Daily capital journal. (Salem, Oregon) 1903-1919, 1905-10-28
BIG SUGAR
FIGHT IN
In FRISCO
island Planters Quit Spreck-
les and will Operate
Refinery

NCilllCly
The relations hitherto existing be.
tween the Western Sugar Refinery.
controlled by the spreckles interests.
and tho sugar planters Of the Hawaiian
islands have been ruptured The plant
ers have acquired a controlling interest
in thc refinery at Crockett. Cal, which
for some years has been closed under
payment by the trust Of a big indem.
nifty, and are making preparations to
operate the plant in competition with
the Western Sugar Refinery. They will
refine there sugar which, If the old con
tract had bee renewed, would have been
sold TO the sprecllcs concern. This
product amounts TO about 10000 tons
for the season To keep It's plant going.
the Western Sugar Refinery will now
be compelled to buy raw sugar in Java
and elsewhere
For some months negotiations have
been In progress between the Sprecklcs
interest and the island growers look
ing to a renewal Of the agreement. The
rock on which these negotiations have
split IN The dc uction made on the price
Of sugar landed iu san Francisco. as
compared with the selling price In New
York Under the old contract, which
expired on September let, tho Western
Sugar Refinery paid the planters a price
three eighths Of a cent per pound less
than what is known as tho "world's
basis" in New York The planters ad.
mit that some deduction should be
made. bot maintain that thrcc.eighths
of a cent per pound IL too much. over
and over again during The negotiations
they have asserted their willingness
Co sign an agreement involving n ro.
duciion Of onc.cighth Of a cent To
this tho Western Sugar Refinery would
not assent, although it offered some con-
ccssion from thc old rate. 10 is be.
licvod that the trust AZ Tho Wcsctrn
Sugar Refinery is generally known,
would have signed up on Tho basis Of
onesfoufih Of cent reduction, but
this was not satisfactory 10 tho plant
ora. who have recently manifested more
independonc than for some years past.
Tho attempt 20 reach an agreement has
now practically been abandoned.
Tho planters have renewed their old
contract with tho American trust, under
which something like 100000 tons n
raw sugar Is shipped 20 New York. A
clause in tho contract prohibits them
from shipping East that portion Of tho
crop which has heretofore been deliv-
cred % tho Western Sugar Refinery
amounting 10 10000 tons, and, falling
in tho renewal Of tho arrangement with
tho sprsekels concern, their only re-
course was 10 refine that portion OF tho
WELD themselves either here or in tho
islands. Prominent planters already
held a considerable number Of shares
ia tho Crockett refinery, and purchases
made since tho commencement OF this
wear have enabled them 10 acquire a
controlling interest In il. IL Is this fact
which has made the growers so indie
pendent OF the Western refinery.
The Crockett refinery cannot he
opened by tho planters before March
/. 1906 IL being tied up By the onpo'
sition until that date. For the past
three years tho Western Sugar Re-
dnery has been paying 100000 a year
10 the California aud Hawaiian Sugar
Refinery Company TO keep the Crockett
plant shyt down, and the contract COW
ering this arrangement is In force until
next March. Il is presumed that tho
planters will operate the plant the old
name OF the California and Hawaiian
Sugar Refining Company. The growers
are now making arrangements 20 open
the refinery as soon after March lst
as possible. OF course, there is still
the possibility Of the difficulties be-
tween the spreekles and the growers
being composed, but in the present tenn
per Of both parties such an outcome
is extremely improbable, Those who
know say il viii cost the Western sa
gar Refinery millions to fight the inde-
pendent concern.
The prospects are or a three-eornered
fight in this market after March Ihe
Honolulu Plantations company has Tor
the last year been making washed gran
ulated sugar, which has been com
petitor here with the refined article
Of the spTeckles company, and the for