The Hawaiian gazette., 1918-05-03

Nearly all Of the sugar produced in
the Islands Is to be refined on the Paei-
Hc Coast and only smaTl amount will
20 to the Eastern, refineries, is the re-
port which was heard yesterday, While
il seemed to be authentic A. M. NOVEL;,
secretary and manager of the Sugar
FACTORS company has nothing TO say
on the subject at the present time. ~
can give out nothing on the subject, -
he said. a.
q Other sources said the matter of
Eastern shipments had been receiving
much consideration and, that the Sugar
Factors Company and the Pacific Coast
sugar commission had. been working
and, negotiating on the matter with
the. result that, only such sugar as the
Pacific Coast refneries cannot possibly
handle, worked to full capacity, will
20 to the Eastern refineFies.l II is
known that not all Of the Hawaiian
sugar could be handled on the Coast
with the present, facilities but the pur-
pose appears to be to reduce to a mini
mum shipments to the Atlantic Coast.
Third Of Crop . ,tt All ta.9 ...
Ordinarily something. more than a
third of the islands ontturn of raw
sugar goes to the Atlantic and that
would mean about 200, 700 tons of this
years crop. But ships are not avail
able and railroad transportation is con-
gested and is likely to continue, more
or less, in that state. .r "@-:
Transportation to the Atlantic Coast
has been subject much Swallowed, with
doubt since before the harvesting of the
present crop began. First it. was said
II. would 60 to the Coast, and thence
East by rail- This meant a large in
crease in freight costs. f. Next 1T was
reported. that most of it would go
through the canal in the new ships built
on the Pacific Coast hut this pianiwas
Abandoned which, would be materially
cheaper than rail transportation, and
!. ne new, STEAMERS went through direct
inter only a very few had, made the
trip here. Again the local growers
faced the: higher freight rate and. this
WINS further. increased by a granting
Of leave to add fifteen percent to the
old railroad freight rate.
x About the time that the question was
left Sup in the air" by the decision to
send new ships through the canal di-
rect instead of having them bring coal
and other supplies here and then load
with sugar, there was an article pub.
lished. in mainland papers and reprint
ed here to the effect that McAdoo had
arranged for freight transportation for
sugar. from Hawaii and wool from Aus
tralia. Now, apparently those plans, if
4 L.. I'm
Matter. Of Transportation
Thus the situation which has con-
fronted Hawaii has been an absence of
any shipping to carry raw sugar to the
Atlantic Coast refneries on the one
hand and q freight congestion with
rail transportation Of the Hawaiian
raw product from the Pacific to the
Atlantic slow and uncertain as well as
very costly. Something must be done
and it is reported the Sugar Factors
Company Is seeking relief though
whether the suggestion of practically
doing away with Eastern shipments Of
raws came from the Sugar Factors or
from the mainland has not been told.
One thing seems certain and that is
that the Eastern refners will not like
the proposed arrangement. They have
been elamoring for more sugar to meet
their engagements They had contracts
for the Hawaii Outturn about as they
usually have received it, but they could
not get il. When the shortage in the
East was acute and the sugar commit
tee Of the, food administration had
only recently been appointed the com
mittee was freely charged by the East,
efnSrehners with discrimination against
them and in favor of the Western re.
fineries.
May, Effect Saving
On the face of the proposed arrange
meRt il would appear to effect a large
savings in freight for the Island pro-
dncers for, even going by water to the
East, there was difference of more
than $40 q ton. If the Planters re-
ceiye the same price they are now re-
eeiving and all Of the outturn could be
handled by the Pdcific Coast refneries
there would be saving of between a
million and half and two millions of
dollars over the shipment of sugar to
the East il il went by water and more
than twice that amount by steamer to
the Coast and thence by rail.
Right, there comes the "if'. How
about distribution of the refined prod
net. ~ About three and half million
pounds of sugar would, ordinarily go to
the Eastern refneries and be distribu-
ted by them to Eastern points. The
supply must reach the East and if it
does not go as raw sugar 1t will have to
90, as, refined. Win the producers Of
the raw be asked to bear the cost Of
that transportation In other words,
will they receive a lower price at the
Pacific Coast refneries because a part
of the refined will have to be shipped
to Eastern pOintsi This seems quite
likely.
Much Remains Unknown
What the refneries can do by speed
ing up has not been announced but it
seems reasonably sure the arrange
ments will mean that the refining will
have to proceed along into next year 3