The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-03-21

Loss in refining lOO POUNDS raw 80
product .........'.... '''''''''' 'Olo
Loss per barrel Gents ......... 6 l-S
Loss of American Sugar Rein
ing Co. on 1,3S5,00 tons suagr
in 1899, apparently .......... I,l35OOO
Paid in dividends ...........,. 100000
During all the time that sugar stock
has been the favorite speculative foot
ball in Wall Street, extending over
nearly ten years, the public has never
been given any exact information in
regard to the cost of refining sugar, and
il has had no basis whatever on which
to figure out the profit or losses of the
company, which paid IL per cent diVi-
dends on it's common stock for term
of years, and extra dividends during
a portion of the time.
The annual statements which Presl-
dent HavemeyeT makes under compul-
sion to the state of Massachusetts are
models of Indebtedness which have
been followed by number of the newer
combinations, and the investing pubic
has been left totally in the dark con-
corning the resources of the American
Company.
1t appears to show that the American
Company, as well as all of the other
refiners, are losing money on every bar
rel that they turn out.
The loss is not heavy at PRESENT. is
only 1-3 cents barrel, with the mar
gin between raw and refined about 5212
cents per 100 pounds, which is the diff
ference existing today. If this loss were
kept up, however it would amount to
S49S, 900 during 1900-aSsuming that the
American Company handles the same
tonnage as last year, 1,3S5,OOO tons. The
independent refiners are losing proper
tionately as much, or little less than
a third of the above amount.
From reliable sources it is learned
that the average margin between raw
and refined during the whole of last
year was about u cent a pound, or 2R
cents hundred less than now.
This means that the loss of the Am
erican Company last year on the prod
uct handled was about $1,135,000. The
losses of the Independent refiners on the
$50, 900 tons which they handled would,
at the same rate, bring the total losses
Of the fight between the refiners up to
about $1,500,000.
1t is curious fact that the state
ment which Mr.. HaVemeyer has made
before various committees that there
is no money in refining sugar with a
margin of only 1a cent between raw and
, refined sugar is literally correct, as will
be shown below.
The quoted price of graduated at
present is 20-160c pound, with 15-1OO
off on 30 days delivery, and .05 of a cent
further discount for cash. making the
price &c. Ii is a well known fact, how
ever, that the actual selling price is but
7-10c a pound or 81 80 hundred. The
price of raw, SO centrifugal, is now
49sc a pound, leaving a margin between
raw and refined, actual rates. of 521sc
hundred pounds.
Many persons who have been told that
the actual cost of refining is about "a
cents a hundred overlook the fact that
! 100 pounds of raw produce only only SO
pounds of graduated sugar, and the
! balance of the product must be dis
| posed of for next to nothing.
In 100 pounds of raw there will be
an average of SO pounds granulated, 6
pounds syrup, and l pound waste. The
syrup brings only cents a pound, but,
/ for the moment, counting the waste as
| syrup, the two together will bring IL
! cents. The total return from the 100
pounds of raw sugar after the refining
process, is therefore, only 81. 697
The actual cost of refining by the
most modern machinery, including the
| taking of the product from the lighters,
| into the refinery, melting, boiling,
chemists, loading on trucks and repairs
| is IS cents a hundred pounds.
Under less favorable circumstances
the cost would be more than IS cents
| a nunuTeu pOuluS. bdIIelS COSl ANU
! 35 cents each, but reckoning the cost
according to 100 pounds, as is done in
the trade, it would be 10 cents hun
! dred.
The company however, paid about
50, 800, 600 in dividends on the preferred
stock, and $4,5O0,OOO on the common
! stock last year, or a total of $7,100,0O0
The question naturally suggests itself;
Has the company any mysterious
source of wealth which it can draw or
for dividends? If not, can it manufac-
ture refined sugar more cheaply thar
these figures indicator"
Well informed people in the trade de.
clare that the cost cannot be reduced
much below "a cents a hundred, but
that new improvements are being in
PRODUCED every year which continually
/ lessen the number of workmen re-
quired.-New York Commercial.