Gilpin observer., 1902-03-27

throughout the West. A short time ago
the American company secured n half
interest in the Utah factories for ST.
100000. Colorado rs now on the list,
but as $6,0OO,OO0 Is n conservative es-
Innate of the value of the plants the
trust is preparing to fight, it stands to
reason that the Havemeyer interests
will not buy here. 1t will be cheaper
to build two factories costing $1,000
600 and then lose $2OO,O00 or $500, 900
In demoralizing the morket.
The six factories which the syndi-
cate will aim TO close, or absorb
whichever way Is cheapest to 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
ton.
There has been no proffer of any kind
made for the Loveland plant. and SO
far rs is known, no proffers have been
made for the others. One of the heav-
lest investors in the Colorado field said:
1.-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 be
exorbitant. in any sense, for the five
plants. exclusive of the Oxnard Arkan-
sas valley interests, but the syndicate
will not buy. We feared that this
would come. even before the Cuban
tariff question came up in Washington,
but we had no idea 1t would come
from such n source. The syndicate un-
doubtedly will build the two factories
for which companies have been incor-
2orated-the Longmont Beet Sugar
Company. capitalized at $JO0O0O, 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 it would
be but drop in the bucket.
There is no doubt that the syndI-
cate will sell beet sugar so cheap that
II will break up the market and ii will
be only question OF time before the
other factories are ruined. None of us
could afford to lose 100000 year;
we cannot face the prospect of steady
loss.
THE syndicate may run the facto-
ries only long enough for the success
full elimination of their purpose. or
they may continue the manufacture of
beet sugar enjoying an unquestioned
monopoly. Its plan is to abolish all
competition by underselling.
AT Longmont the announcement
has been made to the farmers and the
people generally that the factory will
be built this year. and contracts for
beets, l understand. are now being
made by local representatives of the
trust plant. At Fort Collins it has
been given out that building Will be-
gin within the next sixty days. but
doubt IL the factories can be ready for
operation before next years crop is
ready.
AT to the Pennoyer factory, that
will not be built before 19O3--lf, In the
light of these developments the pro-
moters 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 peo-
pie can close all their contracts, now
In process OF negotiation"
1t was stated yesterday that w. G.
Pennoyer of Michigan and his asso-
ciates would come to Colorado to look
into the situation personally, and will
then determine upon their future pol
icy.
Mr.. Nlese's actions at Fort Collins
around Loveland. at Greeley, Eaton,
Boulder, and the other beet-growing
districts visited by him have but one
construction to the minds of indepen-
dent beet sugar manufacturers. The
syndicate will catbid the independent
buyer for beets dntil the latter cannot
buy with profit. The farmer Will
make money and beers mny go sky
high In price ms long as Independent
plants remain IN the field.
The syndicate. 1t IL said. will buy
land outright from the beet raIsers
where II can. The l.oveland and other
factories have. IN many instances
three-year contracts with the farmers,
but II the land OF the latter Is pur-
chased, the contracts, OF course, will
not hold.
A meeting of the Independent manu.
facturers will be held to formulate
plans In regard to future notion. As
soon us matters shape themselves, and
II the opportunity presents, nm appeal
may be mnde to the United States Cir
cult Court by the Colorado men for
protection. But this Is as yet only n
probability.
1t developed yesterday that MI.
Niese hns not been Idle since hls r.
turn TO New YOr