Sugar Merger

Last year proved a profitable one for sugar producers, but not for refiners, who were hit hard in many instances by the wild fluctuations of raw sugar.

In industry, as in government, the old motto "In union there is strength" is popular and sometimes true. American Sugar Refining became interested in acquiring the National Sugar Refining Co. of New Jersey. Unfortunately, politicians had previously made a mare's nest out of the alleged "Sugar Trust," and by a decree in United States vs. American Sugar Refining Co., the matter of future merges of this company had taken on a political and legal aspect. Prior to 1911 American Sugar Refining had owned National Sugar Refining, but was compelled by the courts to dispose of its holdings. The two companies control about a third of the world's sugar refining facilities; a merger of the two would constitute the largest refining concern in the world. The question therefore boils down to whether such a merger would or would not be a "monopoly."

The avowed aim of the merger has been stated to be a more economical use of refining facilities, now about 50% in excess of what is needed. When Willet & Gray inquired Attorney General Stone's opinion, however, the latter official announced his opposition to the merger, on the basis that competitive conditions in the industry had not changed since 1922, when the decree was entered.