Arizona republican., 1903-01-03
PHOENIX. ARIZONA. JAN. 3, 1903
The Profits in the Beet Sugar
 Business.


 for a subsidized beet sugar factory for the Salt River valley has again directed local interest to the general question of beet sugar manufacture, the profits which normally accrue to the manu- facturers, and the bearing which the new treaty with Cuba will have on the industry in case the treaty is ratified. There is, of course, much doubt whether the administration can muster the necessary strength in the senate for the ratification of the treaty, and the attitude of a number of senators will be determined doubtless. by the conclusions reached in the National Association of Beet Growers which meets in Washington on Thursday Of next week.
 The Republican has contended from the beginning, that a reduction of 5 to 30 per cent in the duty on Cuban sugar would work no injury to the beet growers of the United States, for the reason that the factories make. such profits that they can afford to continue paying the prices which have prevailed for beets. And, certainly, this valley is so situated that the long haul on sugar from the seaboard would operate as effective protection against the for eign product.
 On the question of profit made by the manufacturers, some interesting figures have been furnished from reliable sources. For instance, Senator Bur rows. of Michigan, who is one of the most uncompromising friends of the beet sugar industry, says that the rac- tories in his state are making big profits, one of them clearing nearly 40 per cent annually upon the investment. Another. at Caro- has a capacity Of ap prOximately six hundred tons a day, and pays dividends of 25 per cent. Other Michigan factories are paying 2S and 30 per cent, respectively. Accorc ing to a confidential statement ad- dressed to it's stockholders by the fac tory at CharlevOiX, and signed by the secretary, the treasurer and other offl- cers of the institution, dividends of from g 2-3 to SS per cent are to be ex- pected. An excerpt from the companys letter reads as follows:
 eff the Charlevoix Sugar company produces only six million pounds of sugar per annum from only thirty thou sand tons of beets. the dividend on it's capitaliza tion would be 20 per cent. If it produced eighteen million pounds of sugar from ninety thousand tons or beets, the dividends would be SS 2-5 per cent. The latter is possible under pre- Vailing conditions at Charlevoix."
 The probability of a reciprocal ar engagement with Cuba was evidently 1 foreseen by the officers of the Charle- 1 voix company, for they say further:
 Ut will therefore be readily seen that a 20 per cent concession can have no disastrous effect on the industry, even if raw sugar underwent a perpendicu- lar cut to this extent, which is hardly probable. as the worlds market is made at Hamburg, Germany, and there is no reason why Cuban sugars, after the cut. would not quickly float to a parity and the Cuban planters reap the bene- fit. at least, very largely.
 Why, therefore. should the industry fear the trust, when it is admitted on all sides that any good six hundred ton beet sugar factory can produce stand | ard granulated sugar for three cents 1 a pound, or even less?
 "The production of standard grant, | lated sugar by the beet sugar factory ! is based entirely on the purchase price | of the beets from farmers. An average ! crop of 5000 acres will show q net profit to the farmer of $15O,OOO If the 1 beet sugar factory desires to grow it's own beets it would reap the benefit O. I this profit, and thereby reduce the cost | of production 1A cents a pound on r, | 100000 pounds, or 1 cent pound on | 15,0O00OO pounds. A first class beet | sugar factory, well located, under or I dinary circumstances and growing it's | own beets, can produce standard gran ulated sugar for two cents q pound . No fear. therefore. should be enter tainSd for the beet sugar industry"
 Still further information, and from an entirely different locality. which will doubtless weigh heavily with the | delegates to the approaching conven- tion. has come to light. It is the state ment of w. T. Chantland. of Fort | Dodge Iowa, who made a thorough in- | vestigation Of the prospects ~ of beet | sugar production in the interests of q | company about to organize and erect factory at Fort Dodge. MT. Chantland | Says:
 "A substantial reduction of the sugar | tariff in favor of Cuba would not harm | any beet sugar raising community, and | the beet raising farmers would never | be aware that such a thing had been