The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-01-17
SUGAR WAR IS
ON IN EARNEST
JOBBERs ARE CUTTING PRICE TO
RETAILERS, WHILE REFlNERs
ARE RAISING THE COST.

SAN FRANCISCO, Jan. S.-with the
news of the sailing from Honolulu Of
the Watson steamer Enterprise with "a
cargo of sugar from the independent
refinery of the Honolulu Plantation
Company, comes the announcement
dhat the rehneries i'm this country have
raised the price to the jobbers, and
that sugar war Is on. The situation
is complicated by the fact that the SUI
gar output 1ithisIuyar is short, and
therefore the natural course OF events
would have been a big jump in the
price. Instead of this, however, tka
jobbers have reduced the price to the
retailers and are standing loss them
selves.
The Pacific Traffic ana Commercial
Association, a combination formed by
the wholesale grocers and jobbng
men of San Francisco, was the first
to feel the effects of the contest.
About the middle of last month sew
eral of the leading firms in this COM
bine Withdrew, and the disruption Of
the association was speedily expected.
| The association had an agreement
with the so-called sugar trust by
members of the association at $5.75
Iper hundred pounds. The members
of the association agreed not to sell
this sugar at less than the price they
| paid the trust and they then re-
ceived a rebate of % cents per hun
bred pounds, making the net price to
them per hundred pounds of $3.50.
Now the trust has withdrawn from this
] IL
of sugar, technically, by making it
$5.65 per hundred pounds. AS they give
no rebate at this price, however, il is
in fact an increase of Is cents per hun
dred pounds.
This increase will not fail on the re-
taller or consumer, for the jobbers are
at war with each other and are selling
Ito the retailers at cost; therefore al
though the jobbers are paying 10 cents
more for "A hundred pounds of sugar
than they did up to yesterday morning
the retailer is paying 10 cents a hun
dred pounds less.
Whether the jobbers who Withdrew
from the association are getting their
sugar from the refineries at a cheaper
| rate than their former associates can
not be stated with certainty. There is
I some possibility of this, and MondaX
may see another cut in sugar if the
recalcitrants attempt to sell under the
lpresent price.
To further cOmpliCate matters the
Honolulu Plantation Company appears
on the scene with the announcement
that it can refine its own sugar where
it is grown ship it to San Francisco
and sell it at a cheaper figure than the
trust does, and all at sufficient profit.
Although the trust people declare tina
the 25,OOO tons the Honolulu company
can at the most produce I'm one year
will make no difference to their output
or profits there are many who assert
that 1t will at any rate make a big diff
ference in the San Francisco market.
What the independent company's price
will be will not be known until the ar
rival Of the steamer.
Another peculiar circumstance is that
the offices of the Honolulu company are
lat the headquarters of the trust. S27
Market street, and it is admitted by
those concerned I'm the affairs of the
independent company that John d.
Spreckels owns a portion of it's stock.
J A. Buck is president of the new
company, n. Ohlandt vice-president.
Fl. w. Thomas secretary, and Samuel
Sussman treasurer.
According to the opinions of some of
1.-THE leading wholesale grocers of tn s
lcity, big sugar war has just com %
menced Only one thing is sure, and
that is that the consumer viii probably
haye\a chance very soon to purchase
sugar cheaply for a while at least,
Meanwhile, II. d. Loveland. president
of the Pacific Traffic and Commercial
Association, states that everything is
ilourishing with the organization and
the members are perfectly content to
sell their sugar at cost and lose the
expense of hauling u until matters are
on an even basis again.