The Holly chieftain., 1902-03-28
corlINd SUGAR WAR
NOW SEEMS TO BE PROBABLE
American Sugar Refining Company
May Enter Colorado Field-Rumors
That 1t Will Try to Break Down
and Absorb the oxnard Plants Of
the State.

Denver, March 25.-The Republican
this morning says:
The independent beet sugar manu-
facturers in Colorado regard with
alarm the incursion of the American
Sugar Refining Company into the most
productive fields in the West. Warn
ing received some time ago has become
reality. which, they fear. will result
i'll the decentralization of local mar
kets in competition aimed to drive
the independent producers from the
field.
The announcement in the Republi-
can yesterday of thS operations in Col
orado of Henry Ernst Niese supcrin-
tendent of construction and refineries
of the American Sugar Refining Com
pany, was taken by beet sugar men us
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. \ short time ago
the American company secured a half
interest h the Utah factories for ST.
$4,000. Colorado is now on the list,
but as $6.O0O,OO0 is conservative es.
innate of the value of the plants the
trust is preparing to fight, 1t 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 S200O0O or $500, 600
In demoralizing the morket
The six factories which the synli-
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 factolt, nearing compile
ton.
There has been no proffer of any kind
made for the LovelanJ plant, and SO
far as is known. no profTers hive been
made for the others, One of the heav-
lest investors i'll 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 mixing of what was going on we
might have caused trouble, or i'll some
way. delayed the game; hut he was
anxious that no warning should be
given"
"SiX million dollars would not be
eNorbitant, in any sense, for the five
plants. exclusive of the Oxuard Arsah-
sas valley interests, hut 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 source Tie syndicate un-
doubtcdly will build tie two factories
for which companies have been incor-
porated-the -Longmont Beet Sugar
Company, capitalized at 100000, and
the Fcrt Collins Sugar Company, cap
italiZcd 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 will sell beet sugar so cheap that
II Will break up the market and 1t will
be only question Of time before the
other factories are ruined. None of us
could afford to lose 100000 n year;
we cannot face the prospect of steady
loss.
"Ihe syndicate may run the facto-
rles only long enough for the success
full elimination of their purpose, or
they may continue the manufacture Of
beet sugar enjoying an unqucstioned
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. / understand, are now being
made by local representatives of the
trust plant. At Fort Collins 1t has
been given out that building will be
gin within the next sixty days, but I
doubt If the factories can be ready for
operation before next years crop is
ready.
Eat to the Pennoyer factory, that
will not be built before 1903-if, in the
light of these developments the pro-
moters carry out their plnns-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. C.
Pennoyer Of Michigan and his asso-
eiatcs would come to Colorado to look
into the situation personally, and will
then determine upon their future pol
Icy.
Mr.. Nieses actions at Fort Collins,
around Loveland, at Greeley, Eaton,
Boulder, and the other beet growing
lNN, hi 1,ov, I.vnk