The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-09-11
BEET SUGAR MEN PROTEST,
Seeking Their Redress from the
Government.
PROTEST AGAINST TIE TARIFF LAW.
Legal Measures to he Taken to Enforce
the Bounty Act Millions Involved
Beet Sugar Factories in Nebraska
Threatened With Utter AnnihiIation.

SAN FRANCISCO, August 31.-The
passage of the tariff bill promises to
interfere considerably with the pro-
duction of beet sugar in California:
On last Tuesday word was received
from the Secretary of the Treasury by
Internal Revenue Collector Welburn
to recall the inspectors stationed at
the various beet sugar manufactures.
This means that the bounty of 2 cents
pound on beet sugar has ceased, as
the Wilson bill intended that it
should, but the manufacturers of beet
sugar do not propose TO surrender
without a fight, and the United states
will find itself with big legal fight
on it's hands, or Congress will be
asked to remunerate the sugar men
for the money the latter will lose by
the operation of the Wilson law. There
are six beet-sugar manufactures in
the United States-one in Lehigh,
Utah, one in Norfolk, one in Grand
Island, Neb., and three in California.
The three companies in this State
have engaged legal advice, and Col.
lector Welburn, yesterday, received
three protests against the removal OF
the inspectors.
The three companies in California
are the Western Sugar Refinery, OF
which J. d. Spreckels and brother are
at the head; the Alameda Sugar Conn
pany, of which John l.. Howard is
president, and the Chino Valley Beet
Sugar Company, which is controlled
by the Oxnard Brothers. Between the
three companies there is invested over
1000, 900. The Alameda company
is the only one of the trio which turns
| out refined sugar, the other companies
shipping their raw sugar to this city
| to be refined. The bounty on refined
sugar was cents a pound, and on the
raw material, over 50 and under ~ per
cent. II cents pound.
1t was stated yesterday by several
sugar men that the protest was merely
| the commencement of proceedings
| against the Government, and that 1T
| meant much to California. Collector
| Welburn said that his action in the
| matter would end with the forward
| ing of the protest of the sugar men to
| the Commissioner of Internal Revenue
at Washington.
"The sugar men," said the Collector,
"think that they have contract with
| the Government which is binding on
the latter, and it does seem that they
had some foundation to their case.
Licenses have been issued by the Gov
| ernment for them to operate for a
wear, and they are just about to start
in grinding beets. On the other hand
| it is maintained that the action o
Congress annulled such contract
1t issued the licenses as they were
called for, because at the time the
bounty law was still In force"
John d. Spreckels, who is at the
head of the Western Sugar Refinery
said that the Government must bt
held responsible for its acts just as 6
private individual. 1.-The law was
passed in 1907 he said, "encourag
ing the production of beet sugar by
giving a bounty of per cent pounc
on the output. This was garantee
from the Government, and undel
such guarantee we went ahead Will
the business, putting up an expensive
plant al Watsonville. In addition tt
this we had to run railroad from
Watsonville to Salinas. We have in
vested altogether naarly $1,OOO,0OO
and have only been in operation three
wears, As early as last February We
had to make our contracts with the
farmers for beets, knowing nothing o
the coming legislation Last year ouI
output was 7770 tons, and this yea
we expect to produce between 1l,0O'
and $1,000 tons. We are licensed u
produce beet sugar at . cents pounC
duty, yet the Government steps ii
| now ana says IudI We arc iiOI w iC
ceive that bounty, and it has removed
its INSPECTORS, who were to keep tract
of the output. Our first step Is to tr.
and have those inspectors returned.
: 'tIf this is not done we will TAX
D legal proceedings. Just how the lat
ter will be conducted we do not eX
actIy know. We may be allowed t
= enter suit against the United State
in the Court of Claims, or it may b.
] necessary to enact special Legislation
in Congress"
Another beet-sugar man said tha
the passage of the Wilson bill tende
to destroy one of the greatest grow
. ing industries of California. eff the.
had done as they started to do a
first" said he, "that is, to remove tn
bounty by degrees, one-quarter of
: cent a year for eight years, thel
7 would have been no complaint. A
u the end of eight years the entii
bounty would have been done ava
b with. At the end of that time, to-
the manufacture OF beet sugar woul
, be flourishing as one of the create
industries of the State. We will Q
: right on with the work, however, fC
u our contracts for beets have a
been made, and the grinding
: now about to commence.
r, think that the passage of IL