The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-12-14
A REAL SUGAR TRUST


LONDON. Nov 28.-The British SUE
gar magnatcs assert that their inycsti-
cations have revealed the existence in
Germany of great trust called the
"Kartcll." which has been iu existence
about year and that o. Is chiefly ow-
ing Co It's agency mat sugar has been
forced down I'm England and other coun-
tries To the lowest point in the history
of the industry and that Germany to-
DAY Us enabled 60 dictate to the world
the price of that commodity. The eN-
act extent of the "kartell' was discON-
cred, they say only quite recently. The
magnitude of its operations supplied
the missing factors in the present
alarming condition Of the sugar mar
ket.
The abolition Of this organization will
be one of the chief objects Of the ma
tons other than Germany attending the
forthcoming Brussels conference. Al
ready British firms have entered into
negotiations with leading American
sugar interests and tables are now be-
ing drawn up showing the transactions
of the "kartelH' with a view of submit
ting them to the authorities at Wash
ington. The British Government viii
be urged to empower its representative
at the Brussels conference to threaten
retaliatory and countervailing measures
unless the "Kartell" is broken up or at
least modified
The latest figures available in Lon
don show that Germany now produces
One-third of the worlds supply Of beet
sugar, of which she exports no less than
! 100000 tons, after completely supply
ing her own population. These exports
which are almost one-ffth of the
worlds available supply, are sent out at
a loss to German manufacturers, but
thanks to the kartell' plus the boun-
ty. they are able not only to make up
for this but to reap a handsome profit
i'm addition to gaining absolute control
of the sugar market.
The nartell' is run very secretly, but
from confidential reports shown to a
representative of the Associated Press
in London, it is learned that il consists
of an ironclad combination of almost
all producers and refiners to keep up the
price of beet sugar in Germany. This
is done so successfully that German
consumers today pay as much for sugar
as the BritOn does for the same article
imported from Germany.
The members of the "Kartell' bind
themselves to buy from and sell to only
those affiliated with the combine. This
has worked so satisfactorily that the
"Kartell" now includes practically ev-
cry factor of the sugar interests in Ger
many, from the agricultural producers
to the refner. The latter agrees always
to pay 1915 marks per hundredweight
for the raw article. though natural con-
ditions might ordinarily allow him to
buy marks cheaper. This, however
ensures more permanently high prices
to the consumer. The enormous profits
consequent upon these methods are
pooled in the "Kartell," and are divided
upon an elaborate and ingenious scale,
and the surplus product Is disposed OF
at a slight loss in other European and
American markets, though even this de-
felt is often made up by the bounty
that Germany provides.
British sugar authorities are quoted
as saying that the German "Kartell"
and bounty combined Will, within two
years, ruin the beet and cane industry
in other countries, especially in Cuba
and the West Indies.