The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-10-08
GRIN AND BEAR It
ANDHOPE FOR BEST
Eastern Correspondent Gives In
side Dope On Recent
Drop In Prices
With Little Sugar To Sell Low
Prices Cannot Hurt
Hawaii .~

One of the sugar agencies has recciv-
cd from its New York representative
the following Inside dope'' explana-
tory Of the recent sudden drop in sugar
prices:
"The sugar market again lacks re-
hned sugar policy" this correspondent
says. "There is only one concern big
enough to set policy which the small.
er sellers would gladly support If it
were in existence. However, because
their executive believes in buying as
cheaply as possible, a policy for selling
is out of the question. This refinery
has bought, publicly at least, hardly
any supplies since the old regime made
| its last purchase, projecting its refined
trade by buying large quantities OF
raws at 3-hc c. q +. (4.s9) on August
,, IL Since then Cuban raws have de-
clined &c per pound. Fl
Rebates On Refined
From direct source I learn that
the one refining company has since
August lost about half of their trade
earnings of approximately one million
dollars up to that time. A large portion
Of this amount has been given away in
rebates on the orders placed when raws
we're worth 4-Nc and above. This re-
tnery purchased the raw supplies at
those prices to cover its refined con
tracts, not dreaming that before they
could be billed out as refined they
would be forced to allow the trade the
difference between the basis at which
the orders were taken and the lower
quotations when the goods were ready
| to ship. Other sellers were doing this
rebating and this concern reluctantly
had to follow suit The refners VINO
, were the first to do Relating did It sec
reilly for some days before some of the
other refiners realized the seriousness
of it. D.. p"
Tho domestic beet sugar interests
then began to get scared. They saw
their good market fast slipping through
their hands. Some of them had consid.
cradle old stock on hand to get rid of,
so they commenced to slash prices,
absorbing freights to any point in the
Eastern States where business could be
done, to sell their old goods, The Cal
ifornlan and Hawaiian refinery did
more than their share Of setting the
race at Chicago aud in the Middle
| Western States to force quicker dis
tribution Of their goods. 49,.
The big Eastern refners slowly but
surely had large percentage of their
summer trade taken away from them
because of ali this undertaking. LII
Losses Have Been Big
They were not able to meet the
| competition below a certain point ex-
ccpt at actual loss because of the high
average cost of their raws. The Cuban
supplies that they bought earlier in
the season have therefore lasted them
longer than expected, and they have
been able to use part of these with
which to fill their export orders. ..s
Now comes the wOeful part of the
'aIe! Because Porto Ricas and PhiIip-
pine raws are not wanted in that they
40 not have any drawback privilege,
those supplies, small in quantity though
they be, are terrible drug and drag
to the market. The owners are forcing
their sale even at hc. concessions be-
low the Cuban parity prices.
Grin and Bear II
Because sales of these sugars affert
| onr basis we must stand il for the re.
malnder OF the season. Fortunately
there Is not much more to come in. III
! there had been no detention at the
Canal two of the steamers would have
been In at least on Age basis. The
present decline below that should have
caught only the Minnesotan. However,
IS our plantations reaped last year be,
cause Of our detentions at the Canal
many times more than they can lose
this year there cannot be much of a
! kick coming. . ~
Zone of the serious features of the
present decline is the way the present
circumstances have depressed cost and
freight Cuban quotations. II the pres
ent decline had anything to do with an
anticipation Of free sugar due Nav /,
1916. cost and freight prices would not
| 20 down in sympathy. Taken as a
whole, The world : situation Is as strOug
/ as ever and will increase in strength
| 10 long as the war lasts, The domestic
prcducers did not give enough atten,
tion to world 5 facts before they began
their selling movement. The three. mil.
lion ton Cuban crop in sight has been
allowed Psyehologically TO set the pace.
Ii is useless to cry over split milk.
The harm has already been done. II il
quite probable that the movement will
over reach itself, making raws 90 SO
| lou hAA