Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-05-30

MUCH luICICbb anu bQuAC 0PBIShOAA-
sion has been aroused among the
New York and Philadelphia sugar re-
finers and the interstate carriers en-
gagged In transporting sugar from
these producing points to Chicago and
contiguous territory by an application
fled with the Interstate Commerce
Commission by the transcontinenta
railroads through r. II. Conntiss,
agent, for permission to establish a
rate of 46 cents per 100 pounds on
sugar (carloads) from San Francisco
and Crockett, Cal, to Chicago. with.
out disturbing the current rate Of So
cents now in effect from California to
Kansas City and other Missouri Riy.
er jobbing points.
This involves reduction Of il
cents in the rate from San Francisco,
etc, to Chicago, which is now go cents,
and which cannot be accomplished
without permission from the Inter-
state Commerce Commission TO vio-
late the prohibition Of the fourth
section OF the act to regulate com.
merce fthe long and short haul clause)
IS amended, which makes Il unlaw-
i,iI for common carriers to charge
less for longer than for shorter dis.
Ionces, except in special cases, when
relief from the operation Of this sec
ton Is authorized by the commission.
According to eastern refners, the
special case In this instance Is SIM
ply selfish desire on the part Of
Hawaiian planters (who are said to
own two refineries on the Pacific
coast) to enlarge their already sub.
stantial earnings at the expense Of
the eastern refineries and railroads
without benefting the consuming pub
lie.
Production and pistributIon. 81
In an interview yesterday with q
representative Of The Journal of Com.
merce an ofi2ial of one of the largest
sugar refining concerns in New York
and vicinity said
THE California & Hawaiian Com.
pany. owned BY the Hawaiian plant
ers, with . production Of about one
twelfth OF the entire amount Of SUI
gar refined yearly in the United
States. already serves tributary mar
kets containing approximately one
twelfth Of the population Of the coun-
try as whole. and yet they contend
that their trade Is so restricted that
they are forced to send surplus OF
say one-half Of their raws to New
York tehe sold That this surplus
is disposed of proftably Is evidenced
by the fact that they are able to guar.
antee price ten points less than the
spot market cost on date of arrival
at New York, at which independent
refners are able to secure their raw
material
aThey also guarantee price bas.
ed on date OF arrival at San Francisco
OF 25c per 100 pounds less than the
New York spot market on about the
same quantity intended for use by
their Pacific coast refineries.
I'm addition to this, they are able
to secure prices Of about Csc per 100
pounds higher than the figures at
which the eastern refineries are able
to market their sugars, giving them
an advantage at the outset OF practi-
cally 1-2c per pound, or SOC per 100
pounds, or say about $1.25 per bar
rel.
when we consider that five points.
i. e., sc per 100 pounds, will control
the market when any refiner cuts the
price that much less than his compel;
itors are willing to go, the Importance
or this advantage will be readily APP
preciated. @Fa = : x ..
Planters Have Contract. s. s
I'VE are reliably informed that the
Hawaiian planters have d private
contract with the Observation-Disclosures
Steamship Company to run until the
end Of 1915 which fixes rates Of l47kc
to New York and 1874 c per 100 pounds
to San Francisco, from Honolulu, and
adding to these figures &c New York
to Chicago via all rail, and soc San
Francisco to Chicago via all rail,
shows totals of 73Ac from Hawaii via
New York, and 73Ae from Hawaii via
San Francisco to Chicago, or almost
an exact parity Of rates under the ex.
listing freight schedules.
There are many precedents for the
opinion that the interstate commits
sion will deny this application of the
transcontinental railroads, such as
their attitude in the Kellogg Toasted
Corn Flake Co. case, wherein they
held that Battle Greek, Mich, was
subject to a discrimination in viola.
tion of section by the maintenance
en- sugar from New Orleans, of a rate
higher to Battle Creek than to De
troit, Cleveland and Toledo, on the
ground that the latter points were ge-
graphically tributary and better
served by. the refineries located at
New York and Philadelphia.
There is, no pretense that this ap-
plication' of the carriers from the Pa
cific Coast is based on considerations
ether than market competition.
Mote the language of the commits
sion regarding such considerations:
Experience has demonstrated to
the national legislature that it is not
safe to leave to the carriers the de-
termination. of the question what mar
kets should be brought into cnmneti.