Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1908-12-16
(Coninued from Page o.

your 100000 of investment would
not have very much show of driving
the American Sugar Refining Com
pany out Of business with its 500, O00,-
COO of capital. would you?
Mr.. Smith: No; we would hate to
try 1t unless we were sure of succeed
ing.
Mr.. Fordney; In other words, you
can not AFFORD to get into a war with
the American Sugar Refining Com
pany at any time?
Mr. Smith; No, sir; We have a
limited season and comparatively
small output. and most of the time the
market is necessarily controlled or
dominated by the refiners. who take
care Of 80 per cent Of the entire con
sumption of this country. 1t would be
an impossible competition.
Mr.. Underwood; What per cent did
YOU state was controlled?
Mr.. Smith; said about 80 per
cent
Mr.. Fordney; Based on the Ding.
ley rate of duty, there ia about a mil
lion tons of sugar that comes into our
market from Porto Rico. Hawaii, and
Cuba.
Mr.. Smith; Yes.
Cuban.Sugar Effect
Mr.. Fordney; Twenty per cent Of
the sugar Of Cuba comes in free and
the rest pays the regular Dingley duty.
II the duty is charged on imported
sugar any ut all, II II is changed down.
ward. how would you feel about your
Investment?
Mr. Smith: I would like to dispose
Of It before was subject to an assess.
ment.
Mr. Fordney: At less than 100
cents on the dollar of what It cost,
would you not?
Mr.. Smith; Certainly. should
consider that the investment would be
worth practically nothing II this tariff
was materially reduced. II Is the best
that any average sugar company can
possibly do now to pay from to 9 per
cent interest on the investment. IF
you reduce the protection and conse.
auently reduce the margin of profit
down to. say, 40 cents hundred
pounds. II would mean the operation
Of the factories at an absolute loss,
and ] should want to get out Of the
business at once and lose It all In q
lump and try to get into something
else rather than lose 1t In annual In
stallments.
Mr.. Fordney; DO You think that
American capital could be induced to
build more beet sugar factories In the
country II the duty OH imported sugar
was increased?
Mr.. Smith: Yes. sir. 80.
Mr.. Fordney; And you were assur.
cd that 1t would remain there?
Mr.. Smith; Yes, sir: II we could
feel any substantial confidence In the
good faith Of any such pledges.
Mr.. Fordney: That is all.
Mr.. Crumpacker; Is 1t possible or
practicable to powder beet sugar?
Mr.. Smith: Yes, sir
Mr. Crumpacker; To put It In n
powdered form?
Mr.. Smith; II can be; yes. sir.
Mr.. Crumpacker; Or In the form
OF cubes, so as to meet the require.
ments OF the market?
Mr.. Smith: Yes, sir.
Mr.. Crumpacker: Why do not the
beet sugar manufacturers put 1t in
these different forms so as to meet
the requirements of the trade and be
free from these disadvantages they
are under now?
Mr.. Smith: For the reason that
that class of sugar Is never marketed
In carload lots. II is shipped In
mixed carloads. 1t requires very
much larger and more diverse client
age to take any considerable output
OF that class OF sugar than the beet
sugar people have. They market
their sugar almost entirely in cal
load lots and In the larger centers of
trade. In other words, II would In
volve very expensive selling organ
ization to take care of that variety of
output.
Mr.. Longworth Is there no be 1t
sugar put out in the form OF cubes?
Mr.. Smith: do not know of any
factory that is making cube sugar.
Mr.. Calderhead: You would have
to change your machinery?
Mr. Smith: Yes, sir. That would
not be a difficult proposition. It
would be somewhat expensive, but It
could be done. But the difficulty is
principally in marketing.
Mr.. Crumpacker: You would not
maze demand for the beet sugar,
cuA sugar. in carload lots?
Mr.. Smith: No. sir.
Mr.. Clark: II wholesaler in Chi
cago had 100 tons Of beet sugar and
100 tons of cane sugar shipped TO
him, there is nothing about the
boxes or barrels to show which is
which, is there?
Mr.. Smith: Yes, sir; generally
that Is. almost all of the beet sugar
manufacturers have their packages
marked.