Cut Bank pioneer press. [volume] (Cut Bank, Mont.) 1909-current, 1913-05-23
TRUST WARS ON
U, S. PRODUCERS
Control of Market Threatened
by Beet Industry.
COMPETITION CUTS PRICES.

pay SONGTIHIiChA YSfSS~b~
Now Demand Elimination Of Growing
Farm Industry.
For the first time in the quarter CEN
fury that the sugar trust has been In
existence its 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
IN prosecution or through the
competition of other re1ners, but by
the Increase in the market supply of
sugar grown by American farmers and
manufactured in the seventy-three beet
sugar factories scattered from Ohio to
California.
The production of beet sugar during
the present year Q912-13) was much
larger thar at any time since the cul-
tivation 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
a point at which the ane refinerS
could not compete. For several months
domestic sugar was sold throughout
this territory at from 80 to 80 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 refineries.
Two of the big %reineries on the At
lantic seaboard closed down entirely,
and others were put oil reduced time.
1t is agreed by trade experts that the
competition of the domestic grown
beet product made sugar an average of
half a cent a pound lower than 1t
otherwise would have been and that IL
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. F. At
kins, acting president of the American
Sugar Refining company, popularity
known as the sugar trust, declared that
the r%einers 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 refners 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
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 oper
war on the beet growing farmers OF
Montana and other states and the
manufacturers of beet sugar who ge'
their supplies from these farmers
With the admissions of the sugar bee
growers and manufacturers themselve.
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 ant
manufacturers, with the higher wages
and higher prices for beets which the.
pay, to compete against the sugar o
the tropics, grown by yellow and blacl
labor, without a duty on the latter prod
uct, the retiners have adopted the polio.
of concentrating their efforts upon a
attempt to secure the reduction or re
moval of this tariff duty in IN attemp
to destroy the home industry before |
becomes fully established. To accom-
plish this they have spread broadcas
the claim that such a course will resul
in a saving to the consumer and hav
employed agents to induce people t
write letters to congressman advocat
ing free sugar.
That the reflners propose to max
this an attack in which no quarter Wi
be offered to the American farmer an
manufacturer is shown by the fac
that they are willing to forego the at
vantage which they now derive fror
being able to buy their raw supple
from Cuba under the reciprocity ac
at a third of a cent a pound cheape
than they can be brought in from an
other part Of the world.
For several years this provision, /
addition to the excess duty Of 7h cent
on refined sugar above the raw suga
duty, has given them an advantag
over foreign refiners which made
impossible for the latter to enter tn
American market. Not content wit
the advantages thus legally conferre
upon them, however, both the suga
trust and the so called Independent r.
fners resorted to numerous devices I
cheat the government out of the rev
nue. due it under the law. The fu
amount of these frauds never has bee
divulged. but under the spur of feder:
n N -