The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-12-30

.0~eA0NG&e@e% eS9%e%e%e
formers and the agents of the sugar in
terests, constitute one of the most scan
dalous chapters in our financial history
The National Senate at length yielded 10
the refiners, and as result of its deci-
sion great fortunes were made by those
fortunate enough to have had correct
knowledge as TO the outcome. The whole
affair left as it's legacy a blot upon the
integrity of our highest legislative body,
the memory of which will be revived If
there is another controversy over sugar
duties. The people have had one expert
ence of the kind of legislation likely to
be in favor when sugar trusts interests
are involved. They have seen how easily
il may be turned to account when the
spectators get the word from inside the
Senate chamber. and they are not dis
posed TO be over tolerant of those who
would scandalize Congress and the coun-
try in such a way again.
The organ of the sugar trust published
recently some interesting statistics
which. aside from their evident intent to
influence public opinion in favor of free
Cuban sugar. are of interest in this dis
cussion.
The total consumption of sugar IN the
United States last year was. it appears.
2.219,S47 tons. and based on the average
increase of 6.34 per cent during the past
nineteen years, the consumption this year
should be 2,360.5S5 tons. OF this quantity
100000 tons in round figures will come
from American sources, say Louisiana
being able to produce 350,006~tons, United
States beet factories 10000 Hawaii $780,,
600, and Porto Rico 10000, all being free
of duty, leaving 1360.5S5 tons to come
from other sources and on which duty
is paid. The average duty assessed is
$50 per ton. or a total of $4S,9S1,0 $50. The
price of all the sugar consumed, how
ever being, enhanced TO the extent of
the duty of $50 per ton, or a total of $S4,-
9S1 ,0G0 it is evident that $500 900 addi-
tional is paid by the people in order TO
provide the government with $4,000, 900
for revenue of which the government is
not now in need. If the duty is taken
off Cuba sugar. the benefit of SS5,000,O0O
goes to the people.
On October s the quotation for Cuba
centrifugal sugar, 90 degrees test, free on
board Cuba, was 1860 per pound; duty
on same amounts to 16S5c-equivalent to
Sc per cent ad valorem.
Upon this showing. it would be possible
for the sugar refiners 20 sell graduated
sugar for 312 cents pound or a differ
ence, as the sugar trust organ figures it,
Of $3.50, 1000 annually, or 81 for each per-
son in this country. That this would be
the happy result of this particular piece
of tariff adjustment is. however very
much doubted. unless with the repeal of
the duty on raw sugar there be reduc-
ton in the tariff on the refined. Moth
ing short of the competition which this
would make possible, if extortion was
attempted would in the opinion of
many, cause any marked reduction in
trust prices. It would according to good
judges offer the opportunity for new
issue of stock. the dividends on which
would absorb whatever extra profit
mirht accrue through the benevolence of
Congress in putting raw sugar upon the
free list.
Experience with the Standard OIL Com
pany would indicate such an outcome.
Increased supplies of its raw material
and the adoption of modern methods IN
securing and distributing it seem TO have
counted for but little of late, the present
retail prices being exceptionally high.
The paying of dividends has been the
dominating factor in the conduct of its
business so that the public is paying
now as it has for years, prices that in
view of the fifty per cent profits that
are being distributed on it's S10O.O00,000
capital. are eXorbitant To a degree. Oil
producing, like sugar manufacturing, has
been greatly cheapened I'm the processes
employed since the great oil trust came
into being. but the public has not gained
relatively in the way of low prices The
sugar trust is no less avaricious, and
whatever benefits the public expects to
get through Legislation in its favor must
be assured by making It possible TO OBJ
tain sugar from abroad when the domes-
tic price is being raised to an unreason-
able figure. 1t Is bad enough to have one
trust that can demand such prices for
single necessity as enable II to pay S129,
900, 900 dividends in three years, and CO.
incident with An increase IN them of hf-
teen per cent puts up the price of its
commodity. without fostering another.
To coddle the sugar refining company by
enabling it 10 save $50, OOO, 900 a year in
the purchase of it's raw material and at
the same time guarantee 1t against the
only competition of which IT has any
fear. Is TO invite a state of affairs that
1t not pleasant TO contemplate.
Congress will have before it when the
plea of the sugar trust is presented the
simple proposition of destroying entirely
the Louisiana and Florida cane and the
domestic beet-sugar interests. neither Of
which could begin TO compete with the
planters in CufTI Under the conditions
suggested. While the cost of producing
raw cane sugar in Louisiana has been
reckoned in the past as high as twelve
cents pound. three cents is the figure
generally accepted now as yielding a fair
profit. But Cuba is turning it out for at
least "a cents a pound. Cuban centrlfu-
gal sugar has been selling in New York
in bond for 2.0G cents, and unless a loss
was made the material cost less than
214 cents. as the freight from Cuba to
New York is ten cents a hundred pounds.
The price of Louisiana sugar approx
mates closely what beet sugar can be
sold for. 1t is estimated that the domes-
tic production of the latter this year will
be nearly 100000 tons. How the sugar
trust would eliminate this factor In the
sugar business is seen in the methods
pursued heretofore and its policy of sup
INA
seems ripe for 1t. Aided by the govern
ment, as is contemplated in the present
movement for free Cuban sugar the
American Sugar Refining Company would
be lnvincible. 1t is playing for high
stakes. and the pressure upon Congress
will without doubt be very great
Hawaii Yacht Club.