Evening star., 1927-03-25
EAST-WEST SUGAR
PRICE WAR SEEN
Restriction of Cuban Crop
Has Given Coast Refiners
an Entering Wedge.
BY !. G. ROYLE.

Special Dispatch to The Star.
NEW YORK, March 25,-Battle
has been Joined in the sugar indus
try. In consequence many author
tiles foresee a price struggle which
may affect the price of this baslc
commodity in nearly every section.
The California and Hawaiian
sugar refining company has coun-
tered the first skirmishes of the
wedge into the Midwest territory.
This company, with a record
breaking crop of Hawaiian cane
behind 1t, has opened a sales office
in New Orleans and is preparing to
invade the markets of the Middle
West and especially those of the
Mississippi Valley by means of ship
ments from the Pacific Coast to New
Orleans via the Panama Canal. From
New Orleans the sugar will be dis
tributed throughout the Midwestern
country by Federal barge line trans
portation. This move is believed to
have been an answer to price cut
ting in the Midwest by Eastern and
Louisiana refiners.
Traced to Restriction.
The first move of the West Coast
men was to offer refined at 500 q
pound at Memphis, when Eastern re-
finers were quoting 6.25. This was
followed by an offer in New Orleans
Of 5.95 by the California Hawaiian
Co. This company now Is believed
to have 245.O0O pockets of sugar in
transit to New Orleans, of which
about 10000 are expected this week.
Many experts trace this situation
directly back to the government re-
strfction of production in Cuba. The
Louisiana crop, which is normally
counted on to supply the Mississippi
Valley territory. has been reduced
from 100000 to 10000 tons. This
makes Louisiana refiners practically
dependent on the Cuban raws. The
Cuban output has been ordered held
to 100000 tons, although it is esti-
mated the Cuban cane crop might be
made to yield at least 100000 tons
more. Some Cuban producers, such
an the Hershey Chocolate Co, which
owns and operate planta tons and a
refinery In Cuba, have been shipping
refined direct to New Orleans for dis
tr1bution to st. Louis and Midwestern
territory by water in the name of the
Chocolate Sales Co. or the Meinrath
Brokerage Co. of Chicago. It is un-
derstood the Hershey interests also
VIII open New Orleans sales Office.
Other Refiners to Act.
The California Hawaiian Co. is not
alone In its move. Other Western re-
nnerS are preparing to take similar
steps This is not entirely a new de-
velopment, but 1t is being worked on
q broader basis than in previous
years.
Some Of the Pacific Coast sugar men
say that this has been a measure of
sek-protection, since at least one At.
Iantic Coast company is shipping re-
nneo via Panama to Pacific markets.
Several shipments already have ar
rived and 1000 tons are now in tran.
sit. Moreover. contract for shipment
or 100000 bags of refined sugar has
been closed with the steamers of the
Munson Mccormick Lines of PhiladeI.
phia for Pacific Coast ports. The first
cargo OF $500 tons will leave by
the steamer Ipswich March 20. This
Is one OF the largest single orders
placed in Philadelphia for sugar to be
sent to the Pacific in the history Of the
port.
The Western sugar men saw com.
petition now is keener than ever be.
fore and intimate that if Atlantic re.
nnerS do not watch their step they
viii find Western refined dumped not
only into the Midwest, but into At.
lantic Coast markets. OF course, the
competition is sure to be strongest
In those sections which can be most
readily and cheaply reached by water
freight. II all had to depend on rail.
roads to reach the interior. Eastern,
Southern and Western refiners ali
would have to be content to serve
their own natural territories. But with
the Panama Canal and the Mississippi
onering cheap transit, few can say
where the competition will stop.