The San Francisco call., 1897-04-22
SPRECKELS
AND SEARLES
IN A DEAL
Part of the Watsonville
Factory Sold to the
Trust.
TO ENCOURAGE SUGAR
BEET GROWING.
Additional Big Establishments
to Be Erected in the
State.
ABRCGATION OFTHE AWAIIAN
TREATY FAVORED.
The Reciprocal Features of the Con.
vention Are Sail to Have
Disappeared.
ABRCGATION OF THE HAW AIIAN
TREATY FAVORED.
The Reciprocal Features of the Con.
vention Are Sail to Have
Disappeared

As the result of deal effected between
Claus Spreckels and John z. Searles,
secretary of the American Sugar Refineries
Company, during the latter's recent visit
to this City, the next year or two will see
a remarkable development in the beet
sugar industry in this State, an influx of
Eastern capital ana q reduction in the
price of sugar on the Pacific Coast and in
all that part of the United States west of
the Rocky Mountains.
During the sojourn of Mr.. Spreckels in
the East on his way to Europe TO study the
beet-sugar industry in Germany and other
countries of the Continent, he was ap-
preached by the leading men connected
with the great sugar trust with PROPOSE
ton to pool issues with that organization
and personally assume charge of the beet
sugar branch of the business in the United
States. The trust offered TO invest $l0,-
000,0 600 in the enterprise. Mr.. Spreckels,
however, declined the proposition.
But the Eastern people were not dis
couraged. They saw in Mr.. Spreckels'
energy and enterprise in encouraging the
raising of sugar beets in California and
the establishment of beet-sugar factories
in various parts of the State much more
SERIOUS mtHdCS 70 luelr interests LD an the
importation of free sugar from Hawaii.
Determined 10 do the best they could
under the circum stances, they sent Mr..
Sesrles, one of the shrewdest men con-
nected with the trust. TO this City 10 open
negotiations with Mr.. Spreckels. Mr..
Searles arrived here the latter part of
March. remained in this City about four
days, and then made an inspection of the
Spreckels beet-sugar factory. located at
Watsonville, and also paid visit TO the
site of the new sugar factory that Mr..
Spreckels is building in the Salinas Val
ley, near the town of Salinas, which Will
be the largest establishment of It's Kind in
the world when in full operation.
Meanwhile he had opened negotiations
with M. Spreckels for securing an interest
in the Watsonvile factory and was suc-
cessful to the extent OF purchasing about
a one-fifth interest.
Claus Spreckes, when interviewed yes
terday concerning the transaction, con-
frmed the facts relative to the deal as out
lined in the foregoing statement. He also
gave some additional information, which
shows that he had the welfare OF the State
in mind when consummating the arrange
ment.
by this transaction" he said, "the
trust did not, as you will perceive, secure
a controlling interest in the factory. That
IS still IN my hands, SO that we will always
be in position TO compete III the open
market. 1t is understood that the trust
will cooperate with me in the work of de-
Veloping the beet-sugar industry in this
State by the erection of number of fac
tories as fast as they are required. Their
establishment will depend, OF course, on
the rapidity of the growth of sugar-beet
plantations. 1t is also their intention TO
develop this industry throughout the
United States.
This will mean a large investment of
Eastern money N our State, the enhance
ment of land values wherever sugar beets
can be grown and the resulting prosperity
of the djacent and surrounding country.
1t has been repeatedly demonstrated that
the profits o. sugar beet growing are
larger per acre than for any other crop
that can be grown on the same land.
Mr.. Spreckels quoted figures from actual
results showing that where 225 acres
planted TO barley returned but $l2 75 per
acre profit the very same land in sugar
beets nettea $59 50 per acre. In another
instance about the same quantity of land
on an investment OF about $4,000, includ-
ing 81 per acre for rent, returned the
sugar-beet grower profit of over $1,000.
Another important outcome OF this
new arrangement" continued MIR. Spreck-
els, sis that the price OF sugar will be
equalized throughout the United States.
At the present time the price Is about q
half cent higher on the Pacific Coast than
it is in the East, and this induces many
large local consumers of sugar to go to
China Tor the.r supplies When all the
details OF the new deal are carried out the
prices on the coast will be reduced 10 what
the ruling figures are in the East"
There has been a great deal of talk of
your being opposed to the renewal of the
reciprocity treaty with Hawaii, by which
sugar is allowed to come in free from the
islands," remarked the interviewer
Il have large interests in the Hawaiian
I<lands," began Mr.. Spreckels. II am a
large owner in three sugar plantations.
Likewise l have good deal of prop erty