The Monte Vista journal., 1914-05-09
Hoover has returned to his old employer

He says that under free sugar $3.50 is
the highest possible price that may be
paid for Is per cent beets." That state
ment is so absurd as to constitute an in
suit to our intelligence. The amount
that a sugar factory can afford to pay
for beets is determined by the price
which the factory will secure for the re-
fined sugar and the by-products which it
manufactures from the beets.
Mr.. Hoover says that a ton OF 10 per
cent beets will produce only 24O pounds
Of refined sugar. The factory which
makes that kind OF a record should go
out OF business, because its plant is anti
quated and its management incompe-
tent. A modern, up to date factory should
extract 270 pounds OF refined sugar from
Is per cent beets.
What will that sugar bring in the
markets of the world under free trade
conditions?
All responsible authorities on this sub
iect agree that there is a world price for
sugar, and that except under most extra
ordinary conditions it does not fall below
31s cents per pound. At 3Is cents per
pound the factory would get for it's 27O
pounds Of sugar s9.45. In addition it
would market its y-products-pulp,
syrup. etc.-which would bring, at a
very modest estimate, 75 cents a ton,
or total OF sl120 per ton.
Now that is the amount the sugar
company would have with which to com
pensate the farmer, meet the operating
expense Of the factory and pay dividends
on the capital invested.
II it paid the farmer $3.50 for his beets,
it would have left S4.70.
What does it cost to extract sugar
from ton OF beets? On that point per-
NIT me to submit the testimony Of the
most eminent OF beet sugar manufsctur-
ers, Henry Il. Oxnard OF the American
Beet Sugar company. Mr.. Oxnard. in a
statement which was intended for New
York financiers and not for the informa-
tion Of Colorado beet growers, said:
sour figures based on averages in
our factories located in California
and Nebraska, show that $3.50 per
ton covers the actual expenses Of
manufacturing sugar, and in our
new factory we expect to reduce the
cost below 300"
In order to be more than generous,
however, let's place the cost at s3.O6 per
ton, and then we will find that the fac
tory owner will be making the tidy profit
Of Sl.7O on every ton Of beets handled.
This should enable him to pay a divi-
dend Of 10 per cent on the capital IN
vested and at the same time accumulate
a very decent surplus
That these figures are conservative is
demonstrated by the fact that Mr.. Ok
nard, in his circular which | quoted
above, undertook to prove that beet
sugar factory could make a handsome
profit even though compelled to sell its
sugar at three cents . pound. He in
sisted, however, that free trade would
not bring the price much below four
cents per pound. He also declared that
as early rs 1899. fifteen years ago, the
beet sugar manufacturers were extract
ing 170 pounds OF refined sugar from
ton Of 10 per cent beets.
) have followed with some interest the
Chieftains campaign against those who
are, it is alleged, circulating false and
defamatory stories concerning Colorado"
, | am amazed that the Chieftain should
, be among the first to violate it's own
> doctrine and to herald to the world that
Colorado's beet sugar industry has been
; destroyed. Especially am l surprised to
find the Chieftain making that state
t ment on tho authority OF Mr.. Hoover, for
surely bef0r. making so serious "A state
= ment you should have inquired into the
: antecedents of your informant. IL you
made such inquiry you must have dis
covered that what | said in the be.
= ginning Of this letter is true-that Mr..
t Hoover for many years was the paid
+ agent Of the Sugar Trust and, in con
y junction with other agents, whose names
IT is not necessary to mention at this
:, time, placed the control Of the Colorado
= beet sugar industry in the hands Of Mr.
Q Havemeyer. Court records show how
= Mr.. Havemeyer developed" the indus
Q try They prove that through his local
t allies he discouraged the erection of new
J. fn,tnries refused Ia psy the farmers n