The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-23
MONEY IN BEET SUGAR
Joseph GeOghegan Asserts That Fig
Ures Published as to Profits of
Industry Are Too High.

salt Lake City, Utah, Nov. p. 1875 .
To The Salt Lake Herald: Ny attention 3
has been drawn TO an article ia a re- /
cent Issue OF Tho Herald under the cap +,
ton, Great Fortune in Beet Sugar 7.
which contains SO mach that is unjust
10 the producer and misleading TO the
investor, that I feel your readers should ,
be So. right.
You state that the production this
year will reach 1.oJ500 bags arriving at
your conclusion by the statement that
the sugar companies obtain 10 per cert
in sugar from each ton OF bcets. The
beet tonnage this year being ipJ.tJ] tons
Approximately. the sugar companies
operating in Utah and l-ah1, viz: The
Utah Sugar company the Idaho Sugar
company, the AmalgamateI sugar com
pany ana me Lewiston Sugar company,
VIII produce not over SVj~J bags OF sugar.
which, if 1 accept your valuation Of
cents per pound would bring ONLY So
Sec0,', as against your figures of 500
go. or a trifiiug difference OF Two and
onT-hal- --!lliOEs a. dollars.
"Eut The wholesale price Of sugar to-
day is not cents. ! believe The whole
sale dealers sell their sugar tor z3-.J per
bag, and [ presume they arc entitled
to some profit Tor handling this business.
so that even this does not represent the
price realized By Tie suga. companies.
IN orCcr . deliver our product a dis
trl5utiD2 LclniS. We have 10 pay freiSnts
to the railroad companies. 30 that you
may accept as a fact my statement thar
tcc sugar sold by our companies I'm the
local market, after paying treisats. Gees
not average more than 81 cents per
pound.
The growth Of production in Utah AMI
Idaho in the last ten years has been out
Of all proportion 20 the Increase In con-
sumption locally, 20 that while ten wears
ago st WIS possible for US to ana. set
our total produce at home. aud under
the most favorable conditions, today We
can only dispose Of some - per cert
thus, and We arc forced TO seek markets
1oT the balance in tie eastern states
where we are brought icto competition
With tho refined product OF the Atlantic
sedDoard, with its very low and uncer-
tain freight rates. Somctimes we. arc
forced 10 meet competitive conditions
there which compel Us to dispose Of
our sugars az a very slight margin above
the cost OF production
Prom the above facts you can draw
Eour own conclusion rs 10 the enormous
profits your article auggests. Even
though Tie sugar cu,apanirs do make
good profits because people are entitled
To profits Tor money invested in sndus-
trial and other euterDrises) We feel That
greater benefit has come to tho state
because ri the developmnt of this in;
dUstry. Take the S-Voo,o distributed
amongst the farmers for their beets.
Consider the increase in tho taxable
value OF the lanqs upon which this pro-
duct is grown. which ~ a practical bene-
Tit to every citizen by lessenipg the aver
I age Of mis- burden OF taxation
Consider the money paid 10 the army
| OF opera lives and clerks engaged in the
/ factories aud offices Of the companies;
I the 60,0JJ tons Of coal and coke we burn
/ gives employment to miners. and its
transportation to the various factories
means revenue :oF the railFosd c0mpa-
I nies and employment for their opera
/ tives. as does. the 4409y tons Of lime
/ the factories. all adding their tribute
! 10 the wealth and prosperity OF those
states.
The dividends, averaging about per
cent that arc distributed amongst the
/ Stockholders on "a capital Of Sl2000, coo
which is invested IA the sugar business
OF Utah and Idaho, are also a great
! factor in promoting the prosperity OF
/ this state. Yours truly,
JOSEPH GEOGHEGAN."
The calculations OF The Herald in the
| article referred 10 We're based on the IN
/ Outstanding that sugar beets IN this ell
1 mate yield - Der cent Of their weight
IN EuEar. This has been considered colt
I seTvstiVe here tpforc Mr.. Geogheganss
calculations are based on a yield OF -
/ per cent Of sugar IN the bects. o.
l course u can be readily seen that shout ]
I the yield Of sugar run as low as i
! per cent Il would be practically impos-
| sible for the factories 10 nay the farm
/ erS Tor their beets. IL leiig hh iroo9 Ne is
( 10 All Utah ard Idaho "a knoR thai The
factories are still able 20 pay 8 Per cent