The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1913-05-31
TRUST WARS ON
U. S. PRODUCERS
Control Of Market Threatened
by Beet Industry.
COMPETITION CUTS, FRICEs.
Retners Who Have Been Forced to Re-
pay Government s3,50o,ooo For Frauds
Now Demand Elimination of Growing
Farm industry.

Farm Industry.
For the first time in the quarter cen
tury that the sugar trust has bcen /.
existence its domination over the suga
market of the United States has beer
broken this year. temporarily III leas
according to trade experts. This re
suit has been accomplished not by gov
ernment prosecution or through IL,
competition OF other retiners, but b
the Increase in the market supply o
| sugar grown by American farmers ana
manufactured in the seventy three beet
sugar factories scattered from Ohio t.
California.
The production of beet sugar durin.
| the present year Q9l2-l3l was mucl
larger than ut any time since the cul
tivation of sugar beets was taken VI.
| by American farmers. The output is
estimated at 100000 tons. or enough t.
| supply the trade demands of the popula
| don of all the states west of the Missis
| sippi IL 1t were confined entirely to thai
section. The coming of this sugar upon
|
of the beet sugar manufacturers among
themselves put down prices through
out the central and western states t.
a point at which the cane refuers
could not compete. For several month.
domestic sugar was sold throughout
this territory at from 30 to 81 points
below the seaboard price of the I'm
ported product. Not only was the for
eign grown sugar driven ont of tlt
west. but for the first time beet suga'
actually invaded the New York markt
and undersod the cane product under
the very caves of the trust retineries
Two of the big retineries OH the Al
lantic seaboard closed down entirely
and others were put on reduced time
1t is agreed by trade experts that TIL
competition Of the domestic grows
beet product made sugar an average o
half cent pound lower than i
otherwise would have been and that L
will have the effect of keeping prices
low throughout 1913.
Under examination before the cor
rressiunal committee appointed to IN
vestigate the sugar industry f.. +. N
kius. acting president of the American
Sugar Refining company. ,popnnrl,
known as the sugar trust, declared tina
the refiners must operate ut less dur
Ing at least three months of every yea
ON account of the competition of bee
sugar and that this competition wa
becoming more severe every year. tn
other leading retiners made similar aG
missions. With the rapid increase II
the output Of beet sugar the period duf
Ing which refiners are unable to con
troll prices and to operate at their us,!ii
profit grows steadily longer and point
To the time when they will he unab.
longer to earn high dividends OH thei
heavily watered stocks.
1t is this menace to their continue
domination Of sugar prices Throughout
the United States. created by the rap
expansion of the home sugar industry
J. that has caused the refiners To 0pe
war on the beet growing farmers O
: Nevada and other states and til
: manufacturers of beet sugar who &c
o their supplies from these farmers
t With the admissions of the sugar bee
growers and manufacturers thenselve
e and statements of such agricultural al
h thorities rs ex-Sccretary Of AGricutur
u Wilson that II is impossible at the pres
l. ent time for American farmers an
# manufacturers. with the higher wage
o and higher prices for beets which the
II ray. to compete against the sugar {
e the tropics. grown by yellow and blac
labor. without u duty on the latter proc
i .ct. the reiiners have adopted the polio
8, Of concentrating their efforts upon a
- attemDt to secure the reduction or r.
4. ,aova! of this tariff duty in an atteml
in 10 destroy the home industry before
le becomes fully established. 10 aceon
4. pish this they have spread broada
r. the claim that such a course will rest
II. in saving to the consumer and ha,
T. employed agents to induce people
. write letters to congressman advoca
ing free sugar.
ia That the rcfincrs propose to mai
Q. this an attack In which no quarter vi
a. be offered to the American farmer al
rs manufacturer IL shown by the ia
"A that they are willing to forego the a
n vantage which they now derive fro
being able to buy their raw supple
= from Cuba under the reciprocity a
=. at a third Of cent pound cheap
in than they can be brought In from al
~ other part Of the world.
~ Fer several years this provision.
- addition to the excess duty OF ~ cen
!, on refined sugar above the raw sug
=. duty. has given them an advanta
:. over foreign refners which made
:. impossible for the latter to enter I
American market. Not content WI
." the advantages thus legally conferr
NC upon them. however. both the sug
- trust and the so called Independent
finers resorted to numerous devices
-. cheat the government out Of the rev
-, nue. due 1t under the law. The II
'ts amount Of these frauds never has be
IN livulyed. but under the spur OF fedel
ne prosecution nearly S3.50o.000 was
ny turned to the government, and a suit