American Sugar Refining Company
Encyclopedia
The American Sugar Refining Company (ASR) was the largest American business unit in the sugar refining
industry in the early 1900s.
on January 10, 1891, with $50 million in capital. By 1907, it owned or controlled 98% of the sugar processing capacity in the United States and was known as the Sugar Trust. The United States Supreme Court declared in United States v. E. C. Knight Company that its purchase of the stock of competitors was not a combination in restraint of trade
. By 1901, the company had $90 million in capital. The company became known as Domino Sugar in 1900.
for about twenty years as new competitors arose; later it expanded vertically
, undertaking the production of cane sugar and raw sugar in Cuba
and acquiring lumber interests. The company was investigated by the Industrial Commission
in 1900 and by a special congressional committee
in 1911–1912. A federal suit for its dissolution begun in 1910 was terminated by consent decree
announced December 21, 1921, when it was stated that its effective control of refined sugar had dropped from 72% to 24%.
According to the Encyclopedia of New York City, "the struggle ended with a settlement in 1922 that allowed the firm to remain intact but forced it to refrain from unfair business practices, and as competition revived, the firm ceased to dominate the industry". After the Great Depression
, the sugar refining industry declined as alternatives to sugar and modern technology were introduced.
American Sugar Refining Company continued to dominate the sugar industry in the United States through most of the 20th Century. Its brands included the dominant Domino Sugar, Franklin Sugar, Sunny Cane Sugar, and its West Coast beet sugar operation under the Spreckles brand. It had major refineries in Bunker Hill, MA, Brooklyn, NY, Philadelphia, PA, Baltimore, Maryland, Chalmette, Louisiana
, and Salinas, California
.
to 1251 Avenue of the Americas (6th Avenue) (The Exxon Building) in mid-town Manhattan.
With investments in food-picking and handling machinery companies in the Midwestern United States
, the company faced a takeover by the British sugar company Tate & Lyle
in 1980. How long this lasted is uncertain since American Sugar is now part of another group.
In an ironic twist, the Domino brand name is currently associated with a company that also owns two of its former major competitors, C&H Sugar (California and Hawaii) and Jack Frost (National Sugar Company).
Sugar refinery
A sugar refinery is a factory which refines raw sugar.Many cane sugar mills produce raw sugar, i.e. sugar with more colour and therefore more impurities than the white sugar which is normally consumed in households and used as an ingredient in soft drinks, cookies and so forth...
industry in the early 1900s.
Establishment
The ASR was incorporated in the state of New JerseyNew Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
on January 10, 1891, with $50 million in capital. By 1907, it owned or controlled 98% of the sugar processing capacity in the United States and was known as the Sugar Trust. The United States Supreme Court declared in United States v. E. C. Knight Company that its purchase of the stock of competitors was not a combination in restraint of trade
Restraint of trade
Restraint of trade is a common law doctrine relating to the enforceability of contractual restrictions on freedom to conduct business. In an old leading case of Mitchell v Reynolds Lord Smith LC said,...
. By 1901, the company had $90 million in capital. The company became known as Domino Sugar in 1900.
Expansion
The combination expanded horizontallyHorizontal integration
In microeconomics and strategic management, the term horizontal integration describes a type of ownership and control. It is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets...
for about twenty years as new competitors arose; later it expanded vertically
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
, undertaking the production of cane sugar and raw sugar in Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
and acquiring lumber interests. The company was investigated by the Industrial Commission
Industrial Commission
The Industrial Commission was a United States government body in existence from 1898 to 1902. It was appointed by President William McKinley to investigate railroad pricing policy, industrial concentration, and the impact of immigration on labor markets, and make recommendations to the President...
in 1900 and by a special congressional committee
United States Congressional committee
A congressional committee is a legislative sub-organization in the United States Congress that handles a specific duty . Committee membership enables members to develop specialized knowledge of the matters under their jurisdiction...
in 1911–1912. A federal suit for its dissolution begun in 1910 was terminated by consent decree
Consent decree
A consent decree is a final, binding judicial decree or judgment memorializing a voluntary agreement between parties to a suit in return for withdrawal of a criminal charge or an end to a civil litigation...
announced December 21, 1921, when it was stated that its effective control of refined sugar had dropped from 72% to 24%.
According to the Encyclopedia of New York City, "the struggle ended with a settlement in 1922 that allowed the firm to remain intact but forced it to refrain from unfair business practices, and as competition revived, the firm ceased to dominate the industry". After the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, the sugar refining industry declined as alternatives to sugar and modern technology were introduced.
American Sugar Refining Company continued to dominate the sugar industry in the United States through most of the 20th Century. Its brands included the dominant Domino Sugar, Franklin Sugar, Sunny Cane Sugar, and its West Coast beet sugar operation under the Spreckles brand. It had major refineries in Bunker Hill, MA, Brooklyn, NY, Philadelphia, PA, Baltimore, Maryland, Chalmette, Louisiana
Chalmette, Louisiana
Chalmette is a census-designated place in and the parish seat of St. Bernard Parish, Louisiana, United States. The population was 32,069 at the 2000 census. It is part of the New Orleans–Metairie–Kenner Metropolitan Statistical Area...
, and Salinas, California
Salinas, California
Salinas is the county seat and the largest municipality of Monterey County, California. Salinas is located east-southeast of the mouth of the Salinas River, at an elevation of about 52 feet above sea level. The population was 150,441 at the 2010 census...
.
Name change and takeover
In the early 1970s, the company made major investments in high-fructose corn syrup production, and changed its name to Amstar Corporation (ASR). It moved its headquarters from 120 Wall StreetWall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
to 1251 Avenue of the Americas (6th Avenue) (The Exxon Building) in mid-town Manhattan.
With investments in food-picking and handling machinery companies in the Midwestern United States
Midwestern United States
The Midwestern United States is one of the four U.S. geographic regions defined by the United States Census Bureau, providing an official definition of the American Midwest....
, the company faced a takeover by the British sugar company Tate & Lyle
Tate & Lyle
Tate & Lyle plc is a British-based multinational agribusiness. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index as of 20 June 2011...
in 1980. How long this lasted is uncertain since American Sugar is now part of another group.
In an ironic twist, the Domino brand name is currently associated with a company that also owns two of its former major competitors, C&H Sugar (California and Hawaii) and Jack Frost (National Sugar Company).