The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-12-25
Bitter Warfare Waged BY Indepen-
dent Sugar Refineries.
BEET SUGAR A FACTOR
FIFTEEN CARLOADS SOLD BE-
LOW TRUST PRICES.
War viii Be Fought Out at Chicago
Where the Independent Refineries
Have Captured the Market
Wholesale Grocers' Trust Stands
By Sugar Trust-Prices Cut.

Chicago, Dec. 24.-The Tribune says:
Chicago has become the chief battle
ground in the contest between the su-
gar trust and the Arbuckles and the
Doerschers. its powerful rivals.
Yesterday the price of outside" SUI
gar was cut Il of a cent below trust
price, reaching almost the lowest quo
tation on record. The drop was ac-
companied by developments that
showed the existence of a little trust
among wholesale grocers to support the
sugar trust, and also that a new Rich
mond was in the field in the shape of
beet sugar supply. The trust was not
ready to meet its rivals price, but is
expected to do so today. The circum-
stances leading up to the cut are these:
Arbuckle. Bros. and the DoerscherS
own sugar refineTieS on the Atlantic
seaboard that have a daily capacity OF
5000 and $500 barrels respectively. Both
plants were started less than six
months ago, and both invaded Chicago
with their goods early in the fall.
The trust was ready for them. In
September, seeing that rival goods were
to be offered, its Representatives visited
the jobbing trade and suggested that q
contract be signed, by which any
amount of sugar, UP to a stated guam
tity, might be purchased by the jobbeT
at d given price, and that a low one.
This was to cut the ground from under
the trusts rivals, but ii was made only
to it's factors. The latter are all the
wholesale grocers except two or three,
whose arrangement With the trust pro-
VideS for a rebate of from Il to LIS
from the list price, to be made peri
odically.
The Arbuclzles and Doerschers, when
they entered the Chicago market, made
a cut in prices. 1t did not bring the
expected increase in sales, as the job
bers were able, under their contracts,
to draw on the trust fer sugar at the
same prices. The contracts began ex-
piring short time ago. Before the
date was reached the trusts represent
tatives visited the factors and extend-
ed the agreement. When the Arbuckles
and Doerschers found ftlis out they, on
Wednesday last. announced a cut to
$40, and coupled with it the notice they
would do business direct with the retail
trade. Yesterday they followed it up
with further cut to 5.15-a full Il of
a cent below the trust price.
The local houses of the Arbuckles
and Doerschers were bombarded with
business. Statesmen for the jobbers and
wholesalers came in to report the mar
ket was taken away from the trust;
that all the retailers in Chicago were
dealing with the opposition. No at
tempt was made to meet the price, but
there was possibly a reason for this. A
meeting of the sugar committee was
called in the commercial exchange, but
adjourned until today, when it is ex-
pected the trust price will be an
nounced.
One year ago the difference between
the prices of raw and refined sugar
was about $1.25. Yesterday it was 81
cents. As the sugar trust output is
10000 barrels day, a little figuring
viii give fair approximate idea, Of
the vast sum the fight has cost.
Within the last week or two fifteen
carloads of beet sugar have arrived in
Chicago, the first to reach this mar
ket. This sugar was sold below the
trust price, and it is said ARRANGEMENTS
are making to handle an output of half
dozen factories built and building in
nearby states. All these features ere
ate situation which well Informed
men in the trade said pointed to the
conclusion that the war would be
fought cut in this market.