The Indianapolis journal., 1901-12-22

-AN~~oSGAAS
sugar business sufficiently rapid 70 give
any concern TO those interested in the pro-
duction of sugar from beets in this country
Tor the next twenty-five years TO come.
% The island OF Cuba is so situated
that its sugar industry can rapidly recover
the ground lost during the insurrection,
provided that the labor question there can
be satisfactorily settled. There is, how
ever, no fear that Cuban production. even
under an annexation 10 the United states,
can In our day expand to the point where
the United States would become exporters
Of sugar instead Of importers, and hence
that protection would no longer protect.
CHEAPER THAN EUROPE.
49, Greater than all the above assur-
ances Of the permanence Of the sugar in
dustry in this country is the fact that su-
gar can be produced cheaper here than IL
can be in Europe. The sugar industry is
after all merely an agricultural one. We
can undersell Europe in the production of
all other crops, and sugar is no exception.
The sugar consumed in the civilized world
consists of three million tons Of cane-sugar
grown in the tropics. and five million tons
of beet-sugar grown on the continent of
Europe. Therefore, in considering any
given sugar enterprise, If il can meet and
overcome the competition of sugar on the
continent of Europe, it is perfectly safe to
say that it has a permanent future.
II. In addition 10 all the above, the
main fact is TO find out what the condi-
tions would be under free trade in this
country. This was tested practically by
admitting the raw sugars Of the world free
to compete with us in the period from 1881
TO 1894. During these three years, the duty
was entirely removed from raw sugars
coming from foreign countries. and In place
Of this duty a bounty of cents per pound
was given to the home producers, which
was paid out of the national treasury,
until the Mckinley law of 1890 was re-
pealed, and in its place the Wilson tariff
bill was substituted on the 18th of August,
1894
during the years 1891, 1892, and 1888, taken
from Willett & Gray's Journal, which is
the recognized authority in the sugar
world, are as follows:
1891. .4O4l cents 10
1892. .........................434 4346 cents 10.
1898. .........................4S40 cents ID.
The average price of sugar in 1890. before
the duty was removed, was eli cents per
pound Taking the lowest year, say 1871 IL
is found that sugar sold at an average price
during that year of cents pound. This
was under free trade, admitting all the
raw sugars of the world to our markets
duty free. Therefore, II the lowest price
CA cents) be taken as an average II VIII
give a guide to go by in the event that we
ever again return to absolute free trade.
During 1898 the Chino factory produced zoo
pounds of granulated sugar per ton. and
the Norfolk $50 pounds per ton. In the
new factory at Hueneme a production OF
about 270 pounds is anticipated. However,
let us take the average at $50 pounds, which
is the product of one ton Of beets manu-
factured into granulated sugar. If we null
tiply this figure by four it gives us $40 as
the net result from given ton of beets
manufactured into granulated sugar at
free-trade prices.
THREE DOLLARS A TON PROFIT.
There is a seven years contract in our
new factory at Hueneme paying 81 as an
average price for beets. If we add to this
the cost of manufacturing these beets into
sugar, we will find that 50 would cover
every expense. Our figures, based av-
erages in our factories located in California
and Nebraska, show that $3.50 per ton COW
ers the actual expenses of manufacturing
sugar, and in the new factory, which is
three times as large as the Chino factory,
we expect to reduce the cost below 81; but,
for the sake of conservatism, we will place
the figures at 50.
Beets ......................... per ton
Expense of working beets into su-
gar Observation-Disclosures.
Total ........................... per ton
Amount realized from the sale Of
the product at four cents per
pound ...................'....''.
1.-THE factories are capable Of manufacture
ing at least $4,000 tons of beets into sugar
per annum; 100000 multiplied by s. would
give $1,050O00 CthiS at cents per pound;
at cents per pound, % per cent. less,
$3.50, ,O00), as the income to be derived under
absolute free trade, should the price OF
sugar be at the lowest price prevailing
during the years when all duty was re-
moved from raw sugar.
1.-THE annexation of the Hawaiian islands
If anything, is more advantageous to the
home producer than the treaty conditions
of free sugar produced by contract coo1e
labor. Now, they must manufacture sugar
under the labor and tariff laws of the
United States, instead of under the coolie-
labor system. 1t is fact that the total
consumption of sugar in the United States
doubles every fifteen years. The consump-
tiOn in 1882 was 1,O6l,22O tons, whereas In
| 1897 the consumption was 2,096 263 tons
States, including Hawaiian islands, is only
100000 tons. The annual increase in con-
sumption is about 100000 TONS which is
the average production of cane and beet
sugar in the United States proper to-day.
HOME COMPETITION NOT FEARED.
From the above, it will be seen that
| there is absolutely no fear of competition
! from internal sources for the next quarter
of a century, at least 1t is difficult with.
out an appearance of egotsm, to suggest
| that the experience of the Messrs. Oxnarc
and Cutting, covering over eight years oil
labor under varying conditions of location
and environment, has given them peculiar
| advantages. Experience in the actual max.
| ing of sugar from the beet is a small part
| of the knowledge required to engage sue
| cessfully in the business. The location of g
| factory, the securing of the raw material
| the negotiation with the farmers-these and
| other details not to be foreseen by any in.
| experienced person, however intelligent oil
| capable-can only be learned by the expe-
| rience of actual operation. The knowledge
OF what to avoid is important as that OF
what to provide, and thus early in the in
| dustry has been presented the spectacle o1
| two factories, under different ownerships
| drawing from similar localities and erected
| under similar conditions showing balances
on different sides Of their income account
| for the same year.
THE following statement of the results
| of the campaign of 1898 is submitted:
g aggIygI