Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1913-09-17

pay Government SS,5OOsoVO 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 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
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 seventy-three beet
sugar factories scattered from Ohio to
California.
The production of beet sugar during
the present year (19i2-l3l was much
larger than 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 cane refiners
could not compete. For several months
domestic sugar was sold throughout
this territory at from SO to so points
below the seaboard price Of the inn
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 retineries.
Two of the big refineries on the At
lantic seaboard closed down entirely,
and others We're put on reduced time.
1t is agreed 10y 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.
gressional committee appointed to IN
vestig2te the sugar industry E. r. At
kins. acting president of the American
Sugar Refining company. popularity
known as the sugar trust, declared that
the rehners 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.
1t 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 reflners 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 a duty on the latter prod
uct. the refiners 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 it
becomes fully established. To accom-
plish this they have spread broadcast
the claim that such course win result
in saving to the consumer and have
employed agents TO induce people to
write letters to congressman advocat-
ing free sugar.
That the refners 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 ad-
vantage which they now derive froni
being able TO buy their raw supplies
from Cuba under the reciprocity act
at a third of a cent 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 ~ cents
on refined sugar above the raw sugar
duty, has given them an advantage
over foreign refiners which made II
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-
fners resorted 10 numerous devices to
cheat the government ont of the reve-
nue. due II under the law The full
amount of these frauds never has been
divuiged. but under the spur Of federal
prosecution nearly $500. 600 was re-
turned to the government. and a suit is
still pending against the Federal Re
fning company on the same charge of