The Indianapolis journal., 1901-12-22
BEET-SUGAR PROFITS.
Oxnard and Cutting Declared in 1899
that Protection Was Not Needed.

New York Evening Post
The Evening Post herewith presents, as
bearing on the current claims of certain
beet-sugar producers for high protection
against Cuban cane-sugar, letter writ
ten and issued in 1899 by Bayard Cutting
and Henry T. Oxnard. directors of the
American Beet-sugar Company.
I'm 1899 the possibilities of the beet-sugar
industry in the United States first recon-
mended themselves to the MessrS. Oxnard
and Cutting, and determined them to in
vest in it's development. 1t commended
itself to them not only on account of its
probable profit and its introduction of a
new manufacturing industry of great mag
nitude, but very largely because it seemed
to provide that which the country sorely
needed-a new agricultural industry of
large possible benefit to the farmer. suf-
fering from overproduction and unprofit-
able prices for his cereals. 1t is possible
that had the pioneers in the industry fore
seen the time, care and labor attendant
upon the development of the enterprise,
they might have withdrawn-and yet they
are able TO assert to-day without reserve,
that both from the manufacturing and ag-
ricultural side, the industry has succeeded
beyond any of their original calculations or
any business in the country, and, If the
clearest signs do not fail the anticipations
or a new agricultural outlet of vast possi-
bilities and secure returns will be more
than realized.
The troubles of the promoters have been
due largely TO agraTian causes. The unwill-
ingness of the Northwestern farmer to
adopt new agricultural methods, his dislike
OF learning from experts, and, above all,
his distrust of anything like capital,
made his education well-nigh hopeless. To
the normal obstacles were added the ram
pant Populism in Nebraska Cresulting in
the repudiation of the States obligations TO
the sugar manufacturers), and the condi-
tions were not encouraging. All this how
ever, has been overcome. Gradually the
mutually of interest Of the manufacturers
and the growers has been realized. Slowly
the motives of the beet-growers-so long
perversely misrepresented and miSunder-
stOOd-have been seen by the farmers to
be fair, and at last good FEELING prevails
and the farmer is eager-rather than re-
luctant-to supply the raw material. Not
a year since its inception has the manu-
featuring side of the project failed to show
a profit, but the enormous outlay on the
educational and agricultural side, and the
expensive alterations and additions to
plant necessary to meet unforeseen condi-
tlons and TO perfect the machinery so as
to keep ii in the front rank of similar
enterprises combined to make the first few
years Of operation costly.
FEATURES OF THE INDUSTRY.
This is the experience, however, that
gives wisdom and it may be said now, in
a general way. first, that the supply of
raw material is assured beyond any doubt
and. second. that the world contains to-day
| Git is believed more perfect factories
than those owned by the Oxnards and Cut
tings. AS TO the first point it must be borne
in mind that the farmer takes the mini
mum OF risk, his crop being all sold in ad-
vance by written contract at a fixed price,
and that his gross return is from $40 to 500
per acre normal price, with Occa-
siOnal cases running up 10 SlOO a full sup
ply is assured for 1893 in Nebraska, while
the difficulty in California seems TO be to
select from the large acreage offered while
doing justice TO all applicants.
Perhaps it may be well 10 draw atten-
ton to one or two features of the industry.
Il. Its product is a staple of universal
consumption and of the readiest sale
''2. The product is a finished article, the
sugar being turned out refined and granu-
lated, the manufacturer not being depend
ent upon the refiners' trust for his market
%. Competition by home production is
so remote as 10 be scarcely worth consid-
Grafton The United States is now com
PEELED to import three-quarters of its con-
sumption. and il would take at least 800
factories Of a daily capacity of 500 tons of
beets to produce present importation.
Regarding the future development and
permanency OF the beet-sugar industry in
the United States. there can be absolutely
no doubt for the following reasons:
81 OF the tropical countries which Il
is proposed 10 annex TO the United States
Porto Rico is too small TO cut any figure