The Detroit times., 1913-04-24
AMERICAN SUGAR
HOTHOUSEPLA
SAYS DOREMUS
Congressman Declares L. S.
Production Can Never APP
prOach Consumption ~
SUGAR MEN CAN'T
EXPLAIN STOCK DEAL
Appear Unable to Tell What
Common Stock of Michigan
Sugar Co. Represents

From production statistics IL is
apparent that even with a protective
tariff. the United States will never be
able TO produce sugar enough for its
own consumption" said Congressman
Frank h. Doremus, discussing his
stand In favor of the Underwood tariff
bill. which provides q gradual reduc-
ton In the sugar tariff for four years,
when sugar is to be placed on the free
list.
Since the present tariff was placed
on sugar, statistics show that the
sugar produced In this country has
never been more than 90 per cent OF
the amount consumed, he said.
Since the passage Of the Dingley bill,
In 1897, the consumption Of sugar has
increased 1,280,000 tons, while the in
crease In production has amounted to
only 42O,629 tons. At this rate, pro-
lection OF sugar will never catch up
with consumption. In other words, the
figures prove that we are fostering q
hot-house Industry at a cost OF $780,
pOO,O year. IL the investment in
the beet sugar industry In this coun-
try Is about $60,000.0O0. as the report
OF the special committee which inves-
tigated the sugar industry indicates.
1t seems to me that we are wasting q
tremendous amount of money to pro-
tect al industry that will never be
able to stand on its own feet.
"The investigation showed that the
net profits OF farmers raising sugar
beets average $40 an acre. whereas
the net profit on wheat IL only q little
over 50 an acre and on corn little
over 81. II the sugar beet crop Is
30 profitable, 1t seems to me that the
farmers could stand little less pro-
lection and still make considerable
money on beets, IN comparison with
other crops"
Attempts to secure from representa-.
tives of the Michigan Sugar Co.. q
statement regarding the value Of the
plants taken over by the company in
1905. when 1t was organized, or what
proportion OF the value the common
stock represented. are met by various
forms OF evasion.
The men in control OF the constl-
tuents companies told US what they
would take in preferred and common
stock for their holdings, and bargain
was struck" IL one explanation. mo
one knows the proportion OF value
represented by the common stock"
1T isn't fair question" said ali
official Of the Michigan Sugar Co. II
could not answer II without violating
the confidence Of the stockholders.
A brokerage house furnishes the
opinion that the common stock repre-
scented the increase In value due to
the combination of the various factor
les under one management. This ad-
vantage, combined with the profits OF
the business, said the broker, was SUI
ficient to send the stock above 14O,
and cause the company to declare q SO
per cent stock dividend. The stock
| is now quoted at 80. The slump from
around par to about 20 Is accounted
for by Michigan Sugar Go. men by n
poor crop; and the further slump TO
a point under 40. Is explained by the
evident sentiment of the house OF
representatives, in it, 1912 session. In
favor of free sugar, and the election
Of President Wilson. Representatives
of the company deny that the decline
| is a squeezing out OF water; Rep.
Hardwick, Of Georgia. said in 1872
that the four and onehalf millions
Of common stock was water, promo,-
er's profit and tariff capitalization,
nothing more and nothing less