New-York tribune., 1910-01-13

DIRECTORS OF THE AMERI-
CAN SUGAR REFINING COM
PANY TO THE STOCKHOLD-
ERS.
The Directors herewith submit their re-
port for the year 1909. While the assets and
business of your company are the property Of
It's stockholders. yet your Directors recognize
the legitimate interest which the public has
IN q business organization which deals to a
large extent IN u necessity of life. A further
motive for this report is found in the fact
that 1t seems to be the only method by which
this company can correct the widespread
misrepresentation and unjust criticism to
which 1t has been subjected A business cor
poratlon can have no asset more valuable
than the goodwill of the public. and that
goodwill best be gained by explaining to
the pubic the nature of any existing mis-
apprehension as to its character and opera
tions.
/. Ownership of the Company.
1t is commonly supposed that the shares of
your company are owned by a comparatively
few residents of New York City The fact il
that the average holding of stock by any in
dlvldual is less than fifty shares. The ma
Jorlty of the stock of your company is held in
New England, and its value and stability as
an investment is best evidenced by the fact
that your shares are largely held by executors
administrators. trustees and other fiducia ries
Its stable value as an investment is also
attested by the fact that there have been no
substantial changes in the stockholders for a
very long period. The number of our stock
holders OF common and preferred stock is
1884
In view of the preponderant holding of
stock by New England shareholders, you will
be asked TO increase the Board OF Directors
by two members. and for these positions the
names of Mr. Edwin f. Atkins and Mr.
Samuel Carr both of Boston and both well
md fo biJ- Enovrr, in h1Sir
be submitted for your approval. Another
vacancy in the Board has been created by the
declinatiou of Mr. Charles H. Senf TO serve
another term and tc fill his place a number of
influential stockholders have suggested the
selection of Mr.. Z. s. Marston, the President
of the Farmers Loan & Trust Company. of
New York, one of our oldest and most con-
servative financial institutions. Among other
changes, it may be noted that your Board
has selected james NJ. Beck. formerly Assis
tant Acknowledgement of the United States
the new General Counsel for your Com
pany.
II. This Company not a Monopoly.
Another misapprehension. 70 which it seems
advisable to call attention, Is the common
belief that your company exercises mono
poly in the sugar trade. When in 1894 the
Supreme Court of the United States authOri-
tatively decided in United States VS.. Knight,
ct al, 156 {. =, /, that your company was
NOT Il monopoly. uQUtr the sherman tQIl-
Trust Law, this company had much larger
percentage OF such trade, but, with the
intense and ever increasing competition
which has since prevailed. the figures of
Messrs. Willett IL Gray. the recognized sugar
StatiSticianS. show that your company does
not now refine more than 43.5 per cent. of
the sugar consumed in this country. and this
Notwithstanding the fact that the MEETINGS or
your company have been we'll maintained.
There are in the United States three
ELL .s-1,v
producing sugar; firstly. the reineries which
draw their raw sugar almost entirely from
foreign countries and the dependencies of the
Cpited States secondly, the beet sugar fac
tories. which make white granulated sugar
directly from beets and. thirdly, the factories
of Louisiana and the South. which extract
sugar from cane grown locally. Your COM
pany is not interested in any way whatever in
this third class of establishments. OF the 2l
cane sugar retneres. with an estimated max
imum capacity of daily MEETINGS of 33000000
pounds, your company operates re6neries
and has an interest Gin each ease less than a
majority in 4 retineries. and il has no in
IereSt whatever in 10 rehnerieS. Between
these Independent rctineries and those oper
ated by your company, the competition Is
continuous and severe. While the number of
your refneries in operation IS less than al
times in the cOmpanys history, due TO the
consolidation of some refining plants, yet
the increased capacity of our other refnereS
has caused substantial increase in the act
Ual capacity of your cane rehnerieS. This
Increased capacity. however. cannot at pres
ent be fully utilized. the total capacity Of
all the refnerieS of the United States is
much in excess of consumption. The con
sumption for the year 1909 shows approx
mately an increase Of 2.25ce over the previ-
Gus year The MEETINGS of the American
Sugar Refining Company show an approx
mate increase of III over 1908.
Of the ST factories which produce sugar
xK-ifh
daily capacity of 47.100 tons of beets and
period of operation Of from ~ to leo DAYS
each year, your company Is Interested IN -
factories with daily slici2g capacity 1T
about 26.5 800 tons and has no interest In 81
factories
III. Tariff Duties on Sugar.
There also exists 4 widespread belief.
which however is a mistaken one. that the
refining of sugar derives large and excessive
benefit from protective duties.
All the raw and refined sugar imported
into the United States from foreign countries
Is subject to duty In this manner the Gov
ernment derives very large revenue ana
incidentally the domestic cane and beet IN
dustry is benefited. This Company alone mas
paid to the Government ia duties on imporE
lions in fourteen years the large sum Oh
Z $3.50 600 900.
Tnasmuch however as the relative duty
on raw and refined sugar Is 50 adjusted as 10
Ieayp TO the refiner n margin or protect!oon o
of only seven and one-half cents per 100
mounds of refined sugar. or, barely more than
ZIG cent per pound, it is evident that con
trarv TO the general impression, the proteeu0In
L. the refining industry is exceedingly snaIl.
The duty paid on raw sugar lmportsu 'uto .L
this country is substantially refunded by the
Government on nnv equivalent quantity OF
refined sugar produced therefrom which is
exported A MISUNDERSTANDING IN regard 20
this has given rise TO unfavorahle critlcSm'
as the company anpears 20 sen SUI ~
oxnort at . price lower than that charged
tbe domestic consumer. This Is not the case.
The us,r eompany receives SUBSTANTIALLY the same
) price for it's product whether sold abroad