The Owosso times. (Owosso, Mich.) 1897-1926, 1912-11-01
SUGAR BEET CONTRACTS FOR
1913.

Recent published reports that the
managers of the sugar factories OF
the state have entered into COM
bination to reduce the price paid for
beets 81 a ton on contracts for the
coming year are stoutly refuted by
the managers of the sugar companies
Dispatches from several points in
the state were to the effect that the
contracts were being held up until
after election for fear of the effect
that such move will have upon tn,
farmers votes.
General Manager w. H. Wallace,
of the Michigan Sugar Co., denied
the story that the contract prices for
next years beets would average 81 q
ton less than this or preceding years.
He said there was nothing to that
announcement and that while the
contracts have been prepared the
prices have not changed. There have
been few alterations, such as that
affecting the guarantee clause, but
otherwise they remain practically the
same.
He declared that the sugar beets
were getting better and that the per-
centage of sugar varies but is in the
neighborhood OF IL per cent, which
is slightly lower than the usual, due
to the heavy rains this year.
The story which Manager Wallace
denied entirely appeared in a Detroit
paper and said that the new contracts
are approximately 81 a ton less than
this year, that the price of the seed
will be increased so per cent. and
that the contracts will not be offered
to the farmers until after the election,
as the company is interested in the
election of President. and intimates
that it is endeavoring to influence the
vote of the farmers.
A categorical denial of these reports
also was made by Carman Smith,
manager of the Owosso Sugar Co.,
with plants at Lansing and Owosso.
According to Mr.. Smith the only
change in the price of beets as COM
pared with other years is that the
guarantee of not less than SIS a ton
is not i'll the new contracts.
Under the old contracts the fac
tories paid for beets on basis of
$3.50 per ton for beets containing
II per cent. of sugar, with an addi-
tional price of 80 1-3 cents for each
additional per cent. OF sugar" said
Mr.. Smith. 1T was the experience
of the farmers and the factories that
very few beets tested so low that
they did not get S. per ton or more
| for their product and the guarantee
of not less than S. per ton made
little difference in the actual price
paid, provided beets were raised on
the proper soil and cared for in a
manner which would produce the
largest possible percentage of sugar.
After the S. guarantee was placed
i'll the contracts it was found, how
ever, that some farmers selected much
soil for their beet fields, and cared
for the crop in a way which would
produce high tonnage, but low per-
centage of sugar, and this is the prin-
cipal reason for cutting out the guar
antee clause. 1t is the policy of the
factories to induce the farmers to pro-
duce beets with a high percentage
of sugar, as it not only brings the
farmers more money but the factory
cost per ton of sugar is thereby re-
duced. In very few instances will
the removal Of the guarantee clause
reduce the price received by beet
growers, as the average percentage Of
sugar is so high that they have been
getting more than SIS per ton for their
beets.
The Saginaw story also says that
the factories have raised the price
charged for seed. This is true. Last
year we sold seed to the farmers at
10 cents per pound. There was a
scarcity of seed and factories had to
pay nearly 80 cents a pound for por-
ton of their supply. Our own COM
pany had to send man to Europe
to pick up seed, and it cost us an
average of about u cents pound.
The price of seed has advanced all
over the world, and the price which
the Michigan companies will charge
farmers is simply enough so that
they will not be compelled to sell
| the seed at less than cost"