Democratic Sentinel, Volume 17, Number 12, Rensselaer, Jasper County, 7 April 1893 — SUGAR TRUST PROFITS. [ARTICLE]

SUGAR TRUST PROFITS.

THEY WARRANT AN INCREASE OF DIVIDENDS. ffhe Earnings on the Actual Capital of the American Sugar Ur (In pry Company Amount to About SO Per Cent.—Unholy Protection. Profits Are Enormous. Willett & Gray’s Sugar Trade Journal says: “At a meeting of the board of directors of the American Sugar Refining Company, held March 7, tho following were unanimously adopted; “Whkreaß, The earnings of the company during the past quarter warrant an Increase of dividend on the common stock; and “Whereas, Since the annual report of the treasurer to stockholders on Dec. 1, 1892, received from the corporations whose stock is held by this company (for the year ending March 1, 1898), render unnecessary for working capital tho further retention of the surplus earnings of 1891 and 1892, as shown by the annual report: “Resolved, That there bo paid a quarterly dividend of 3 per cent, on the common stock, and in addition there be paid an extra dividend of 10 per cent, on the common stock from the surplus earnings of 1891 and 1892, and that a dividend of 13} per cent, be paid on that portion of the preferred, stock of the company which is entitled to quarterly dividends. all tho above dividends being payablo on April 2 to stockholders of record March 13, when tho tranfer books will be closed, to reopen on April 2.” In addition to tho above resolution, the statement is authorized that the company, on March 1, after providing for all these dividends, has a surplus of net earnings of 85,000,000 in the treasury. Notwithstanding that more than one-half of tho $75,000,000 stock (one-half common and one-half preferred) is water, yet the holders of common stock certificates will receive on April 2 a dividend of 13 per cent, with the promise of 9 per cent, more before the close of the year, besides a share In the surplus enrnings (already $5,000,0001 tint can, ijnd may, Increase the dividends 15 or 20 per cent. more. Deducting that part of the profits.made In 1891, it Isovldent that this giant trust cleared, In 1892, after investing tens of millions of dollars in reflfierics and properties, at throe times their actual value, about $15,000,000, equal to about 33 per cent, on the common and 7 per cent, on the preferred stock, or 20 per cent on tho whole stock. Taking out the water, tho earnings on the actual capital appear to be about 40 per cent. Rut common stock which gets tho greater part of tho profits is earning about 06 per cent, on the actual capital back of It. The holders of original trust certificates can step Into the office at tho end of each year and draw out two-thirds as much as they put In, without diminishing the original investment. Isn't It splendid? and all because McKinley gave the trust free raw sugar and a duty of £ cent per pound on refined sugar. As the trust refine* over 3,000,000,000 pounds per year and collects the full half cent on every pound from the American people, this duty Is worth over $15,000,000 a yoar to It. This was an entire gratuity from McKinley. Big refiners have stated under oath that sugar can be refined as cheaply here as anywhere. The cost of refining Is about £ cent per pound. During 1892 granulated sugar sold for about 1J cents more per pound khan raw (96 per cent, centrifugal). If this Is not legalized robbery, by what term shall it lie known? It Is no wonder that McKinley finds hosts of friends In and out of the Home Market Club who are ready to. contribute a few thousand dollars to help him out of his present financial difficulty. They could afford to buy Central Park, build a magnificent palace In it, and donate it all to their tariff benefactor. If McKinley had made a bargain with, the manufacturers (like the Hawaiian sugar oarons have done in regard to sugar bounties with the Hawaiian planters) that he should receive one-half of all of the protection monopoly profits made under his bill, he would now be the wealthiest man in the world and would be the first billionaire. It was a shame that he neglected the people and made his bill In the Interests of trusts; it will be scandalous if he now accepts financial assistance from any manufacturer or representative of a monopoly benefited by his tariff bill.