The Hawaiian gazette., 1915-10-01
OUTLOOK GLOOMY
FORFEITURE PRICES
Domestic Beet Sugar win Control
: Market Until Next Cuban
Season Begins
Strong Probability Of Free Sugar
Clause Becoming Effective
Also a Factor

1.-THE American people are not using
sugar this year, Is one explanation
given for the steadily declining trend
Of prices in the Now York market.
:" Fruit Gamers and preservers are
putting up their wares with the min.
imum amount Of sugar that can be
used. The candy makers have always
been a strong factor in the trade but
here again sales have diminished and
SO less granulated is being sold by the
fehners.p E-.-s-r.
The most PLAUSIBLE explanation Civ
en- Of the phenomenal drop in prices
during. the last thirty, days is that the
refners and holders Of cane and the
beet growers whose big crop il Just be-
ginning to come into the market are
convinced that there will be free trade
in sugar after May /; 1916. They have
only seven months In which to unload
and they intend to get from under.
Democratic Policies
Confidential advices received here
confirm the news previously published
In these columns that the administra.
tion has given il out that while sugar
will be made q revenue producer that
revenue will be raised in the form, OF
direct internal tax levied cat the
source That is to say the sugar
tax will be paid by the refiners and
by the manufacturers of graduated
. beets.
~ President Wilson has stated in re.
cent interviews that the Underwood
tariff act '"has not had a fair trial,
and that therefore the law will remain
in force without material modification
as long as the present administration
controls the affairs of government.
The fiscal policy of the government
protective tariffs versus internal taxa
tion and free trade-will be- maae Abe
basis of the fight to be made during
the next presidential campaign, one
year hence. Until November, 1916, at
least there will be free sugar.
Bert Crop Rules
The 1913 domestic beet crop of at
least $780, 900 tons is the largest ever
produced. The 1916 Cuban crop will
probably also exceed the 1915 crop. 1t
Is probable that manv of the beet SUI
gar companies will shut down their
mills for one year. Thcv can do this
because the lands devoted to beets can
be planted to some other annual crop
without material financial loss. The
fate Of the Hawaiian industry there
fore, II the program as outlined is
carried out, will depend on how the
next presidential election goes.
Recent events Indicate a split in the
ranks of sugar producers. The beet
sugar men have apparently broken
away from the cane sugar refiners
who in turn are transferring more
and more of their capital to Cuba.
Costs and Prices
II costs all the way from $2.7O to
"a to produce 100 pounds of beet s,
gar, the American average cost being
about 1925. The beet sugar produc
crs can therefore sell their 500. 600. ton
crop down to 80. so. and still get a, new
dollar back for an old one, some of
the factories also realizing good
profit, at that prize. A few will lose
with the political future doubtful
hut with the probabilities strongly in.
U"atiye of free sugar becoming fully
eHectlve atfthe date ut which the IN
derwood law hxes II. the beet sugar
men intend to sell their entire crop be-
tween now and next March, prospect
we or what the interest of cane sugar
Producers OF re6ners may be
Hence the prices of the cane raws,
and refined during the neyt six months
will be controlled by the prices Mt
which beet factories are willing to sell
Fhe rdiferential between refined AMI
beets is already widening. The beet
people are inalgurating an active SELL
inc ""mpaiTn and have invaded tho
southern and southeastern trade dis.
tricts n field in which beet sugar sell.
dom enters. If this view is correct
the trend Of prices will he lower dur
inc the heVt seven months and "frec.
trade' will probably he fully dis
counted long before May |.