The comet. (Johnson City, Tenn.) 1884-1916, 1902-05-01
The Coffee DrOp-A Hundred Million Loss
In Values.

IN Nalu0S,
With the break in coffee last week to
81 cents per pound for the December
option, the decline this year has been
Q $40 cents per pound. Az coffee bags
contain 1870 his, this is equivalent to
loss of SO per bag in the market price
since January /, and represents q loss
of $l2, 900, 900 to three interests which
hold the largest stocks of coffee.
The Lewisohns and their associates,
including some Standard Oil people,
are believed to hold 1000, 900 bags, up
on which the loss this year has been
80, 100000. The Arbucklss are believ-
lieved the next largest stock, some
where between million and q quarter
and million and half bags, and their
shrinkage is to date recorded at about
"a, ,OOO,O0 e.
The American Sugar Refining Com
pany's coffee has been very successfully
managed from the beginning in that it
has been sble to force millions Of losses
upon its rival, while escaping itself.
When it began the fight with the Ar
buckles it took the bear position in cof-
fee and has successfully maintained IL,
but the fall in coffee this year has been
so continuous that no ingenuity could
save any coffee holdings from loss, and
it is set down in the trade for million
dollars shrinkage in coffee since Jan. /,
completing the $4,000, 600 loss to the
three leading interests in the American
coffee world. Every 5-point drop, and
coffe fuctuates by points, represents
a loss of 81 cents on each 13O-tb. bag,
aud each day of late has seen its scent
drop. The only speculative interest
which has made any money out of this
drop was Wall street operator who
has cleared a million dollars shorting
coffee in the last six months.
September coffee at the low point Of
81 cents per ID. is not yet at the low re-
cord price. In 1890 spot coffee IN Sep
tember and August made the low re-
cord price of A. 10 per 10. The stock OF
coffee is now 5000, 900 larger and the
annual production has since advanced
from an ordinary crop Of ID, 0OO, 900 bags
to nearly 100000 bags, the expecta-
tion for this year. The largest previ-
GUS crop was last year, between IS, 900,
600 and 10, 900, 900 bags.
| Unlike other productions, the lower
price does not improve the demand OF
broaden the market, nor can the low
price reduce the crop by stopping the
planting, for coffee trees come into
bearing after four years OF growth and
then yield for 12 or Is years.
The ane trouble Of over production
that is now in coffee has broken out il
all South American or tropical products
The price of cocoa has been cut in two
Sugar prices are running the Cubar
and tropical planters. Crude rubber
has had 40 per cent. fall, and tn,
worlds coffee crop, including th'
stocks Of coffee on hand, is worth toda,
more than 800, 10000 less than thre
months ago. African production is af
fecting cocoa and rubber, while th
great plantations of the tropics and o
South America are increasing thei
' outputs to maintain their incomes
Formerly the owners Of the great Sout
American plantations lived in Pari
: and profits were large per centage Q
the gross sales. Now with fallin
markets they are giving close attentio
to enlarged production, labor savin
devices and the economies of direC
personal management. Wall Stree
Journal.