The San Francisco call., 1910-01-25
ANNUAL REPORT
The AMERICAN SUGAR REFINING COMPANY

or at home. Granulated is now quoted for
export at SIC cents against a domestic price
of 400 cents per pound. This difference is
caused by the refund by the Government of
the larger part of the duty previously paid
upon the raw sugar, to encourage the ex-
portation of a product manufactured in this
country. and this refund is in pursuance Of
the 1gnized public policy of encouraging
the expectation of products produced by
American labor nd capital
This company has no interests whatever,
either directly or indirectly, in Cuba, Porto
Rico, Hawaii, the Philippine Islands or in
any foreign country; it does not share in the
advantages that owners of sugar plantations
in these countries may have In sending sugar
to this market.
We express no opinion as to whether it is
sound public policy TO stimulate the produc-
ton of beet sugar and of domestic cane sugar
by the present duties. These questions of
policy are for the determination of Con-
gress, and the only purpose of this reference
to the fiscal duties relative to your business
is to emphasize the fact that its prosperity
does not depend upon high protective duties,
and that the margin between the duty on the
raw material and the duty on the refined
sugar is so slight, being previously stated,
only seven and one-half cents per 100 pounds,
that it has no appreciable effect in artihcially
enhancing the price of the refined product
by the exclusion of foreign importations.
w. Relative Cost of Sugar.
At time when the cost of nearly all the
necessities of life is steadily and persistently
advancing and manufacturing expenses gem
orally are materially growing, it is with
much satisfaction that your attention is
called to the price of granulated sugar, which
has remained very nearly stationary during
the past ten years. and is actually less to-day
than in 1900, such changes as have occurred
being in a slightly downward direction.
There has. moreover, been no increase in the
sugars. which has remained on average at
about 81 cents per 100 pounds. 1t is thus
noteworthy that the entire refining business
is done at an expense of a fraction of cent
per pound. This fraction includes not only
the cost of refining. but the losses involved in
the refining process, and in transportation,
the wear and tear and depreciation on the
expensive machinery used, the cost of the
packages in which the sugar is delivered to
the market, and finally. the refner's profits.
Few, if any. necessaries of life, are sold at
such a slight margin of profit and few can
show with increased cost of materials and
labor during the last decade. reduced price
This is a striking illustration of the truth,
to which public attention has recently been
forcefully directed. that the employment of
large capital in the economical production of
a commodity often results in distinct benefit
to the consumer.
The figures appended have been compiled
from Willett & Gray's Weekly Statistical
Trade Journal and give in detail the average
prices of raw sugar and of granulated sugar
in New York for the past ten years in cents
per pound. together with the difference in
price between raw and refined sugar.