The sun., 1898-12-25
SUGAR KINGS AT WAR.
Chicago the Battlefield of One of
the Bitterest Price.cutting
Hnnfoctc nm RoCOrh
Contests on Record.

CHICAGO, Dec. 24.-This city has be-
come the chief battle-ground in the con-
test between the American Sugar Refn-
ing Company and the Arbuckles and the
Doerschers, it's powerful rivals.
Yesterday the price of "outside" sugar
was cut one-eighth cent below trust
prices, reaching almost the lowest quota.
tion on record. The cut was accom-
panied by developments that showed
the existence of little trust among the
wholesale grocers to support the Ameri-
can Company, and also that a new
Richmond was in the field in the shape
of beet-sugar supply. The American
Company was not ready to meet its
rivals prices, but it is expected to do so
today.
The circumstances leading up to the
cut are these: Arbuckle Brothers and
the Doerschers own sugar refneries on
the Atlantic seabcard that have daily
capacity of 5000 and 5000 barrels, re-
spectively. Both plants were started
less than six months ago, and both in
vaded Chicago with their goods early in
the fall.
The American Company was ready for
them. In September, seeing that rival
goods were to be offered, its representa-
tives visited the iobbing trade and sug.
gested that a contract be signed by which
any amount of sugar, up to stated
quantity, might be purchased by the
jobber at given price, and that low
one. This was to cut the ground from
under the American Companys rivals,
but it was made only to its factors
The latter are all the wholesale grocers
except two or three, whose arrangements
with the American Company provide for
a rebate of IRON one-eighth to one.six-
teenth from the list price; 10 be made
periodically.
they entered the Chicago market, made
cut in prices. 1t did not bring the ex-
pected increase in sales, as the jobbers
were able, under their contracts, to draw
on the trust for sugar at the same prices.
The contracts began expiring short
time ago. Before the date was reached,
the Americans representatives met the
factors and extended the agreement.
When the Arbuckles and Doerschers
found this out they, on Wednesday last,
announced cut to $40 cents, and
coupled with it the notice that they
would do business with the retail trade
Yesterday they followed it up with
further cut to II cents a full one.eighth
cent below the American Company's
price.
The local houses OF the Arbuckcs AID
the Doerschers were bombarded with
business. Statesmen for the jobbers and
wholesalers came in to report that the
market was taken away from the Ameri-
can; that all the retailers in Chicago
were dealing with the opposition. No
attempt was made to meet the price, but
there was possibly reason for this. A
meeting of the Sugar Committee was
called in the Commercial Exchange,
but adjourned until today, when it is
the American Company's price
will be announced. One year ago the
difference between the prices of raw and
refined sugars was about $l.25. Yester-
lay it was 30 cents, shrinkage OF 80
,ents hundred pounds, or nearly S.
per barrel. If the American Sugar Re-
lining Company's output is 10000 bar
els day, little figuring will give fair
approximate idea OF the vast sum the
tight has cost.
Within the last week or two Fl ifteen car
Dads OF beet sugar have arrived in Chi
ago, the first to reach this market. This
ugar was sold below the trust price, and
t is said arrangements a"e making to
handle the output of half dozen fac
cries built and building in the nearby
tates. All these features create situa-
ION which, well.informed men in the
rade said pointed to the conclusion that
he war would be fought out in this