The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-03-08

= :i5zzzssg
q THAT'S A JoKEl
the evidence of Mr.. C. A. Spreckels
(Hearings, p. 2230) that an allotment
of territory and of product exists be-
tween the Western (American), the
California. Hawaiian, and the Honolulu
Plantations Coz
Combine Unlawful.
The report says that although the
sugar combine, from the date of it's
birth in 1891 was guilty of "palpable
and continuing violation of the law, -
no serious effort was made to apply
the law against it until November, 1910.
The proceedings begun then, against the
directors of the sugar trust, are still
pending.
Other extracts from the report are
as follows:
"To the 42.14 per cent of the pro-
duction of sugar in the United States
that the American admits is its own
should be added, by any fair rule, 10
per cent, the National Is production, Z
per cent, the production of the beet
sugar companies in which the Amer
lean is interested, and probably 1926 per
cent, the McCahan production. This
makes total of POPS per cent, which,
added to the 42.14 per cent, makes a
total of 62.39 per cent of the sugar
manufacturing and refining industry of
the United States which is either di-
rectly or indirectly controlled or in
hxvf ha
add further that the evidence discloses
that competitors not within the direct
influence of the American are cautious
about entering into active competition
with it, and usually fix their prices in
comfortable vicinity to those of the
American.
Overcapitalization.
"That the price of refined sugar had
been kept up in order to pay dividends
on bounteously watered stocks is also
evident when we come to consider over
capitalization, which we will carefully
examine in another part of this report.
That the overcapitalization of these
corporations and the payment of divi-
dends on watered stocks, so that the
same might acquire market value, has
necessitated excessive profits on the real
capital invested, and has consequently
occasioned higher prices for the product
and heavier taxation of the consumer,
can hardly be questioned by anyone
who conscientio1sly investigates condi-
tions in this great industry. To what
exact this has increased the price of
refined sugar to the consumer it is alb
solutely impossible, to accurately esti-
mate or exactly state, but that the in
crease, for that reason, is considerable
can not be disputed.
In considering the question of the
number of stockholders now in the
American, one series of salient facts
deserves to be borne constantly in
mind:
That in its formative period, more
than 20 years ago, and at intervals
during the next Is years, sugar-produc.
ing plants were brought into the com
bination at valuations which gave great
individual fortunes to the promoters
and at the same time put upon the
market stock representing huge infa
tions, and of face value of 100000, 900
"That in process of time the few
practical sugar producers who formed
the corporation generally sold theiI
stock in the market to people who took
IT from stock-market estimates and moi
because of any connection with oil
knowledge of the business of prod1c
ing refined sugar.
10000 Stockholders.
"That by this process a few large
stockholders, probably less than fifty
in all, have been replaced by 19,O0(