The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1913-08-21
TRUST WARS ON
U. S. PRODUCERS
Control Of Market Threatened
by Beet Industry.
COMPETITION CUTS PRICES.
Refiners Who Have Been Forced to Re-
pay Government $3,50o,0o0 For Frauds
Now Demand Elimination of Growing
Farm Industry.


For the first time in the quarter CEN
fury that the sugar trust has been in
existence it's domination over the sugar
market of the United States has been
broken this year, temporarily at least.
according to trade experts. This re-
suit has been accomplished, not by gov
eminent prosecution or through the
competition of other refners, but by
the increase in the market supply of
sugar grown by American farmers and
manufactured in the seyenty-three beet
sugar factories scattered from Ohio to
California
The production Of beet sugar during
the present year 1912-13) was much
larger than at any time since the cul-
tiyation of sugar beets was taken up
by American farmers. The output is
estimated at 100000 tons, or enough to
supply the trade demands of the popula-
ton of all the states west of the Missis-
sippi if it were confined entirely to that
section. The coming of this sugar upon
the market and the sharp competition
of the beet sugar manufacturers among
themselves put down prices through
out the central and western states to
point at which the cane refners
could not compete. For several months
domestic sugar was sold throughout
this territory at from 80 to so points
below the seaboard price of the i'm
ported product. Not only was the for
eign grown sugar driven out of the
west. but for the first time beet sugar
actually invaded the New York market
and undersold the cane product under
the very caves of the trust refneries.
Two of the big refneries on the At
lantic seaboard closed down entirely,
and others were put on reduced time.
It is agreed by trade experts that the
competition Of the domestic grown
beet product made sugar an average Of
half cent pound lower than it
otherwise would have been and that 1t
will have the effect of keeping prices
low throughout 1913.
| Under examination before the con-
/ gressional committee appointed to in
vestigate the sugar industry E. #. At
kins, acting president of the American
/ Sugar Refining company, popularity
] known as the sugar trust, declared that
! the refners must operate at a loss dur
| ing at least three months of every year
on account of the competition of beet
/ sugar and that this competition was
! becoming more severe every year. The
| other leading refiners made similar adj
missions. With the rapid increase in
| the output of beet sugar the period dur
! ing which refners are unable TO con-
troll prices and to operate at their usual
profit grows steadily longer and points
! to the time when they will be unable
j longer to earn high dividends on their
/ heavily watered stocks.
It is this menace to their continued
/ domination of sugar prices throughout
the United States, created by the rapid
expansion of the home sugar industry,
that has caused the refiners to open
war ON the beet growing farmers Of
/ Wisconsin and other states and the
manufacturers of beet sugar who get
their supplies from these farmers,
/ With the admissions of the sugar beet
growers and manufacturers themselves
and statements of such agricultural au-
! thorities as ex-Secretary of Agriculture
! Wilson that it is impossible at the pres
ent time for American farmers and
manufacturers, with the higher wages
and higher prices for beets which they
| pay, to compete against the sugar of
the tropics, grown by yellow and black
labor, without duty on the latter prod
uct, the refners have adopted the policy
! of concentrating their efforts upon an
attempt to secure the reduction or re-
moval Of this tariff duty in an attempt
to destroy the home industry before 1t
becomes fully esta b1ished. To accom-
plish this they have spread broadcast
the claim that such course will result
in a saving to the consumer and have
employed agents to induce people to
write letters to congressman advocat-
ing free sugar.
That the refiners propose to make
this an attack in which no quarter will
be offered to the American farmer and
manufacturer is shown by the fact
that they are willing to forego the adj
vantage which they now derive from
being able to buy their raw supplies
from Cuba under the reciprocity act
at third of a cent a pound cheaper
than they can be brought in from any
other part of the world
For several years this provision, In
addition to the excess duty of 71k cents
on refined sugar above the raw sugar
duty, has given them an advantage
| over foreign refners which made it
| impossible for the latter to enter the
American market Not content with
the ADVANTAGES thus legally conferred
upon them, however, both the sugar
/ trust and the so called independent re-
finers resorted to numerous devices to
cheat the government out of the reve-
nue. due it under the law. The full
amount of these frauds never has been
divulged, but under the spur of federal
prosecution nearly $3.500,000 was re-
turned to the government, and suit is
still pending against the Federal Re-
fning company on the same charge Of
hefrauding the treasury.