Business & Finance: Sugar & Spreckels

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He became first brewer, then sugar refiner. Then, as now, American Sugar Refining Co. was the chief unit in the industry. Father Claus drew a line around the Pacific Coast territory, told the sugar trust that the coast belonged to Spreckels. When the enemy ventured across the line, Father Claus decided on an object lesson. He invaded the East, built the world's largest sugar refinery at Philadelphia, brought the trust to terms, sold the refinery for $7,000,000. American Sugar Refining Co. stayed away from the Pacific coast.

Father Claus took a boat and went to Hawaii. King Kalakaua borrowed some $750,000 from the sugar tycoon, and in return, gave him a title and exclusive rights to raise sugar in Hawaii. Then they fought over an issue of debased coinage. Kalakaua let the sugar trust into Hawaii. Father Claus ceremoniously returned his medals and his title.

Mother Spreckels proved to be prolific. Of the many children, Rudolph was the 11th or 12th. He is unable to recall which. He does remember, however, that he was an asthmatic child, too delicate to go to school regularly, whose one ambition was to be a millionaire in his own right. At the age of 17, he began to realize his ambition.

His first business training was with Brother Gus (Claus August) in the Philadelphia refinery. For his second effort, he and Brother Gus went into business on their own account. They bought, from Father Claus, one of the Hawaiian plantations which they had remade into an efficient enterprise. Suddenly Father Claus cut off all money for further development. The family row shook the banks of San Francisco, but at length they found the money. When Son Rudolph was 26, he sold the plantation and prepared to retire. He had gratified his ambition. He was then a millionaire.

But Son Rudolph did not retire. What held him back was another battle, again with his father. Father Claus, standing at his open window had sneezed, once, twice, three times. To the gas company whose plant was pouring smoke over San Francisco Father Claus sent a vigorous protest. He started a gas company of his own, deliberately set out to drive the San Francisco Gas Co. to the rocks. But Son Rudolph, on the verge of retirement, was a stockholder in the besieged company. When the stock fell, he gained control, cut out $300,000 waste, whipped Father Claus a second time. Said Father Claus: "No other man has beaten me once."

Son Rudolph never did retire. In 1906 he turned crusader, organized and financed the war against graft in the state and city government. He promised to go on to New York, Chicago, Denver. Bitter were the attacks on his sincerity, his aims. His wife and family were insulted on the street. Son Rudolph replied that he had never voted and vowed he would never hold office. This promise he has kept. He has not yet carried the battle to the East. But he is only 56.

Brother Gus, who is chairman of the board of the Federal Sugar Refining Co. (N. Y.) calls himself a sugar refiner. Brother Rudolph, who is president, calls himself "civic reformer," "banker."

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