The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1920-03-04
FACTORY PRoFTTEERING
ALLEGED.

Profiteering by the manufacturers
Is alleged and the case or the farm
ers and the consumers has been
placed before Attorney General A.
Mitchell Palmer. who has promised
an investigation by the federal de-
partment Of Justice. John G, Ket-
cham head Of the beet growers. and
j. r. Howard, president OF the
representing the Michigan Farm
Bureau, asked for the inquiry,
Never before have the farmers OF
the state taken such O. positive
this sugar beet contract fight. Prac-
tically all Of tho contracts for 1920,
similar TO the 1919 documents,
which had been circulated among
the farmers by. the manufacturers,
Sentiment is virtually unanimous,
according to the farm bureau,
among the beet growers not to plant
beets, but some other crop instead,
n the refiners stubbornly refuse to
listen to the farmers case.
The beet growers in 1919 got
s1250 a ton for their beets. They
show where II cost them S1i.69 TO
raise that ton. They are asking for
a minimum price of s12 a ton when
the New York market Wholesale
quotation is 8 cents a pound and
for a S1.A0 increase n ton In the New
York price over cents n pound.
FARMERS PROFIT A JOKE.
Figures in tho case, as set out
by the farm bureau, which tend to
show that the growers and consum-
ers are equally being mulcted by the
manufacturers, are as follows:
Government report for 1919 shows
that the average yield per acre was
9.063. tons of beets and according
TO the average production figures
of several score of growers IN the
Saginaw district. the cost to the
farmer of raising an acre of sugar
beets was $1O6 or 11.69 a ton IN
1919. The farmer received $3.50 g
ton for his beets. which would leave
him. net profit. after a summers
work, of 81 cents per acre. This
cost Of production does not recog-
nize the fertility taken from the
soil nor Of any managerial ability
involved which naturally Is vital II
successful operations and which al.
ways costs money.
The average extraction of sugar
from a ton OF beets, based on re
ports of three Michigan factories, T.
219h pounds. At liz cents a pound
manufacturers received sg5.2t gross @s
profit In sugar from the acre o.,
bects. Also out Of ton Of beets
the manufacturers get 100 pounds o,
dried pulp, which sells at aDproXi
mately 500 ton, and approximately
.JV worth or syrup. These item
added to the receipts for sugar
makes the Manufacturers gros.
prcnto on ton Of sugar beets u.
FEDERAL COMMISSIONS REPoRr
l,Costs Of manufacturing have bee
dnneult TO assemble for 1919, b.
the Federal Trade Comnlssion's p
ports Tor i've years. averaged, sho,
Ihat the price paid the farmer on p
ton OF poets 10 equivalent to wv,
thirds or the total cost of nnn nufac
turing. On this basis. the cost
manufacturing In 1919 was s1s7
Which would leave for tho man.
Iacturer a net profit Of $3.50 n e.
the farmer. 90 -
,GoYernment report shows tina;
,michigan.s sugar crops was DOLL o.
received si9,512.5OC gross me profit me- pc,
$6O5 O12 net proft, while the man,
IactuIers gross profit was 500 T6s7s
aha SS,S5S.O93. net profit Nichigns
rs the second state in the -rnion
production OF sugar beets
THIS summary was arrived at. Il
farm bureau report aaserts.
USING, throughout, the most consef
,NatlNe ngures obtainab1e and in ;
case hgures that might be cue
tloneu: For example, the nianilfac
turers' pront has been figured g
the oasis OF Jig cents por poun
When IL is n known fact that surr
Wholesaling In Michigan has n.
quently been at a much h,eib.
ngure--even as hiFh as IL cen;
This has come 20 the attention
federal authorities In Detroft