The Owosso times. (Owosso, Mich.) 1897-1926, 1912-02-23
industry Will 30 Destroyed II Tariff
Is Removed.


Is Removed.
(Cont.nued from page ~
Co. was acting in restraint of trade In
holding stock in the smaller beet sugar
companies, but that 1t was rather for
the expansion of trade. The consolida
ton Of these beet sugar factories affords
more economical methods of operation
and management; the companies thus
organized are paying more for the beets
than before the consolidation, and the
output of beet sugar has been increas
ed. There appears by the evidence to
have been no agreement between the
larger and the subsidiary companies in
regard to the fixing of the price of 81
gar, because the beet sugar factories
last fall put their product on the
market at one and one. fifth cents per
pound less than did the American Su
gar Refining Company.
NOT A RESTRAINT OF TRADE.
"In view Of these facts contended
that the formation Of the beet sugar
companies mentioned In the committee
majority report is not in restraint OF
trade but rather an expansion, and
came directly within the Interpretation
of the Sherman act, as given in an
article by Attorney General Gen. w.
Wickersham in the Century magazine
of February, 1919, in which he stated
that IF the object of that combination
is not the mere destruction Of competi-
ton, but the carrying on of business
under improved conditions, with econo-
mics of production and the manage.
ment, the combination cannot be said
to be illegal"
when this report Of mine was sub.
mitted to the majority after lengthy
controversy it was finally agreed to
eliminate all reference to the beet
sugar interests and as far as the tariff
was concerned it was to be commented
on only. The committee also adopted
portion of my report in regard to the
facts mentioned in it that prices were
better for beets and lower for the re
fined article than before the combina
ton"
SUGAR INDUSTRY THREATENED.
What effect on the Michigan sugar
industry will the new tariff bill have2"
was asked of Mr.. Fordney. II don't
know" he said. 81 cannot tell what
the ways and means committee will re.
port in regard to this matter. Of
course the Democratic members will
draft their report and we Republican
members will have nothing at all to do
with it. 1t is rumored that they will
tariff rate of one cent per
pound on all imported sugar. On the
80 per cent raw sugar the duty is now
l. 6Si cents per pound and on the refined
product it is 8 cents per pound. To
Cuban sugar there Is 20 per cent re-
1uction from this schedule. If the |
duty is lowered to one cent and the re.
liners take advantage Of this, as they
surely will, 1t will simply kill the beet |
sugar industry, as the beet sugar manu-.
'acturers cannot then compete with the
'einers and will have to close their
loors.
"And then. just think'w will hap.
ZEN. The beet sugar is only put on
he market Eve months in the year.
LAST summer, during the canning sea.
on, when the demand for sugar was
high, and the, beet product was off the
navket, the price of sugar ran as high
Is u cents. The eastern refners claim
d that this advance in price was due
o the expected shortage in the pros
'ective crop.
REALIZE ABNORMAL PROFIT.
This was not true. When this state.
aent was made doubted it; going to
he bureau of statistics I searched the
ecords of entry of sugar into the
ountry, and secured facts and figures
which assured me that there was no
eason at all for the abnormal increase
a the price. The sugar could have
cen sold at five cents per pound with a
God profit to the refiner. When the
eet sugar came on in October, the
rice of it was s.. 55 per hundred. The
efners Immediately were forced to
rop their price accordingly. So You
be the refiners were making about two
ents per pound above a. reasonable
rofit ION their product. This is about
per barrel. There are used in this
ountry on an average 5000 barrels of 6
agar every day. This means in four {
lonths or during the canning month in g
ne summer that the refiners received 9
bout 100000 over and above q
'gitimate profit. And the entire in 9
,come on sugar from duties for the
ear 1912 was only $50, 100000 or less {
nan what they abnormally charge the I
eople of the country. {
THE refining business or SO per cent {
it in this country is controlled by 9
,ur companies, the American, the l
the Warner, and the Fed
n