The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-10-29
THE SUGAR MONOPOLY MEETS A
HEAVY COMPETITION
COPPER MINING STATISTICS
Furniture solidation-Dividend
Observation-Disclosures
Estate Matters
OFFICE OF THE HERALD,


For the present the war against the sugar
trust monopolizes the attention not only Oh
the dealers in the saccharne condimeht' pu'
also of the consumers, who are legion Inc
trust, while manufacturing sugar almost az
the doors Of the consumer, has kept us
prices far in advance of those which 1t MAN
tanned in eastern markets, with freight add
ed. Even the competition of the water route
via Cane Horn has not permitted any in
roads on the hold OF the trust. Whenever
connection of this character has arisen 1t
has been crushed by threats Of refusal to
sell to the competitor if his stock should
ever run short Day after day the jobber
has been forced to pay price which he well
knew was an excessive one, but he has not
dared to offer objections.
The Arbuckles, not content with lighting
the Havemeyers in New York at an expense
of millions of dollars, have come to do bat
tie with the Western Sugar refinery, which
is the local end of the sugar trust, on its
own territory. NJ. j. Brandenstein 4 Co.
are the men who are combating the West
ern Sugar refinery, but the Arbuckles are be-
hind them. The sugar comes from them,
and the tactics will be the same on this coast
as have been successfully pursued in New
York.
For long time there has been great
disparity between the New York and San
Francisco prices Of refined sugar. When in
New York sugar was cents pound, the
Ean Francisco rate would be 6 cents, the diff
ference being due to the fact that the rail
roads charged $l.65 for transporting 100
pounds across the continent. 1t was on the
railroad end of it that the Brandensteins
worked, securing reduction of the rate
from $l.65 to so cents hundred, which en-
abled them to import from New York and
sell profitably at less than cents pound.
Immediately 1000 sacks of sugar were dis
patched by the Arbuckle Brothers, and it
was the knowledge of this shipment that
caused the cut in sugar. Those who know
predict that this is not the final cut in Pa
cific coast sugar, and that it will necessarily
go much lower. Since the trust has of late
guaranteed it's customers against losses, the
cut hurts the sugar trust alone IT there
should be further slashing, the trust will
be obliged to meet it, as the wholesalers
cannot afford to allow the retailers to buy
directly from Arbuckle at lower figure and
thus lose the profit on their transactions.
In the last two years in New York the
Arbuckles are said to have lost over "a ,000,-
00O The game will not be for as big a stake
here, but still it will be ample. The West
ern refinery will have to pay some large re-
bates, and the cut in sugar deprives it of the
handsome profit the monopoly has been net
ting it for years. The cent pound above the
New York price was clear gain for the west
erners. Ii the Arbuckles, who have unlim
tied money and are not afraid to lose and use
it, stay in the field as obstinately as they
have done in the east, the profits on refined
sugar will be a negative quantity for the
next few years.
The trouble between the Arbuckles and
the sugar trust dates back, it is said, to q
quarrel in September of 1885, The Arbuck-
les made their fortune in putting up GER
tain brand of coffee in pound packages. They
were anxious to apply the same method to
sugar, but the trust would not supply it.
The Arbuckles announced that they would
manufacture sugar, and the trust Immediate
ly purchased a controlling interest in the
Western Spice company and began to sell
package coffee at a cut rate. The Arbuckles
met the cut and the war went on. The Ar
buckles built a great refinery on Long Island,
which was opened this week.
AS to the outlook, William j. de Bruhl,
who represents Mr.. Arbuckle's interests on
the Pacific coast, says to the Examiner:
eve have made the cut and propose to
stand by it. 1t is not matter of sudden
determination, for it is only after careful
study of the situation that Mr.. Arbuckle has
decided to enter into competition with the
sugar trust in this field. 1t is our intention
to supply sugar to the Pacific coast at the
lowest possible figure in which there is a
fair margin of profit. We are prepared to
fill all orders now, and shall continue to
meet with any demands which may be made
on us. We are in the market to stay"
From this it is evident that the enormous
profits which the trust has wrung from the
consumer will in future be distributed
among the people.
The cut of one-half cent a pound in sugar
means the loss of thousands of dollars a day
to the sugar trust, say the jobbers and the
merchants. There are about eighteen job
bers in San Francisco handling sugar; four
in Sacramento and two in Marysville. Some
Of the firms will handle from $50 to 200 bar.
rels day. Others will not sell more than
Is barrels day. An average would be about
Is barrels to the jobber in San Francisco
This would be total of about 400 barrels
O day. In pounds, at the rate of 800 pounds
to the barrel, this would be 462, 900. The
loss on this number of pounds would be
$23l0.
The Western refinery supplies California,
Washington, Oregon, Idaho and Arizona
The entire loss on the coast at one-half cent
q pound reduction would amount to perhaps
$4,000 day, or 1896, 900 month.
The surplus Of the Western refinery is
dumped in the Missouri river at from one.
half to three-uqarters of cent pound cheap
er than we get it. In the same way China
sugar is sold cheaper in San Francisco than
in Hong Kong. Only the surplus is sent
here.
No matter how low the market NAV 20.
the jobber's profit is not affected. The man.
ufacturer makes all the money in sugar. and
in case like this loses it. The jobber still
gets his one-quarter of g cent rebate. This
one-quarter of a cent less than the market
rate, and sells to the retailer at the prices
quoted by the refinery or the market rate
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