The Hawaiian gazette., 1917-08-04
Five and a Halt Cent Figure Is
Thought Probable BY Men
In Industry Here .
CUBAN GROWERS WILL 1! l...
HAVE TO BE SATISFIED
Laborer Would Receive Smaller
Bonuses and Demands For
Higher Wages Probable

Whether or not the food controllers
! will fix a maximum price for sugar is
q matter that is being discussed with
interest among sugar producers II Is
generally expected that such action will
be taken, or at least It is considered
not unlikely and there arc gucsses be,
ing made as TO what the figure will be,
II is generally conceded that it is
Cuba rather than the United States
which makes prices on sugar. The opin
ion among sugar men in Honolulu is
| that IT, the United States undertakes
10 fix sugar price il will be one that
is satisfactory TO the sugar growers Of
. Cuba. There is reason for this opinion
since in recent discussions of sugar
prizes in congress the question was
asked as 10 whether beet sugar grow
ers and Cuba pro,lueers had beeu con
suited aud tho reply. was that both had
been and the plans that were uudrr
way were satisfactory TO both. =.
Two sugar exports were seen by Tho
! Advertiser last week and both of them
expressed the opinion that there would
| be a maximum price fixed and that IL
would probably be about Ave aud a
half cents although earlier opinions
had been that Il would be lower.
Would setisfy Cuban Growers
! While Cuba, growers could make
good profit at less than five and half
! cents, ore Of those interviewed by The
: Advertiser expressed the opinion that
| because of the present prevailing price
and that there was n likelihood Of other
nations going to higher than the maxi
mum price set under certain conditions.
the higher figure would be named. He
then proceeded to give figures which
showed that Cuban producers can man
ufactuTe and place product aboard ship
| in Cuban ports for 5000. With freight
and insurance added there would be a
handsome margin of profit to the Cuban
producer at FIVE and half cents duty
! paid, or otherwise at AIS cents net in
| New Yosk.
Laborer Also Affected ~ =
| Hawaiian growers can also manufac-
ture sugar at a good profit at five and
| q half cents. II is true that materials
costs have gone up considerably and
| have therefore raised costs of pr0duc-
4 tion accordingly but there would still
| be a good margin of profit. 1t would
be the laborer who would feel the Ak
ing of such a maximum price since his
bonus is determined by the current
price of raw sugar. The difference of
| a cent or more pound in price Of the
raw output means that much less bonus
for him each month and at the end Of
the year.
| 1t is also pointed out that Hawaiian
sugar companies will have to make
| deductions for the added taxes that
| will result from the war revenue legis-
lati6n. The higher the price Of sugar
the higher will be those war taxes
which are based on prc.war earnings.
! the earnings of 1911, 1912, and 1913
averaged. At five and a half cent su-
| gar, with q bonus paid on that basis,
| there would be smaller taxes to be paid
than with sugar alta higher rate and
| bonuses also higher.
Danger Of Labor Troubles
This very point Of decreased bonuses
| by reason of the fixing of "a maximum
| price Is a source of some anxiety, how
| ever, for the reason that il is feared
| that such decrease, even " OccaslOBnd
by government action, would have an
upsettling effect on labor, that IL bO-
! muses. be decreased in this way it
! would result in concerted demand for
| raise in the monthly wage scale, such
as has been suggested already by some
| of the Japanese papers
| With sugar on a fixed basis and lower
than the average price of the past year
or more, with increased war taxes as
well, the sugar producers would hard
| ly feel in a position to still further
increase costs by granting wage in.
crease. II would mean big cutting
in dividends TO meet the three changed
conditions. And while Ave and half
cent price might bo aud would be sat
iSfactory in itself, with Increased ma
terial costs, increases in the cost Of
4 labor and an increase in taxes, tho
sugar companies would be placed in II
position very different from what they
have enjoyed since the war. The price
in itself is satisfactory but the other
! conditions make il less so and for this
! reason the belief is expressed that the
food controllers would ret a figure high.
, er rather than lower than thu one first
/ suggested since ID is known that it is
their desire to encourage rather than
discourage. the production of this ncces-
sary food commodity.