Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-10-13

New IO!R between representative 0;
The entire sugar rofinCries Industry
Of this Ceentry and the Food Admins
tratiOn have resulted in a voluntary
aCrccIHcnt Tor de- duration OF the var.
RefincTs will undesirable not only to
, obtain their supplies of raw sugar m
der the direction OF the international
committee, but they also have agreed
TO work on stipulated margin be-
between the cos Of raw sugar and the
selling price UfFefined, thus limiting
profits, and going long way towards
atabiliZing prIGs and eliminating
speculation.
Cooperative Buying
, This cooperate buying between
the refiners, andthCse purchasing raw
supplies for Finland, France, Italy
and Canada, viii the resultant elimi-
LatiOn Of competitive buying. is ex-
pected TO save 6nsumers many mil.
lions of dollars, and to prevent the
rapid :IuctuatiOnt in prices that We
have seen since he outbreak Of the
3 European War inI914.
| As a step in It's process, refinerS
! have agreed to r6nc sugar on a net
margiD between tb cost of their raw
materials, and TIT selling price of
their refined prodIlt of approximately
! l.59 cents per pOuhi after trade dis
I counts have beet deducted. The
basis for this marGi had its origin in
tine five year preiar period. The
figure was arriYcdht by taking the
average margin for tie years previous
! to and including 1911 and adding the
! liners must face. Fl EXAMPLE in re-
/ filming sugar there ISL loss in weight
Of about seven pound on every hun
dred, and as raw suSI is expected to
cost in round figuceshbut cents per
pounds more than IN PIE five years pre-
war period, this aloe amounts to an
increased cost Of I cents per him.
dred pounds. BagS iute and cotton
nave increased lii fice equivalent to
ABOUT - cents pa hundred, coal 5
cents, labor s cef, bone black >
cents. These incrIses, added to the
old pre-war basis brings the figures
up to 1881 cents, that in selling on
margin of 100 Ents net, only .019
cents per pound hi been left to cover
the increased cos of lighterago and
carriage, ADDED Unrest on the larger
amount OF meneypVested in the bush
ness increased iIurance, due to ex-
PIoslon rlsks andhc higher valuation
OF sugar. as WcllP the higher cost of
al materials us IN the refineries.
OF course this sml fraction will not
cover these incItsed costs,so il will
De seen that Notwithstanding the fac
that the differdial is higher than
formerly, the aual net margin of
pfotlt left to refiirs is about the same
as the pre-War IBIS. There advantage
must come matt through ability to
run their plant at full capacity for
nearly the entI year, due TO the
large increase export business
which is now oainable.
.lnaSmuch as le price OF Cuban
sugar on the Ne York market really
controls the eye domestic produc-
tioh, 1t was nothe intention of the
administration attempt in any way
10 regulate domtlc producers.
SITUATION ape IN June and July |
WHICH maze sq action imperative.
hiiis were lntroced in Congress pro-
Vluins Tor the eplnation of the draw. |
ndch on export gar, and the applica. |
tlon OF a conslption tax Foreign /
buyers VINO upi that time had been |
NAMING purchal through American !
e rel, dded that, as the |
oliis we're lntpced as war meas
IeS' and WoulNerefore be enacted |
ihto law prompl 1t would be to their
advantage 10 bHuban sugars direct
dI any prlce trqhe then Cuban mar
het, not eXceeol an advance of IL
cent which waIhe extent to which
/ sugar would haIbeen affected if tho
bills had passe
4 Ihis started folent speculation in
IuDan sugars v the result that the
price adVancedPm 577 in the last
I week In June tf77 the first week in
August: "hileiere was very little
sugar lett IN "a 1t meant that if
shch a condltlo1hs permitted to con-
tlnue the COST fhe American public (!
would be sometg in excess of $780,
4 oeo,VOV betWeeHen and the beginn-
ing OF the new "a crop in December.
Food AdministSn Acts
Refined sugahaturally followed
raw and quotas advanced to as
high as $9.l5 p90 pounds. To pro.
tect the publidainsf these unnat-
urai, unnecess and speculative
prices, the Foodministration imme-
dlateiy changes policy and made
a dlrect appear the domestic beet Z
sugar producers come to the aid of '
the country wltheir product In
August represetives of S. per cent
of the domeStieet sugar industry
met with the Administration in
washington anedged the interests
which they repmted to maintain a
price for their met of not to eyeeed
7.25 cane basiSea board refining
points, from th9inning of the cron
starting in OcIr until Same had
been dlstributehAnnouncement of
this fact had Immediate effect of
stopping the Sllation in Cuha
sugars and of ting the price gen.
orally throughout country tn moro
horhaI leHeiS. main thing that
ii accomplishedwerer was that II :
stopped characterization and pre-.
vented the prict the American CON.
sumner reachlhalch higher levels.
Aside from tsiana cana reDro-
sehtlhS aoout third OF the beet ii