New-York tribune., 1902-12-29
PROFIT IN BEET SUGAR.
L1RGE DIpTDEND.S MADE
Manufacturers apparently Able To
Meet Demands Of Treaty.
IBT TELEGRAPH TO THE rR1RrNE.l


claim that its ratification depends on the de-
cfsion Of the National Association of Beet Grow
ers which meets in Washington on January s
This claim is set forth by certain Senators and
Representatives who were most active in their
opposition to the Cuban Reciprocity hill last ses-
sion II is conceded that the ratification may be
postponed until after the beet growers conven-
ton and possibly until after that body has had
q hearing before the Senate committees TO which
the treaty is referred, but that the representa-
tives Of single interest defeat the will of
overwhelming majority of the people is re-
earded as preposterous.
The insurgents of last winter loudly insist that
If the beet growers are not content with the
l1-3 cents a pound protection against Cuban
coulpetitiop. which would be left to them under
the opera ton Of the treaty, it will become the
duty of their friends in Congress to defeat it,
and repudiate the Presidents policy of fulfilling
plain duty to Cuba and of securing for
American agriculturists and American manu-
gacturers the control OF the Cuban trade. In
the light of this contention the probable action
If tle approaching convention and some Of the
facts which viii, or should, come out in its
sions are being discussed with considerable in
terest by the friends OF the treaty.
GREAT PROFIT IN THE TRADE.
Mr.. oxnard. the head Of the beet sugar in
has. Of course. told the President that reduc
lion Of 80 per cent would not iniure the interests
he represents. and has made the statement
IN the presence of others: but, notwithstanding
Nr Roosevelt-s distinct recollection of the Incl
dent Mr.. Oxnard repudiates it. so that il
is not likely 10 receive consideration by the
convention.
The National Association of Beet Growers rep
resents the interests of the beet sugar producers
nj Michigan. Kansas Nebraska and the Pacific
fnsst Already the beet sugar manufacturers Of
Michigan have met and condemned the treaty,
hut that was before its terms had been made
ruhlic by The Tribune These men represented
sixteen beet sugar factories
Referring 10 these institutions. Senator Bur-
rows who is certainly well posted on the sub
1ect saws that nearly all of them paying
ldg profits one of them clearing 40 per cent on
the investment. Another, at Caro-, has capac-
itz- Of approxina teiy six hundred tons a day,
and paws dividends OF % per cent Other Michi-
gan factories are paying 2S and 20 per cent, re
spectively According to a confidential state
-nen+ addressed to its stockholders by the fac
tory at Charlevoix and signed by the secretary,
the treasurer and other officers of the institu-
lion. dividends of from So 2-3 to IS per cent
are to be expected. An excerpt from the COM
pany's letter reads as follows:
IF -be c-harleyoix Sugar Company produces
only six million pounds of sugar per aEnum from
only thirty thousand tons Of beets the DIVIDEND
on its capitalization would be 20 per cent IL
il produced eighteen million pounds of sugar
rroI77 ninety thousand tons of beets, the divi-
aend would be IS % per cent The latter is
possible under prevailing conditions at Charie-
These dividends seem almost incredible 10 the
average investor, much so that IL is hazaru-
Gus in this connection to state the actual facts
etc.
In the light Of these facts the friends of the
Cuban treaty are at a loss TO determine how
the Michigan beet sugar producers can believe
that 4 20 per cent reduction Of the tariff on
,,,lhan sugar can prove disastrous to their in
dustry.
NO FEAR OF CUT IN TARIFF
Tho rrobabilitv Of a reciprocal arrangement
with Cuba was evidently foreseen by the off,
,ers Of the Charievoix company, for they say
further:
II will therefore be readily seen that 20 per
cent concession can have disastrous effect
the Industry, even If raw sugar nhoeI wenl AZ
a perpendicular cut to this extent, which IS
hardly probable as the worlds market is mace
At Hamburg, Germany. and there Is no reason
why Cuban sugars, after the cut. Wouio not
quickly float to a parity and the Cuban planters
reap the benefit. at least, very largely
Why, therefore, should the INDUSTRY iear @ tlie
trust, when it is admitted on all sloes thdI any
good six hundred ton beet sugar factory can
produce standard granulated sugar LOT three
cents pound. or even less?
The production of standard granulated sugar
fyv a beet sugar factory is based entirely on the
purchase price of the beets from dadr1ers-- AN
average crop of 5000 acres for a 6oO-ton plant
will show net profit the farmer of Slooctt
II the beet sugar factory desires to grow us
own beets il would reap benefit or TINS proni
AND thereby reduce the cost of production Ia
cents pound on 100000 pounds, or cent
2 mound on 15oooO0o pounds. A first class
beet sugar factory, well located unoer o.uiiadS CT
circumstances and growing its own beets' can
produce standard granulated sugar Tor Two
cents a pound. No fear, therefore, Should De
entertained for the beet sugar INDUSTRY
MONEY MAKING MADE EASY.
still further information and from an en-
-irely different locality, which will doubtless
weigh heavily with the delegates 10 the ap-
rroaching convention. has come TO light. 1t is
the statement Of W T Chantland of Fort
Dodge Iowa. who made thorough inVestga-
ton of the prospects for beet sugar proouctloh
in the interests Of company about 10 organize
and erect q factory at Fort Dodge MI Shah'-
land says:
substantial reduction or the sugar tsltt am
III fa1 or of Cuba should not harIn any - -
sugar raising community, and the beet raising
farmers would never be aware that such lIlI.Is
had been done 1t is Sorninoh oa pnr1 tbat three
wears of successful grind of good tonnage oL
heets should pay for any factory oulolne. is
example, supposins an T,;ns SVv,.On 5000 tons
of beets or 4Soo acres, at an average olsa ol ~.
tons an acre: in other words. IL IL ~ Elaue
200 pounds of sugar net 10 tne tol ,as 20
ing the ,,aIue Of its product as eeuiTaient Go 20
200 pounds Of sugar, 1t Would max Ia
tons OF sugar. This would cost an q =.
age OF two and a half cents a pound ana IL IL
could be sold at the factory for four ano a nan
cents z pound which is S}5 a ton pront, OF "a a
aet profit for the season Q, ..e ssr,a resnIt.
the profit would be S534. 600. which would more
han build any s0o-tol plant ...,o,,s t-o,,,
have tn my possession proposluons hoiii
r,icr aoat