The Minneapolis journal., 1902-07-08
WHAT THE "INSURGENTS" DID FOR
~. THE TRIIST

The Journal has come into possess
sion of two trade letters which conclu-
siyely demonstrate that those members
of congress who are responsible TOT oe-
feating reciprocity with Cuba have dl-
rectly and largely benefit ed the sugar re-
finers. Inasmuch as their specious rea-
son for opposing reciprocity was that 1t
would benefit the sugar trust, this intor-
nation is highly important. las mat
ter of actual occurrence, the failure to
grant reciprocity has greatly profited the
sugar trust, has nearly ruined the Cuban
planters has caused a panic in Havana
and has done the American consumer no
good and the beet sugar interests little
if any benefit. The last assertion is based
upon the fact that the trust, through
congress- failure to act, has got its raw
material at such low figures that it is
in a better position than ever to compete
ruinously with beet sugar.
A trade letter deals with cold facts.
1t cares nothing for sentiment. 1t is not
intended for public perusal. 1t is inten-
ded for the guidance of business men who
are looking for profits. The letters in
written by sugar brokers representing the
refineries. The first of these letters is
- dated June 25. It was then known that
congress would do nothing for Cuba. The
letter predicted that bad state of af-
fairs would be precipitated in the island
of Cuba in consequence. Fear was ex-
pressed that business already at low
ebb, will come almost to a standstill,
r. bankers will call all loans, etc. and there
is fear of serious disturbances. This
will naturally force the Cuban sugar for
- sale and produce a temporary depression
in our market for raws. The refined mar
ket in this country is not likely to be
affected much, if any, because of the
F. small stocks and season of active de-
mand"
- HE letter concludes as follows:
1t is a strange condition, but true that the
proposed reduction in Cuban duties would
s.. nave tended to harden our market for raws:
.- for it would have STRENGTHENED the nos,+ion
OF cuban holders by enhancing the value of
tnelr stock nearly 20 per cent. The refusal
CT congress to reduce the duty will enable
american rehners to secure very cheap raws
for use during the active season. In two
or three weeks these conditions will have
terminated when will Undoubtedly have a
better market
The next letter, dated July g. shows to
what large extent the predictions of the
first letter were SOON realized:
The action of the raw sugar market the
last two weeks has conclusively shown the
falsity of the statements made in Washing
ton that American retiners would have been
the only benefciares of a reduction in duties
sugar from Cuba. AS soon as it became
known that reduction would be made
holders in Cuba were forced to sell because
OF large loans made on their property. In
r. consequence the raw sugar market, then low
er than ever before, became almost panicky
for a sort time. Our refiners might have
secured the Cuban stock at a lower figure
but seemingly deemed it wise to conserve the
production of sugar in Cuba for the future
They stepped into the breach and took what
sugar was offered at 3A for centrifugals. In
dications that extreme depression is over
and the raw market is advancing. The
decline in raws had little effect on refined
owing to light stocks all over the country. II
is not at all likely that refined will be any
lawer, and in all probability will have.
decidedly better market in the near future
with very large demand
r. 1t is now an unquestioned fact that Ameri
can rehners have directly profted by the re-
fusal of congress to reduce Cuban duties, ant
might have prof1ted more at this time. bu
for their desire to uphold the Cuban planter
in his industry.
Here, then, we have it on the authority
\ of a representative of the sugar refners
that the failure of congress to reduce
Cuban duties has been a source Of prof
II to the sugar trust and other refiners O
4 raw cane sugar. How could it be other
Il wise? The planters had borrowed thu
IA maximum amount of money on thei
III 4
u confident that what the American peopl
had promised to do they would do. Thel
II came the shock of the cruel news tina
cong gress had failed to act. Pressed TO
II money the planters sold in panicky mar
ket at price named by the refners. Oh
the other hand, there has been no reduc
ton, but rather strengthening in tn
price of refined sugar. The refners ge
their raw material cheaper and sell thei
finished product higher because congress
II failed to do justice to Cuba.
Finally, this same, horrid sugar trust
III which has been the bogey behind which GU
II ..insurgents' have hidden, has restraine
II its greed in order to prevent the.aGAin Q
II the Cuban sugar industry, in order tha
there may be some sugar to buy in Cub
next year; and has not bought as cheapl
as it might. Congress turned the plant
ers of Cuba over to the mercy of the trus
and the latter gave them enough charit
to keep them going for another year-th
same sort Of charity man gives a mile
cow when he doesn't kill it., but far nor
than congress did.
Economically what our insurgents hav
done for Cuba was shown in the precedin
paragraph. What they have done polit
ically is TO be found in the reports
growing ecnity to America reported frol
Cuba ard the profound conviction of tn
Cuban people that the american nation
animated by grasping greed, has broke
Z It's promise.
4 This is what comes from making an II Il