Los Angeles herald., 1891-09-30
THE SUGAR PROBLEM
How to Beat Beet Sugar
Makers.
Some Novel Points About the
Industry.
How the Farmers Could Touch the
Profits.
a Contractor who Advances Some In
dgstry Facts-His Theory About
the Part the Farmers
Should Play.

gHan who has carefully investigated the
subject, and whose views are entitled TO
.onsideration.-ED HERALD.
The farmers and their alliances and
oranges and associations and newspaper
advocates seem to never tire of COM
Dlaining about the middlemen who
stand between the producer and the
consumer, who continually depress the
markets and deceive the poor farmer
aatil they have bought his products for
less than actual worth, and then make
the consumer pay double price for them,
she middlemen who do no work and
vet make all the money.
But does the farmer deserve any sym
u&thy? Who ever heard of a neighbor-
hood of farmers Joining to build a flour
mill, or to engage in any other manu-
kacturing or industrial enterprise by
which to place their products in such
condition that they would sell for the
most money and yield the greatest re-
turns.
Whether or not such like enterprises
as have been undertaken in the
mast have been successful or
otherwise, or whether it is abb
solutely essential that there should
3e some middle man or agency between
the producer and the dealer, are ques-
tions OF too broad limits for discussion
here. I have my own opinion. 1t is
only an opinion and as such is only
worth its current value, and as the pub
Tic and myself would probably not
agree as to what this value is, it would
seem useless to offer it in open market
at this time.
have given this beet sugar matter
some thought and consideration. am
mot an expert and admit that the basis
Of ray conclusions may be faulty. Ii
so, my conclusions must be wrong also.
But if l am any where near right; if
mly estimates and results are not more
than double what they should be, to be
correct, even then there is practicable
opportunity for the farmers to combine
and do away with the middle man and
get about 400 per cent. more for their
sleets than they are getting now. Idon't
see how there could be any failure, and
5f nay figures are not wholly wrong.
there should be, and will be ten beet
augar factories at some early date where
there is one now. Thanks to the Chino
sseople, they have relieved the enter
prise of its only question OF doubt by
demonstrating that beets can be grown
containing high percentage of sacchar-
inc matter
As basis for my figures take as cor
Eect the daily output OF granulated
sugar, as given by the press, i. e., 10000
ESsaa2ds.
If beets average IA per cent. sugar
land they say they do) thev make $50
pounds to the ton.
Two hundred and eighty pounds OF
sugar at SIC per pound is $3.50, add
abe government bounty oil &c per pound,
$500, and we have a gross total of $2I
per ton.
One cent per pound for cost of manu-
4zcture would be 5000 per day, and
would alsobe $3.50 per ton, and this
4&ken from the $21 per ton, gross, would
Leave net profit OF $3.50 per ton.
Now, if their daily output is &C, 900
pounds, it requires l7S tons of IA per
cent. beets to make it; and if their net
profit per ton is $500, their net profit
per day would be 178 times $500, or
$3.50 80, and per month of thirty days,
$97, 1888, or for six months (the time
they say they can run) $592, ,128.
Assuming that l have neglected to
make sufficient allowances for running
expenses and incidentals, l throw off
the $50, ,12S, and make the profit for the
six months even money, $500, 900, and
will use this as a basis for further esti-
mates.
Bnt before leaving this branch of the
subject, let US make another allowance.
The government bounty of two cents
per pound is to continue for only three
years, it is therefore unfair to consider
At when figuring on the enterprise as a
permanent investment. Hence, l de-
ducs 1t from the above figures, and it
leaves the daily profit $2039.60, the
nmonthly profit $61.1S8, and for the six
months $367, ,15S.
Hf the plant (and l use the word eff %
to imply doubt cost $500,000, it would
sS&ve made 75.42 per cent on the invest
uaent, without any bounty. With the
saGxnty, the investment would double
itself the first year.
So much for the enterprise as an in
yscstment. Now let US look at it from
the standpoint of practical undertak-
ing for a community of individuals or
producers. A fair proportion of the
cash necessary for the building and
Eanchinery would be prerequisite.
When this was paid in, the remainder
necessary could be borrowed at fair
rate OF interest. Competent men to
&oy, erect and run the machinery have
f0eem obtained by others, and, no doubt,
tsould be secured again. Some business
ability and experience would be a requi-
SIZE, and could be had at its market
value. With the factory in operation
and doing as well as the Chino works,
che producers interested in it would be
NeoeiVing either in actual price, or in
price and interest in their investment
GS15. 40 less 81. .S0) $3.50 per ton for their
I1eets, without any bounty or, with the
EDOnnty, $500 per ton, instead of $3.50
ger ton as they now do. Each individ-
Iral producer can figure for himself how
zs9ch the difference to him per acre this
would be.
In the above estimates am assuming
Chat sugar will remain at 516 cents per
wOmnd. This is not fair; it probably
will not do so. But it will hardly 90
below AZ out here. But using AZ
cents as basis, and ignoring any gov
ernment bounty, we still have $3.50
per ton net for the beets, or profit Of
$RS44 on O days run (178 tons) of beets.
Ef the farmers want a chance to show
what they can do, | don't know when
e5rey will every have better one than
ehiS presents. | don't see how with
xprOper management they can lose any
money. II any of those interested want