Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1914-09-25
TRUST WARS ON
U. S. PRODUCERS
Control Of Market Threatened
by Beet Industry.
COMPETITION CUTS PRICES.
Refiners Who Have Been Forced to Re-
pay Government $3,5oo,ooo For Frauds
Now Demand Elimination Of Growing
Farm Industry.

Now Demand Elimination of Growing
Farm Industry.
For the first time in the quarter GEN.
fury that the sugar trust has been in
existence it's 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 Q912-13) 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 Misss-
sippi if it were confined entirely to that
Ii.
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 30 to so 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 undersoId the cane product under
the very caves Of the trust retiperies.
Two of the big refineries on the At
lantic sea board closed down entirely,
and others were put on 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 pound lower than 1t
otherwise would have been and that 1t
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 refiners must operate at 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 refiners made similar ad-
missions. With the rapid increase in
the output of beet sugar the period dur
ing which refiners 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 open
war on the beet growing farmers or
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 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 II
becomes fully established. To accom-
plish this they have spread broadcast
the claim that such course will result
In saving to the consumer and have
employed agents to induce people to
write letters to congressman advocat-
ing free sugar
That the reffners 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 adj
vantage which they now derive from
being able to buy their raw supplies
from Cuba under the reciprocity act
at a third Of cent a 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 1t
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 to numerous devices to
cheat the government out Of the reve-
nue. due it under the law. The full
amount Of these frauds never has been
divulged. but under the spur Of federal
prosecution nearly $3500,000 was re-