Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-01-09
NS|DEOEREF|NERYWAR
AGREEMENTS DIFFICULT
THINGS TO MANAGE
Competing Corporations Prefer Dollars
10 Market Limitations Influence
of German Product Secret
Sales Soon Found Out,

New York. Dec. 19.-There were
new and interesting developments to.
day in the sugar war which Is again
raging among the local refiners after
truce of many months. and the air Is
blue in lower Wall street. Arbuckle
Bros. announced further cut of .
points in the price of graduated SUI.
CARS, and a special discount of | per
cent on all grades of their sugars. In
connection with the cut they sent out
the following circular:
ITO meet secret rebate given by
other refiners to favored customers
we now offer to the entire trade a spe
Cial discount of 1 per cent on all our
grades Of sugar. This special rebate
Is subject to cancellation at any time
without notice and will apply only tc
those sugars which are withdrawn
while the rebate Is in force"
The National Sugar Co. met Ar
buckles cut of 5 points, but not the
discounts. The American Sugar Rein
Ing Co. refused to meet the cut, but a
representative OF the former company
declared that while old prices would
ed
The best informed in the sugar trade
are Conversant with some OF the do
tails of an agreement which has exist
ed, until very recently, among rein
ers, but of course, 1t would not be
good form-contrary to business Ell
quette-to admit that there has been
any formal understanding respecting
the maintenance of prices, or even a:
10 harmonious action on trade matters
among local refners.
That there has been an agreement
however. is the natural conclusion t.
be drawn from the statements made
by the ATbuckle interest, which has
openly fractured the alleged agree
ment as a Tetaliatory measure to the
secret concession allowed by other re
tiners in violation of the agreement
at least. this Is the claim of the Ar
buckle interest and not COntradiCtcd
by the other important refners.
Those who have been initiated into
the mysteries of mercantile practice
however, know that II Is customary tC
allow special concessions to certain
favored cu5tHmers, who. because OF ths
amount Of business transacted or 9th
er advantages are believed to be On
titled to SPECIAL consideration.
Last January. when the late lament
ed agreement became effective, sevcra
large firms were placed upon the rol
OF honor, being allowed rebate in al
dltiOn to the special discount allOwet
the general trade. In return, these
iirms-which are located on From
street within stones throw of Wal
street. only little removed from tn,
rchner's throne-werc to sell to CeI
tain class of trnde only, sustain price
and saw wood. In the course OF TIM
these firms discovered that their lin
| tied customers were not gilt.cdgc,
! from commercial standpoint. and a
they hungered for the fesh.pots O
| Egypt, they widened their sphere o
influence, selling to jobbers as well a
II retailers; and one firm even sharcD
It's special discount with buyers I,
| induce them to become customers.
This action incurred the disploasur
OF the associated rcfiners and in Jul.
these firms were shorn OF their emo
uments and have since been on tn
black list. One of these firms submit
ted gracefully to the inevitable and Il
now actively engaged in coming mon
g" out of modest corner in COCoanu
oil, but the other firm has proved
thorn in the side OF the rchners b,
importing and selling German refined
sugar in active competition will
American refined, reaping respect
able harvest In the new field. But
while these firms are now browsing iT
other pastures there are still Other
highly favored dealers who are within
the pale OF the retiners' protection and
II Is these firms who are believed to be
the scapegoats for the resumption oil
war among the re6ners themselves
The opinion prevails. however. that
the present turmoil Is an effort to force
refiners who are disposed TO be toe
independent to again enter into al
agreement to sustain prices.
By reason of the cuts In prices, dis
counts and rebates now in force stan
dard graduated sugar Is being sold
today at 4.45c net. The cost of raw
centrifugal sugar and f., duty paid
Is 3.75c and the cost of refining being
Acc per h., the cost of refined sugar
10 refiners Is i.l5C net, which at the
selling price of 4.i5c net leaves q
profit OF .30c per pound. But as many
large customers are supplied on a low
e. basis the profits of refners are cor
respondingly cut.
The ArbuclIle interest. It Is alleged
has threatened to carry the war into
Africa, which, being interpreted
means that those refiners making Sc
cret concessions will be forced t.
carry an account on the wrong side Of
the ledger; at least, until the present
difficulty is adjusted.
The present relative low price o
American graduated has placed al
embargo upon imported graduated
which costs 4.52c G. and (. New York
duty paid. A grade of German suga
of low degree, which costs 4.3Sc /,
import, does not come in direct com
petition with American standard gran
ulated, and even II 1t did there woulC
be only .07c per cent profit on It's sal,
under present conditions.