The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-07-23
ORGANIZED To FIGHT
THE BIG SUGAR TRUST
Merging Independent Refineries in the East
and Buying Cuban Plantations to Supply
the Raw Material for Manufacture.

continued delay in starting the Philadel-
phia refinery which was apparently COM
pleted several months ago, various ru-
nors have been in circulation in Ph1ia-
delphia and Pittsburg in regard to the
affairs of these concerns. 1t was report
ed that the Philadelphia company might
not start up at all but that the insiders
were content to make a profit out Of
building the plant and floating bonds at
a good profit; that the same methods
would be followed with the New York
plants as at Philadelphia, and that in
the end the bondholders might have an
opportunity to take hold and manage the
properties. 1t was reported that the
Philadelphia concern had not sufficient
working capital TO start up with; never
theless it seemed to have abundance of
resources to meet the interest on its
bonds at IT matured.
These bonds have been drawing in
terest since July I, two years ago. They
are described as first mortgage bonds,
but from advices received from Phiadel-
phia it appears that there is a real estate
mortgage for $4,000 prior thereto, which
forms a first lien, until they are retired
This gave rise to an extravagant story
that the first mortgage bonds were moth
ing more than a second mortgage issue.
Another story had it that the Philadel-
phia company was to be transferred to
the New York refining company, for
some unexplained reason.
A well-known reflner, associated with
the American Sugar Refining Company,
said:
1.-The scheme is probably for. a con-
struction company TO build a refining
plant and sell IT to a sugar refining cor
poraticn, taking IN payment bonds, Sc
cured by a mortgage on the plant more
than its cost to construct, and an amount
of capital stock corresponding to the par
value of such bonds. The bonds are
then offered at par, and enough stock
given as bonus to tempt the investor.
In this way the original constructors
light out a profit, and are ready to tempt
the public again by similar methods.
The refners are not likely to operate
under such circumstance"
A representative of the Federal Sugar
Refining Company expressed the opinion
that the new Segal refineries are con-
trolled by the Trust, and if they are not
run it is because Mr.. FIavemeyer does
not want them to be operated. But, he
added, the growth of the country ap-
peared to warrant the erection of new
refinery every year and a half
WHAT MR.. SEGAL SAYS.
Mr.. Segal spoke without reserve in
regard to the intention of the several
companies, except that he did not say
much about the men who furnished
most of the capital. 1T is true" he said, |
that move is on foot to combine the |
Philadelphia refinery and two New York |
refneries under holding company, and |
a meeting for the purpose has been |
called. The method of building our re- i
fneries has been for construction COM
pany-the Champion Construction Com |
pany-to put them up and take bonds |
and stock of the owning company in |
payment-the stock being given as a |
bonus Inc securities that have come |
on to the market were sold by the con-
struction company. Who controls the !
Champion Construction Company? / am |
the principal one in it. Our company
has successfully put through many new
and at the present time it has I
contracts under way amounting to about |
SI8ooao1o
AS for the delay in starting up the
Philadelphia plant that was due to spe-
cial reasons, but we will begin operating
October I without fail We are not
fighting Mr.. Havemever or working with
him either. I made no promise when [
sold the Camden plant to the Trust in
1896 not to go into business again. Had
made such promise I would have kept