The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-11-02
Fixing Of PRICES
FDRSUGARCAUSES
GROWERS WONDER
Opinions Differ As To What Is
Fair Price To Hawaiian
Planters InWar Time
COSTS OF PRODUCTION
HIGHER HAN BEFORE
Action Of Sugar Commission Not
Understood Here and Other
Details Awaited \

Whether the announced fixing Of
500 cents price, in New York duty
paid, for Cuban sugar means for the
balance Of the present crop or whether
IL Is to extend over to the next crop il
matter Of interest and of discussion
in local sugar circles. Some express
the belief that II applies merely TO the
present crop and that the food admin.
istration has hardly consented TO full
cent increase to meet the demand of
Cuban planters.
On the other hand, there are those
who believe II will cover the 1918 crop
as well, and point TO the fact that costs
Of production have so increased and
viii rise so much higher next year that
$40 is only fair and not high price,
and that there are few Hawaiian plan
tations that could manufacture profit
ably for less.
Uncertainties Arise .,s
The, despatch received here announc.
ing a change in price for raw Cuban
sugar said that 600 was the basis, duty
paid in New York, for 96o centrifugal
sugar, and said that rates to other
points would be announced later, It
did not say that Hawaiian, Louisiana
and Porto Rico sugar prices were in
creased to the same figure, and next
day came the announcement that the
Sugar Exchange in New Orleans had
| closed pending more definite informa-
tion as to prices. II Is assumed that,
of course, there will be no discrimina-
ton against the American industry.
But there is evidently some uncertainty
and doubt or the New Orleans exchange
would not have closed
A. NJ. Novel;, secretary and manager
of the Sugar Factors Company, said
yesterday that he wanted more infor-
nation on the new price for Cuban
sugar, but thought it probable that the
price of 600 cents was for the balance
Of this years crop only. He did not
believe that the sugar Commission
would yield full cent a pound on the
demand of Cuban planters, and had
thought that President Menocal was
getting the Cuban growers in line for
the $50 cent New York rate. There
was certainly some uncertainty, or in
definiteness he thought, or the New Or
leans market would not have closed.
First Price Too Low @.a.J VII
cat 500 cents" said well known
local agent yesterday, There is very
small margin of profit for Hawaiian
planters, and 600 cents is very fair
price. Everything has gone up since
the war--everything that the sugar
planter needs. Nitrates are 200 percent
higher than they were before the war,
three times the price, and then there is
no assurance that it will be, delivered.
Without it the crop would be dimin.
ished fully half. .E..
Bags are three times the price they
formerly were, and so it is all along the
line, and the laboTer gets seventy.three
percent more wages than in the days
before the war. There is three per-
cent tax on bills of lading. That is
added to our shipping costs, and the
Cubans do not have II in their sugar.
This years war profits tax will have
TO be deducted from next years earn
ing, and again the Cuban plantations
do not have that to meet.
Higher Next Year -
"But there will be other increased
costs. Freights are to go higher.
James A. Kennedy, of the shipping
board, has said that the government is
not getting for its freights on the Mat
son steamers what it pays to the Mat
son line and that it was to be expected
an increase to at least SO a ton would
be made.
"The American Hawaiian Company
was to have raised its rates and we are
led to believe the shipping board will
make rate on such vessels as ii may
furnish to at least $40 ton from here
to New York. Sugar is going to net
less than hundred dollars q ton in
San francisco and only about eighty
five dollars in New York on 500 cent
basis. From that must be deducted
costs of growing, cutting and grinding,
with all costs up, Where are the grow.
ers here to get off at such price with
all expenses. higher than they We're be.
fore the wari There are few that
can manufacture profitably. Talk of
500 cents pound being good price
for US under present conditions is far
from the fact. ... FIN vi.
"To get sugar in Louisiana to meet
the shortage in New York it was neces-
sary to pay $50 cents. am in hopes,
and 1 think IT is the fact, that the SUI
gar commission recognizes that with
added costs and taxes, first figures
named were, too low" .."" ..a
a