Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-06-12
As, TRADE COMMISSIONER
REPORTONSUGARBEET INDUSTRY

. toso u hOeEv 10 pCt SSuG W 6oAho u
nearly IS per cent. Thirteen compa-
nies producing 75 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 50 per cent Of the sugar earned on
the average over 16 per cent. On the
other hand, is companies that earned
an average Of less than s per cent
produced 1914 per cent, Of the sugar,
and nine companies operating at an
average loss produced only az per
cent or NE suear. / ~
Upon the whole, capital employed
In the beetsugar business earned very
fair returns during the period.
Beet Growing
The cost Of growing and selling 50.
gar beets sand the gross return from
their sale2were secured from q mum
Der Of representative growers In every
locality whore beet sugar 10 manufac.
5tured. There was found q wide range
OF results varying from actual losses
to large profits. The expense Of grow.
ing and marketing beets ID very high.
Il was found % range from o little
less than SS5 to more than $50 per
acre. The gross returns, however,
were correspondingly high. The aver
age annual returns In the vaious beet.
sugar districts 10, IA period OF three
years ending With 1913 ranged from
about $50 20 more than SIS per acre,
and the average net profit per acre
ranged from less than $50 10 about
$40. The highest net potts per acre
were found In California, Colorado and
Utah. The lowest net profits in any
district OF considerable size were in
Michigan. ID three California districts
the net profits ranged from $3S to
t46 per acre; In Colorado the range
was from 327 70 s37; In Utah the
range Nas from s25 10 $50, while In
Michigan II was only III per acre.
Comparing the net profits OF beet
growing with those from other branch.
es Of agriculture. it appears probable
that no other Important standard crop
would year after year yield better
net returns per acre than betes. Many
farmers. however, insist with apparent
reason that they are entitled TO Q bet.
ter return on beets than on most other
CROPS Thib Is because of the Unusual
care and diligence required TO grow
them 80 compared with general field
CROPS, and because sof the usually
large 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.
ceiYtE should depend i1bon the prizes
0f sugar; n other words, that ne
should receive price 90 high as the
profits Of the beet-suear manufactur.
Or win enable him TO pay. The manu-.
facturer, it should be noted, guaran.
tees = price for beets before the seed
are planted, thus assuring the grower
q market at fixed price. Il IL there.
fore argued. On the other hand, that
6 the manufacturer always assumes
the risk Of decline N the price Of
sugar, while the farmer assumes no
risk whatever n the price OF beets,
the latter should be content with the
prices he has been receiving unless he
IL willing 70 assume the risk In Q
fluctuating sugar market. Il is point.
cd out that e would be q short-sighted
policy on the part Of the manufactures
20 force down the price Of beets to q
point Improbable to the farmer, be-
cause 81 10 doing he would force him
70 abandon that crop for others az.
fording profit. h. =.
The principle Of basing the general
pfics ofsbeets upon the price OF sugar
seems TO b an equitable one, but
whether. it can be made practical IN
its application can be determined only
BY experience. 49,
The late Commissioner VIII H.
Parry manifested q special interest in
this investigation. The intelligent
judgment which he brought to bear
upon al matters claiming his atten.
ton was especially valuable In this
ccnnsction5 because OF his intimate
knowledge Of the industry. The man.
ustripts for. the report had his appro-
val and 4 Eas sent ID the printer be.
fore his death.
4 =