The daily sentinel., 1913-06-21
[By Edward Keating. congressma

lloOr OF the house OF representatives,
have stated that there was an agree
ment between the sugar trust and
the beet sugar interests by which the
price of refined sugar was fixed in
every state in the union. have
stated that that price was the trusts
New York, New Orleans or San Fran
cisco price plus the freight to the
point of consumption.
| have charged that, because OF
this arrangement, the people of Col
orado and other western states which
produce beet sugar were compelled to
pay more for sugar made in their
own towns than the same sugar was
sold for 1000 or 1000 miles from
the point Of production.
When ! first made this assertion
on the floor of the house. the effect
on the champions of a tariff on su-
gar was little short OF amazing I
thought they would explode with in
dlgnation. The president of the
American Beet Sugar Company pub
licly branded me as a conscienceless
prevaricator who was traducing the
promoters of "A great industry. One
of the sugar congressman read this
Bcntleman's letter to the house with
great gusto. At the time | replied
TO the attack with some vigor, pre-
senting the facts | had in my pos
session.
Since then | have come into pos
session of a copy of the selling agree
ment entered into between the same
American Beet Sugar Company
(which, by the way, owns three fac
tories in Colorado) and the sugar
trust in 1903, and which, according
TO It's terms, was to continue in force
for two years.
This agreement bound the sugar
company to sell all it's sugar through
iho trust and to pay the trust COM
mission OF q of / cent per pound
on all sales. 1t was estimated that
this commission would amount to
100000 annually
The trust ON its part agreed not to
sell its sugar for less than it's "open
price at points of production" that
is, New York, New Orleans or San
Francisco plus freight to point of
consumption.
Here is n copy of the agreement,
and do not think any OF the paid
defenders of the sugar trust will dare
question It's authenticity;
THE AGREEMENT
''SeIling agreement between
American Sugar Refining Co.,
and American Beet sugar Com
papy.
''Dcar Sirs: Following the con-
ference which we have had with
you we put in writing our pro-
possl as follows:
''You (the American Sugar Re
filming Coz are To be our super
wishing agents for the disposal of
our, Che American Beet Sugar
Coz product, ms hereinafter stat
ed, and for your compensation
YOU are to receive one-quartcr
cent per pound ON all sugars sold
and collected for by us, accounts
to he submitted by us to you ut
your office ON the twentieth of
each month for the preceding
month, and payment 10 he made
at that time. The arrangement
Is to commence with the season
of fOO3-f, and is to continue for n
period of ten years: that Is, down
to and including the season of
1D1s-13. Your agency involves
your general cooperation with us
in all legitimate ways TO market
our product to the best advantage
In such localities rs we shall des-
ignate. exclusive of New England
states, care being taken by us
except when necessary to avoid
your markets. You are To open
channels of distribution to us,
allow us to have the use of your
brokerage system and the cm-
ploymcnt of your agencis, ana
10 permit your brokers To dis
nose of our sugars ON the same
terms rs in your own case, and
are to instruct them 10 push the
sale of our product; and II in
any case there shall he conflict,
Won are to permit Us to have the
preference, except insofar as is
necessary 10 meet the demands
for cane as against beet sugar
lraau WI
are to give us the preference up
10 the point of Withholding sale
of your product of the same
grades i'm such markets as we
may require, so far as is necs-
sary for the disposal of our pro-,
duct, provided that no delay or
loss OF time shall he caused ny US.
You are not to make yourself
nor to allow 10 he made by pro-
duccrs controlled by you in any
markets used by us, while our :
product Is being disposed OF IN
such markets, A LOWER PRICE
ON REFINED SUGAR THAN
YOUR OPEN PRICE AT YOUR
POINTS OF PRODUCTION Plus
FREIGHT. IL ANY, 10 SUCH
MARKETS., and you are 10 use
your good offices when asked 10
en,icavor to obtain favorable
rates of freight from points OF
our production to the consuming
markets required.
..rhc arrangement does not M
yoive any curtailmcnt OF your
product. and does not put any
limitation ur,on ours. Its essence
is that We shall have your hearty
cooperation along the lines
stated"
1T is because of such arrange
ments as the above that the peopi
OF Colorado--the greatest beetIsusa
producing state in the union-ar
I.i... 81 Aan ono moro per annnI