Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-06-12
u.s., TRADE Commission SUBMITS
REPORTONSUGAR BEET INDUSTRY

States during the fire-year period
showed average results varying from
loss of nearly is per cent to gains OF
nearly 45 per cent. Thirteen compa.
MES producing IS per cent Of all the
beet sugar In the United States had
average earnings Of more than 9 per
cent on the capital employed in the
business, and seven companies produc
ing SO per cent hf the sugar earned on
the average over 16 per cent. On the
other hand, Is companies that earned
An average tof less than 5 per cent
produced 1875 per cent Of the sugar,
and nine companies operating at an
average loss produced only 912 per
cent Of the sugar.
Upon the whole. capital employed
In the beet-suEar business earned very
fair returns during the period.
Beet Growing
The cost Of growing and selling su.
gar beets and the gross return from
their sale were secured from a num-
Der OF representative growers in every
locality where beet sugar is manufac.
tured. There was found O wide range
Of results -yarying from actual losses
TO large profits. The expense Of grow.
ing and marketing beets Ii very high.
II was found to range from a little
less than SSs to more than $50 per
acre The gross returns, however,
were cofrespondingly high The aver.
age annual returns In the vaious beet.
sugar districts 70 RI period Of three
years ending with 1913 ranged from
about $50 e. more than SIS per acre,
and the average net profit per acre
ranged from less than S2e to about
$40. The highest net pofits per acre
were 3otnd IN California, Colorado and
Utah. The lowest net profits in any
district Of considerable size were in
Michigan. In three California districts
the net profits ranged from $3S to
tl6 per- acre; IN Colorado the range
was from te7 to $37: in Utah the
range was from SIS 10 S37, while IN
Michigan. It was only 81 per acre.
Compkfing the net profits OF beet
growing with those from other branch
90 OF Agriculture, Il appears probable
that no other important standard crop
would year after year yield better
net fetitfnt per acre than betes. Many
farmtfft however, insist with apparent
rea1on that they are entitled to O bet
ter return on beets than on most other
crops. This d because Of the unusual
care aud diligence required 10 grow
them % compared with general field
CROPS and, because Of the usually
lArea outlay Of cash for labor.
with respect to the complaint OF
the farmer that he does not receive q
fair price for his beets, Il Is generally,
though not universally, admitted that
beets are more profitable than most
other crops. The beet grower con.
tends, however. that the prices he re.
ceites should depend upon the prices
of sugar; I'm other words, that he
should receive Q price &c high o. the
profits bf the beet-suear inanufactur-
er win Enable him 70 pay. The manu-.
tacturet e should be noted, guaran-
tees Z price for beets before the seed
are planted. thus assuring the grower
q market At q fixed price. It is there.
fore argued. on the other baud, that
- the manufacturer always assumes
the tlsk 81 . decline ID the price Of
sugar. while the farmer assumes no
risk whatever IN the price Of beets,
the latter should be content with the
prices ne has been receiving unless he
ID willing to assume the risk in q
fluctuHting sugar MARKET. II q point.
cd out that e would be q short-sighted
policy On the part Of the manufacturer
to force down the price OF beets to q
point uhpfofitabie 20 the farmer, be-
Gauss 81 20 doing he would force him
70 abandon that crop for others ar.
fording q profit.
The principle Of basing the general
price of bSsts upon the price OF sugar
seems 70 tbe an equitable one, but
whether Il can be made practical In
60 application can be determined only
By experience. :
The late Commissioner win H.
Parry manifested a special interest In
fhis investigation. The intelligent
judgment which he brought to bear
upon al matters claiming his atten.
tion was especially valuable In this
connection because Of his Intimate
KNOWLEDGE Of the Industry. The man.
uscript for the report had his appro-
yal and i was sent 70 the printer be.
fore his death.
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