The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-01-29
'B|G LESSON TO BE learned !
FROMA|STORY0F THE SUGlR.
CROP FOR. YEAR JUST ENDED.
SHOWS THAT ONLY GUARANTEE OF AsPERMANEMT SUPPLY.
+, TO AMERICAN CONSUMERS IS 10 BE FOUND IN MAIN II
TENANcE AND DEVELOPMENT or LOCAL INDUSTRY
(From Faets About SUGAR January l5.l

pied durIng the earlier part Of the year,
thus eliminating any difference repre-
scented by the reduction in tariff
A week later sugar was selling TO,
the first time during the year at ex-
actly the same level as on the CORES,
ponding date in 1913.
In 5nne the cash price of refined
was 4,214 cents pound, and it con.
tinued Mt this level to the end of July,
Effect on Reflners' Margin
1t is noteworthy that, following the
reduction in the tariff, during the
period from March to the end Of July,
the refiners margin which had been
low during the first two Months OF
the year, took decided advhnee.
This refners margin Is the difference
between the price Of raw and refined SUI.
gar on given date, and therefore in
clndes both the profit made by the re-.
finer and the cost Of refining. 1T is not
absolutely exact, as the refined sugar
may have been made from raws pur
chased perhaps two weeks earlier so.
that on an advancing market the actual
profit would be greater and on de-
tclining market less than that shown
by the figures for the day Except in
a violently fuctlating market, how,
ever, il Is sufficiently exact to be used
for purposes of comparison. a .s
Reffners, PROFITS Doubled
As against an average of 1913 cents
q hundred pounds during January and
February, the refners margin increas.
ed to Sill cents during the period from
March to August N 81
In other words, the price of refined
sugar did not decline to the same ex.
tent as the price of raws during the
earlier part Of this period, nor did raws
advance equally with refined when the
improvements itpriees set in. Thus the
refners were able to increase their pro-
fits very materially. tt n 5&fH
Growers Alone Are hit %oL }af
The price of refined sugaf was the
same as before the reduction in the
tariff; consumers were paying the same
for then sugar; the growers alone
were receiving less for their product.
This situation was exactly as had been
/ predicted by the producers In the event
1 Of reduction or removal Of the customs
duty on imported sugar. M MI" y
4 War Transforms Situation ~. y
At the beginning of August the su.
gar situation was suddenly revolution.
Lied. GE ass Dr.
The outbreak of war in Europe, in
yolying the principal sugar producing
territory of the globe, upset establish
ed relations in the sugar industry as
completely as in the political world.
OF the two great sugar buying ma
lions, Great Britain and the United
States, which annually import some
n 100000 tons OF sugar each and are
the only first class powers that do not
grow their sugar from their own soil
Great Britain was completely cnt of
from her accustomed sources of supply
in Germany and Austria Hungary
A Effect Of British Purchases
l. AS the refining capacity Of Great
Britain is not sufficient to supply the
country s needs she was forced to- TURF
! to New York as the only available mar
ket for refined sugar. n gHT..
| British purchases, both of raw aRt
refined sugar IN New York, and of raw
sugar from Cuba and elsewhere, quickly
aggregated 100000 tons. lg -
Raised Prices 5 Gents f.r a-f
The Immediate and expected with
Jirawnl of a large proportion Of thil
! / great quantity from the available sup
4 ply resulted in an advance Of approxim
J ately cents pound in prices both o.
|. raw and refined. III. vi
iii The high level of prices establishes
by the excited rush for sugar early II
\ August continued well into the follow
/ ing month, until the new crop Of home
( grown beets, which in August began Il
4 l,be turned into sugar in California
. kcame upon the market. yE '&tfA
5 Domestic Beets Reduced Price
Z At the end Of the first week in Sep
!, TENDER this beet sagariwas offered free
y ly in Middle Western cities at approx
y imately a cent "a pound below the re
a fners' New York prices. The Ameri
can Beet Sugar Company offered 100
Il Coo bags in Chicago at 6.25 cents 4
!; pound, as against the New York spo
T. price of ITO cents. @... -aH
y Holders Of sugar, who, before tn
d war, had contracted for aIarge propol
o ton of the California beet sugar out
b turn at low prices, began reselling a
Is the same price. The effect of this con
x petition from the new crop domesti
X sugar caused the refners to cut dow
/ their purchases Of raw sugar and sen
q price OF Taws down from 6.27 cents.
II pound on September 10 TO $50 on Sci
G, tember II and 500 on September q
< The price of refined followed the sam
I course, but declined somewhat nor
" slowly. q I.&'E' WY ~ "-@
Q. After the first of October, when tn
n Eeet sugar. factories In the Central an
\, Mountain States began operations, II
competition from this source becam
ls keener and prices declined furthe
ID AT the beginning Of November II
u. New York cash price Of refined droppe