The first sugar refinery in New York City was opened on Liberty Street in 1730 by Nicholas Bayard. Most raw
sugar was imported to the colonies from overseas and the city was soon a center of sugar refining largely
because of the port and the high local demand for sugar. The industry attracted such prominent families as the
Livingstons, the Bayards, the Cuylers, the Roosevelts, the Stewarts, and the Van Cortlandts.
In 1857 William Havemeyer and Fredrick C. Havemeyer formed Havemeyer, Townsend and Company on South
3rd Street in Williamsburg, where undeveloped land, a deep-water harbor, and abundant cheap labor soon
attracted other refineries. After the sugar industry in the Gulf states was destroyed during the Civil War, sugar
refining became concentrated in the city where the port had become the largest in the country, the transportation
system was extensive and banks were numerous. Sugar refining was the city's most profitable manufacturing
industry from 1870 until the First World War; 59 percent of the country's imported raw sugar was processed there
in 1872 and 68 percent by 1887.
Because of Intense competition refineries in the city tried to fix prices in 1882. Their failure to do so led Henry o.
Havemeyer in 1887 to form the Sugar Refineries Company (known as the Sugar Trust) to control the price of
sugar and the labor pool. The trust consolidated most of the major refineries in Brooklyn. After being ruled
illegal in 1891 by the state supreme court the trust was reorganized by Havemeyer, who incorporated the
American Sugar Refining Company in New Jersey and retained headquarters in the City on Wall Street. In 1900
Havemeyer eliminated the little remaining competition in the region by consolidating the surviving refineries in the
city into the National Sugar Refining Company of New Jersey. The American Sugar Company engaged in a
protracted legal battle with the federal government over its control of the trust during which its share of the cane
market fell from 53 to 32 percent.
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
Depression, the sugar refining industry declined in the city as alternatives to sugar and modern technology were
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