The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-05-05

wv
anfha' arrive IN Kew Nofh Each con.
laIat 5000 tone, one u from Porto nitu,
and lt consigned % che American
Sugar RehuinF Company (ihe truFi),
tho other is from Java, and a cnnsign.
"a 10 Arhuckle Brolhofa On the 5000
tons from Porto Rico there is no duty
20 BE- paid. On tho 5000 tons from
Java. The Arhucllo concern must pay
an .G2a per 100 pounds, or a total of
si62 500. Thih figure represents the
tremendous handicap which 20 imposed
upon an independent rchncr who, pay
ing tho full duty, attempts 20 compete
with tho trust, that controls nearly all
the sugar that gets In free.
fTo take the case OF Cuban sugar,
assuming that the sugar trust gots itg
cargo Of 5000 tons from Cuba, while
the Arhuekle cargo comes from java
then while the Arbueklcs pay $i62 800
In duty, the trust pays only 80 per
cent Of this or sl30,00O. Even in this
case, the advantage in favor Of the
trust Is 30 great as TO make anything
like fair competition utterly impos-
sible.
"This situation has been getting
more and more serious year after year
for the competitors of the trust. Be
fore the Spanish war, the only free
sugar came from the Hawaiian Islands,
and its volume was so small as to be
comparatively unimportant.
"When Porto Rico became part of
tho United States, entitled to free ad-
mittance of its sugar, it's annual pro-
duetion was very small, and it likewise
did not constitute an important factor.
| ~ AhaN
still an open market, and the independ-
ents had as good a chance to buy from
| IL as the trust enjoyed.
"Much the same was true of Cuba.
At that time we bought nearly as much
sugar per annum from Java as from,
Cuba Cuba was an open market, and
1.-THE trust and the independents COM
peted for all they could get of its sugar
at the reduced rates.
"But in recent years the situation has
completely changed. The Sugar Trust
interests have pretty effectually el-
bowed everybody else out of Porto
Rico, and most of the supply from there
goes to the trust big refinery. The
Porto Riean product has increased at
al marvellous rate, because the removal
of the duty made the busines peculiar
ly profitable.
1.-THE same is true of Cuba Scores
of huge corporations have gone into
Cuba and either bought or developed
immense sugar estates. These corpora
tions are for the most part affiliated
with the trust or controlled by people
in this country who are stockholders in
the trust; consequently year by year
the trust has approximated closer and
closer to complete control of the
sources from which it's supplies of raw
sugar are drawn. The independents
have been crowded away from the sup
plies of cheap sugar, and have been
compelled to take that on which the
full duty must be paid, and with this
to compete with the cheaper sugar OF
the trust.
'fThe truth is that this situation has
now developed to point from which
no eye of prophecy is required to de.
scry that In the near future the trust
J will have all competitors crowded to
} the wall and will enjoy an absolute
monopoly Of the co latry's sugar sup
ply.
"This situation is rea1arcd the nor,
, acute because in the las. fifteen year.
, the trust has carried on u systematic
! campaign with the purpose of securing
: control Of the beet sugar industry Of
the country.
"For many years after this campaign
3 had attained approximate success, th'
t trust and the beet sugar companiei
/. persistently denied any afiliation. Th,
confession, howeve was finally forced
9 from the trust that it was very heav,
? stockholder in most of tho beet suga
t corporations.
8 "In its annual report issued in Jan
7 uary, 1910, the trust finally made
8 complete confession to the public.
/ showed that it was = stakeholder i
> nearly ninety per cent. of the bee
: sugar concerns. Its Investments il
9 these aggregated $26,OOO,OO0. Whe
the trust Is books were Brought int
court by the department of justice, il
> connection with litigation in the las
, year, the exact distribution Of thes
J holdings was made known to the gov
. : ernment. 1t then became plain tina
y the trust was actually the dominatIn
. partner in most of the beet sugar CON
panies. The department Of Justice ha
!: since been at work in the preparation
of case which is expected to be file
!. some time this year, to compel tn
n sugar trust to relinquish its hold on tn
n beet sugar concerns, unde. the ant
n trust law.
h civilian N. Dykman of Brooklyl
n counsel for the Arbuckles, has been i
s. Washington telling the ways an
means committee and other people VII
will have to do with preparing th
y tariff revision schedules, his view {
y the situation.
q Wants Sugar on Free List.
Ia "In the interest of the consume
rs and Of maintaining any competitir
"a whatever, he demands that sugar |
es placed on the free list. He tells the
d. that sugar is being made to cost Il
m American people $150,O00, 900 a yei
ID more than it ought, in order that abOl
ut $50, 100000 a year revenue be raiss
IS, from it; that the beet sugar concerI
ID are making immense profits because
ut the big protection they enjoy; and thl
IN If the trust is permitted to go on
ii, few more years surrounding the sugl
of supplies, it will be so intrenched that
or will be too late to do anything for Il
ID people through revision.