The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1924-02-07

( esting talk on sugar in general and
brought out that at the congressional
hearing held to determine the proper
duty to be placed on imported sugar,
/ General Crowders of the y. S. army,
who has been stationed in Cuba in
advisatory capacity to the Cuban gov
eminent stated that from his expert
ence the United States should in flu
ture produce enough sugar within its
! own borders to incur at least war
I time ration under whatever contingent
( cies Should arise in the future. In
Mr.. McCormack's judgment the pres
/ sent protective tariff on sugar is al
most certain to be continued as mat
ter of insuring q public food supply.
I He stated further that the territory
lying along the west shore of Lake
Michigan about forty miles wide is
the best in the United States for the
growing of sugar beets for-ffrst rea-
! son is the most capable farmers in
the United States reside in this ter
ritory; second reason: Land is best
adapted to growing large tonnage Of
beets; third reason: Quality Of beets
is high; fourth reason: Good roads
for hauling; fifth reason: Excellent
railroad service; sixth reason: Ideal
distribution Of rain; seventh reason:
All sugar can be sold at home.
/ The population Of Wisconsin is
about 21z million Of people and the
average consumption of sugar is 100
pounds per capita. To supply the
needs of the people of Wisconsin
would require 20 large sugar beet fac
tories in other words he wanted the
farmers to kuow that they would not
over supply the local market.
In summing up Mr.. Mccormack
brought out that while the Cuban
grower had great advantages over 1he
American farmer in the cheap pro-
duction Of sugar our farmers on the
other hand to Offset their higher costs
have the best local market in the
world.
j To show the need of we'll developed
/ local production of sugar to insure
fair prices in the United States he
gave the reasons for the extremely
| high prices which the sugar market
reached in 1920.
He said that in the fall Of 1919 six
cents a pound was considered fair
! price for raw sugar by Cuban grow
ers. They offered their sugar to the
United States government at this
price but it was not accepted. That
year there was short crop of Beet
Sugar and it was exhausted soon af-
ter the first of February. As soon as
the Cuban brokers learned of our To-
cal shortage they began ito increase
the price until it had gone up from
| The six cents to over 20 cents deliver
ed at New York. This brought sugar
purchased by American housewives to
! over peak Of go cents. He also stat
ed that the weakness of our local in
dustry of that year which was in part
caused by uncertainty over the tariff
caused a loss to American consumers
sufficient to pay Our present tariff
for a period of ten years
I Mr. Mccormack stated that in adj
,dition to- the Wisconsin plant he has
factory. The value of the three prop
critics on which the bond issue is
based is S3,50O,OOO. :.
In answer to question, he replied
that the past annual earnings of the
original Menominee Falls plant have
been sufficient to pay at least per
cent interest on the preferred stock
on all three plants, leaving in addi-
ton substantial sum to pay as i'm
terest on all outstanding common
stock. Another question of equally
vital interest which he answered had
reference to the difficulty of securing
1,I L.
company did not lose one acre of
beets because of inability to supply
the necessary help. He added that
due to the scarcity of obtaining work
at other truck crops it was much east
er to supply competent labor in south
eastern Wisconsin than in the Menom-
inee River district.
Mr.. Bloodgood, attorney for the
bond holders committee, was intro
duced. His talk covered the general
conditions of the transaction and ex~
! planned in detail the expenses in
Cured in the upkeep of the plant,
and also the work of the bond holders
committee in making the deal.
The committee employed expert APP
praisers to put a Value on the plant at
Menominee Falls. This was set at
/ $S5O,000. Therefore the bond holders
committee held the plant at these fig
ures and finally managed to sell at
same He also stated that unless the
bona holders committee here spent the
necessary money to keep the plan in
shape it could not have been sold for
mere than onefourth of above fig
ures.
the new company and found it to be
the best managed and most efficient
sugar beet company in the middle
west. He also said that 'the value of
common stock in the company based
on dividends paid is worth twice its
| face value. The bondholders COM
mittee has promised Mr.. Mccormack
/ the cooperation of the 600 farmer
creditors Of the Wisconsin company
and urged the farmer to keep this
/ faith with Mr.. Mccormack and at the
same time to protect their own stock.
/ Mr. Bloodgood at the request of At
torney Myers, explained to growers
/ the impossibility of selling the plant
out right for cash. The best cash
! offer that it was possible to obtain did
not exceed 100000. This would bare
! ly have repaid the cost OF maintaining
the plant while idle. No material
would have been left for the bond