The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-01
big LOSSES FACED
BY SUGAR REFINERS
Competition War Expected to
Assume Acute Stage With
Drop in Tariff.
CONSUMER TO BENEFIT
Trade Ridicules Theory Of
Scheme to Bolster Up Amer
leans Defence.

sugar may take q further drop Of 10
cents per 100 pounds tomorrow when the
c5 per cent reduction In the tariR goes
into operation.
Such drop. II II occurs. will not Be
commensurate with the reduction In the
tariff. The new tariff will lower the price
Of raw sugar, duty paid, by 81 cents per
100 pounds.
The cutthroat competition among the
renners In the past nve or six months has
already discounted much Of this reduc-
ton.
The surprising statement was made by
one Of the leading men in the sugar trade
yesterday that he would not be surprised
II instead Of declining further the price Of
refned sugar advanced on tho cut In the
tariff.
This highly anomalous result he said.
was perfectly possible on the ground that
the effect Of reduction may have been
heavily ovcrdiscounted and the market
put in a much undersold condition.
Heavy buying OF refined sugars by
wholesale and retail dealers. the candy
factories. grocers and canning factories
may begin Immediately on the strength
Of the general belief In a drop in prices.
Dealers and large users OF sugar have
their supplies down to scraping bottom.
They have purposely held of to await
the lower prices that they expected would
come with the tarin.
Might Defeat Psrpese.
| II was said yesterday by one Of the
| foremost sugar authorities that the cover
! ing Of this short interest" I'm the sugar
1 srn 10 MAJ ht,Oy IA nriCe nj reAVAd
TO All advance on Its present level Of 3.s2
net.
| The highly interesting spectacle would
then be presented Of higher prices ac-
companying the Administrations effort
through tariff slashes to reduce the cost
OF living The effect naturally OF rush
Of buying In advancing prices would only
be temporary. higher prices reducing the
volume of buying.
Tho general opinion held by brokers
| and dealers In sugar yesterday. however
was that a further small recession In
the price OF refined sugar will result
even though most OF the 80 cent reduc-
ton In the tariff Ia already reflected In
the price OF the refined article a. the
result of intense competition.
The sugar trade Ia on edge watching
the effect Of the new conditions. The
result will be OF large Importance both
to the consumer and TO the refner.
ReanePies Losi.g Heavily.
The war among the rehners hal
brought the business recently to the poin
where refners have been getting on tn
average only 80 to 20 cents hundred
pounds in the difference between the cos
of the raw suga. and the refined prod
uct. whereas the cost Of refining 10 from
SO 20 Sc cents. II was said by higl
authority that at these figures tn
I IN
for every 100 pounds Of sugar refined
Tho difference between the price OF raw
and refined has been dropping steadil.
from the margin Of rs cents, which wa
the average In 1918. to from SO to q
cents, the recent average.
The price OF refined sugar yesteYda.
was 3.s2 cents net a pound. The price o
raw sugar. duty paid. was 3.3s cents
pound under the present tariff. At
cost Of S. cents hundred pounds 4
refine, the refners were losing about
cents a hundred pounds.
Tho tariff tomorrow will bring IN
price Of raw sugar. duty paid. down I
800 cents. leaving a margin OF IS cent
per 100 pounds to the rerner II the pric
Of the refined product remains unchs nsec
} II is the general belief IN the sugar dis
trict. however. that a large refner Ii plan
ming to cut the price beginning to-mor
9 row from the present 3.s2 net to $50 b
II a.. W
I named yesterday by an important suRa
man rs a point to which the decline Nigh
90.
Consumers Go Beneot.
Tho point Is made with great emphasi
/ | in most quarters OF the sugar trade BY pre-
ducers. refners and brokers that the col
sumner will got the benefit of every frac
ton OF reduction made by the tariff.
" The reason given IL that there Is RET
and intense competition among the n
d finers. No one company or group q
companies. II II said. can approach IA cor
troll or domination OF the market Pric
- fixing In utterly out Of the range Of abilit
i OF any single company.
v The rank and file in the sugar trad
o ridiculed the suggestion that the preser
d war OF competition might be a sham
q which the American Sugar Refining Con
pany WAS interested in order to afeS
q Il favorably the dissolution suit OF the Gov
e eminent against it,
d Few sugar men ventured to predi'
: the future for the refiners II the pri'
n cutting continued. While II was points
O out that the big companies are very ric
and can stand strenuous competition Il
a lengthy period, II was also intimate
that some OF the smaller refneries cou
not continue long to stand the pressure.
Low prices and severe competition I
. the final result Of the tarin reduction {
sugar have been predicted by Prof. Tau
sig. probably the most eminent tarl
L..