The Hawaiian gazette., 1914-02-06
FACTORS READY
FOR SUGAR DROP
Decline Of More Thar Six Dollars
Per Ton in Price Of Hawaii s
Chief Product Based on Agree
ment with Sugar Refiners as Re
suit Of Tariff ReductiOh
Speedy Recovery Looked For,
(Fron Thursday Adyertiser. J

He lfrom thursday. AdNerhser.)
'fThc Sugar Factors Company has
known all along that this was coming, y
said A. NJ. Novel; yesterday in reply
toian inquiry rs TO the meaning Of the
cable message announcing that on the
basis OF yesterdays pnee Hawaiian
sugar would sell for s.O56S from Feb
ruary 3.
.tfho old Cnban duty was LAS,
while the new dutysat rs per cent re-
duetion after March us 1.0O4S, aedif.
fercncc Of '.3432. The Sugur Factors
Company's contract with the American
Sugar kefners has In II clause pro.
viding that an adjustment of prices due
TO any legislative change In prices shall
be mutually agreed upon by the con
tracing parties sixty days before the
legislative changes become effective,
he stated.
Favorable to Hawaii.
In accordance with that provision
we negotiated an agreement that was
extremely favorable to Hawaiian in.
terests, that all our sugar to arrive up
to January 81 should receive the full
contract price, but that February ar
rivals should lie on March basis, TO be
determined as equal to the contract
price on date of arrival less the 20 per
cent Cuban duty cut Of 1892. Then be-
cause Of the unavoidable delay. of GER
tain cargoes in transit the refiners vol.
UNFAIRLY extended the period of full
contract price delivery three days from
January 81, or 20 February 3, so that
we are really three days to the good.
The arrangement was greatly to our
advantage.
Cut Hits All Alike.
He stated further that this cut hits
everybody alike, Cuba, Porto Rico and
the Philippines, equally with Hawaii.
The 25 per cent cut had to come, and
for variety o. reasons 1t was better
that it should come February than
to be delayed until March /. 1t was
better to 90 to the bottom Mt once,
Novel; thought, than to postpone the
agony, because it puts Hawaii on a
solid bottom and removes all fears and
uncertainties rN.i
NOVEL; said that he believed It would
not be long until the price works back
up TO noar the recent level lRcfners
have been holding back because Of the
doubtful financial outlook throughout
the country. Now that conditions show
decided change for the better the re.
finers must buy, and at holders prices.
"Fhere is no reason for the stock,
brokers feeling bad about it. The drop
had TO GOMEZ continued NOVEL;, ''aud
they certainly knew it,
Sugar Consumption Increasing.
Consumption is increasing at the
rate Of Al pounds per capita per an
mum. The-sugar consumption of the
United States was 6.S per cent per
capita greater in 1913 than in 1912, and
it is steadily increasing all over the
world, too, Consumption always In.
creases with low prices, provided the
low prices arc not due to financial dis.
turbance; hence it is almost Q certainty
that prices will not long remain at
present low levels. .. tn- ..,
@ Arrivals of Hawaiian sugars We're.
1900 tons February and 2TQ0 tons
February 3 at Pacific Coast ports, but
the extension Of contract prices did
not apply 10 these, but only to Atlantic
ports deliveries. - E.ra "a, y ia
He further stated that the quid pro
quo on behalf Of tho Refncrsi end Of
the contract was that the Sugar Fac,
tors should continue regular shipments
during the sixty days previous to the
effective date Of the, new tariff, in.I
stead of holding back, crop for higher
prices. AS a result Of the, arrangements
that were made. several Hawaiian slipt
nlents sold at the: highest level Of
prices, so that Hawaii has been much
the gamer undor the, contract. 81 "A