, 1898-10-18

at the output of the sugar trust. Cut
after cut in prices has been made by
the independents to fitch business from
their rivals. The result is all grades
Of refined sugar are selling at S cents a
pound, less commissions. which is
about 8 mills below actual cost.
you can't make IL per cent divi-
dends on such prices" say the indie
pendents, gleefully, to the trust. I'VE
have $21. 0OO, 900 surplus to spend on
this fight" replies the trust to the in
dependents. So the war goes on and
the sugar and coffee combinations are
doing anything but ministering to the
tastes Of either.
The tobacco trust has had the same
experience as has distinguished the
career Of the sugar combine. 1t began
in 1890, as a manufacturer Of cigar
cites. Then it branched out into plug
tobacco trade, competing with the west
ern firms that make plug tobacco their
speciality. The encroachment OF the
trust, as it was regarded by the indie
pendents, was mel by opposition in the
cigarette trade by the plug tobacco
men. So it has continued. The trust
has had to expand its capital stock to
be prepared for the competition. As
recent al May I've So, 1000, 900 new stock
was issued. There is talk OF a further
increase from the present capital OF
$21, 900, 900 to $40. 900. 900. The Light
& Myers concern Is the strongest kind
Of an opponent, and it has a president
who is determined not to yield to the
trust. So the trade is waiting for a
continual procession of reductions,
with plug tobacco dropping in price
month by month.
The stockholders who do not class as
insiders" in these giant organizations
Of course are losers by these wars, Tor
they see the surplus squandered and
dividends lost in the competition.
Nearly a score of these trusts are listed
for trading on the stock exchange, and
during the past month sugar and tobac.
co have exceeded in daily transactions
nearly One-Quarter of the total bust.
ness, and fortunes have been gained OF
lost tn speculation.
Take sugar, for instance. Its tota
capital is SIS. 000. 900, half common ana
half preferred. There is little specula.
ton in the latter, which has a fixed
per cent dividend rate. The $37, 500 ,OOt
of common stock (375, 600, 900 shares,
gets its dividend after the preferred
but has always had u per cent. Ye
today the common and preferred ar
selling within s points Of each other
md it l. cnpfhdentlv declared nv tn.
peate tna1 tine price is to go dow
further.
A year ago sugar sold at 1914. Las
March it dropped to 1919. By August
however, it had recovered to 146A
This week 1t touched 1OSA-or within
a point OF where it stood in March
These figures show how dangerous
stock 1t Is to the outsider" Yet in tn.
last five weeks. while 1t has beer
slumping from 147A to 1887, tradins
In the common stock has reached
2,5oO,0O shares. In other words, 1T.
entire common stock has been solo
nearly eight times in that period. A
par these transactions would aggre
gate $3.50, 600, 900, and at the averag,
market price ver $500, 900, 900.
The same story can be told of to
bacco stock, which has been the sen
sation Of Wall street for several weeks
1t sold as low as 67h in 1897, ant
touched 1881 IN September 10 last
more than doubling in market value
From September 10 to October 3 +
dropped from its high price to 113-
shrinkage of 40A points in thirteer
days. This decline was attended b,
daily sales of nearly half the total com.
mon stock Of the company. In tobac
co as I n sugar. the quotation has variet
as much as a point between sales, ant
a 10-point variation in a single day
has not been unusual in either. Yet
Well street spectators delight y
dabbling in them. and they are more
attractive than the less variable rail.
way shares. Everybody knows how
dangerous they are unless one has tire.
mendous capital and courage, but
nevertheless many persons with more
Of the latter than the former take q
daily plunge" in them.