brooklyn, the National of Yonkers, Nash, Spaulding X Go. of Boston, the Me Cohen of Philadelphia, the Henderson and the Coggswell of New Orleans, and the Cunningham refinery of Texas ...
 These and other small local rof1neries produce about 20 per cent of the 2.000, 900 tons of sugar consumed each year in the United States. They are the only check on the power of the trust to exact tribute from consumers to any amount that it sees fit to require for dividends upon Its so called watered stock. If the policy of nb- sorption should be pursued, they will eventually be taken into the fold and tho trust will then have full sway. Its present profit of about one-eighth of cent a pound nets it more than $q, GOO, 900 annually.