The state herald., 1902-03-28
corlINd SUGAR wAR
NOW SEEMS TO BE PROBABLE

lulS ulOTIllIS says.
The independent beet shsar manu-
facturers in Colorado regard with
alarm the incuIsion of the American
Sugar Refining Company into the most
productive fields in the West Warn
Ing received some time ago has become
a reality, which, they fear, will result
in the decentralization of local mar
kets in a competition aimed to drive
the Independent producers from the
field.
The announcement in the Republi-
can yesterday of the operations in Col
orado of Henry Ernst Niese, superin-
tendent of construction and refineries
of the American Sugar Refining Com
pany, was taken by beet sugar men us
a confirmation of their worst fears.
They do not hesitate In saying that the
sugar syndicate has begun vigorous
compaign not only in this state, but
throughout the West. A short time ago
the American company secured n half
interest in the Utah factories for ST.
100000. Colorado Is now on the list,
but as S6,OO0,0OO Is n conservative es.
innate of the value of the plants the
trust is preparing TO fight, 1t stands to
reason that the Havemcyer interests
will not buy here. II will he cheaper
to build two factories costing $1,000
900 and then lose S2O0.0oO or $500, 900
in demoralizing the morket.
The six factories which the syndi-
cate will aim 80 close. or absorb
whichever way Is cheapest 10 remove
competition are:
The OXnard plant at Rocky Ford.
The Loveland factory.
The Grand Junction plant.
The Sugar City factory.
The Greeley factory, nearing compile
ton.
The Eaton factory, nearing compile
tion.
There has been no proffer of any kind
made for the Loveland plant, and so
far as is known. no proffers have been
made for the others. One of the heav-
lest investors in the Colorado field said:
"The manner in which Mr. Niese act
ed while here is In line with the policy
that will mark the course of the sugar
syndicate in the fight He shrewdly
went ahead and laid all plans for
successful campaign. Had we had but
an inkling Of what was going on We
might have caused trouble. or, in some
way. delayed the game; but he was
anxious that no warning should be
given"
''Six million dollars would not he
exorbltant. in any sense. for the five
plants. exclusive of the ONnard Arkan-
sas valley interests. but the syndicate
viii not buy. We feared that this
would come, even before the Cuban
tarin question came up In Washington,
but We had no idea II would come
from such a source. The syndicate un-
doubtedly will build the two factories
for which companies have been incor-
porated-the Longmont Beet Sugar
Company, capitalized n, 100000, and
the Fort Collins Sugar Company, cap
italized for the same amount. Both
pants could afford To lose 100000 or
100000 for three or four years and
not feel Ito the syndicate 1t would
be but drop In the bucket.
There Is no doubt that the syndi-
cate viii sell beet sugar so cheap that
IL will break up the market ana II Will
he only question Of time before the
other factories are ruined. None OF us
could afford TO lose 100000 year:
we cannot face the prospec, of steady
loss.
The syndicate may run the facto-
rles only long enough for the success.
ful elimination OF their purpose, or
they may continue the manufacture OF
beet sugar enjoying an unluestioncd
monopoly. Its plan is 10 abolish all
competition by underselllng.
"A, Longmont the announcement
has been made 10 the farmers aud the
people generally that the factory VIII
be built this year. aud contracts for
beets, | understand. are now being
made by local representatives of the
trust plant. AT Fort Collins II has
been given out that building VIII be-
GIN within the next sixty days, hut
doubt II the factories can he ready for
operation before next years crop is
ready.
AT 10 the Pennoyer factory. that
VIII no, be built before iNri-if. In the
light OF these developments the pro.
moiers carry out their plans-and the
loveland factory has already contract.
ed for beets from the Fort Collins
farmers. The syndicate Will have Its
factory built before the pennoyer pco
pie can close all their contracts, now
In process of negotiation"
II was stated yesterday That W. G
Pennoycr Of Michigan aud his asso
clnics would come To Colorado TO look
Into the situation personally, and viii
then determine upon their future pol
ley.
Mr. Nlesc's actions at Fort Collins.
around lyoyclnnd. ni Greeley, Eaton,
BOULDER and the other bcei.growlng
districts visited hy him hayc but one
construction 10 the minds OF lndcpcn.
dent beet sugar manufacturers. The
syndicate VIII uutbid the independent
buyer for beei- uniil the latter cannot
buy with profit Tnr farmer will
make money aud bccts mny go sky.
hlrh In price NJ long Ms independent
plants rcmnln IN the field.
The syndicate. II IL said, viii buy
land outright from the beet rniscrs
where Il cnn. The i.ovclnnd nnd other
factories have. In many Instances
ibfcc-ycnf coulrncis with the farmers,
hut " the lnnd of III. latter IL pur.
chased. the contracts, OF course. viii
not hold.
A meeting " the independent mann
fnctnrcrH win he held Ia formnlni,
plans IN regard 10 future notion. A,
soon ~ matters -hnp. themselves. nnd
" The opportunity presents. mn appeal
niny bc made 10 III" United States cir
cult Court by the colorado men foi
protection iiui this II ~ yet only d
probability.