The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1913-02-08
DoNALDsoNyILLE. La, SATURDAY, FEBRUARY s. 1918
BIC GonB|n PLANNED.

Bic COMBINE PLANNED.
i Consolidation Of Louisiana suga
Interests Proposed, to cheape,
Cost Of Refining Company /,
be Organized with Capital o
Fifty Million Dollars.
a plan will be laid before the su
Igar interests Of Louisiana for .tht
formation of company capitalized
at S50, 100000 to take over refineries
and equipment of manufacture with q
view Of saving in the. cost of pro
Iduetion. The probable reduction II
the tariff is said to have stimulat
ed the enterprise just at this time
in the hope of saving to the Louisi
lana industry in its cost of manufac.
ture what it may lose in a revision
/ of the tariff.
] Two or three Years ago the Lou
lsfana Rice Company was formed, pur
chased a number of mills and other.
wise secured control OF a large part
of the industry The first year the
company is said to have made $780,,
| 900, while the past year it has clean
ed up $500,000 for the stockholders.
This move in sugar is said to be
similar to that5in rice; some Of the
anne shreWd finaneiers are behind
the deal.
What was done for rice, it is be-
IeVed, can be done for sugar.
It is not a move tu fight the Ameri,
can Sugar Refinery; the trust Is not
a consideration This statement is
made most positively in fact, that
is about tKs only thing TIE promo
ters will say Of the proposed big
deal.
~ sks1aa agQiect was launched at a
mggtlng OF eRaar planters anu factors
held al. the st. Charles Hotel In New
Orleans Wednesday, night OF last
week. About seVenty-five planters
from over the sugar belt are said
to have attended Sol Wexler, vice
president Of the W Whitney-C Central Ma
5tional Bank, presided and explained
the object of the cal. Charles God
5chaux, president the Whitney
Central National Ban and head Of
the large plan1tina interests off the
I4eon 2dehau pan 5harles
nllhels equal
prominence ttlha sugar eIIustry
were present and participated III the
discussions
James Kock, of Belle Alliance
plantation, was named chairman of
a committee composed OF fifteen
planters to confer with sugar plant
ers throughout the district and to
get their views.
Another meeting will be held in the
course of a few days to receive re-
ports.
Meanw the financial ss15 is be-
ing looked after. Sol .Wexler, who
is known to have brought a large
block of Belgium capital into the
rice hoIdinsH company, is said to be
scheduled to leave for New York in
a few days to arrange the financing.
While none of the promoters would.
discuss the plans, It is rumored a
company is to be capitalized at $780,
100000, with s20, ,0Oo. 900 in preferred
and $50, ,000, 900 IN common stock. It
is said half Of the preferred stock
issue will be sold for cash, which
will be used to finance the gigantic
concern; the other SO 100000 will be
used to pay on refineries taken into
the compact Planters who go into
the deal, 1t is said, are to receive
20 per cent in cash and so per cent
in the preferred stock Of the com
pany.
Only mills and refineries are to be
acquired. For the time being the
planters will remain individual pos
session Of the land and operate the
Some Of the smaller
and secondary mills will be closed
and operations will be centralized.
Where advisable the central mills
will be enlarged re-equipped and
turned into refIneries-
In this way the cost Of manufac-
ture viii be materially reduced and
the same benefits secured in the
rice deal will be secured in sugar
Discussing the proposed eonsolida-
ton, the Louisiana Planter says ed
An effort is now making in this
city to consolidate various large su-
gar interests in Louisiana into one
immense corporation, not with water
ed stock, but with actual property,
appraised by a sworn appraiser and
thus establishing accurate and pro
portionate values for all the property
that might be included in the merg-
ed interests. Years ago when the
editor of this journal was called up
on to make statements before the
ways and means committee Of the
house of representatives in Washing
ION. he then ascertained that the
sugar industry of Louisiana practical
~ included one-haIf Of it's assessed
wealth at that time, an amount ex-
,eeding one hundred million dollars.
Further. that one-half Of the popula-
ion Of the state was engaged direct
y and indirectly in the sugar indus
.ry, and thus It became the chief
md almost the entire support of a
laf million of people. Since that
ime there has been large in
.rease in the money invested in
=. It