Alma record. (Alma, Mich.) 1878-1928, 1902-02-21

SGT. O00, 900 the actual investment was
SG, $50 coo, which made the dividend de-
clared that year under free raw sugar
1872 per cent on the actual money in
vested And some of the people think
that some OF the Mich an rehneries are
getting wonderfully rich because they
can make a dividend Of 10 per cent.
year.
The Chairman. Do You remember the
difference in the price of refined sugar
and raw sugar in 1898: think it was
about / % cents.
Mr.. Hathaway. The average price of
96 degree raw sugar was 1853 cents of
granulated sugar the same year i.sl2
cents
The Chairman. And the difference
there is l.l23 cents:
Mr.. Hathaway. Yes in other words,
they maintained nearly / cent diff
erential that year, which enabled them
to declare "A dividend of 1872 per cent on
money actually invested.
This, of course, includes dividends on
watered stock AS we'll as actual invest
ment Considering the fact that the or
iginal first cost of the plants was less than
s. 900 600 and making an estimate of an
equivalent amount of water IN the pur-
chase of $50 and 1891. we have esti-
mated actual investment TO be in the
neighborhood Of from 100000 TO
Sl2. 900. This property has been able
TO pay an average of at least I'D per cent
on the entire capital stock, water and
all.
Though Mr. Havemeyer refuses 20
state the exact cost Of refining, he does
say that it is approximately 80 cents per
100 pounds. This statement is corrobor-
ated by the testimony Of other witnesses.
Mr.. Havemeyer and others state that II
has been the policy 70 seek to maintain
differential of cent pound between
raws and refined. Upon his own state
ment of the case such a diaerential
would make "a profit of 80 cents per 100
on all sugar refined. Last year the con-
sumption of sugar In the | nlted states
was . .312 ,3lG tons. Having Mr.. Have
mever's statement that they do 90 per
cent Of the business, we find that his
companies last year refined 2.l35 oN5
/ tons of > .24o pounds each. ON the basis
of one-half cent profit this makes the
net earnings of the company for 1901,
/ s239l2 1852. which. estimated on Mr..
Havemcycr's statement of the cost Of r.
hui ding all his rehneries. gives net
profit of approximately - per cent, OF
about 100 per cent. ON the actual cost Of
rebuilding these rcfneries. as estimated
/ 10y Mr.. Post"
Wulctt q Gray's statistical sugar
Trade journal, under date of January .,
1902 specified that tho average price for
+ 95 degree centrifugal sugar for the year
! 1901 is lol1 cents In the same issue,
/ they state that the average price for
granulated sugar for the YEAR 1901 is
I 5.al cents. An average difcrcutial of "a
0utle moro than cent was therefore.
maintained for the entire year
Several time, during this hearing the
question has been asked, Would
lowering or abolshing the tariff ON raw
sugar materially assist the trust 1t is
fair to presume that if it wonld not Mr..
Hav,meycr. the president of the Ameri-
can sugar Refining Company, and Mr..
Atkins. prominent stakeholder I'm that
company. would not advocate such "a
tariff reduction.
con- PAGE 800, i'm reply TO "a question
asking if be would give raw sugar pro.
Queer, the benefit of "a tariff Mr. lave
meyer replied:
No; they are an agricultural product.
and II they can not produce under mat.
Iural conditions I would not give them
ANYTHING at all.
Mr.. Atkins ON page a.. declares that
the pr sent duty on raw sugar affords
unnecessarily high protection to the
domestic producer 1t has been cstab-
lishcd. primarily, at the instance of the
producers of beet sugar, aud is having
N4l' iii'..A va bhlA'lii.- q h Aiit'A lblAiNAl .
ON page $50. Mr. Post says:
II raw sugar were imported free Of
duty the beet sugar industry would H.
completely destroyed I'M five years
Note further that i'm 1888 the trust.
dividends ON common stock were 2lf
pcr cent Thi, was under the raw
sugar
Ou page ll2, Mr. POSTS testimony
ra9I- as fo''o'r-
% HHye you been able 90 trace any
direct iuilu .cs oft the American Sugar
Refining Company on the price OF raw
sugars.
A. They OF course hive very large
influence ou it, because they arc such
large cousum.Is OF raw sugar. hut thcy
. have mott tu, power ot making the price
s for amy lougth oft time for raw SUGAR.
Later, i'm his testimony, but ON the
, same page. he states that "the American
. sugar Refining Company wuld he ahle
o. -..,I... ., .If tf..r....4. at .,I,..t $50.