The San Francisco call., 1901-11-24
GERMANS RULE
A SUGAR TRUST
British Merchants Dis
cover Existence Of
Combination.
Vigorous Measures to Abolish
the "Kartell'' Will Be
Taken.

LONDON, Nov. 23.-The British sugar
magnates assert that their Investigations
have revealed the existence in Germany
of a great trust, called the "Kartell,
which has been in existence about a year,
and that it is chiefly owing to its agency
that sugar has been forced down in Eng
land and other countries to the lowest
point in the history of the industry, and
that Germany to-day is enabled to dictate
to the world the price of that commodity.
The exact extent of the ''Kartell'' was
discovered, they say, only quite recently.
The magnitude of its operations supplied
the missing factors in the present alarm
ing condition of the sugar market.
The abolition of this organization will
be one of the chief objects of the nations
other than Germany attending the forth
coming Brussels conference. Already
British firms have entered into negotia-
tions with leading American sugar inter-
ests and tables are now being drawn up
showing the transactions of the 'kartelI,"
with a view of submitting them to the
authorities at Washington
Threats From the British.
| The British Government will be urged
| to empower it's representatives at the
! Brussels conference to threaten reta1ia-
| tory and countervailing measures unless
| the "Kartell'' is broken up or at least
| modified.
| The latest figures available in London
show that Germany now produces one
third of the worlds supply of beet sugar,
| of which she exports no less than 1 ,250,-
! 600 tons after completely supplying her
| own population. These exports, which are
| almost one-fifth of the worlds available
supply, are sent out at loss to German
| e. hui o,o1ye - ~
! tell" plus the bounty, they are able not
| only to make up for this, but to reap
| handsome profit in addition to gaining
absolute control of the sugar market.
The 'Kartell'' is run very secretly, but
| from confidential reports in London it is
learned that 1t consists of an ironclad
combination of almost all producers and
reflners to keep up the price of beet sugar
| in Germany This is done so successfully
| that German consumers to-day pay as
| much for sugar as the Briton does for the
same article imported from Germany
Methods of the "Kartell.o
9. The members of the "Kartell'' bind
! themselves to buy from and sell only to
! those affiliated with the combine. This
has worked so satisfactorily that the
"Kartell" now includes practically every
factor of the sugar interests in Germany,
from the agricultural producers to the re-
finer. The latter agrees always to pay
1915 marks per hundred weight for the
raw article, though natural conditions
| might ordinarily allow him to buy three
marks cheaper. This. however, insures
more permanently high prices to the con-
| suner. The enormous profits consequent
/ upon these methods are pooled in the
| "Kartelp' and are divided upon an e1ab-
crate and ingenious scale, and the sur
plus product is disposed of at slight loss
| in other European and American mar
kets. though even this deficit Is often
made up by the bounty that Germany pro-
| vides.
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.