The Julesburg grit-advocate., 1923-03-08
OPEN LETTER
FROM OFFICIAL
OF GROWERS
Sterling, Colo, March 7, 1928.


Sugar company was quoted as fol-
lows: "Our 1923 contract contains a
schedule of payments irsuring the
beet grower liberal pa ticipation in
the proceeds of ton of beets," after
which the writer then said: "the value
of the sugar in ton of beets, based
on wholesale prices at contracting
time. is higher this year than last by
about 500 per ton of beets. On
ten ton average. this amounts to an
increase of $1,000 per acre. The COM
pany offers the farmer about $3.50
per acre more for the coming year,
and expects the farmer to pay $500
per acre more for beet labor furnish
ed by the company. leaving the farm
er about 30 cents more per acre than
last year. Note the LIBERAL PAR
TICIPATION.
The only comparison fair to the
company should be on the guaranteed
price, and is as follows:
Highest quotations (seaboard) on
sugar for February and March, 1922,
averaged $3.50 per 100 pounds sugar.
Seaboard prices February 6, 1928
were quoted an average of $8.95-a
difference of $3.65 between this year
and last. The company claims to get
256 pounds of sugar from a ton Of
beets, which at 1886 amounts to
$93.44. which represents the differ
ence in value at these prices. The
company guarantees the farmer 50c
per ton more this year for beets,
ammounting to $3.50 per acre for a
II ton yield, and expects him to pay
$500 more per acre for beet labor,
leaving him an increase Of $3.50 per
acre, more than last year. We do not
claim that the company can sell all Of
its sugar at the high price whatever
it may be. but We do not think the
participation appears very liberal.
The company claims we get more than
the guarantee. which we did. but last
year we received but Ice more. If
the chance of a bonus is certain
enough for the farmer to depend on,
it should be certain enough for the
sugar company to depend on for a
profit above the guarantee.
A large part of this advance in
sugar is likely unjustified, but enough
Of it is justified by the market to
warrant the company paying as much
as other companies pay, and this I
do not think they are doing.
News dispatches of March 9Th head
line the fact Of government investi-
CATION of the rise in the price Of sug-
ar. Government reports show no
shortage, though large stock has
been rapidly cleaned up. The Cuban
producers accuse the beet sugar in
terests Of raising the price and the
latter accuses the Cuban producers,
and meantime the big buyers Of sugar
are reported as out Of the market.
We do not know why the sudden rise
in the price of sugar but we do know
that it comes at time when the beet
sugar companies are making contracts
with the farmers. and when the farm
err is watching the price. of sugar. If
the rise in price is bona fide and justi-
fled, we expect the company to sell
on contract a large amount of sugar
at these prices. If this price is arti-
ficial and not justified, the beet farm
er is not only fooled at the time of
signing contracts, but his actual re-
ceipts from last years beets are thus
decreased. because as the price rises
consumption decreases. as consumers
turn to corn syrup and similar substi-
tutes for sugar.
The company claims they would op-
crate the Steffens plants at loss if
they paid what the farmers ask for
beets. This statement We deny, and
will attempt to disprove.
The 5000 acres signed at Sterling
when Cummings was here are being
added to daily, and if the returns con-
tfnue to come in as they have SO far.
between 10000 and 25.0O0 acres Of
the Sterling district will soon be sign
ed up to the growers association. Mr..
Cummings, on account of illness was
unable to speak at Brush and Fort
Morgan, and the writer substituted
for him. Brush reported about the
same per cent Of acres signed at the
meeting. as was signed at Sterling. or
Is of the total land owners whO had
never been with the beet menfbefore
came out strong for them. Fort
Morgan is also signing up the acre
age, tn the association, with two men
to each dump. All banks in Fort
Morgan, Brush, Weldona and Hillrose
have signed the following resolution:
"It is the opinion of the bankers as
sembled, based on experiences Of past
wears. and taking into consideration
the present cost Of labor, supplies and
e1uinmcnt, thnt the average farmer
cannot profitably, raise sugar beets
under the contract offered, and it was
the concensus of opinion that Great
Western Sugar company grant the
farmers contract with minimum Of
$6 90 ner ton for 'ts delivered and
a final settlement fifty-fifty
basis, and Mat we .ge our earnest
support to the farmers in their eff
fort to obtain the same"
The sugar company had before
modified their contract after saying
they would not. and they will surely
have to do it this time. The A.meri-
can neople are each year paying over
$12 ,0O0. 100000 that the sugar indus
try may exist, The only way they
will be willing to continue to do this
10 for tho fArn1ar to oet h;s sh,ro ~