Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-08-31
STOCK SALES INCREASE SIX
DAYS IS NEARLY $4,000

finery alone will compel the Ameri-
can refiners to treat Philippine sugars
with reasonable consideration. Dis
cussing the question with Times re-
porter Mr.. Pitt said:
''In order permanently to insure to
the producer of sugar in the Philip
pines the full benefit of an open mar
ket in the United States, the estab
hshment of a modern sugar refinery
under control either of the insular
government or of the planters of the
islands is, in my judgment, a most es-
sential project. 1t certainly would
assure to the planter maximum price
for his product according to grade.
AS conditions surrounding production
improve and the islands, product ap-
proaches the standard of sugar pro-
duced in other cane growing countries
such as Java, Cuba, Hawaii and Porto
Rico, a refinery will continue to serve
the grower by making the market for
his product immediate.
Cali raw cane sugar has to be sub
jected to the refining process before
il is acceptable to the American con-
sumner. 1t is this fact that has con-
ferred such a great advantage upon
the refner and given him virtual con-
troll of the American market. Where
sugar pays a duty upon entering the
United States it is not profitable to
ship in the refined product on account
of the differential that exists in the
tariff rates in favor of raw sugar, but
in our case, where the sugar exported
to the United States pays no duty
whatever, no embargo can be raised
against any shipped that may be re-
fined. By refining, our raw sugar we
would be in position to place 1T on
the American market directly in COM
petition with the product of the re-
finers there.
"As matter of fact the refners of
the United, States would desire to
avoid this condition and in order to
keep us from refining our own sugar
they naturally would be anxious to
absorb the Philippine crop in order
quickly to get it out Of the way. Thus,
a refinery established here might oper-
ate only for very short period each
year, but the simple fact of it's avail
ability would so enhance the price of
itself in the increased price that would
be realized on the annual crop.
This fact of dependence upon the
American refiner and the disadvan-
tages that resulted therefrom was ear
ly recognized by the Hawaiian plant
ers and Influenced them to erect an
independent refinery in California sew
en- or eight years ago.
"A point in connection with the
United States duty on sugar that must
not be lost sight Of is the concession
of twenty percent granted to Cuba.
This concession will have a certain
effect on the future price of Philip
pine sugar even though We improve
our general output to a grade ap-
preaching the Sc degree standard, un-
less we are in q position to refine 1t,
for the American refiners now absorb
practically the entire amount of this
Cuban concession, which they are en-
abled to do because Cuba has no other
market of consequence available and
is obliged to sell to them. The result
is that the trust saves very close to
$7.55 gold for each gross ton on its
purchases of Cuban sugar. The Gu
ban crop will average welPover one
and one half million tons, so the
amount of this extra profit for the re-
fners account reaches comparatively
large figures.
Under the circumstance it would
be too much to expect the trust 10 pay
the worlds market value with duty
added for Philippine sugar while the
Cuban crop is available and offers
such a favorable opportunity !or an
additional rake-off.
AN independent refinery so con-
trolled as to prevent absorption by
the trust will be our best safeguard
and the only really effective one that
we can command. The fact that We
will be able to reach the eastern mar
ket through Atlantic ports as readily
and cheaply as we can the Pacific
coast, is a point very much in our fav-
or in this consideration -