The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-28
Big DROP IN PRICE
OF SUGAR EXPECTED
Large Consumers Have Been
Waiting Result Of Lower
Duty on Monday.
SITUATION Is TENSE ONE
Refineries Now Operating ut
Loss but One Likely to Lead
Break in Quotation.

with the IS per cent reduction I'm the
tariff on sugar going into effect Monday
and with raw and refined sugars selling
at prices far below normal and refineries
running at u loss sugar brokers and re-
finers said yesterday that the situation
was a tense one. Ever since the passing
OF the tariff bill providing a reduction
Of the import rate on raw sugar and
the removal Of all tarir In 1916 srocers.
candy manufacturers and canning fac
tories have been discountng the drop
they believed would occur and have been
indulying in a hand TO mouth buying"
As one sugar refiner said. Wholesale and
retail sugar dealers have shown desire
to scrape the barrel rather than make
large future commitments"
As "a result there has been little de-
mand for raw or refined sugars and the
refineries have been running Oh part
time and at "A loss Tho sugar crop In
Cuba has been an exceptionally heavy
one and great quantities OF raw sugar Tor
which there has been little demand have
been thrown on an unwilling market
This has caused an abnormal lowering OF
prices. Where December clearances for
raw sugar were quoted at lie cents
per pound IN December and said to be
low at that price this week they are
placed at 1-32 cents per pound. On
3.l3 cents per pound. duty paid. and
conservative sugar brokers believe that
under the new schedule clearances for
raw sugar. duty paid. Will be at 500 per
pound and perhaps as low as sol cents
per pound.
Just what will take place in the re-
nned sugar market after Monday will.
u Is said, depend to n great extent on the
refiners themselves. 1t Is a we'll known fact
that there is severe competition; that no
spirit OF friendliness exists between COM
peting refinerles. At present the reiiners
are getting cents n pound for their
product. which costs them SO: cents a
cost them about 3.14 cents a pound. and
II Is not unlikely that a cut in the selling
price will follow. Sugar brokers are ex-
pecting that one large refinery may oner
sugar below cents n pound. In case
II does, the belief Is that this factory
will be swamped by the orders which
have been awaiting the reduction.
There Is a firm belief. however, that II
the other refners hold to their prices
they eventually can secure at least the
present price Of 4 cents. as the one con-
Germ could not supply the entire country.
However should they follow the lead OF
the first concern the belief Is that they
would continue to run at a loss. One re-
inner said yesterday that refneries were
not making dividends at the present rate
OF operations.
That tho refiners themselves scarcely
know what to expect Is shown by the
fact that they are only mildly interested
IN the low prices at which raw sugars are
offered. Provided the refiners lower their
price from the 4 cent basis. It Is believed
that active buying will develop. as con-
sur,ers not only will supply present needs
but will be inclined to speculate in sup
ply for many months. Resultant heavy
purchases of the raw sugar by refiners
might cause the prices OF raw and refined
both to get back to something like nor
mai.
Some brokers on the other hand con-
tend that refined sugars may be main
tanned on a basis too high to attract con-
sumers. In that event nothing encourage
ing in the sugar situation can be fore
seen.