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The Columbia University Libraries reserve the right to refuse to accept a copying order if, in its judgement, fulfillment of the order would Involve violation of the copyright law. Author: U.S. Federal Trade Commission Title: Report on the beet sugar industry in the... Place: Washington, D.C. Date: 1917 MASTER NEGATIVE # COLUMBIA UNIVERSITY LIBRARIES PRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED - EXISTING BIBLIOGRAPHIC RECORD RESTRICTIONS ON USE: fS38,l Un334 1 U. S. Federal trade commission. ... Repor t on the beet suga r indust ry in the United States. Alay 24, 19177 Washington, Govt, print, off., 1917. xii, 164 p. inch tables. 25''"'. At head of title : Federal trade commission. Anotlior copy in BuninosG Library* 1. Sugar trade— U. S. 2. Beet and beet sugar— U. S. i. Title. 17-26429 ' mSiL Congress opy2. 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AT 20 CENTS PER COPY I** rAjT K»^ V^' xtuUxvtii-iKO < ^ 1* i CONTENTS Page. Letter of submittal ix Chapter I.— Introduction. Section 1. Purpose and scope of the investigation 1 Section 2. Some peculiar characteristics of the beet-sugar industry. 2 Short operating period 2 Effort required to secure beets 6 Section 3. Development and progress of the beet-sugar industry in the United States ^ 6 Building of beet-sugar factories in the United States since 1889 7 Location of beet-sugar factories in 1914 11 Growth of production 11 Section 4. Governmental encouragement of the industry 13 Encouragement through Federal tariff legislation 13 Encouragement through State legislation 14 Idaho ^ 14 Kansas 14 Iowa 14 'Minnesota • 15 Michigan 15 Nebraska 15 New York 15 The effect of tariffs and bounties on the industry 16 Section 5. Consumption of sugar in continental United States 16 Percentage of consumption supplied by domestic beet-sugar factories 18 Chapter II. — Beet Growing. 1. YIELD and quality OF BEETS IN THE UNITED STATES. Section 1. Introduction 20 Section 2, ' Yield of sugar beets per acre 21 Section 3. Quality of beets 22 " Percentage of sugar in beets 22 Purity of beets 23 Sugar extraction 24 Summary of yield and quality of beets 25 Section 4. Experimental results in beet growing 28 11. COST AND PROFITS OP BEET GROWING. Section 5. Methods employed in securing data 28 Difficulties due to lack of records 29 Section 6. Representativeness and reliability of data 30 Representativeness of the information secured ! 30 Reliability of data 31 m 1 p^ Ik IV CONTENTS. Page. Section 7, Classifying and tabulating data 32 Section 8. Cost and profits of individual growers in 1913 34 Section 9. Average cost and profits of individual growers for three years 47 Relation of profits to yield « 55 Average results by districts 57 Section 10. Profits from beets compared with profits from other crops 58 Chapter III. — Cost op Producing Beet Sugar. Section 1. Introduction qi Costs cover only the sugar manufacturing business 62 Bases of cost computations 62 Identity of factory concealed 62 Section 2. Proportion of total production covered by cost tables 62 Section 3. Details of elements of cost 63 Details of certain cost items 64 Interest excluded from cost 65 Section 4. Depreciation 65 Method of arriving at a depreciation charge 66 Cost of plant investment 67 Rate of depreciation 68 Section 5. Average cost of production for five years, by factories 69 Relation of various cost items to the total factory cost 75 Relation of cost of beets to cost of sugar 76 Cost, including depreciation 79 Section 6. Average cost of production for five years, by States 79 Effect of by-products on net cost 81 Pulp *.. 82 Molasses 83 Unusually high costs for some factories in 1911-12 83 Section 7. Average costs by groups of factories 85 Section 8. Comparative cost of production for all factories, by years 86 Section 9. Cost of sugar manufactured per ton of beets 87 Chapter IV. — Distribution op Sugar. Section 1. Introduction 92 Section 2. Where beet sugar is consumed 92 Section 3. Cost of distribution 94 Freight charges ." 100 Other expenses lOO Net prices received 102 When beet sugar is sold 103 Chapter V. — Investment, Capitalization, and Earnings of Beet- Sugar Companies. Section 1. Investment and capitalization 123 Comparison of cost of investment with capital liabilities 123 Section 2. Relations of earnings to capital employed 127 Earnings in the sugar business 128 Section 3. Rates of earnings on capital employed 129 Rates of earnings by groups of companies 132 Section 4. Rates of earnings on net investment 133 CONTENTS. V Chapter VI.— Eppiciency in the Beet-Sugar Industry. Page. Section 1. Principal elements to consider in studying efficiency 135 Mechanical elements ^^^ Economic elements to be considered 136 Difficulties in a comparative study of efficiency in beet-sugar[factories 136 Section 2. Comparisons based on scale of operations 137 Section 3. Important economic advantage of favorable location 141 Location with respect to the supply of beets 141 Advantage of proximity to markets 145 Section 4. Comparisons based on factory equipment 146 Steffens process 1^^ Pulp driers 1^^ Section 5. Conclusions 151 Chapter VII. — Relations Between Sugar Manufacturers and Beet Growers. Section 1. Interdependence of the two interests 152 Section 2. Contract prices for beets 153 Contracts in 1913 and 1914 154 Contracts in 1915 160 Apparent inconsistencies in contracts 161 Section 3. The test of a fair price for beets 163 The reasonableness of basing the price of beets upon the price of sugar 164 1 ; I r* m LIST OF TABLES. 1.— Days of operation, by factories and by States, campaigns of 1909-10 to 1913-14, inclusive « 2.— Annual production of beet sugar in the United States from 1889-90 to 1914-15, inclusive -.n 3.— Consumption of sugar in continental United States, 1865-1914 ....... 17 4.— Percentage of the total consumption of sugar in the United States pro- duced from domestic cane and beets, 1899 to 1914, inclusive 18 5.— Average yield of sugar beets per acre in the United States, by States, 1904 to 1914, inclusive oi 6.-Average sugar in beets used in the United Statesyby' States, 1904* to ' 1914 23 7.-^Average purity coefficient of beets used in the United States, by States 1904tol914 _ ' 24 8.— Average extraction of sugar per ton of beets used in the United States' by States, 1904 to 1914. 25 9.— Acreage harvested, average yield per acre, average sugar content and purity of beets, and average extraction, by States, 1904-1914 26 10.— Acreage harvested, average yield per acre, average sugar content and punty of beets, and average extraction, for the United States, 1904- 1914 27 11.— Costs and profits of growing beets in the United States, by farms grouped by districts, 1913 34 12.— Costs and profits of beet growing, by farms and by districts; averages for the three years 1911, 1912, and 1913 49 13.— Average costs and profits, by districts, for the three years 1911 1912 and 1913 ' g^ 14.— Cost of producing 100 pounds of granulated sugar, by factories; aver- ages for the five years 1909-10 to 1913-14, inclusive 72 15.— Relation of certain cost items to net factory cost, for the five-year period 1909-1913, by factories 76 16.— Comparison of cost of beets with gross cost of sugar, not including depre- ciation; averages for the five years 1909-10 to 1913-14, inclusive 77 17.— Comparison of cost of beets with net cost of sugar, not including depre'- ciation; average for the five years 1909-10 to 1913-14, inclusive 78 18.— Average cost of producing 100 pounds of granulated sugar, by States, for the five years 1909-10 to 1913-14 30 19.— Average net value of by-products per 100 pounds of sugar produced, by States, for five years ending 1913-14 \ 32 20.— Comparison of average net cost, not including depreciation, of producing 100 pounds of sugar in Michigan, Ohio, and Wisconsin for the five years ending with 1913-14, the year 1911-12, and for four years excluding I LIST OF TABLES. vn Pag«^ 21, — ^Average net cost per 100 pounds of sugar, and the percentage of the total sugar produced during the five years ending with the campaign of 1913- 14, for 64 factories, grouped according to the net cost of production 86 22. — ^Average sugar extraction per ton of beets and average cost of the manu- facture of sugar per ton of beets sliced by factories, for the five years 1909-1913 88 23.— Beet sugar sold by 24 companies in the various States for the year 1912 and 29 companies in 1913 92 24. — Gross receipts per 100 pounds of beet sugar, selling expense, and net price at factory per 100 pounds, by companies, for the years 1909-10 to 1913-14, inclusive 95 25. — Percentage of total sales of beet sugar made in each month, by years and by States of production, 1910-11 to 1913-14 103 26.— Excess of Detroit, Denver, and San Francisao quotations for granulated sugar (beet) over New York quotations (cane), weekly, 1913 and 1914. . 106 27. — Quotations of raw sugar and refined granulated sugar at New York, and margin between raw and refined, by weeks, 1890 to 1914 108 28. — Percentage of overcapitalization or undercapitalization of beet-sugar com- panies at the end of the years 1909-10 and 1913-14 124 29. — Rates of earnings on capital employed, taking account of depreciation, in the manufacture of beet sugar, allowing one-half of the total cost of production for working capital, by years, and averages for five years, 1909-10 to 1913-14, inclusive 130 30. — ^Annual rates of earnings from sugar on net investment in the sugar busi- ness, by companies, 1909-10 to 1913-14, and the average annual rate of earnings for the five years 133 31. — ^Average cost per 100 pounds of sugar produced by groups, for the year 1913-14 139 32. — Comparison of the average cost of beets and the net cost of production, not including depreciation, during the five-year period 1909-1913, by factories, grouped according to the amount of sugar extracted per ton of beets sliced 142 33. — Comparison of the average prices received for beet sugar, the cost of selling and the net price received at the factory per 100 pounds, for the five-year period 1909-1913, by States. 145 i I ^< J, ACKNOWLEDGMENT. The Commission desires to mention as especially contributing to the preparation of this report Mr. T. M. Kobertson and Mr. H. L. Anderson, who assisted Mr. Eobertson. vm I,-* fe LEHER OF SUBMITTAL The Federal Trade Commission, WasMngton, May 2i, 1917. To the Congress: There is submitted herewith a report on conditions in the beet- sugar industr}^ in the United States. The investigation was begun by the Commissioner of Corporations at the direction of the Secre- tary of Commerce because of complaints on the part of farmers that they were not receiving a fair price for beets. The report deals chiefly with the costs and profits of growing sugar beets, the cost of manufacturing and marketing beet sugar, the profits in the manufacture and sale of beet sugar, and the relations between sugar-beet growers and beet-sugar manufacturers. It covers in de- tail the operations o£ all the beet-sugar factories in the United States, except two small ones, during the five-year period ending with the business year of 1913-14. Because of the lack of funds to prosecute work other than- that spe- cifically directed by Congress, this report has been delayed, much to the regret of the Commission. It would have been desirable to bring the information down to a later date, but such a course was not possible because of the lack of an available force. A discussion of the economic position of the industry is not included in the report because it involves the consideration of mat- ters strictly within the province of another governmental agency. A chapter dealing with this subject has been prepared and it, together with all the data collected during this investigation, has been turned over to the United States Tariff Commission. In 1914, 700,000 tons of beet sugar was produced in the United States in 78 factories. The four principal centers of production were Michigan and northern Ohio, Colorado, northern Utah and southern Idaho, and California, but 12 other States contributed to the total production. Michigan and Colorado each had 16 factories in 1914, California had 13, Utah 7, Idaho and Ohio 5 each, and Wisconsin 4. There were 10 States that had only 1 factory each. California and Colorado produced more than 50 per cent of the total production of the country during the five years covered by the report. The annual IX ^< 4 trm — : — :t — r- ii'-^-._ *. ^}^!^^ if! lii Iff ^ LETTER OF SUBMITTAL. consiimptii,/! of sugar in the United States is approximately 4,300,000 tons, and about 16 per cent of this was produced in domestic beet- sugar factories in 1913-14. GROWTH OF THE INDUSTRY. There were only 3 beet-sugar factories in operation in the United States in 1870, and this number had increased to only 9 by 1897, but in 1914, as already stated, there were 78. The production has in- creased from less than 45,000 tons in 1897 to more than 700,000 tons in 1914. The rapid development of the industry after 1897 has been largely due to direct encouragement by the Federal and State Governments, particularly the former. While customs tariffs have afforded a large measure of protection to the industry since 1883, it was not until after the tariff act of 1897 that the rapid development of the industry began. In 1897 Michigan enacted a State bounty law which greatly stimulated the building of factories in that State. Soon afterwards other States enacted similar laws, but they were all, including those of Michigan, soon repealed or declared unconstitutional. CX)ST OF PRODUCING BEET SUGAR. The average cost for 64 factories producing 96 per cent of all the beet sugar in the United States during the five years ending with the season 1913-14 was $3.74 per 100 pounds, including depreciation, which for these factories averaged 25 cents. The average cost of 36 factories producing 74 per cent of the sugar was $3.46 ; the average for 26 factories producing 57 per cent of the sugar was $3.36. On the other hand, 21 factories producing 15 per cent of the sugar had an average cost of $4.84. There was a wide range of cost in different factories. The lowest average cost, for any factory for the five-year period, including depiecxation, was $2.94 and the highest was $6.45 per 100 pounds. Speaking broadly, this wide variation was due mainly to differences in the cost of beets per 100 pounds of sugar, but there were also wide differences in the cost of manufacture. The average cost of beets per 100 pounds of sugar for these 64 factories during the five-year period ranged from $1.64 to $4.48, while the additional cost of production, including overhead expenses but not including depreciation, ranged from 44 cents to $2.44. In general, high cost of beets is accompanied by high cost of sugar. There was also a notably wide variation in average costs in differ- ent States. The lowest average cost for the five-year period, in- cluding depreciation, was $3.27 per 100 pounds in California, and omitting the States that had only one factory each the highest average LETTER OF SUBMITTAL. XI cost was $4.88 in Wisconsin. The average cost of beets in California for the five-year period was only $2.05 per 100 pounds of sugar, while in Wisconsin it was $3.50. EARNINGS IN TMF: BF.ET-SUGAR BUSINESS. With respect to earnings the report coa ers 37 companies, operating 77 factories, that produced nearly 99 per cent of all the beet sugar manufactured in the United States during the five years ending with the season 1913-14. During this period these companies earned in the sugar manufacturing business an average of 11 per cent on the capital employed therein. The average earnings of all the companies by years ranged from 16 per cent in 1909-10 to 3 per cent in 1913-14. In no other year, except 1913-14, were the average earnings as low as 8^ per cent. The extremely low earnings in the year 1913-14 were due to the unusually low prices of sugar. Some companies operated at a loss during most of the period, while others made very large profits. Thus, the operations of 29 companies producing 95 per cent of all the beet sugar manufactured in the United States during the five-year period showed average results varying from a loss of nearly 18 per cent to gains of nearly 45 per cent. Thirteen companies 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 7 companies producing 53 per cent of the sugar earned on the average over 16 per cent. On the other hand, 16 companies that earned an average of less than 5 per cent produced 13^ per cent of the sugar, and 9 companies operat- ing at an average loss produced only 9| per cent of the sugar. Upon the whole, capital employed in the beet-sugar business earned very fair returns during the period. BEET GROWING. The cost of growing and selling sugar beets and the gross return from their sale were secured from a number of representative growers in every locality where beet sugar is manufactured. There was found a wide range of results varying from actual losses to large profits. The expense of growing and marketing beets is very high. It was found to range from a little less than $35 to more than $50 per acre. The gross returns, however, were correspondingly high. The average annual returns in the various beet-sugar districts for a period of three years ending with 1913 ranged from about $60 to more than $75 per acre, and the average net profit per acre ranged from less than $20 to about $40. The highest net profits per acre were found in California, Colorado, and Utah. The lowest net profits in any district of considerable size were in Michigan. In M ^< » . ^ » r xn LETTEB OF SUBMITTAL. three California districts the net profits ranged from $38 to $45 per acre ; in Colorado the range was from $27 to $37 ; in Utah the range was from $25 to $37, while in Michigan it was only $17 per acre. Comparing the net profits of beet growing with those from other branches of agriculture, it appears probable that no other important standard crop would year after year yield better net returns per acre than beets. Many farmers, however, insist with apparent reason that they are entitled to a better return on beets than on most other crops. This is because of the unusual care and diligence required to grow them as compared with general field crops, and because of the usually large outlay of cash for labor. With respect to the complaint of the farmer that he does not receive a fair price for his beets, it is generally, though not uni- versally, admitted that beets are more profitable than most other crops. The beet grower contends, however, that the prices he re- ceives should depend upon the prices of sugar; in other words, that he should receive a price as high as the profits of the beet-sugar manufacturer will enable him to pay. The manufacturer, it should be noted, guarantees a price for beets before the seed are planted, thus assuring the grower a market at a fixed price. It is therefore argued, on the other hand, that as the manufacturer always assumes the risk of a decline in the price of sugar, while the farmer assumes no risk whatever in the price of beets, the latter should be content with the prices he has been receiving unless he is willing to assume the risk m a fluctuating sugar market. It is pointed out that it would be a shortsighted policy on the part of the manufacturer to force down the price of beets to a point unprofitable to the farmer, because in so doing he would force him to abandon that crop for others afford- ing a profit. The principle of basing the general price of beets upon the price of sugar seems to be an equitable one, but whether it can be made practical in its application can be determined only by experience. The late Commissioner Will H. Parry manifested a special in- terest in this investigation. The intelligent judgment which he brought to bear upon all matters claiming his attention was espe- cially valuable in this connection because of his intimate knowledge of the industry. The manuscript for the report had his approval and It was sent to the printer before his death. Respectfully submitted. William J. Harris, OTvairman. Joseph E. Da vies. William B. Colver. John F. Fort. 1 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. CHAPTER I. INTRODUCTION. Section 1. Purpose and scope of the investigation. This investigation was undertaken by the Bureau of Corporations because of complaints made by beet growers that the prices that they received for beets were not commensurate with the price of sugar and the consequent profits realized by beet sugar manufacturers. The work was not completed until after the Bureau of Corpora- tions was merged into the Federal Trade Commission. The scope of the inquiry was broadened to cover not only the matter com- plained of by the farmers but also to include a careful study of the principal phases of the beet sugar industry in the United States, from the growing of the beets to the selling of the refined sugar. It is intended to show the condition of the industry as a whole. The period covered by the report is the five years ending with the season of 1913-14. Every locality producing beet sugar in 1913 was visited and the books of every beet sugar manufacturing com- pany operating in that year except one were examined. With this one exception all of the beet sugar manufacturers in the United States willingly gave access to their books and afforded every oppor- tunity for the examination and compilation of all data desired. From the books of the companies there were obtained details of the cost of production, investment, capitalization, and earnings, and many other facts relating to their business. The sales of sugar by months were obtained from all companies and also the quantity sold in each State wherever such data were available. These statistics show the average gross receipts per pound of sugar, the average freight rate and selling expenses, and the net price realized at the factory. Freight rates from all the beet sugar producing and the cane sugar refining districts have been compiled from published freight tariffs. A comparison of these rates from various beet sugar producing sections with the rates from the cane- sugar refineries to the principal centers of consumption marks in some measure the lines of competition between beet and cane sugars. 1 • >i I ^< j» ^i . M^AM MM^JWl^ •'PjWPJf^-^^^^sgygiiwgf^^s^-^^ - MK UA ■^■rr^^^lk i I 1 m 2 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. ■ Hundreds of beet growers were visited in the vicinity of the beet- sugar factories and data regarding the costs and profits of beet grow- ing were obtained from them. The reliability of this informatL is supported by a mass of statistical data secured from the beet-sugar factories and from the United States Department of Agriculture and various State agricultural experiment stations. It was intended to collect and compile information covering the industry in the principal beet sugar producing countries of Europe ' Agents were sent to France, Germany, and elsewhere in Europe, but before the work had progressed far beyond the preliminary stages It was abruptly terminated by the outbreak of war. The only re- source left was such information relating to beet growing and the manufacture of beet sugar in Europe as was avaSble il variou publications Many such publications have been carefully examined but the publ^hed statistics covering these matters are generally in- complete m details and the statements of facts necessary for proper interpretation are madequate. Under these circumstances it is im- possible to make satisfactory comparisons with data collected in this country^ For these reasons conditions in foreign countries are not discussed m the report. Section 2. Some pecnliar characteristics of the beet sugar industry. In some important aspects the beet sugar industry is peculiar. Its' principal raw material (beets) must be produced mainly in the vicmity of the factory and in sufficient quantity to assure a reasonable period of annual operation. Beets deteriorate in quality if kept for any considerable length of time, and consequently the annual operat- ing period > of a factory is at most short, rarely exceeding 100 days, and often considerably below this. Except in the case of some branches of the canning industry these peculiar circumstances place the beet sugar mdustry practically in a class by itself among indus- trial activities. A beet sugar factory and the farmers supplying it with beets depend on each other in an unusual degree. The factory can not go to a remote district to secure its beets nor can the beet growers m one district find a profitable market for their product at any great distance from their farms. There are instances indeed where beets are shipped 100 to 200 miles, but such cases are rare and the quantity of beets shipped long distances forms an inconsiderable proportion of the total. Short operating PERioD.-Sugar beets, as already stated, can not be kept a very long time without deterioration. They will keep in a frozen state, but they must be worked before they thaw. The ' The yearly transactions of a beet sugar factory Is -ailed a " cammt™ " if in,„i, T "»""V° r-"""'"" """ *■>' •=»-t™ctlng for'and manufLturtngof^a crop of beets' S^, brs": rtrard'm'an,"" "™^'°^ " ™'"™^'^ ">' " ^"-'^ »' beets and^nds w en ine Deets contracted m any one year have been converted into sugar. INTRODUCTION. 3 harvest begins in the late summer or early fall, and they must there- fore be worked before the first warm days of spring. For this reason the operating period of a factory is comparatively short, and the plants usually lie idle for at least two-thirds of the year and often longer. During the idle period the investment in the plant is not earning anything. Probably few if any other industries with such a large investment in plant equipment have such a short period of operation. Furthermore, when the plant ceases to operate the or- ganization of employees is broken up and most of the employees are discharged. As a consequence, a considerable proportion of the em- ployees in most factories are new and sometimes wholly inexperi- enced at the commencement of each working season. The number of days each factory covered by this report operated in each year during the 5 years ending with 1913-14 is shown in Table 1, below. The table also shows the annual average niynber of days each factory operated in the 5 years and the average for all the factories in each State for each year and for the 5 years. Table 1.— DAYS OF OPEKATION, BY FACTORIES AND BY STATES, CAMPAIGNS OF 1909-10 TO 1913-14, INCLUSIVE. State and company. 1909-10 1910-11 1911-12 1912-13 1913-14 Average. Michigan. Continental Sugar Co. (Blissfleld) Days. 75 90 53 69 38 77 99 100 72 6S 107 104 45 70 104 Days. 106 118 63 110 39 109 127 123 104 129 117 93 97 94 131 Days. 126 114 128 138 77 137 143 133 136 131 135 159 124 126 117 49 Days. 124 72 75 74 73 79 84 68 51 Days. 105 71 80 103 56 117 119 96 78 Days. German-American Sugar Co. (Bay City) . . HoUand-St. Louis Sugar Co. (Holland) HoUand-St. Louis Sugar Co. (St. Louis) . .. MflnnTTiinftft Rivnr Siipar Cn , 107 93 80 99 Michigan Sugar Co. (Alma) 57 Michigan Sugar Co. (Bay City) 104 Michigan Sugar Co. (Caro) 114 Michigan Sugar Co. (Croswell) 104 Michigan Sugar Co. (Saginaw) 88 Michigan Sugar Co. (Sebewaing) to lyk 78 80 1 AO 1 /^O 98 Mount Clemens Sugai- Co. . . . 103 Owosso Sugar Co. (Lansing) 106 88 46 61 79 58 60 113 Owosso Sugar Co. (Owosso) . . . .*. 87 West Bay City Sugar Co 79 Western Sugar Refining Co :. 95 49 Average 78 104 123 77 86 94 Ohio and Indiana. Continental Sugar Co. (Findlav) .. 114 127 100 104 105 76 56 66 91 88 76 65 47 75 91 in? Continental Sugar Co. (Fremont). 86 80 89 95 83 German-American Sugar Co. (Paulding). . Holland-St. Louis Sugar Co. (Decatur) Ottawa Sugar Co 71 91 Toledo Sugar Co Average 86 85 114 83 74 85 1 I- SI I li ■ "* ^. W)^'- :le^-;^:. i 1 i'3 ■'1 )• ■ i I! V I'-t !•. / 4 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 1.— DAYS OF OPERATION, BY FACTORIES AND BY STATES, CAMPAIGNS OF * 1909-10 TO 1913-14, INCLUSIVE—Continued. state and company. 1909-10 1910-11 1911-12 1912-13 1913-14 Average. Wisconsin, Minnesota, and Iowa. Days. Days. Days. Days. Days. Days. ChiDoewa Sugar Co. (Wisconsin) 55 50 104 69 49 65 Rock County Sugar Co. (Wisconsin) 64 75 119 87 50 79 Unitei States Sugar Co. (Wisconsin) 50 63 122 88 40 73 Wisconsin Sugar Co. ( Wisconsin) 106 87 115 98 51 91 Iowa Sugar Co. (Iowa) 45 89 117 101 66 ■ 84 Minnesota Supar Co, (Afinnft'^ota) , . 50 32 57 86 71 59 Average 62 66 1 106 1 88 1 1 i 55 1 75 Northern Colorado, Montana, and Nebraska. American Beet Sugar Co. (Grand Island).. 48 65 69 84 77 69 Great Western Sugar Co. (Eaton) 97 59 60 95 122 87 Great Western Sugar Co. (Greeley) 79 58 59 99 114 82 Great Western Sugar Co. (Windsor) 85 56 61 97 72 74 Great Western Sugar Co. (Fort Collins) . . . 101 57 61 105 122 89 Great Western Sugar Co. (Loveland) 101 67 67 105 119 92 Great Western Sugar Co. (Longmont) 95 51 55 104 118 85 Great Western Sugar Co. (Sterling) 109 88 73 97 107 95 Great Western Sugar Co. ( Brush) 82 63 60 87 87 76 Groat Western Sugar Co. (Fort Morgan)... Great Western Sugar Co. (Billings) 85 64 87 78 79 87 83 107 96 114 97 Great Western Suear Co (Scottsblufl) 48 93 112 125 95 Average 88 63 69 97 105 85 Southern Colorado and Kansas. American Beet Sugar Co. (Rocky Ford)... 94 78 78 95 129 95 American Beet Sugar Co. (Las Animas). . . American Beet Sugar Co. (Lamar) Hollv Sugar Co. (Holly) 46 51 49 5;i 64 59 6o 44 46 52 Hollv Sugar Co. (Swink) 89 56 58 70 91 73 National Sugar Manufacturing Co 90 53 52 81 58 67 San Luis Vallev Beet Sugar Co 52 32 18 34 Western Sugar & Land Co 102 88 98 107 96 98 Garden Citv Suo'ar & Land Co 28 71 37 45 Average 77 64 61 69 1 72 69 Arizona and Nevada. Nevada Sugar Co • 35 34 35 Southwestern Sugar & Land Co 40 55 44 51 48 Average 40 55 40 43 43 Idaho and Oregon. Amalgamated Sugar Co. ( Burlev) 59 71 65 Amalgamated Sugar Co. (La Grande) Utah-Idaho Sugar Co. (Idaho Palls) 50 34 32 39 93 70 86 61 70 76 Utah-Idaho Sugar Co. (Sugar City) 100 62 109 92 81 89 Utah-Idaho Sugar Co. ( Blat^k/oot) 51 77 56 77 65 Utah- Idaho Sugar Co. (Namoa) 11 1 11 Average 74 44 1- 76 67 75 67 INTRODUCTION. 9 Table l.-DAYS OF OPERATION, BY FACTORIES AND BY STATES, CAMPAIGNS OF 1909-10 TO 1913-14, INCLUSIVE—Continued. State and company. Utah. Amalgamated Sugar Co. (Ogden). Amalgamated Sugar Co. (Logan). Lewiston Sugar Co Utah-Idaho Sugar Co. (Lehi) Utah-Idaho Sugar Co. (Garland). Utah-Idaho Sugar Co. (Sevier). . . Utah-Idaho Sugar Co. ( Payson). . Average. California. Alameda Sugar Co American Beet Sugar Co. (Oxnard) . . American Beet Sugar Co. (Chine) Anaheim Sugar Co Holly Sugar Co. (Huntington Beach). Los Alamitos Sugar Co Sacramento Valley Sugar Co San Joaquin Valley Sugar Co Santa Ana Cooperative Sugar Co Southern California Sugar Co Spreckels Sugar Co Union Sugar Co Average. 190&-10 Days. 138 122 123 138 114 1910-11 127 113 112 109 139 78 Q) 113 0) 147 116 Days. 87 74 66 99 76 80 93 113 109 143 79 0) 125 {') 126 1911-12 Days. 119 94 96 96 90 88 97 116 107 107 88 93 140 91 0) 105 0) 113 121 1912-13 Days. 114 99 99 105 82 82 97 95 88 90 95 107 97 124 0) 98 112 0) 117 1913-14 Days. 108 100 111 78 101 73 59 Average. Days. 113 98 99 103 93 81 59 90 98 72 112 96 110 110 111 97 0) 105 124 0) 139 108 102 0) 0) 98 106 102 98 103 136 94 102 116 130 108 108 1 Not reported. « Two factories in California could not give the number of days in operation. The 10 factories reporting in that State had an average operating period of 109 days during the 5 years covered. It is not probable that the 2 factories omitted would materially change this average if they were included. One of these factories apparently had very long operating periods, while for the other they were com- paratively short. Utah and Michigan operated an average of 98 and 94 days, respectively. In Ohio and Indiana and northern Colorado the average operating period for the 5 years was 85 days. The fac- tories in southern Colorado and in Idaho and Oregon operated an average of less than 70 days. The longest period of operation for any factory in any year was 159 days by the Mount Clemens Sugar Co. in Michigan in 1911-12. The average for all the factories of Michigan for that year was 123 days. The long operating period in that State in that year was due to an unusually large supply of beets. 87731—17 2 A \ THE BEET SUGAR INDUSTRY IN THE UNITED STATES. INTRODUCTION. Effort required to secure beets. — It is the experience of most factories that they can not make sure of a supply of beets without con- siderable effort. Thus it is the custom for a representative of the factory to visit the farmers in the vicinity and induce them to enter into contracts to grow beets. These are formal written contracts stip- ulating the number of acres the farmer will plant and the prices the factory will pay. The factories usually agree to supply the seed at a fixed price. The contracts provide that the factory shall supervise the cultivation and the farmer agrees to cultivate in the manner pre- scribed by the factory. A condition that sometimes causes farmers to hesitate to enter into contracts is the difficulty encountered in securing labor. Since a very large proportion of the cost of growing beets is due to the expense of hand labor, farmers must have an assurance of such' labor before they can safely plan for a crop. The factories, therefore, generally agree to supply this labor. When the factory engages to supply hand labor it is so stated in the contract and the price per acre is stipulated. These efforts necessary to guarantee a supply of beets entail con- siderable expense. This expense varies from a cent or two per 100 pounds of sugar produced to sometimes more than 25 cents. A cost exceeding 5 cents per 100 pounds is quite common. These expenses per ton of beets vary from 5 cents or 6 cents to 50 cents or 60 cents. There are instances where the cost per ton of beets to the factory for these expenses has been as much as $1, but this is not usual. Section 3. Development and progress of the beet sugar industry in the United States. From a review of the beet sugar industry, issued by the United States Department of Agriculture in 1869, it appears that the first attempt to produce beet sugar in the United States was an experi- mental one made near Philadelphia in 1830, but no factory was built. A bulletin issued by the department in 1872 states that prob- ably the earliest recorded experiments in beet sugar made in this country were in Massachusetts in 1838.^ It appears that the manu- facturer interested in the Massachusetts enterprise was awarded a silver medal for the production of a small quantity of sugar in that year. The secretary of the United States Beet Sugar Industry in a publication issued in 1913 stated that in 1852 Bishop Tyler of the Mormon Church purchased in France machinery for a sugar fac- tory and shipped it to Salt Lake City.^ In 1863 a factory was estab- 1 U. S. Dept. A., Special Report on Beet Sugar Industry, 1897. 2 Beet Sugar Industry of the United States, p. 6. lished in Chatsworth, 111. After struggling for several years it was removed to Freeport, 111., and later to Blackhawk, Wis.^ Bulletin 210, issued by the United States Department of Agri- culture in 1870, reported three factories in operation, one at Chats- worth, III, one at Alvarado, Cal., and one in Sauk County, Wis. Prior to this, however, namely, in 1867, there appears to have been a factory at Fond du Lac, Wis. About 1878 a factory was built in Maine, and other factories had been built in California and possibly elsewhere. Nearly all of these earlier factories were failures mainly on account of the unwillingness or the inability of farmers to pro- duce beets in sufficient quantities and quality to supply the factories. By 1892 there appears to have been only six factories in operation.^ In 1893 investigations relating to the beet-sugar industry by the De- partment of Agriculture were suspended and no statistics are again available until 1897. In 1897 there were nine factories in operation, four in California, two in Nebraska, one in New York, one in New Mexico and one in Utah.« Building of beet-sugar factories in the United States since 1889. — ^A chronological list of the beet-sugar factories in the United States has been prepared from various sources of information but mainly from bulletins issued by the United States Department of Agriculture. In 1909 the Secretary of Agriculture in response to a resolution adopted by the Senate furnished a statement showing the number of beet-sugar factories then in operation in the United States and the number erected each year since 1896.* This document has been taken as the basis for the information relative to the erection of factories. The factories built or beginning operation in each year since 1889 are shown in the following statement: 1890. American Beet Sugar Co., Grand Island, Nebr. 1891. Chino Valley Beet Sugar Co., Chino, Cal. Utah Sugar Co., Lehi, Utah. American Beet §ugar Co., Norfolk, Nebr. (Removed to Lamar, Colo., in 1905.) 1 University of Wisconsin Bulletin No. 55. 2 Beet Sugar Industry of the United States, Department of Agriculture, 1897. »Beet Sugar Industry in the United States, U. S. Department of Agriculture, 1897, p. 160. * S. Doc. 22, 61st Cong., 1st sess. ^' ^ ^^»^ I 8 TH^ BEET SUGAR INDUSTRY IN THE UNITED STATES. 1897. Los Alamitos Sugar Co., Los Alamitos, Cal. Pecos Valley Beet Sugar Co., Carlsbad, N. Mex. (Operated unsuccess- fully for two years. It was closed and later destroyed by fire.) First Beet Sugar Co., Rome, N. Y. (On account of bad management and lack of beets died after two years.) . 1898. California Beet Sugar & Refining Co., Crockett, Cal. (Removed to Corco- ran, Cal., in 1909.) Oregon Sugar Co., La Grande, Ore.u^ (Removed to Burlev. Idaho, in 1911.) Ogden Sugar Co., Ogden, Utah. Michigan Sugnr Co. (oUl), Bay City. Mich. (Removed to Waverlv, Iowa in 1907.) Minnesota Sugar Co.. St. Louis Park. Minn. (Burned in 1905.) Binghamton Sugar Co., Binghamton, N. Y. (Removed to Blackfoot, Idaho, in 1904.) American Beet Sugar Co., Oxnard. Cal. . 1899. Spreckels Sugar Co., Salines, Cal. Union Sugar Co., Santa Maria, Cal. ( Betteravia. ) Illinois Sugar Refining Co.. Pekin. 111. (Produced a little sugar only one year. Part of machinery moved to \'isnlia, Cal.) Colorado Sugar Manufacturing Co., Grand .Junction, Colo. (Now Western Sugar & Land Co. ) Standard Beet Sugar Co., Ames, Xebr. (Removed machinerv to Scotts- bluff, Nebr., in 1910.) • Bay City Sugar Co., Bay City, Mich. Detroit Sugar Co., Rochester, Mich. (Removed to Madison, Wis., in 1906.) Wolverine Sugar Co., Benton Harbor, Mich. (Moved to Canada in 1901.) Peninsular Sugar Co., Caro, Mich. West Bay City Sugar Co.. West Bay City, Mich. Alma Sugar Co., Alma, Mich. Holland Sugar Co., Holland Mich. Kalamazoo Sugar Co., Kalamazoo. Mich. (Moved to Chippewa Wis in 1903.) D. C. Corbin, Waverly, Wash. 1900. American Beet Sugar Co., Rocky Ford, Colo. National Sugar Co., Sugar City, Colo. Continental Sugar Co,, Fremont, Ohio. Empire State Sugar Co., Lyons, N. Y. (Moved to Anaheim, Cal., in 1911., INTRODUCTION. 1901. Marine City Sugar Co., Marine City, Mich. Lansing Sugar Co., Lansing, Mich. Saginaw Sugar Co., Saginaw, Mich. (Moved to Sterling, Colo., in 1905.) Western Construction Co., Loveland, Colo. Wisconsin Suga'r Co., Menominee Falls, Wis. Logan Sugar Co., Logan, Utah. 1902. German- American Cooperative Beet Sugar Co., Salzburg, Mich. Sebewaing Sugar Co., Sebewaing, Mich. Valley Sugar Co., Carrollton, Mich. Macomb Sugar Co., Mount Clemens, Mich. Sanilac Sugar Refining Co., Croswell, Mich. Eaton Sugar Co. Eaton Colo. Greeley Sugar ^o., Greeley, Colo. . 1903. Menominee River Sugar Co., Menominee, Mich. Tawas Sugar Co., East Tawas, INIich. (Moved to Chaska, Minn., in 1905.) Owosso Sugar Co., Owosso, Mich. Windsor Sugar Co., Windsor, Colo. Idaho Sugar Co., Idaho Falls, Idaho. Utah Sugar Co., Garland, Utah. St. Louis Sugar Co., St. Louis, Mich. Longmont Sugar Co., Longmont, Colo. 1904. Fort Collins Sugar Manufacturing Co. Fort Collins Colo. Fremont Sugar Co., Sugar City, Idaho. Rock County Sugar Co., Janesville, Wis. (Old Dresden, Ontario, plant.) Chippewa Sugar Co., Chippewa Falls, Wis. Snake Valley Sugar Co., Blackfoot, Idaho. 1905. American Beet Sugar Co., Lamar, Colo. Holly Construction Co., Holly, Colo. (Now Holly Sugar Co.) Charles Pope, Chicago, Riverdale, 111. Sterling Sugar Co., Sterling, Colo. Continental Sugar Co., Blissfield, Mich. Amalgamated Sugar Co., Lewiston, Utah. 1906. Charlevoix Sugar Co., Charlevoix, Mich. (Moved to Ottawa, Ohio, in 1911.) Pacific Sugar Co., Visalia, Cal. I- i I .f 10 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Alta, Cal., Beet Sugar Co., Hamilton City, Cal. Utah-Idaho Sugar Co., Nampa, Idaho. United States Sugar & Land Co., Garden City, Kans. United States Sugar Co., Madison, Wis. Holly Construction Co., Swink, Colo. Carver County Sugar Co., Chaska, Minn. Billings Sugar Co., Billings, Mont. Great Western Sugar Co., Brush, Colo. . Great Western Sugar Co., Fort Morgan, Colo. Southwestern Sugar & Land Co., Glendale, Ariz. 1907. Iowa Sugar Co., Waverly, Iowa. American Beet Sugar Co., Las Animas, Colo. • 1909. Pacific Sugar Co., Corcoran, Cal. (Moved machinery from Crockett, Cal.) Southern California Sugar Co., Santa Ana, Cal. (Moved from Wiarton, Ontario.) 1910. Scottsbluff Sugar Co.. Scottsbluff. Nebr. German- American Sugar Co., Paulding, Ohio. 1911. Anaheim Sugar Co., Anaheim, Cal. Holly Sugar Co., Huntington Beach, Cal. San Louis Valley Sugar Co., Monte Vista, Colo. Continental Sugar Co., Findlay, Ohio. Utah-Idaho Sugar Co., Elsinore, Utah. 1912. Holland-St. Louis Sugar Co., Decatur, Ind. Amalgamated Sugar Co., Burley, Idaho. Toledo Sugar Co., Toledo, Ohio. Ottawa Sugar Co., Ottawa, Ohio. Santa Ana Cooperative Sugar Co., Dyer, Cal. Nevada Sugar Co., Fallon, Nev. 1913. Utah-Idaho Sugar Co., Payson, Utah. From the foregoing statement it is seen that there was a marked impetus in factory building in the late nineties. Seven new factories were completed in 1898 and 14 in 1899. This expansion was marked and steady down to and including 1906. Only two factories were built in each of the years 1907, 1909, and 1910. None was built in INTBODUCTTON. 11 1908. In 1911 and 1912 there was renewed activity in building, 11 factories being completed in those two years. It is worthy of note that of the 14 factories built in 1899 eight of them were in Michigan. This extraordinary expansion of the indus- try in Michigan was no doubt due to the enactment of a law by the legislature in 1897 providing for a State sugar bounty (see p. 15). An increase in production naturally followed the increased num- ber of factories. Prior to 1891 there had not been produced as much as 3,000 tons of sugar in any one year. In 1891 the production was 5,400 tons. By 1897 this had increased to about 40,000 tons, and by 3900 the production reached nearly 83,000 tons. The increase in production and its relation to consumption are shown in Table 3 (see p. 17).^ Location of beet-sugar factories in 1914. — There were 78 beet- sugar factories in the United States in 1914, located in 17 States, as follows : Arizona 1 Montanal California 13 Colorado 16 Idaho 5 Illinois 1 Indiana 1 Iowa 1 Kansas 1 Michigan ^ 16 Minnesota 1 2 1 5 7 1 4 Wyoming 1 Nebraska Nevada Ohio Utah Washington. Wisconsin Total 78 Ten of the above States have only 1 factory each, and one State has only 2. The four principal centers of production are Michigan and northern Ohio, Colorado, northern Utah and southern Idaho, and southern California. In comparatively recent years there were factories in New York and Oregon, but these have all been aban- doned or removed to other States. The factory in Washington has not been in operation for several years. One at Holly, Colo., was removed to Sheridan, Wyo., in 1915. The i)lant at Glendale, Ariz., has never been able to secure a sufficient quantity of beets, and in the season of 1914-15 some experiments were made with sugar cane. Growth of production. — Naturally the growth of production has kept pace with the increased number of factories. The annual pro- * Tonnage figures taken from Final Report, Industrial Commission, p. 84. f •^1 iit i i ft %r:kl m •I ■ ■:i I 12 THE BEET SUGAE INDUSTRY IN THE UNITED STATES. auction of beet sugar in the United States from 1889-90 to 1914-15 inclusive, is shown in Table 2 below : ' Table 2.-ANNUAL PRODUCTION OF BEET SUGAR IN THE UNITED STATES FROM 1889-flO TO 1914-15. INCLUSIVE. INTEODUOTION. 13 Year. Produc- tion. Year. 1889-90.. 1890-91.. 1891-92.. 1892-93. . 1893-94. . . 1894-95... 1895-96... 1896-97... 1897-98... 1898-99... 1899-1900. 1900-1901. 1901-2.... S?iort tons. 2,467 3,874 5,999 13,460 22, UA 22, .503 32,726 42,040 45,246 36,368 81,729 68,082 184,606 1902-3. 1903-4.. 1904-5. . 1905-6. . 1906-7.. 1907-8. . 1908-9.. 1909-10- 1910-11. 1911-12. 191^13. 1913-14. 1914-15. Produc- tion. Short tons. 218,406 240,604 242,113 312,921 483,612 463,628 425,884 1509,655 1510,821 » 585, 385 » 688, 174 ' 726, 764 722,054 in process at the end of the year becomes pSTof the prodSn for thTn?x? vP^^^^Th.^rr,' ''^^ ^1^^ figures of the Commission include first those taken dirPPtl v frnm tin >P« i '^f^l' ^^® *°*^^ production either an estimate or returns Scured 7rora oTher so^^^^ fnrinr. nlr?® company and, second, the latter representing only a few small faetoriP■ The effect of tariffs and bounties on the industry. — There is no question that Federal tariffs and in some cases State bounties have greatly stimulated the beet-sugar industry. The beginning of the construction of several factories in 1898 and their completion in 1899 (see p. 8) was no doubt largely due to the enactment of the Michigan bounty law. This State bounty law in connection with the Federal tariff law of 1897 afforded a large measure of encourage- ment in that State. Following the enactment of the bounty law in the State of New York a factory was built in 1897, another in 1898, and another in 1900. It is said that the last of these factories was remove^ from the State because of the failure of the State to pay bounties. ' , For several years following the tariff act of 1897 there was a remarkable expansion of the industry in what are now the principal beet sugar producing sections of the country. Down to the time of the reciprocity treaty with Cuba in 1903 the duty of $1.68J per 100 pounds on raw sugar testing 96° afforded great advantage to this industry, and even after the Cuban reciprocity treaty when the duty was reduced to about $1.35 per 100 pounds the advantage was still very great. To what extent the large measure of protection to the industry encouraged careless selection of localities for factories can not be stated. It is probable that the expectation of a wide margin of profit provided for in the tariff had such a tendency to foster care- lessness in the selection of factory locations. A number of factories have been built without particular regard to the quantity and qual- ity of beets available, apparently with the expectation that the busi- ness would be so profitable that extraordinary inducements could be offered to farmers. Naturallv an undue, artificial stimulus also re- suits in a lack of thorough care in equipping and operating fac- tories. Section 5. Consumption of sugar in continental United States. The per capita consumption of sugar in continental United States is greater than that of any other country except Great Britain. Figures for consumption include sugar used in any form. There are no figures indicating the amount of sugar per capita used as such for strictly domestic purposes. It is well known that a large percentage of the sugar consumption is in the form of candies and other confec- tions, preserves, jams, etc. Furthermore, there is considerable sugar used in the manufacture of tobacco and in various other wavs. The total consumption of sugar in continental United States, the source of supply, the per capita consumption in the United States, and the per cent of the world's production consumed in the United States, from 1865 to 1914, are shown in Table 3 below : TABLE 3 -consumption OF SUGAR IN CONTINENTAL UNITED STATES, 1865-1914. [Statistical Abstract: Bureau of Foreign and Domestic Commerce.] Year. 1876. 1877- 1878- 1879- 1880. 1881- 1882. 1883. 1884- 188.5- 1886. 1887. 1888. 1889- 1890. 1891. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899- 1900. 1901- 1902. 1903. 1904. 1905. 1906. 1907. 1908. 1909. 1910. 1911. 1912. 1913. 1914. Total consump- tion in United States (conti- nental).! Pounds. 631,397,214 1,008,603,114 880,009,330 1,155,275,475 1,328,534,744 1,261,941,665 1,442,470,531 1,649,834,977 1,670,246,701 1,782,063,238 1,904,621,896 1,598,951,344 1,811,268,726 1,645,604,810 2,002,953,025 1,970,221,478 2,201,187,313 2,142,904,249 2,426,981,787 2,975,026,610 2.687,818,446 2,818,144,031 3,125,276,345 3,016,360,183 3,091,376,231 3,192,735,098 3,875,344,121 3,919,671,292 4,262,589,311 4,936,382,960 4,321,674,363 4,494,681,898 5,598,391,028 3,468,736,934 4,604,811,191 4,477,175,236 5,585,008,783 5,018,972,657 6,380,165,502 5,661,900,411 6,025,772,362 6,491,294,803 7,089,668,935 6,590,822,991 7,283,363,552 7,360,130,811 7, 235, 972, 746 7,862,155,291 8,234,477,135 8, 793, 794, 928 Percentage of consumption sup- plied by- Domestic. 1.9 2.1 5.8 4.5 7.7 7.0 12.4 9.5 8.1 6.2 7.5 10.8 11.0 9.7 12.5 9.2 13.0 8.0 13.2 10.2 8.5 10.8 6.2 12.5 11.3 9.6 13.0 9.8 12.3 13.3 17.9 13.6 13.0 23.0 13.9 10.9 14.3 21.9 18.5 17.8 21.0 21.4 21.3 26.0 21.8 19.0 23.0 23.2 20.8 22.7 Noncon- tiguous territory. Foreign countries. 11.1 15.0 14.7 12.7 12.3 16.2 14.9 16.4 12.3 10.6 13.2 12.6 14.2 14.8 11.9 14.1 14.4 16.3 15.9 18.8 18.9 20.5 19.1 20.5 16.5 17.6 9.0 11.2 12.0 10.7 9.2 12.9 10.5 18.1 13.5 14.0 14.9 18.2 16.0 18.7 19.6 18.9 17.7 24.0 21.9 25.2 26.0 30.2 24.7 21.3 87.0 82.9 79.5 82.8 80.0 76.8 72.7 74.1 79.6 83.2 79.3 76.6 74.8 75.5 75.6 76.7 72.6 75.7 70.9 71.0 72.6 68.7 74.7 67.0 72.2 72.8 78.0 79.0 75.7 76.0 72.9 73.5 76.5 58.9 72.6 75.1 70.8 59.9 65.5 63.5 59.4 59.7 61.0 50.0 56.3 55.8 51.0 46.6 54.5 56.0 Per capita consump- tion in United States.i Pounds. 18.17 28.45 24.30 31.24 35.19 32.73 36.47 40.64 40.08 41.64 43.33 35.42 39.07 34.59 40.99 39.46 42.89 40.82 45.20 54.18 47.87 49.09 53.26 50.29 50.44 50.72 60.70 60.22 64.24 72.99 62.69 63.98 78.20 47.55 61.98 58.91 71.96 63.35 78.92 68.66 71.66 75.74 81.19 74.11 80.43 79.90 77.15 82.43 85.04 89.14 Per cent of world's product consumed in United States. 14.3 22.0 17.4 24.5 24.9 23.3 24.4 28.1 24.8 25.4 29.0 24.3 29.8 22.7 25.0 27.1 26.9 24.9 25.5 28.4 24.5 27.6 27.5 27.4 27.7 25.0 27.6 27.5 29.4 29.9 24.3 27.1 31.4 20.0 25.7 23.1 25.7 20.4 28.7 24.5 28.3 20.8 21.9 21.1 22.3 22.0 19.0 22.1 20.2 21.1 ^' 1 Expressed mainly in terms of raw sugar. .d^ -*^^vt. ta^im 18 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. INTRODUCTION. 19 ff i ire The per capita consumption has increased from 18 pounds in 1865 to 89 pounds, or nearly 400 per cent, in 1914. Fifty years ago 87 per cent of the sugar consumed in this country was imported. This proportion has gradually fallen until it is now less than 60 per cgnt. Parallel with this relative decrease in the proportion of the total consumption imported there has been of course a corresponding in- crease in domestic production. The sugar supplied to the United States by its noncontiguous territory, the Hawaiian Islands, the Philippines, and Porto Rico, is now about 21 per cent of the total con- sumption, and the percentage supplied by continental United States, including both beet and cane, is somewhat greater. At the present time practically all the sugar consumed in this country is produced in the United States, including its possessions, and in Cuba. The imports from other foreign countries than Cuba are comparatively insignificant. It is a remarkable fact that approximately one-fifth of all the commercial sugar of the world is consumed in the United States. Percentage of consumption supplied by domestic beet-sugar FACTORIES.— Practically all the beet sugar made in this country is consumed here. From 50 to 55 per cent of the sugar consumed in the United States is importecl ; the remainder comes in about equal proportions from beets and Louisiana cane, and from Hawaii, the Philippines, and Porto Rico. The percentage of the total consump- tion produced in domestic beet factories and from Louisiana cane for the last 16 years is shown in Table 4 below : Table 4.— PERCENTAGE OF THE TOTAL CONSUMPTION OF SUGAR IN THE UNITED STATES PRODUCED FROM DOMESTIC CANE AND BEETS, 1899 TO 1914, INCLUSIVE. [Computed from the Statistical Abstract, 1914, Bureau of Foreign and Domestic Commerce.] Year. Louisi- ana cane. Beet. 1899 1900 1001 1902 1903 1904 1905. 1906. 12.3 7.2 11.2 14.5 11.7 9.3 13.0 11.8 L6 3.7 3.1 7.4 6.8 8.5 8.0 9.6 Total. 13.9 10.9 14.3 21.9 18.5 17.8 21.0 21.4 Year. 1907 1908 190^ 1910 1911. 1912. 1913. 1914 Louisi- ana cane. Beet. 7.7 13.6 11.9 14.1 n.4 11.7 10.2 13.9 9.8 14.1 9.2 15.3 3.9 17.6 6.7 16.7 Total. 21.3 26.0 23.1 24.1 23.9 24.5 21.6 23.4 It should be pointed out that the totals in the above table do not exactly agree with the percentage of consumption supplied from domestic sources as shown in Table 3. This is due to the fact that in the latter table the exports of domestic sugar have been deducted, while in Table 4 they have not. The purpose of Table 4 is to show what percentage of the total consumption is produced in beet-sugar factories. It appears from the table that in recent years domestic beet-sugar factories have produced enough to meet about 15 per cent of the domestic demand. In fact, the proportion is somewhat greater than this. About half of the domestic consumption is reported in terms of raw sugar, while all of the beet-sugar production is reported in terms of refined sugar. The proportion of the consumption pro- duced in the beet factories is therefore a little greater than the figures in the foregoing table would indicate. It is worthy of note that dur- ing the past eight years the increase in the production of beet sugar has just about kept pace with the increased total consmnption. •f » 1^" i I Y. i ■-^^^^ BEET GROWING. 21 flfi'i ! \^ If ■| ■:!■ CHAPTER II. BEET GROWING. I. YIELD AND QUALITY OF BEETS IN THE UNITED STATES. Section 1. Introduction. The widely extended area in which the sugar beet can be grown in this country, the methods of cultivation, and the particular problems that may confront the grower are not discussed in this report. All these matters have been thoroughly studied by the United States De- partment of Agriculture, and a vast amount of information relating to every phase of beet culture is available to anyone interested. The discussion of beet culture in this report is confined to the concrete results and the economic aspects of this branch of farming. The farmer is the most important factor in the beet-sugar industry. He must supply beets in sufficient quantity and quality or else the beet-sugar manufacturer can not exist. Sugar-beet culture demands closer vigilance on the part of the farmer than is necessary to grow the ordinary farm crops, such as grain, hay, etc. In a revised edition of Farmers' Bulletin 52, issued by the United States Department of Agriculture in 1910, the high class of farming necessary to grow sugar beets successfully was pointed out in the following language: The successful growing of sugar beets is an art that one acquires by practice. The farmer who has made a success of raising other crops wull quite often fail at first in this one, as the methods of cultivating ordinary crops do not apply in the case of sugar beets. Certain directions for the preparation of the soil, the planting, thinning, and harvesting must be followed in beet culture. Although it is possible to raise sugar beets with little regard to these directions, such a crop will usually fail to pay for itself, either because the yield is too small or the sugar content of the beets too low to meet factory requirements. In commercial beet growing, therefore, carelessness leads quickly to failure, while careful regard for details spells success. Suc- cess comes at first from following the advice of successful grow- ers, and later it may be augmented by practical experience. From the foregoing and from numerous other statements embody- ing the experience of experts and of practical farmers, it appears that beets are one of the most exacting crops grown. The land must 20 be adapted not only to produce beets in reasonably large quantities but of such quality as to insure a high sugar content. Furthermore, the sugar content must be of a degree of purity high enough to guar- antee its profitable conversion into edible sugar. Probably no other crop reflects more fully improper or careless methods of culture or the neglect of doing everything at the proper time. Section 2. Yield of sugar beets per acre. The quantity of beets grown per acre varies according to the variety of beets, quality of seed, quality of land, methods of culti- vation and moisture conditions. There is a wide variation of pro- duction in different sections of the country and even among different growers in the same section. Thus production frequently ranges from 6 or T tons to 15 tons per acre, and in extreme cases the range is much wider. In some localities a yield of 20 tons per acre is not uncommon. The average for the United States has been as much as 11 tons per acre but once in 11 years. Table 5 below shows the average yield per acre in the principal beet-growing States and for the United States from 1904 to 1914 inclusive : Table 6.-AVERAGE YIELD OF SUGAR BEETS PER ACRE IN THE UNITED STATES, BY STATES, 1904 TO 1914, INCLUSIVE. • [Compiled from bulletins of the U. S. Department of Agrlculture.l Year. Califor- nia. Colorado. Michigan. Utah and Idaho. Wiscon- sin. Other States. United States. I 1 Included with "Other States." The statistics for Utah and Idaho have been combined in this table and in all other similar tables because of their proximity and the interrelation of factory interests. From the above table it is seen that the highest average yields are in Colorado and Utah and Idaho. In these States taken together the average is above the average for the United States for every year during the period covered except one. In California the average for the State was above the average for the United States for 6 years in 11. In Wisconsin the aver- age was above that for the United States for 7 years out of 10. 87731—17 3 % N ill i" |U saa 22 THE BEET SUGAR IHTDUSTBY IN THE UNITED STATES. The average in Michigan is very low. In only one year during the period covered was the average in that State equal to the average for the United States. Section 3. Quality of beets. Special emphasis should be placed on the importance of the quality of beets. Unless the quality is of a fair degree it does not pay to extract the sugar. There are two elements of quality, namely, the sugar content and the degree of purity. A considerable percentage of the total weight of the beets consists of soluble solids and most of these solids consists of pure sugar. The per cent of the total weight of the beets that is pure sugar is called the sugar content. The per cent of the total soluble solids that is pure sugar is called the degree or percentage of purity. This is discussed on the follow- ing page. Under existing conditions it does not pay to work beets testing below 10 or 12 per cent of sugar. Indeed, an average content as low as this probably could not be profitably worked. Some factories reserve the right to reject beets testing below 11 or 12 per cent. The average should be well above 12 per cent. Likewise, the percentage of purity must not be too low because the lower the per cent of pure sugar in the soluble solids the higher is the relative cost of extraction. Some factories reserve the right to reject beets show- ing a purity below 80 per cent, and probably no factory would care to run on beets having an average below that percentage. Percentage of sugar in beets. — The sugar content of the beets worked by the sugar factories of the United States for 11 years ending with 1913-14 ranged from 14.90 in 1906 to 16.38 in 1914. It was above 16 per cent but 4 years of the 11. It should be under- stood that the entire sugar content of beets can not be extracted. A ton of beets testing 15 per cent contains 300 pounds of pure sugar at the time of delivery to the factory, but that amount can not be extracted. Some of it is lost between the time of purchase of the beets and their manufacture, some of it is left in the beet pulp, some remains in the molasses, and some is lost — ^that is, it can not be accounted for at all. The percentage of sugar in the beet is therefore always greater than the percentage extracted (see p. 25). The average sugar content of the beets worked in the United States from 1904 to 1914, inclusive, is shown in Table 6 following. BEET growing. 23 Table 6.-AVERAGE SUGAR IN BEETS USED IN THE UNITED STATES, BY STATES, 1904 TO 1914. [Compiled from bulletins of the U. S. Department of Agriculture.] Year. 1904. 1905. 1906. 1907. 1908. 1909. 1910. 1911. 1912. 1913. 19141 Califor- nia. Colora- do. Per cent. ' Per cent. 15.74 17.27 16.70 17.90 17.66 17.61 18.20 18.95 18.79 18.04 18.46 15.64 14.71 14.70 15.30 13.85 14.24 15.19 15.44 16.19 14.92 15.35 Michi- gan. Per cent. 15.13 15.65 14.50 15.10 17.11 17.00 16.08 14.59 14.72 15.82 15.78 Utah and Idaho. Per cent. 14.82 14.25 15.70 " 17.00 14.97 15.51 16.31 16.20 16.65 15.44 17.27 Wiscon- sin. Per cent. 14.54 15.00 13.60 15.10 16.72 15.88 16.75 14.23 15.10 14.10 (») Other States. Per cent. 15.36 14.04 14.00 15.10 15.22 15.09 15.66 15.16 15.70 14.85 15.51 United States. Per cent. 15.3a 15. 3S 14.90 15.80 15.74 16.10 16.35 15.89 16.31 15. 7g 16.38 Figures for 1914 subject to slight revision. Included with "Other States." During the 11 years covered by the table the beets in California tested above 17 per cent for 9 years. In Colorado they tested above 16 per cent only one year and above 15 per cent for 6 out of 11 years. In Utah and Idaho the sugar content reached 17 per cent for 2 years; f it was above 15 per cent for 8 years out of 11. In Michigan the per- j| centage reached 17 for 2 years and above 15 for 8 years out of 11. In ^ Wisconsin a content of 16 per cent was reached for only 2 years and ^ it was above 15 per cent for 6 years out of 10. Purity of beets. — There is a considerable proportion of the weight of beets that consists of soluble solids, mostly sucrose, the chemical term for crystallizable sugar. If a ton of beets contains say -iOO pounds of soluble solids and of these solids 360 pounds consist of sucrose then these beets are considered 90 per cent pure. Or, to put it another way, if the beets test 18 per cent sucrose and 20 per cent soluble solids, the per cent of purity, or as technically expressed the coefficient of purity, is equal to eighteen-twentieths, or 90 per cent. The relation of the sugar content to the soluble solids is very impor- tant because it is the measure of the purity of the beets. While it is thus important, it is not by itself a true test of the value of beets. Beets testing a very high per cent of sucrose with a moderately low per centage of purity will yield more sugar than beets testing a very < low per cent of sucrose and a high percentage of purity. This fact is brought out strikingly in Table 7 (see p. 24), in which it is seen that the beets worked in Utah and Idaho average higher in purity than those in California, but the sugar extraction in California, as shown in Table 8 (see p. 25), is considerably higher than in Utah 1 I 24 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. BEET GROWING. 25 I and Idaho. This is because the beets in California have a much higher percentage of sucrose than those in Utah and Idaho. The average purity of beets worked in the United States for each year from 1904 to 1914, inclusive, is shown in Table T below. In each of the 11 years shown in the table the purity showed an average above 82 per cent; for 9 years the average was above 83 per cent, and 3 years it was above 84 per cent. Table 7— AVERAGE PURITY COEFFICIENT OF BEETS USED IN THE UNITED STATES, BY STATES, 1904 TO 1914. [Compilel from bulletins of the U. S. Department of Agriculture.] ^ Year. im. 1905. 1906. 1907 1908 1909 1910 1911 1912 1913 1914 Califor- nia. Per cent. 81.13 ' 81.33 82.70 85.10 83.20 83.62 82.78 82.04 83.99 86.26 82. 70 Colora- do. Per cent. 82.46 81.79 80.30 81.50 81.80 80.51 83.40 81.22 84.81 84.01 84.22 Michi- gan. Per cent. 85.47 84.67 83.20 84.70 84.80 86. 2L 86.15 80.00 83.75 82.61 82.85 Utah and Idaho. P^r cent. 83.24 82.58 84.30 87.20 85.50 85.20 86.54 86.79 86.83 84.65 86.28 Wiscon- sin. Per cent. 83.51 83.00 83.00 85.60 84.50 85.17 84.14 81.00 84.31 (») Other States. Per cent. 83.12 81.10 80.90 82.30 82.00 83.21 82.69 84.51 83.18 82.17 83.46 United States. Per cent. 83.10 83.00 82.20 83.60 83.50 84.11 84.35 82.21 84.49 83.22 83.89 1 Included with " Other States." The percentage of purity in Utah and Idaho exceeded the average for the United States 10 years out of 11. In Michigan the percentage exceeded the average for the United States 6 years out of 11 and was equal to the average in one other year. In Wisconsin the average exceeded that for the United States 5 years out of 9 and was equal to the average in one other year. In California and Colorado the average fell below the average for the United States 8 years out of 11. The purity of the beets in California was above 83 per cent for 5 years out of 11. In Utah and Idaho it was above 84 per cent for 9 years, and it was above 85 per cent for 7 years during the period covered. In Michigan it was above 82 per cent 10 years out of an 11-year period. In Wisconsin it was above 82 per cent for 8 years out of 9. In the group including the other States the percentage of purity was above 82 per cent for 9 years out of 11. The per- centage was below 81 per cent for 2 years in Colorado and 1 year in Michigan. Sugar extraction. — The real measure of the value of beets is the quantity of sugar that can be extracted in a reasonably efficient fac- tory, and this should determine the price to be paid the farmer. The beet grower, therefore, should be specially concerned in the quality of beets he produces, because this governs the amount of •sugar that can be extracted and therefore the price he should receive. The average extraction of sugar per ton of beets in the United States by States from 1904 to 1914, inclusive, is shown in Table 8 below : Table 8 -AVERAGE EXTRACTION OF SUGAR PER TON OF BEETS USED IN THE UNITED STATES, BY STATES, 1904 TO 1914. [Compiled from bulletins of the U. S. Department of Agriculture.] Year. 1904 1905 1906 1907 1908 1909 I 1910 t 1911 { 1912 ' 1913 1914 4 y. t Califor- nia. Per cent. 11.80 14.37 13.81 15.06 13.89 14.43 15.15 15.55 15.82 15.05 15.62 Colora- do. Per cent. 11.32 10.47 11.24 11.11 11.03 11.89 11.93 13.04 13.16 12.46 12.94 Michi- gan. Per cent. 11.98 12.50 11.00 12.16 13.95 12.93 11.53 8.69 11.33 12 82 1291 Utah and Idaho. Per cent. 11.67 10.80 11.25 13.81 12.04 11.13 12.67 12.95 13.70 1233 14.26 Wiscon- sin. Per cent. 10.90 11.49 11.10 12.35 13.30 12.01 11.82 9.23 11.23 11.01 (0 Other States. Per cent. 12.15 10.66 9.70 11.37 12.22 12.10 11.83 11.16 12.55 12.25 12 70 United States. Per cent. 11.69 11.74 11.42 12.30 1247 12.56 12.61 11.84 13.26 12.96 13.65 1 Included with "Other States." From the foregoing table it is seen that the average extraction for the United States fell below 12 per cent, or below 240 pounds per ton, for 4 years during the period covered. The highest percentage of extraction was 13.65 per cent in 1914-15. The extraction per ton in California is far above the average for the United States and consid- erably above the average for any other State. As already stated, this is due more to the high percentage of sugar in the beets grown in California than to the high percentage of purity. In Colorado the average exceeded the average for the United States but 1 year in 11. In Michigan it exceeded the average for the United States 4 years. In Utah and Idaho the average for the United States was exceeded 5 years. In Wisconsin the average exceeded that for the United States but 2 years out of 10. Summary of yield anp quality of beets. — The data in Tables 5 to 8 have been brought together and shown in Table 9 below. This table also shows the acreage of beets harvested each year from 1904 to 1914, inclusive. The significant facts disclosed by this table have already been pointed out and they are brought together here merely for convenience in comparing the various elements affecting the quality of beets. ■^f- ^T*-' 26 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 9.— ACREAGE HARVESTED, AVERAGE YIELD PER ACRE, AVERAGE SUGAR CONTENT AND PURITY OF BEETS AND AVERAGE EXTRACTION, BY STATES, 1904- 1914. state and year. Cahfom^: Acres. 19(M 32,801 1905 51,857 1906 60, 141 1907 47,387 190S 62, 302 1909 1 83, 000 1910 1 90,500 Area har- vested. ii ;» 1911- 1912 1913 1914 Colorado: . 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Michigan: 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 Utah and Idaho 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 27,760 44,550 44,058 54,601 52,141 46,727 39,945 51,002 56,dSi2 61,909 66,600 I Percentage of sucroee (pure sugar) in the total 99,545 111,416 127,610 104,000 44,456 85,916 110,943 127,678 119,475 121,698 81,412 86,437 144,999 168,410 135,400 53,777 77,823 93,984 88,334 81,073 112,232 117,500 145,837 124,241 107,965 101,300 Average yield per acre. Average sugar m Average purity coeffi- cient of beets.i Per cent. Per cent. 15.74 81.13 17.27 81.33 16.70 82.70 17.90 85.10 17.66 83.20 17.61 83.62 18.20 82.78 18.95 82.04 18.79 83.99 18.04 86.26 18.46 82.70 15.64 82.46 14.71 81.79 14.70 80.30 15.30 81.50 13.85 81.80 14.24 80.51 15.19 83.40 15.44 81.22 16.19 84.81 14.92 84.01 15.35 84.22 15.13 85.47 15.66 84.67 14.60 83.20 15.10 84.70 17.11 - 84.80 17.00 86.21 16.08 86.15 14.59 80.00 14.72 83.75 15.82 82.61 15.78 82.85 14.82 83.24 14.25 82.68 15.70 84.30 17.00 87.20 14.97 85.50 15.51 85.20 16.31 86.54 16.20 86.79 16.65 86.83 15.44 84.65 17.37 86.28 Short tons. 12.06 9.92 11.17 10.23 10.39 10.63 10.20 10.42 9.01 8.92 10.40 12.38 10.19 13.41 11.93 9.28 10.33 10.62 11.07 11.32 10.93 12.60 8.06 6.83 8.67 7.89 7.54 7.31 10.28 9.90 6.75 8.86 8.50 11.48 8.25 13.89 10.94 11.60 13.24 10.42 12.72 10.81 11.37 12.45 soluble solids of the beets. Average extrac- tion of sugar based on weight , of beets sliced. Per cent. 11.80 14.37 13.81 15.06 13.89 14.43 15.15 15.55 15.82 15.05 15.62 11.32 10.47 11.24 11.11 11.03 11.89 11.93 13.04 13.16 12.46 12.94 11.98 12.60 11.00 12.16 13.96 12.93 11.63 8.69 11.33 12.82 12.91 11.67 10.80 11.25 13.81 12.04 11.13 12.67 12.95 13.70 12.33 14.26 BEET GROWING. 27 Table 9 -ACREAGE HARVESTED, AVERAGE YIELD PER ACRE, AVERAGE SUGAR CONTENT AND PURITY OF BEETS AND AVERAGE EXTRACTION, BY STATES, 1904- 1914— Continued. . 1 4 State and year. Area har- vested. Average yield per acre. Average sugar in beets. Average purity coeffi- cient of beets. Average extrac- tion of sugar based on weight of beets sliced. Wisconsin: 1904 Acres. 9,500 14,000 15,660 11,837 14,700 14,000 16,772 23,241 20,172 11,800 Short tons. 11.37 8.86 10.19 10.37 9.37 10.21 9.14 11.02 10.27 9.66 Per cent. 14.64 15.00 13.60 16.10 16.72 16.88 16.75 14.23 15.10 14.10 Per cent. 83.51 83.00 83.00 85.60 84.60 85.17 84.14 81.00 84.31 Per cent. 10.90 1905 11.49 1906 11.10 1907 . 12.35 1908 13.30 1909 12.01 1910 11.82 1911 . 9.28 1912 11.23 1913 11.01 1Q141 Other States: • 1904 29,500 33,218 61,388 41,147 35,222 42,605 61,900 67,815 97,520 102,252 76,100 9.01 7.62 9.76 8.33 8.66 8.47 9.29 10.61 9.40 8.87 10.70 16.36 14.04 14.00 15.10 15.22 16.09 16.66 16.16 16.70 14.85 16.51 83.12 81.10 80.90 82.30 82.00 83.21 82.69 84.51 83.18 82.17 83.46 12.15 1905 10.60 1906 9.70 1907 11.37 1908 12.22 1909 12.10 1910 11.83 1911 11.16 1912 12.55 1913 12.25 1914 12.70 •' :> ^ I / I r / A » > / A 4 TABLE ll.-COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES BY FARMS GROUPED BY DISTRICTS, 1913-Continued. MICHIGAN, LOWER PENINSULA-Continued. WISCONSIN, NORTHERN DISTRICT. 128.. 129.. 130.. 131.. 132... 133... 134... 135... 136... 137... 138. . . 139... 140... 141... 142... 143... 144... 145... 146... I 2.00 1.50 2.00 1.75 2.00 3.50 5.75 2.00 3.00 13.25 6.50 18.50 7.00 2.00 10.00 22.50 70.00 19.50 14.50 $6.25 5.00 4.00 3.00 5.00 6.00 3.50 3.00 5.20 4.60 6.25 3.50 5.00 2.50 3.00 3.00 3.50 5.00 3.00 $20.00 20.00 20.00 21.00 21.00 8.50 21.00 21.00 21.00 21.00 21.00 21.00 21.00 12.50 20.00 20.00 20.00 20.00 20.00 $10.00 7.00 5.00 4.00 5.75 4.00 6.00 3.60 5.00 4.50 7.00 2.50 2.75 3.75 2.90 5.50 2.00 4.00 3.00 $7.50 8.17 10.75 7.00 14.85 16.70 11.50 10.38 11.50 6.00 9.45 11.50 10.25 7.75 7.50 7.00 6.76 6.00 6.00 $2.00 3.75 4.50 2.50 13.25 3.50 .50 4.00 2.00 $2.25 2.70 2.70 3.00 3.00 3.00 2.25 2.40 1.80 2.25 2.25 1.80 2.25 2.25 2.25 2.55 2.70 2.70 2.70 $0.25 .50 .25 .60 .25 .40 50 $48.00 46.62 46.95 38.25 52.10 5L45 47.75 40.88 44.50 38.50 46.55 40.55 41.65 29.25 39.65 38.05 36.95 37.70 35.20 $78.00 80.00 78.00 72.00 54.00 102.00 57.00 77.00 60.00 42.00 64.50 72.00 66.00 ' 54.00 40.00 56.65 54.08 46.35 40.00 $30.00 33.38 31.05 33.75 1.90 50.55 9.25 36.12 15.50 3.50 17.95 31.45 24.35 24.75 .35 18.60 17.13 8.65 4.80 13.00 13.33 13.00 12.00 9.00 17.00 9.50 12.83 10.00 7.00 10.75 12.00 11.00 9.00 8.00 11.00 10.50 9.00 8.00 $2.31 2.50 2.39 2.81 .21 2.97 .97 2.82 1.55 .50 1.67 2.62 2.21 2.75 .04 1.69 L63 .96 .60 iLoss. 87731—17- ^ a I -- ' «i ^ 38 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. i I Table ll.— COSTS .VND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913-Continued. WISCONSIN, SOUTHERN DISTRICT. Acres. Cost per acre. Value per acre. Profit per acre. Farm num- ber. Prep- ara- tion of soil. Hand labor. Plant- ing and cul- tivat- ing. Lift- ing and haul- ing. Irri- ga- tion. Fertil- izer. Seed. Mis- cel- lane- ous. Total ex- penses. Yield per acre. Profit per ton. 147... 2.50 2.50 6.00 15.00 2.00 3.00 5.00 2.00 $6.50 3.50 6.00 5.75 3.75 4.50 3.00 6.00 $21.00 21.00 21.00 21.00 21.00 21.00 19.00 21.00 13.50 3.90 3.50 3.00 3.50 7.00 3.00 5.00 $12.25 10.26 13.50 8.50 16.00 10.35 8.00 8.50 $2.70 2.25 2.25 2.25 2.25 2.25 2.25 2.25 $0.30 - $46.25 40.90 46.25 40.50 46.50 45.10 37.75 42.75 $84.50 107. 25 91.00 66.00 110.00 51.75 66.00 71.50 $38. 25 66.35 44.75 25.50 63.50 6.65 28.25 28.75 Tom. 1^ no ••y oi 148... 16.50 4.02 14.00 3.20 12. 00 2. 13 20. 00 3. 18 9.00 .74 12.00 2.35 1^ nn 'i oi 149... 150... 151... 162... 153... 154... $2.50 MINNESOTA. 155... 1.25 $2.60 156... 5.00 4.00 157... 3.00 3.00 158... 1.75 2.00 159... 3.00 6.00 160... 13.00 3.00 161... 3.00 3.00 162... 9.50 4.00 163... 6.00 3.00 164... 11.00 2.00 165... 5.00 3.50 $20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 $6.25 3.00 5.25 5.75 2.90 3.40 4.00 5.20 2.00 4.30 3.25 $7.00 |l3.00 10. 25 16.00 6.60 5.40 7.32 8.75 3.79 9.40 14.00 $2.00 3.00 3.50 10.00 5.00 3.75 4.00 10.00 3.20 $1.80 1.80 2.50 2.30 2.00 2.00 1.00 1.20 2.00 1.60 1.80 $0.75 ,25 $39.55 44.80 44.50 56.05 42.50 38.30 39.32 39.15 40.79 40.65 42.55 $44.00 88.00 49.50 82.50 38.50 91.25 38.75 35.00 48.75 60.00 60.00 $4.45 43.20 5.00 26.45 U.OO 52.95 1.57 14.15 7.96 19.35 17.45 8.00 16.00 9.00 15.00 7.00 18.25 7.75 7.00 9.75 12.00 12.00 $0.56 2.70 .56 1.76-. 1.57 2.90 1.07 1.69 .82 1.61 1.45 IOWA. 166. 167. 168. 160. 170.. 171.. 172.. 173.. 174.. 21.00 $2. 175.00 2. 24.00 11.00 4.75 7.00 15.00 100.00 19.00 00 00 50 00 25 25 00 80 00 $20.00 20.00 19.50 18.00 19.00 19.00 17.50 15.50 16.00 $1.75 4.00 3.40 4.87 3.50 7.75 3.40 3.75 3.15 $6.35 6.50 4.25 7.35 10.69 5.05 3.90 4.65 3.50 $2.10 1.40 1.25 1.25 1.25 .63 1.25 1.40 $1.50 1.20 1.80 1.50 1.50 1.50 1.50 1.60 1.30 $33.70 35.10 32.70 33.72 j 38.19 I 36.80 ! 28.93 29.55 27.35 $62.50 $28.80 55.00 19.90 37.50 4.80 48.60 14.88 71.55 33.36 29.70 17.10 35.00 6.07 32.50 2.95 30.00 2.65 12.50 11.00 7.50 9.00 13.25 5.50 7.00 6.50 6.00 $2.30 1.81 .64 1.65 2.52 11.29 .87 .45 .44 NEBRASKA, GRAND ISLAND DISTRICT. 175. 176.. 177.. 178.. 179.. 180.. 181.. 3.00 5.00 7.50 5.00 8.00 14.00 5.00 $2.24 $7.75 $5.00 2.18 10.00 3.44 2.13 15.33 1.99 2.45 13.00 2.93 3.40 22.00 2.25 3.36 10.30 3.85 3.33 16.70 2.35 $3.25 5.10 7.02 2.51 6.20 5.81 4.95 $8.00 2.33 .75 v4* aU .75 3.33 1 Loss. $2.55 1.20 2.00 2.00 2.00 2.00 2.00 $20.79 29.92 30.80 23.64 35.85 29.20 32.66 $15.00 30.00 45.00 30.00 40.00 40.00 20.00 i$5.79 .08 14.20 6.36 4.15 10.80 112.66 3.00 6.00 9.00 6.00 8.00 8.00 4.00 i$1.9a .01 1.68 1.06 .52 1.35 13.17 I i ^. I • / I / I V V / i BEET GROWING. 39 Table 11.— COSTS AND PROFITS OF GROWING BEETS IN THE UNITED ST.\TES, BY FARMS GROUPED BY DISTRICTS, 1913— Continued. NEBRASKA, GRAND ISLAND DISTRICT— Continued. Farm num ber. 182. . . 183... 184... 185... 186... 187... 188... Cost per acre. Acres. Pj|?-| tiSi I Hand of soil. labor. I 5.60 $3.02 5.00 i 1.98 189.. 190.. 191.. 192.. 193.. 15.00 6.00 28.75 15.00 15.00 3.30 4.82 2.25 4.80 2.70 $9.10 16.00 11.60 10.52 20.00 17.65 10.28 Plant- ing and cul- tivat- ing $3.45 4.28 2.40 3.33 2.00 2.20 1.67 Lift- ing and haul- ing. $5.10 8.25 5.33 7.43 3.21 8.20 5.82 Irri- ga- i tion. Fertil- izer. $3.00 $3.00 3.01 1.80 1.00 2.99 1 3.11 4.15 I 2.75 Seed. $2.00 1.30 2.00 2.00 1.75 1.70 1.80 Mis- cel- lane- ous. Total ex- penses. 1 Value ProGt Yield Profit per per per per acre. acre. acre. ton. $4.33 13.19 63 I $25.67 $30.00 31.81 ! 45.00 27.63 I 20.00 I 32.91 i 61.00 30.21 i 17.50 112.71 I 40.65 i 70.00 29.35 48.33 Ton9. 6.00 9.00 4.00 29. 17 I 77. 50 28.09 ' 12.20 3.50 14.00 15.50 I $0.72 ; 1.47 ji 1.91 j 2.30 l«3.63 i 2.10 I 3.12 KANSAS. 41.50 45.00 8.00 28.00 36.00 $4.91 4.05 3.02 4.96 $15.25 15.00 6.88 16.00 4.27 15.00 $2.62 3.90 1.98 2.59 1.63 $5.11 $0.72 3.95 2.40 1.79 .22 5.60 1.60 3.54 2.08 $2.00 1.70 1.60 1.80 2.00 $0.18 .75 $30.79 $46.20 '$15.41 31.00 I 19.25 |ill.75 16.24 I 13.75 '2.49 32.55 ' 52.80 20.25 28.52 39.60 I 11.08 8.40 3.50 2. .50 9.60 7.20 $1.83 13.36 11.00 2.11 1.54 COLORADA, NORTHERN DISTRICT. 194... 31.00 $4.50 $20.00 $2.40 $9.15 $2.60 $6.50 $2.00 $47.15 1 $97.38 $50.23 19.00 1 ! $2.ft4 195. . . 62.00 5.00 20.00 3.40 10.90 4.85 4.50 2.00 50.65 108.-00 57.35 18.00 j 3.19 196... 28.00 6.00 20.00 1.58 8.11 2.60 4.30 2.00 $0.18 44.77 104.28 59.51 19.40 3.07 197... 30.00 5.00 20.00 3.20 13.30 4.69 5.00 2.00 53.19 105.30 52.11 18.00 2.90 198... 20.00 4.50 20.00 2.35 12.56 1.50 1.60 1.50 44.01 75. 77 31. 76 13.41 2.37 199... 65.00 3.26 20.00 3.35 10.00 5.93 15.82 2.00 60.36 84.00 23.64 16.00 1.48 200... 35.00 3.50 20.00 2.65 13.48 1.50 13.00 1.60 55.73 107.97 1 52.24 18.30 2.85 201... 76.00 4.00 20.00 2.92 9.66 4.75 11.58 1.50 54.41 71.90 ' 17.49 13.32 1.31 202... 22.00 2.70 16.50 2.90 13.47 1.80 2.00 39.37 81.00 41.63 12.00 3.47 203... 69.00 3.75 20.00 3.40 11.33 2.50 2.32 1.50 .14 44.94 84.38 39.44 15.00 2.63 204... 30.00 4.25 20.00 2.90 16.50 1.05 13.00 1.50 59.20 75. 00 15. 80 15.00 1.05 205... 56.00 3.30 20.00 1.85 9.20 .50 5.00 2.00 .58 42.43 104.40 ; 61.97 18.00 3.44 206... 16.50 6.72 20.00 5.20 19.50 3.74 12.25 2.00 69.41 90.75 21.34 16.50 1.29 207... 33.00 4.08 23.00 2.40 12.50 3.40 11.00 2.00 58.38 124.00 65.62 23.33 2.81 208... 13.00 5.10 20.00 2.50 9.30 3.10 7.67 2.00 49.67 78.00 28.33 13.00 2.18 209... 20.00 3.50 20.00 3.50 6.50 4.75 7.00 2.00 47.25 60.00 12.75 10.00 1.28 210... 12. .50 4.00 20.00 2.50 12.32 1.75 11.50 1 2.00 54.07 80.96 26.89 16.00 1.68 211... 27.00 3.00 20.00 2.50 9.50 3.00 4.00 ; 2.00 44.00 84.00 40.00 1.5.00 2.67 212... 40.00 4.00 20.00 2.90 7.00 2.00 2.00 ; 2.00 .80 40.70 45.00 4.30 9.00 .48 213... 65.00 4.50 20.00 2.00 7.40 1.30 1.00 2.00 38.20 50.00 11.80 10.00 1.18 214... 58.50 '4.00 20.00 1.50 8.25 1.25 1.30 2.00 38.30 62.50 i 24.20 12.50 1.94 215... 40.00 8.89 20.00 3.50 8.80 1.90 1.50 ; 2.00 46.59 75.60 ! 29.01 14.00 2.07 216... 42.00 5.25 20.00 3.95 7.80 6.85 1.30 2.00 47.15 •61.50 j 14.35 12.00 1.20 217... 60.00 6.00 20.00 3.50 8.50 5.75 2.00 2.00 47. 75 60.00 ' 12.25 12.00 1.02 218... 39.61 4.80 20.00 2.90 16.10 5.12 3.00 ; 2.00 .20 54.12 80.00 25.88 16.00 1.62 219. . . 12.00 4.00 4.83 3.50 14.02 6.53 4.40 ; 2.00 .40 39.68 98.04 58.36 19.00 3.07 »Loss. > f 40 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. BEET GROWING. 41 J i i Table 11.— COSTS .VND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913— Continued. COLORADO, NORTHERN DISTRICT— Continued. Farm num ber. Acres. 220.. 221.. 222.. 223.. 224.. 225.. 226.. 227.. 228.. 229-. 230.. 231.. 232.. 233.. 234.. 235.. 236-. 237.. 238.. 239.. 240.. 241.. 242.. 243.. 244.. 245-. 246.. 247. . 248.. 249.. 250.. 251... 252... 253... 254... 50.00 33.00 65.50 5.50 60.00 122.00 45.00 20.00 36.00 60.00 40.00 13.00 38.90 76.00 41.00 8.00 35.00 22.00 39.50 13.00 34.00 22.00 20.00 50.00 25.00 100.00 60.00 17.50 48.00 33.00 55.00 53.00 38.80 60.00 21.00 Cost per acre. Prep- ara- tion of soil.. $7.20 4.00 3.40 5.25 8.80 3.40 5.00 4.10 6.50 3.80 4.60 16.55 4.60 5.75 6.67 3.50 3.30 4.00 4.59 3.85 4.35 5.10 3.90 6.33 3.90 6.00 3.96 4.40 3.55 6.00 4.50 4.15 4.98 3.09 6.00 Hand labor. $20.00 20.00 20.00 16.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 9.60 20.00 20.00 20.00 17.00 20.00 20.00 20.00 20.00 20.75 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 23.19 20.00 10.10 Plant- ing and cul- tivat ine. $3.30 2.35 3.00 2.80 3.33 1.70 2.50 2.10 4.50 2.50 3.00 3.90 2.33 4.35 3.95 4.50 .90 3.15 3.00 ' 2.00 I 1.80 j 3.00 i 5.50 I 2.80 3.40 4.75 1.93 3.35 2.05 2.90 2.90 2.90 2.83 2.44 5.70 Lift- ing and haul- ing. $6.70 9.65 6.80 7.50 9.00 9.70 9.60 11.13 14.94 7.00 9.75 12.85 8.10 8.80 8.63 5.50 8.00 11.00 11.57 10.00 9.02 8.90 12.00 12.70 6.50 13.00 7.90 8.40 6.90 14.88 10.33 10.75 9. Off 5.64 8.30 Irri- ga- tion. $6.00 1.60 4.60 4.57 1.60 5.90 5.50 3.10 2.39 .80 1.85 4.00 7.44 .60 4.18 2.08 2.88 2.10 2.25 .90 3.00 2.36 1.50 1.20 1.50 6.25 4.70 3.18 1.50 1.50 2.75 1.20 3.18 2.30 4.80 Fertil- izer. Seed. Mis- cel- lane- ous. $1.75 1.50 .90 5.00 .90 .45 .50 2.30 1.19 2.44 5.00 4.00 5.00 5.60 1.60 2.00 1.66 1.30 .80 1.40 4.00 2.36 5.00 3.00 16.00 $2.00 2.00 2.00 1.50 2.50 2.00 2.00 2.00 2.00 2.00 2.65 1.00 2.00 2.00 2.51 2.00 1.70 2.00 1.30 1.70 1.50 1.50 2.00 2.00 1.70 2.00 2.00 1.00 1.80 2.00 1.80 2.00 1.60 2.00 2.00 Total ex- penses. Value per acre. $1.00 1.25 ,50 20 $46.95 41.10 40.70 42.62 45.23 43.60 45.05 42.43 50.33 36.10 42.35 50.20 44.47 42.69 48.38 34.58 36.78 48.25 46.71 38.45 40.42 45.86 46.15 50.63 38.60 54.50 42.15 41.63 36.60 48.68 46.28 43.36 50.04 38.47 52.90 $60.00 62.43 61.50 55.00 56.38 61.50 60.50 66.13 82.35 52.50 74.25 75.00 70.00 50.40 73.50 38.50 63.00 88.00 94.07 110.00 71.02 84.00 64.50 89.25 38.50 70.20 84.00 84.00 56.65 87.78 74.90 60.50 123.26 80.35 74.90 Profit per acre. $13.05 21.33 20.80 12.38 11.15 17.90 15.45 23.70 32.02 16.40 31.90 24.80 25.53 7.71 25.12 3.92 26.22 39.75 47.36 71.55 30.60 38.14 18.35 38.62 1.10 15.70 41.85 42.37 20.05 39.10 28.62 17.14 73.22 41.88 22.00 COLORADO, SOUTHERN DISTRICT. Yield per acre. Profit per ton. Tons. 12.00 $1.09 11.00 1.94 12.00 1.73 10.00 1.24 11.00 1.01 12.00 1.49 11.00 1.40 11.50 2.06 15.25 2.10 10.00 1.64 13.50 2.36 15.00 1.65 14.00 1.82 9.00 .86 14.00 1.79 7.00 .56 12.00 2.19 16.00 2.48 16.65 2.84 20.00 3.58 13.25 2.31 16.00 2.38 12.00 1.53 17.00 2.27 7.00 1.01 13.00 1.21 16.00 2.62 16.00 2.65 11.00 1.82 16.50 2.37 14.00 2.04 11.00 1.56 21.40 3.42 14.40 2.91 14.00 1.57 255... 256... 257... 258... 259... 260... 261... 262... 30.00 23.00 60.00 10.00 38.00 18.00 25.00 40.00 $5.03 6.32 2.50 2.55 5.60 5.32 6.40 5.00 $18.00 13.76 12.50 20.00 15.50 15.50 13.00 21.00 $3.40 3.40 2.40 2.09 2.40 2.71 3.60 3.75 $6.10 10.55 9.01 5.75 8.00 8.75 5.31 4.25 $6.33 $2.20 $5.71 2.25 .63 .75 4.10 .99 .40 1.50 J j 2.00 ;$0.50 1 Loss. 2.78 2.30 1.75 2.00 2.50 10.50 2.50 15.00 4.00 5.10 2.00 $46.77 41.36 30.79 33.64 48.60 52.27 35.81 38.00 $78.00 84.50 65.34 63.18 62.50 63.25 20.63 18.00 |i20.00 $31.23 43. 14 34.55 29.54 13.90 10.98 1 15. 18 12.00 13.00 12.10 9.00 10.00 11.50 3.75 3.00 $2.60 3.32 2.86 3.28 1.39 .95 14.05 '6.67 \ r « V / TABLE ll.-COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS— Continued. COLORADO, SOUTHERN DISTRICT— Continued. Farm num- ber. 263.- 264.. 265.- 266.. 267.. 268.. 269-. 270.. 271.. 272-. 273-. 274.- 275.. 276.. 277.- 278.. 279.- 280... 281 -- 282.. 2m... 284... 285-.. 286--. 287... 288-.. Acres. 289... 290... 291... 292. 293. 294. 295. 296. 297. 298. 299. 300. 301. 7.00 163.00 12.00 3.00 10.00 21.56 4.50 15.00 15.00 125.00 14.00 14.00 4.00 6.00 13.00 31.00 8.00 45.00 49.00 34.00 13.00 16.00 10.00 3.25 21.00 53.00 Cost per acre. Prep- ara- tion of soil. $2.76 4.55 4.84 3.80 3.00 6.44 2.50 3.30 5.57 4.86 4.90 5.62 3.30 3.68 7.21 3.50 4.65 4.11 3.20 5.05 5.13 4.05 5.90 9.80 10.27 3.96 Hand labor. $16.00 17.00 15.00 11.00 7.25 17.75 14.00 14.00 18.00 14.00 14.99 20.00 19.00 18.79 18.00 16.50 20.00 15.25 15.50 14.00 14.15 14.25 16.00 16.75 16.00 14.50 Plant- ing and cul- tivat ing. $3.53 1.27 2.20 2.90 1.75 4.97 2.10 2.10 2.50 2.88 1.90 3.50 4.00 1.75 4.30 1.30 3.00 2.40 2.30 4.80 3.35 1.80 2.80 5.00 3.13 3.40 Lift- ing and haul- ing. $7.50 8.25 8.91 4.80 12.60 12.00 9.50 10.50 7.66 10.55 7.98 13.50 6.50 8.00 10.50 7.25 10.75 4.66 6.70 7.40 8.75 4.25 11.00 10.00 10.29 Irri- ga- tion. $1.70 2.25 1.30 .90 .20 3.82 3.50 1.50 2.75 2.28 2.50 3.40 4.12 1.43 3.52 4.00 2.00 .39 1.50 1.50 3.50 2.75 3.00 3.00 1.48 3.62 Fertil- izer. Seed. Mis- cel- lane- ous. $4.00 3.00 .48 12.55 9.00 7.33 1.36 4.25 1.25 16.50 2.75 1.00 2.90 4.00 3.26 5.25 2.20 17.00 5.00 6.86 13.20 $2.00 2.50 2.00 1.50 1.70 2.10 2.00 2.00 2.00 2.00 1.20 2.00 2.00 2.00 1.50 1.80 2.00 2.00 2.00 2.00 1.70 2.00 2.00 2.00 2.00 1.70 $0.07 .10 .25 .20 .50 Total e-x- penses, $37.49 38.89 34.73 24.90 14.00 60.23 45.10 32.40 48.65 35.04 40.54 43.75 62.42 36.90 43.73 40.50 43.40 34.90 32.42 34.05 40.48 35.80 50.95 52.55 49.74 50.67 Value per acre. $72.00 83.38 42.00 14.30 10.00 94.40 125.00 93.75 100.00 60.00 95. .58 60.38 116.55 65.00 69.00 74.75 87.00 69.30 82.15 91.00 112.50 75.00 27.00 91.36 82.50 88.58 Profit per acre. Yield per acre. $34.51 Tons. 12.00 44.49 14.50 7.27 7.00 110.60 2.60 14.00 2.00 34.17 16.00 79.90 20.00 61.35 15.00 51.35 16.00 24.96 10.00 55. W 15.10 16.63 10.50 54.13 21.00 28.10 10.00 25.27 12.00 34.25 13.00 43.60 15.00 34.40 11.00 49.73 13.25 56.95 14.00 72.02 18.00 39.20 12.50 123.95 4.50 38.81 16.00 32.76 15.00 37.91 17.30 Profit per ton. COLORADO, MONTE VISTA DISTRICT. 12.00 10.00 42.00 $3.00 3.75 2.25 $18.00 18.00 16.50 $1.65 2.00 3.10 COLORADO, GRAND JUNCTION DISTRICT. 12.00 14.33 35.00 40.00 18.00 7.00 14.00 16.00 20.00 65.00 $4.64 4.64 4.36 3.79 7.64 4.63 6.87 6.00 7.30 8.01 $20.00 20.00 20.00 20.00 21.50 20.00 21.50 20.00 20.00 20.00 $3.25 2.75 2.77 2.50 3.36 3.48 3.10 3.90 4.80 7.72 $10. 17 10.77 8.67 7.97 9.87 18.39 10.12 4.33 5.62 12.75 $5.80 5.80 3.95 2.00 4.20 2.83 2.90 3.39 4.75 6.10 $5.38 3.50 1.25 4.33 6.17 11.96 4.53 1.09 L57 $2.70 2.70 2.70 2.40 2.70 2.25 2.40 2.25 2.85 2.63 $3.13 .65 .49 .35 .23 .25 .38 $46.56 52.04 49.08 39.91 54.25 58.24 59.20 44.63 46.66 59.16 $69.55 76.68 60.00 70.00 75.00 129.09 52.50 16.50 30.30 49.34 $22.99 24.64 10.92 30.09 20.75 70.85 16.70 1 28. 13 1 16. 30 19.82 13.00 14.33 12.00 14.00 15.00 22.14 10.00 3.00 6.00 9.75 $2.88 3.07 1.01 14.08 12.00 2.14 4.00 4.09 3.21 2.50 3.65 1.58 2.58 2. SI 2.11 2.63 2.91 3.13 3.75 4.07 4.00 3.14 15.32 2.43 2.18 2.19 $7.25 $0.75 $3.00 $2.25 1 $8.33 $14.23 $61.42 $17. 19 10.50 $1.64 7.25 .75 3.00 3.00 37.75 38.15 .40 7.00 .06 2.25 1.00 2.77 27.87 42.42 14.55 7.00 2. OS $1.77 1.72 .91 2.15 1.38 3.20 1.67 19.38 12.73 11.01 > 1 Loss. V- i 42 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 11— COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913— Continued. MONTANA. Acres Cost per acre. Value per acre. Profit per acre. Yield per acre. Farm num- ber. Prep- ara- tion of soil. Hand labor. Plant- ing and cul- tivat- ing. Lift- ing and haul- ing. Irri- ga- tlOTl. Fertil- izer. Seed. Mis- cel- lane- ous. Total ex- penses. Profit per ton. 302... 303... 304... 305... 306... 307... 308... 309... 310... 311... 312. . . 313. . . 314... 315... 316... 317... 318... 319... 320... 22.00 47.00 95.00 15.00 24.00 32.00 26.00 12.00 20.00 25.00 39.50 27.15 12.00 28.00 3.25 25.00 53.00 56.00 30.00 $9.50 6.00 5.50 7.00 7.00 7.00 4.00 4.25 6.00 5.00 4.00 5.92 8.00 6.06 5.19 4.50 8.66 3.50 5.00 $20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.00 20.50 20.00 20.00 25.00 20.00 20.00 20.00 $2.35 3.60 3.10 2.55 4.70 4.70 1.90 3.50 2.00 2.30 2.25 2.52 4.78 3.85 3.00 3.40 6.75 2.10 3.33 $13.75 10.30 9.50 15.50 9.00 15.85 14.62 10.50 11.50 10.50 12.25 10.59 6.88 13.74 8.63 21.00 17.00 11.25 17.66 $3.00 3.00 3.00 3.00 3.00 4.50 2.00 2.50 4.00 2.50 1.60 2.28 4.00 3.10 4.40 2.33 6.^25 2.50 3.80 $2.00 12.44 7.00 6.00 10.00 10.00 10.00 .90 .84 1.25 2.42 5.00 6.66 $1.50 2.00 1.80 1.50 2.00 2.00 2.00 2.00 2.00 2.00 2.00 1.50 2.00 2.00 1.50 1.60 1.70 2.00 2.00 $0.10 1.00 1.00 1.00 .20 .10 1.30 .91 1.00 $52.50 57.34 49.90 55.55 55.70 64.05 44.52 42.75 56.50 43.30 42.10 43.71 46.16 50.59 44.17 57.93 64.08 47.26 59.45 $74.75 87.60 76.70 72.87 52.80 94.87 93.00 46.25 69.00 90.00 80.16 92.29 31.85 57.05 31.87 106.25 78.40 67.44 86.95 $22.55 30.26 26.80 17.32 12.90 30.82 48.48 3.50 12.50 46.70 38.06 48.58 »14.31 6.46 112.30 48.32 14.32 20.18 27.50 Tom. 13.00 14.60 13.00 12.50 9.60 16.50 15.50 9.25 12.00 15.00 13.36 15.18 5.18 9.04 5.10 17.00 14.00 12.00 14.42 $1.73 2.07 2.06 1.39 1.30 1.87 3.13 .38 1.04 3.11 2.85 3.20 12.76 .71 12.41 2.84 1.02 1.68 1.91 321. 322. 323. 334. 335. 326. 327. 328. 329. 330. 331. 333. 334. 335. 337. 340. 341. IDAHO. 35.00 6.00 23.00 60.00 40.00 110.00 9.00 65.00 9.00 50.00 30.00 19.00 34.00 8.00 7.00 3.00 10.00 80.00 30.00 ,6.50 7.00 $3.06 3.55 6.80 5.75 4.08 5.10 5.23 5.36 6.67 4.90 5.19 5.20 4.00 5.71 4.67 4.81 6.00 3.62 3.15 6.52 6.52 $30.00 13.60 25.00 31.83 17.25 36.71 20.00 22.70 21.20 21.50 20.00 20.00 22.25 21.50 23.00 21.00 19.00 19.50 18.60 20.50 18.50 $1.93 4.00 1.92 2.40 2.30 2.17 2.14 2.63 3.40 2.40 1.90 2.40 2.10 3.42 2.80 2.27 5.75 2.22 1.49 3.61 3.61 $6.80 $0.05 $5.47 $2.25 $49.56 $60.00 $10.44 12.00 $0.87 6.50 .77 3.70 2.25 34.37 50.00 15.63 10.00 1.56 6.76 1.35 12.83 2.40 57.05 85.00 27.95 17.00 1.64 6.85 2.18 6.00 2.25 $0.10 57.36 72.50 15.14 14.60 1.04 10.00 .25 2.55 36.43 75.00 38.57 16.00 2.57 7.96 .10 4.29 1.95 68.28 78.00 19.72 15.60 1.26 11.28 2.40 3.55 2.25 46.85 58.50 11.65 11.70 1.00 16.66 3.72 2.77 2.70 56.54 82.50 25.96 16.50 1.57 11.60 2.55 2.22 2.25 49.89 70.00 20.11 14.00 1.44 11.93 3.60 1.40 2.25 47.98 72.50 24.52 14.50 1.69 8.40 2.70 3.25 2.25 43.69 60.00 16.31 12.00 1.36 13.20 2.70 2.25 45.75 56.00 10.25 11.20 .92 6.25 3.20 10.00 2.25 50.05 75.00 24.95 15.00 1.66 9.75 1.70 5.85 2.25 50.18 77.65 27.37 15.51 1.76 16.00 3.73 6.65 2.10 .16 59.11 90.00 30.89 18.00 1.72 6.10 2.20 9.10 1.80 .40 47.68 71.55 23.87 14.31 1.67 12.50 2.70 3.03 1.60 .20 50.68 49.65 11.03 9.93 1.10 6.22 1.78 2.76 2.25 .12 38.47 57.50 19.03 11.50 1.65 5.90 3.56 .70 2.25 .67 36.22 42.75 6.53 9.00 .73 12.24 2.85 2.25 47.97 61.75 13.78 13.00 1.06 9.44 2.85 2.25 43.17 42.75 1.42 9.00 1.05 1 Loss. 4 4 * h. < / • > < BEET GROWING, 43 TABLE U.-COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913— Continued. UTAH, NORTHERN DISTRICT. Farm num- ber. 342... 343... 344... 345... 346... 347.... 348... 349... 350... 351... 352... 353... 356... 366... 367... 358... 359... 360... 361... 362. . . 363... 364... 365... 366.. 367. . 368... 369.. Cost per acre. Acres. 370... 371... 372. . . 373... 374... 375... 376... 377... 378... 379... 380... 381... 382... 15.00 6.00 4.50 10.00 4.50 3.60 3.00 13.00 11.00 5.00 7.00 9.00 27.00 50.00 60.00 10.00 32.00 loaoo 12.00 35.00 4.00 10.00 150.00 10.00 14.00 16.00 21.00 9.00 Prep- ara- tion of soil. $3.13 9.41 3.80 4.50 4.56 4.65 6.11 3.80 2.65 3.35 4.60 4.05 6.31 2.98 4.25 3.75 3.65 4.00 3.10 2.15 2.80 2.50 2.34 3.63 3.85 4.38 3.38 4.60 Hand labor. $13. 74 18.00 15.50 17.05 18.70 13.60 12.00 37.25 14.00 20.10 29.38 25.81 35.66 20.00 24.34 13.93 19.62 18.50 14.00 22.40 18.80 9.20 18.00 30.03 14.89 15.50 31.46 21.00 Plant- ing and cul- tivat- ing. $5.00 3.90 3.03 3.40 2.98 2.98 3.10 3.00 2.50 3.00 2.50 2.50 1.95 2.05 1.90 2.10 2.30 1.32 2.40 L88 2.00 1.20 2.30 3.38 1.85 1.55 1.25 2.39 Lift- ing and haul- ing. $6.60 18.50 17.50 11.30 10.70 13.50 6.63 U.25 11.33 n.95 9.95 22.78 n.62 5.00 9.16 9.60 7.88 13.90 15.05 10.55 13.05 8.65 2.40 11.25 5.17 9.38 10.50 16.50 Irri- ga- tion. $3.06 1.64 2.40 2.50 2.08 2.28 8.75 2.50 L50 4.85 2.00 2.50 3.00 2.80 4.60 2.80 .50 2.50 .75 .60 1.20 Fertil- izer. $14.00 12.98 6.38 3.00 5.61 .59 .33 1.40 .28 2.31 6.00 9.63. 11.30 4.44 2.96 2.62 3.25 4.00 2.00 2.50 2.25 3.50 4.50 4.50 .40 14.80 .40 6.67 9.00 Seed. $2.25 2.25 2.25 1.80 2.91 L80 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 1.95 L80 2.25 L25 2.25 2.25 L65 1.95 1.80 2.25 2.25 2.10 1.80 Mis- cel- lane- ous. $0.10 Total ex- penses. $47.78 66.58 49.86 43.55 47.54 38.71 44.74 60.05 34.13 55.23 61.98 64.33 62.65 37.70 49.75 38.13 37.75 44.97 38.80 43.23 44.60 27.70 27.39 65.38 28.74 41.13 48.97 57.50 Value I)er acre. $95.33 100.00 100.00 88.35 83.70 50.00 46.00 82.50 90.00 99.75 125.88 98.75 101.60 70.00 77.00 58.18 66.50 80.75 9a25 76.00 81.00 76.00 76.00 83.12 74.99 71.25 80.75 85.50 Profit Yield per acre. $47.55 33.42 50.14 44.80 36.16 1L29 1.26 22.45 55.87 44.52 63.90 34.42 38.85 32.30 27.25 20.05 28.75 35.78 51.45 32.77 36.40 48.30 48.61 17.74 46.25 30.12 3L78 28.00 per acre. Tons. 20.50 20.00 20.00 19.00 18.00 10.00 laoo 16.50 18.00 21.00 26.50 19.75 20.30 14.00 15.40 12.25 14.00 17.00 19.00 16.00 18.00 16.00 16.00 17.50 15.79 15.00 17.00 18.00 Profit per ton. $2.32 1.67 2.51 2.36 2.01 1.13 .13 L36 3.10 2.12 2.41 1.74 1.91 2.31 L77 1.64 2.05 2.10 2.71 2.05 2.02 3.02 3.04 LOl 2.93 2.01 1.87 1.56 UTAH, CENTRAL DISTRICT* 5.00 23.00 8.00 25.00 15.00 6.50 12.00 6.50 5.00 10.00 14.00 60.00 7.00 $9.20 3.89 8.20 7.84 3.60 5.75 4.15 6: 00 4.08 5.53 5.28 3.40 4.50 $21.06 18.80 16.90 14.45 12.60 19.55 13.25 11.22 15.80 15.00 15.00 11.00 15.00 $2.50 2.62 4.50 7.20 2.70 3.00 2.00 1.70 3.00 3.70 3.00 1.75 2.90 $10.90 9.34 11.80 9.40 14.20 12.60 7.50 10.15 7.50 13.75 14.25 7.13 14.75 $2.80 1.85 2.00 5.50 1.60 3.55 2.50 2.10 1.95 1.52- 1.75 1.35 3.50 $9.30 9.67 16.68 12.00 6.50 17.50 24.00 4.00 4.00 7.50 7.19 .62 1 Loss. $2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 2. 25 25 25 25 25 25 25 25 25 25 25 25 25 $58.01 48.42 62.33 58.64 43.45 64.20 55.65 .! 37.42 .| 38.58 . 49.25 .1 48.72 .i 27.50 .! 42.90 $79.00 70.00 65.00 70.00 85.00 70.00 75.00 7L50 75.00 75.00 100.00 40.00 90.00 $20.99 21.58 2.67 11.36 41.55 5.80 19.35 34.08 36.42 25.75 51.28 12.50 47.10 15.80 14.00 13.00 14.00 17.00 14.00 15.00 14.30 15.00 15.00 20.00 8.00 18.00 $L33 L54 .21 .81 2.44 .41 1.29 2.38 2.43 1.72 2.56 1.56 2.63 ■/ I I i 44 THE BEET SUGAR INDUSTBY IN THE UNITED STATES. Table 11.— COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913— Continued. UTAH, CENTRAL DISTRICT— Continued. Acres. Cost per acre. Value per acre. Profit per acre. Yield per acre. Farm num- ber. Prep- ara- tion of soil. Hand labor. Plant- ing and cul- tivat- ing. Lift- ing and haul- ing. Irri- ga- tion. Fertil- iser. Seed. Mis- cel- lane- ous. Total ex- penses. Profit ficr ton. 383... 384... 385... 386... 387... 388... 389... 390. 5.00 14.00 13.00 8.00 5.00 4.00 9.00 2.00 5.00 $4.83 5.70 5.63 4.85 5.43 4.60 6.25 4.50. 6.40 S15.00 18.20 18.80 13.13 14.40 21.36 20.05 16.00 18.20 ' 13.50 2.90 1.95 3.20 3.93 4.50 4.25 2.00 4.30 S12.50 11.69 11.25 12.69 14.27 12.60 9.35 6.00 11.04 f2.48 1.15 6.80 2.75 6.65 2.75 5.65 ?8.00 5.57 8.80 5.40 24.80 2.25 7.13 $2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.25 SO. 10 .10 $48.56 47.46 55.48 44.27 71.73 50.31 55.03 30.75 52.29 JIOO.OO 74.50 90.00 61.25 105.00 80.00 85. 00 80.00 92.00 $51.44 27.04 34.52 16.98 33.27 29.69 29.97 49.25 39.71 Tons. 20.00 14.90 18.00 12.25 21.00 16.00 17.00 16.00 18.40 $2.57 1.81 1.92 1.39 1.58 1.86 1.76 3 08 391... 10.00 2.16 ARIZONA. 392.. 10.00 I$5.69 i$17.00 $3.93 $10.12 $3.15 $2.25 $0.05 $42.19 S50.00 $7.81 10.00 $0.78 CALIFORNIA, ALVARADO DISTRICT. 393... 394... 18.00 12.00 $4.28 4.00 $16.20 14.50 $1.10 .80 $6.21 5.26 $6.25 $0.25 $1.30 2.00 $35.59 26.56 $60.00 40.00 $24.41 13.44 12.00 8.00 $2.03 1.68 CALIFORNFA, SPRECKELS DISTRICT. 395... 396... 397... 398. . . 399... 400... 401... 402... 210.00 97.00 110.00 40.00 165.00 96.00 10.00 55.00 $5.46 $14. 70 $0.38 7.82 11.10 .98 6.21 12.00 1.00 9.78 22.43 .70 8.11 17.24 1.18 4.63 21.09 1.00 5.77 12.83 .98 6.07 7.50 2.00 $5.57 7.36 7.60 13.75 11.00 7.41 5.10 5.34 $3.75 4.19 2.20 3.10 3.75 $1.32 2.20 1.87 1.76 2.26 1.43 .83 1.32 $27. 43 33.21 32.87 50.62 42.89 39.31 25.51 22.23 $86.24 $58.81 49.95 16.74 54.00 122. 85 90.30 90.38 47.50 39.48 21.13 72.23 47.41 51.07 21.99 17.25 14.00 11.10 12.00 19.50 14.00 20.08 9.50 6.00 $4.20 1.51 1.76 3.70 3.39 2.54 2.31 2.88 CALIFORNIA, BETTERAVIA DISTRICT. 403... 24.00 $3.94 $25.30 $1.36 $14.00 $5.00 $2.16 $51.76 $112.20 $60.44 22.00 $2.75 404... 170.00 5.45 18.00 1.96 4.05 8.00 2.50 39.96 46.80 6.84 9.00 .76 405... 95.00 4.78 20.06 1.19 9.64 5.10 2.40 43.17 75.23 32.06 14.75 2.17 CALIFORNIA, OXNARD DISTRICT. 406. . . 124.00 $4.54 i $14.94 $1.44 $7.85 1 ....... $2.75 $31.52 $76.22 * .$44. 70 10.30 $4.34 407... 40.00 3.73 17.92 1.76 9.65 10.75 2.50 36.81 75.53 39.22 13.00 3.02 408. . . 95.00 4.53 16.31 1.39 6.92 $7.58 2.25 $0.53 39.51 65.45 25.94 10.80 2.40 409... 63.00 7.96 15.08 3.20 7.64 5.60 2.40 41.88 71.40 29.52 10.10 2.92 410. . . 40.00 4.84 16.15 1.53 8.68 .90 .25 1.92 34.27 74.90 40.63 14.00 2.90 411... 450.00 1,857.00 4.89 10.15 17.25 I 1.70 17.00 1.9.S 3.75 6.06 2.20 2.50 29.79 37.64 90.00 78.00 60.21 40.36 15.00 11.42 4.01 412... 3.53 ^^ 4 t 9 * t I / I ■\ < * ♦ •• f BEET GROWING. 45 T.\BLE 11.— COSTS AND PROFITS OF GROWING BEETS IN THE UNITED STATES, BY FARMS GROUPED BY DISTRICTS, 1913- Continued. CALIFORNIA, LOS ANGELES DISTRICT. Farm num- ber. 413.. 414.. 415.. 416.. 417.. 418.. 419.. 420.. 421.. 422.. 423.. 424.. 425.. 420.. 427.. 428.. 429.. 430.. 431.. 432.. 433.. 434.. 435. ! 436. . 437. . 438. . , 439.. 440. . . 441... 442... 443... 444... 445. . . 446. . . 447... 448... 449. . . 450... 451... 452. . . 463... Acres. 85.00 15.00 6.00 38.00 25.00 50.00 28.00 250.00 85.00 8.00 52.00 65.00 137.00 19.00 35.00 55.00 ICO. 00 60.00 130.00 10.00 115.00 75.00 370.00 250.00 10.00 200.00 135.00 44.00 185.00 110.00 136.00 110.00 20.00 40.00 35.00 20.00 49.00 253.00 310.00 17.00 33.00 Cost per acre. Prep- ara- tion of soil. $8.04 7.34 4.54 8.49 7.60 8.20 8.75 5.84 8.71 4.60 5.85 7.75 4.78 6.71 7.60 5.40 10.37 4.28 4,41 5.06 6.50 9.16 5.50 10.60 8.25 8.59 5.51 5.80 9.20 4.73 4.57 6.04 9.76 4.16 6.40 5.12 5.95 5.85 10.42 5.50 S.83 Hand labor. $19.63 18.25 12.20 18.75 14.65 16.70 13.70 9.36 14.95 13.00 14.35 13.00 11.25 14.21 18. 25 10.80 15.80 13.00 13.50 11.30 12.27 11.52 12.23 13.74 23.60 17.25 17.95 15.50 16.30 13.50 16.96 15.30 15.95 10.85 16.85 16.85 16.35 14.25 14.25 15.42 16.00 Plant- ing and cul- tivat- int^. $2.50 2.80 2.00 3.50 2.95 2.38 1.52 2.29 2.50 1.54 3.00 2.50 3.15 3.20 2.80 3.00 2.33 2.25 1.32 2.10 1.74 2.53 2.50 4.50 2.68 3.30 2.00 2.80 2.60 2.70 1.00 2.39 2.50 2.50 3.60 2.50 2.25 2.37 3.28 2.05 1.60 Lift- ing and haul- ing. $8.32 13.75 9.70 1L50 n.oo 13.20 5.45 4.84 9.85 5.00 5.99 7.80 6.25 9.55 9.55 7.00 8.10 9.00 10.04 5..80 8.72 4.11 6.20 9.24 13.40 13.25 n.90 4.75 9.95 5.40 3.72 7.44 7.65 5.15 10.00 11.50 n.50 15.50 7.45 8.23 10.50 Irri- ga- tion. $1.23 1.33 3.00 7.32 3.50 8.00 2.49 .74 L18 2.00 4.28 3.77 2.00 L50 2.00 .30 2.08 2.72 10.50 2.44 1.42 2.14 7.00 4.40 6.00 4.00 2.33 2.43 4.84 .34 .50 3.96 6.58 LIO 2.00 2.50 Fertil- izer. $3.96 8.00 5.88 Seed 6.75 9.20 2.39 5.55 LOO $2.16 2.40 L92 2.16 2.40 2.40 2.40 6.00 2.40 L50 2.40 2.40 2.40 2.40 2.50 1.80 2.25 L68 2.40 2.40 2.64 2.40 2.40 2.16 2.40 2.16 2.40 2.40 .73 I 2.40 .30 i 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.40 2.16 2.16 L92 2.30 21 Mis- cel- lane- ous. $0.10 1 Loss. Total ex- penses Value j Profit per per $41.88 49.83 4L36 44.50 38.60 50.20 35.32 36.33 46.78 26.38 32.77 35.45 32.11 39.84 40.70 30.00 47.10 32.21 3L97 35.86 33.95 34.83 39.33 42.68 5L75 46.69 52.31 36.65 47.18 33.03 30.98 36.00 38.26 29.90 39.59 38.87 42.41 46.71 38.87 35.12 38.73 acre. $69. 75 131. 15 72.00 101. 15 78.00 107.64 40.00 30.80 73.01 62.50 8L00 65.00 40.25 73.36 159.80 52.00 98.40 6L33 76.05 49.35 69.60 39.20 42.00 57.60 159.90 82.50 99.75 90.95 93.60 63.00 100.62 48.00 89.05 35.00 89.60 113.90 105. 40 8L00 54.00 86.72 82.50 acre. $27.87 8L32 30.64 56.65 39.40 57.44 4.68 15.53 26.23 36.12 48.23 29.55 8.14 33.52 119.10 22.00 51.30 29.12 44.08 13.49 35.65 4.37 2.67 14.92 108. 15 35.81 47. 44 54.30 46.42 29.97 69.64 12.00 50.79 5.10 50.01 75.03 62.99 34.29 15.13 5L60 43.77 Yield per acre. Profit per ton. Tons. 15.50 2L50 12.00 17.00 13.00 18.40 8.00 4.40 14.90 10.00 13.50 10.00 7.00 13.10 23.50 8.00 16.00 12.00 13.00 7.00 9.60 6.70 8.00 9.60 26.00 15.00 19.00 17.00 16.00 12.00 17.20 12.00 13.00 5.00 16.00 17.00 17.00 13.50 9.00 14.10 15.00 SLSO 3.78 2.55 3.33 3.(» 3.12 ' .59 ! » L26 I L76 3.61 I 3.57 2.96 1.16 2.56 5.07 2.75 3.21 2.43 3.39 L93 3.71 .65 .33 1.55 4.16 2.39 2.50 3.19 2.90 2.50 4.05 LOO 3.91 L02 3.13 4.41 3.71 2.54 L68 3.66 2.92 I ,■ A^lt _.*, ,- >- ■■ 1" -^■. •FB-/T8i| M t 46 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. The wide differences in some of the elements of cost as shown in the foregoing table are due to various causes. The more important of the differences shown for different farms are due to differences in the character of soils, the condition of the land before it was prepared for the crop, the cost of labor and distances of the fields from the factories, the cost of seed and fertilizer, climatic conditions, and, in the West, differences in the cost of irrigation. A cause of minor importance, because it applies only to a relatively few com- parisons, is the fact that in some cases the various elements could not be segregated. Thus the column showing the cost of planting and cultivating in a few instances has only the cost of planting, the farmer not being able to separate the cost of cultivating from other operations requiring the use of teams and implements. The variation in the cost of seed is due to a difference in price, which is sometimes as much as 5 cents a pound, and also to a differ- ence in the quantity used by the different planters, the prescribed quantity ranging from about 15 to 20 pounds per acre. There is a wide variation in the cost of fertilizer materials. In some districts none is used, in others only a barnyard manure is used, and in still others there is some use of commercial fertilizers. Usually no cost has been allowed for barnyard manure except that for hauling and spreading. This is because generally there was no market value for such manure. There is considerable variation in the cost of the preparation of the soil, due to its character or condition. Variations in cost of cultivation (excluding hoeing) are due to differences in condition of the soil, to seasons, and to the cost of labor. On some farms, under exceptionally favorable conditions, the cultivator is used only once or twice during the season, while in other cases, on account of excessive rains or for other reasons, the crop is cultivated seven or eight and in a few instances more times. The cost of a single cultivation ranges from 30 to 50 cents per acre. The wages of a man and team varies from about $2.50 to $5 per day, depending upon the rate of pay for the man and also upon the number of horses employed. The hand labor when done by contract is practically uniform in a particular district. This charge ranged in various districts from $16 or $17 to $22 per acre. The cost of plowing out the beets differs on account of the charac- ter of the soil and the cost of labor, but in a general way it is deter- mined bv the rate allowed for a man and team. In soils that are easily Avorked a gi'eater area can be covered in a day, both in the preparation of the soil, in the cultivation and in plow- ing out, thereby lessening the cost i)er acre. In some sections, par- ticularly in the Lake States and Montana and northern Colorado ) Y / » / > i BEET GROWING. 47 where the fall rains and snow set in before the beets are harvested, the cost of plowing out is increased. There are great differences in the cost of irrigation. No irrigation is required in the region of the Great Lakes, but in all the western districts beets can not usually be grown successfulh' without irriga- tion. When subirrigation can be employed the cost is lower, but when water must be run between the rows, the cost amounts usually to from $3 to $5 per acre for the water and the labor of putting it on the land. There is also an expense for maintenance of main and lateral ditches. Furthermore, in some districts, water is put on the land only once or twice during a season, while in other districts it is applied as many as five or six times. The cost of " lifting and hauling " varies according to the produc- tion, and also according to the distance of the fields from the factory or weigh station. The cost of lifting or plowing out is substantially the same whether the production, is 5 tons or 15 tons per acre. It is obvious, however, that the greater the yield the greater must be the expense of hauling, and also that the expense of hauling increases with the distance to be hauled. It is thus seen that there is a reasonable explanation for practically all differences appearing in the table. These explanations are obvi- ous to the practical farmer familiar with the cultivation of beets. Section 9. Average costs and profits of individual growers for three years. The actual results from the cultivation of beets in any locality can be determined only by securing accurate data from every farmer growing beets in the community. This is obviously impracticable, if not impossible. In the course of this investigation an effort was made to secure from each farmer visited data for three consecutive years. This was not possible. Many of the farmers visited did not have sufficient data from which to construct a reasonably accurate statement for 3 years, and in some sections factories had operated only 2 years. Some had not grown beets in the same locality for 3 years. Of the 453 farms represented in Table 11 there were 244 for which complete 3-year statements could be made. ♦ y- Mi l< i 48 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. The distribution of these 244 farms among the States visited and the percentage of the total shown in Table 11 are given in the state- ment below by States: Ohio and Indiana Michigan, lower peninsula Wisconsin Minnesota Iowa Nebraska Kansas Colorado Montana. Idaho Utah California Total Number reporting for 1913. 30 97 27 11 9 14 5 108 19 21 50 61 1452 Number reporting for 3 years. 15 18 23 8 5 9 4 66 4 10 41 41 244 Per cent of total for 3 years. 50.0 18.6 85.2 72.5 55.6 64.3 80.0 61.1 21.1 47.6 80.2 67.5 53.9 1 One farm in Arizona shown in Table 11 is not included here. It is seen that more than half of the farms represented in Table 11 furnished reports for 3 years. It will be noted, however, that cost statements were secured from comparatively few farmers in some of the States. Those States for which the smallest number of 3-year statements were secured, namely, Iowa, Kansas, and Montana, have only one factory each, so the data for those States are as representative as for others. It is particularly noticeable that a very small percent- age of the farmers visited in Michigan could supply data for 3 years. On the other hand, taking into account the number of farmers visited in Colorado, California, and Utah, the high percentage of those who were able to supply costs for 3 years is rather remarkable. The total costs and profits per acre by districts and by States are shown in Table 12 below. This table includes all those farms rep- resented in Table 12 already discussed, for which were secured com- plete statements for 3 years. The true averages of expense and profit are shown. BEET GROWING. 49 Table 12.-C0STS AND PROFITS OF BEET GROWING, BY FARMS AND BY DISTRICTS; AVERAGES FOR THE THREE YEARS, 1911, 1912, AND 1913. OHIO— INDIANA. MICHIGAN, LOWER PENINSULA. 9) Farm No. Acres. Yield per acre. Expense per acre. Expense per ton. Profit per acre. Profit per ton. 3*vfiar avera&r63 6 4 31.07 48.33 Tons. 9.03 12.38 $37.08 38.93 $4.11 3.14 $8.08 23.65 $0.S9 1.91 15 12.67 14.58 31.59 2.17 44.04 3.02 18 7.28 10.13 37.12 3.66 13.53 1.34 19 13.17 12.42 38.39 3.09 23.73 1.91 • 20 11.33 12.06 39.04 3.24 21.26 1.76 21 5.25 9.00 32.83 3.65 16.67 1.85 23 15.67 13.13 35.88 2.73 29.75 2.27 24 12.00 8.44 34.63 4.10 10.12 1.20 25 8.67 14.62 37.72 2.58 35.96 2.46 28 9.67 12.22 41.00 3.35 25.81 2.11 27 15.00 13.22 38.67 2.92 27.44 2.08 28 15.67 11.89 38.45 3.23 33.86 2,85 29. 6.00 14.76 41.93 2.84 33.60 2.28 30' 10.08 11.91 40.22 3.38 24.84 2.09 Average f 15 farms) 14.79 11.86 37.70 3.18 23.59 1.99 i 3-vear averages ................... 47 15.57 9.38 $44.86 $4.78 $4.68 $0.50 50 43.74 9.77 42.16 4.31 5.51 .56 108 1.83 9.58 47.20 4.93 12.87 1.34 109 2.25 6.67 40.57 6.08 1.27 .19 110 2.33 9.01 48.41 5.38 10.90 1.21 65 25.25 11.15 38.77 3.48 24.96 2.24 eo 23.50 7.18 33.96 4.73 4.84 .67 96 20.53 8.55 40.93 4.79 3.89 .46 37 12.17 11.64 41.15 3.54 23.19 1.99 38 5.20 11.41 42.92 3.76 22.34 1.96 1 39 7.17 12.38 47.80 3.86 20.24 1.63 41 16.67 14.28 38.29 2.68 37.12 2.60 42 7.50 11.33 37.38 3.30 21.43 1.89 55 9.97 9.23 39.05 4.23 10.82 LIT , 57 20.49 10.79 38.65 3.58 17.72 1.64 73 28.33 13 34 37.65 2.82 31.02 2.33 102 38.00 13.01 41.00 3.15 25.66 1.97 103 41.67 11.19 48.34 4.32 2L55 1.93 Averaee f 18 farms) 17.90 10.92 41.15 3.77 17.80 1.63 i < 1*^ 50 THE BEET SUGAR IXDUSTBY IX THE UNITED STATES. Table 12.— COSTS AND PROFITS OF BEET GROWING, BY FARMS AND BY DISTRICTS; AVERAGES FOR THE THREE YEARS, 1911, 1912, AND 1913— Continued. WISCONSIN, NORTHERN DISTRICT. Farm No. Acres. Yield per acre. Expense per acre. Expense per ton. Profit per acre. Profit per ton. Tom. 3-year averages 129 1 83 l.** 82 $47.08 37.54 $3.41 3.55 $35.83 25.93 $2.59 2.45 131 1.58 10.58 ■ 132 2.00 10.17 53.40 5.25 7.60 .75 133 5.33 20.05 54.20 2.70 66.12 3.30 135 1.67 12.63 41.73 3.30 34.07 2.70 136 2.00 10.08 44.58 4.42 15.92 1.5S 137 11.83 11.00 40.50 3.68 25.50 2.32 138 4.50 10.44 46.59 4.47 16.02 1.53 139 13.17 12.20 40.86 3.35 32.35 2.65 140 4.67 9.43 40.47 4.29 16.10 1.71 141 3.00 11.00 30.76 2.80 30.74 2.79 142 24.00 8.47 40.00 4.72 2.36 .28 143 18.83 11.46 38.43 3.35 20.59 1.80 144 68.33 13.23 38.14 2.88 29.95 2.26 145 17.00 10.41 38.19 3.67 15.43 1.48 Averse (15 farms) . . 11.98 11.83 39.77 3.36 23.83 2.02 WISCONSI N, SOUTHERN DISTRICT. 3-year averages 152 3 67 12 82 $48.54 40.42 $3.79 2.60 $32.05 40.67 $2. .50 2.01 153 15.00 15.56 154 8.67 13.92 43.67 3.14 26.44 1.90 147 2.17 14.54 47.40 3.26 36.30 2.50 148 2.92 16.20 40.75 2.52 52.59 3.25 149 7.33 14.00 46.25 3.30 35.90 2.56 150 14.67 12.00 40.50 3.38 21.55 1.80 151 3.00 18.00 45.20 2.51 55.22 3.07 Average (8 farms) . . . 7.18 14.15 42.72 3.02 33.68 2.38 MINNESOTA. 3-year averages 155 1 08 10 15 $41.23 44.78 i $4.06 2.83 $14.62 42.26 $1.44 2.67 156 3.83 15.83 # 157 3.33 9.70 45.20 4.66 8.15 .84 160 15.67 14.27 37.16 2.60 34.20 2.40 t 162 12.50 12.65 i 45.20 3.57 18.07 1.43 163 7.67 10.37 40.94 3.95 10.91 i.a> 164 14.33 12.19 38.36 3.15 22.57 1.85 165 4.33 11.08 41.63 3.76 13.76 • 1.24 Average (8 farms) t 1 7 84 to PiA \ 40.77 i \ 1 3.25 ! 1 22.84 1.82 1 BEET GROWING. IOWA. 51 Table 12.— COSTS AND PROFITS OF BEET GROWING. BY FARMS AND BY DISTRICTS; AVERAGES FOR THE THREE YEARS, 1911, 1912, AND 1913— Continued. / Farm No. Acres. Yield per acre. Expense ' Expense Profit Profit per acre, per ton. per acre, per ton. 3-vear average 166 14>7 169 172 173 29.00 125.67 11.00 16.17 61.67 Tons. 13.98 13.39 13.67 10 91 7.89 $34.29 36.44 39.40 32.93 31.01 1 1 $2.45 j $35.62 $2.55 ■ 2.72 ' 30.51 ' 2.28 2.88 ! 34.40 2.52 3.02 : 21.61 1.98 3.93 ' 8.45 1.07 I Average (5 farms) 48.70 11.92 34.71 2.91 ! 25.12 ; 2.11 f Y NEBRASKA, GRAND ISLAND DISTRICT. 3-year average 177 8.00 18.00 137. 15 $2.06 $52.85 $2.94 178 4.33 8.85 24.35 2.75 19.88 2.25 179 10.00 8.93 35.66 3.99 9.01 1.01 181 6.67 8.50 36.26 4.27 0.24 .73 182 .3.83 9.13 28.33 3.10 17.32 1.90 184 18.33 10.18 32.12 3.15 18.79 1.85 185 11.67 13.00 33.05 2.54 31.98 2.46 • 187 15.00 14.00 41.08 2.93 28.92 2.07 • 188 12.33 16.66 30.47 1.83 52.84 3.17 Average (9 farms) 10.02 12.39 34.12 2.75 27.84 2.25 KANSAS. 3-year average 189 37.17 7.06 $32. 34 $4.58 $4.54 $0.&4 190 48.33 8.05 34.05 4.23 6.75 .84 191 41.00 5.10 21.38 4.19 4.21 .83 192 39.00 9.83 32.65 3.32 17.65 l.SO Average (A farms) 41.38 7.52 30.20 4.02 8.20 1.09 COLORADO, NORTHERN DISTRICT. f 3-vear average 212 213 36.67 65.00 10.77 12.00 $41.59 39.00 $3.86 3.25 $17.87 21 00 $1.66 1.75 214 62.17 14.37 39.63 2.76 32.24 2.24 215 40.00 12.00 43.53 3.64 21.27 1.77 ■ 216 39.00 11.36 44. V9 3.94 14.30 1.26 217 61.67 12.88 46.84 3.64 20.35 1.58 • 218 30.45 17.18 53.92 3.14 35.97 2.09 219 9.67 18.19 40.45 2.22 58.82 3.23 220 50.00 14.00 46.37 3.31 31.13 2.22 221 37.00 12.53 42.09 3.36 26.83 2.14 225 90.67 14.57 44.63 3.06 32.31 2.22 226 39.00 12.56 45.07 3.59 26.06 2.08 227 20.00 11.50 41.76 3.63 22.45 1.95 228 35.33 13.29 49.33 3.71 22.82 1.72 231 11.00 15.00 48.65 3.24 26.35 1.76 232 46.30 15.44 43.77 2.83 39.19 2.54 233 45.67 10.14 44.27 4.37 11.79 1.16 234 44.00 13.52 47.01 3.48 22.86 1.69 52 XHE BEET SUGAR INDUSTEY IN THE UNITED STATES. .> COLOBADO, NORTHERN DISTBICT-Continued. 3-year average (continued). Farm No. Acres. Yield Expense per acre, per acre. 237 31.00 238 37.50 239 13.67 240 31.33 243 50.00 244 21.67 246 52.00 247 14.33 249 54.33 250 41.67 254 25.67 194 26.33 195 54.33 197 26.67 199 48.33 202 19.67 204 30.00 205 42.00 207 22.50 209 20.00 211 17.67 Average (39 farms). 37.19 COLORADO, SOUTHERN DISTRICT. 3-year average . Average (21 farms) . 268 271 272 273 274 275 276 277 278 279 281 282 283 .284 287 288 255 257 259 260 264 13.35 15.00 93.67 9.67 14.00 4.67 6.00 13.33 20.33 8.00 33.67 41. a3 13.00 19.00 21.00 70.00 23. 33 36.00 40.33 15.33 116.00 13.72 16.00 12.82 17.43 11.17 20.82 13.00 11.20 11.49 12.67 12.86 11.10 17.33 13.23 16.33 15.34 11.49 11.25 9.69 10.96 13.80 29.86 13.12 $57. 57 48.65 37.29 44.80 44.11 62.62 40.05 40.97 39.07 40.95 33.55 33.76 40.28 35.82 46.67 39.79 43.61 30.18 50.02 50.23 38.96 $4.20 3.04 2.91 2.57 3.95 3.01 3.08 3.66 3.40 3.23 2.61 3.04 2.32 2.71 2.86 2.59 3.80 2.68 5.16 4.58 2.82 $29.08 51.35 46.65 63.58 19.18 52.94 32.79 20.05 27.00 29.45 45.78 31.11 65.22 43.55 43.16 49.31 27.19 32.68 8.14 6.51 38.62 40.11 3.06 37.46 $2.12 3.21 3.64 3.65 1.72 2.54 2.52 1.79 2.35 2.33 3.56 2.80 3.76 3.29 2.64 3.21 2.37 2.90 .84 .59 2.80 2.86 BEET GROWING. 53 Table 12.— COSTS AND PROFITS OF BEET GROWING, BY FARMS AND BY DISTRICTS; AVERAGES FOR THE THREE YEARS, 1911, 1912, AND 1913— Continued. COLORADO, GRAND JUNCTION DISTRICT. 1 r :3-year average . Average (6 farms) . 3-year average. Average (4 farms) . ^ > / A ■• > ( Farm No. 292 294 295 296 298 301 Acres. 18.67 48.33 58.33 20.00 13.33 46. 67 34.22 Yield per acre. Tons. 15.36 15.10 16.51 13.63 14.15 13.67 Expense per acre. $51.08 47.45 41.70 53.36 62.34 64.02 Expense Profit Profit per ton. per acre, per ton. $3.33 3.14 2.53 3.91 4.41 4.68 $31.08 . 34.24 \ 44.87 i 15.90 11.95 : 5.21 i 14.99 51.45 3.43 27.14 MONTANA. 311 312 313 314 30.00 35.00 26.44 14.83 26.57 14.40 13.60 13.11 7.82 12.90 $43.92 42.18 42.58 47.84 43.56 $3.05 3.10 3.25 6.12 3.38 $46.61 40.01 38.36 j 1.11 ! 36.03 IDAHO. UTAH, NORTHERN DISTRICT. $2.02 2.27 2.72 1.17 .84 .38 1.81 .$3.24 2.94 2.93 .14 2.79 3-vear average 334 5 33 13 85 $48.60 56.10 $.3.51 3.31 $20.63 28.68 $1.49 1.69 335 7.67 16.96 337 10.67 10.78 50.01 4.64 3.89 .36 322 9.33 12.64 36.26 2.87 26.95 2.13 ' • 323 21.67 17.78 53.58 3.01 35.30 1.99 324 60.00 15.17 58.67 3.87 17.16 1.13 326 93.33 16.24 60.15 3.70 21.04 1.30 329 6.67 13.25 49.37 3.73 16.88 1.27 330 58.33 14.43 48.10 3.33 24.04 1.67 333 30.67 15.32 50.37 3.29 2«5.21 1.71 Average ( 10 farms) 30.37 15.30 54.45 3.56 22.06 1.44 r- .3-year average 342 15.00 20 17 $47. 69 6(>.60 $2. 36 3.33 $46.09 30.70 $2.29 1.54 343 4.33 20.00 344 4.17 20.00 49.86 2.49 43.74 2.19 345 25.00 19.87 41.77 2.10 50.61 2.55 346 4.50 19.33 50.39 2.61 39.51 2.04 347 3.50 13.33 43.38 3.25 23.29 1.75 349 15.33 16.62 63.64 3.83 19.46 1.17 350 12.67 16.97 33.46 1.97 51.41 3.03 ' 351 4.00 19.25 53.22 2.76 37.05 1.92 352 6.33 23.34 58.66 2.51 50.64 2.17 353 10.33 18.44 61.44 3.33 30.78 1.67 354 27.67 18.31 57.91 3.16 33.66 1.84 355 41.67 11.70 37.12 3.17 21.38 1.83 877ai— 17 5 / V 54 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. UTAH, NORTHERN DJSTRICT-Continued. 3-year average (continued). Farm No. Acres. Average (26 farms). 356 358 359 360 361 362 363 364 365 366 367 368 369 Yield per acre. Expense per acre. 50.00 22.33 86.67 12.00 35.00 4.00 10.00 125.00 10.00 12.00 18.33 20.33 7.00 22.58 Tons. 15.61 14.37 17.00 17.67 16.00 16.00 17.33 16.96 16.67 16.53 14.09 19.05 18.00 150.92 38.04 44.97 37.03 43.30 42.20 28.57 27. 47 56.98 29.26 39.85 53.27 57.56 Expense per ton. 16.73 42.04 $3.26 2.65 2.65 2.10 2.71 2.64 1.65 1.62 3.42 1.77 2.83 2.80 3.20 Profit per acre. $27.13 29.51 34.47 45.38 31.37 29.80 52.18 51.98 20.94 48.03 25.60 35.66 26.65 2.51 37.54 UTAH, CENTRAL DISTRICT. 3-year average . :1 Average (15 farms). 3-year average 371 372 373 374 375 376 377 378 379 380 3S3 384 387 389 391 23.00 12.67 23.00 13.00 6.50 12.00 6.50 5.00 10.00 15.67 8.33 12. 67 7.00 7.33 5.00 I 13.50 $47.82 $3.54 $19.68 9.46 58.42 6.18 » 12. 86 15.91 60.01 3.77 16.84 17.15 43.54 2.54 39.57 14.33 64.73 4.52 4.52 13.00 56.65 4.36 6.35 12.87 36.13 2.81 26.18 1.5.00 38.58 2.57 36.42 18.00 53.00 2.94 37.00 20.00 48.72 2.44 51.28 20.00 45.36 2.27 54.64 14.05 46.25 3.29 21.85 24.81 76.54 3.09 42.56 17.32 55.41 3.20 31.18 18.87 55.43 2.94 38.90 11.18 15.86 52.43 3.30 25.50 CALIFORNIA, SPRECKELS DISTRICT. Average (6 farms) * Loss. Profit per ton. $1.74 2.05 2.03 2.57 1.96 1.86 3.01 3.06 1.26 2.91 1.82 1.87 1.48 2.24 $1.46 U.36 1.06 2.31 .32 .49 2.03 2.43 2.06 2.56 2.73. 1.56 1.72 l.SO 2.06 1.61 ■ft BEET GROWING. 55 V / Taale 12.— costs and profits of beet growing, by FARMS AND BY DISTRICTS; AVERAGES FOR THE THREE YEARS, 1911, 1912, AND 1913— Continued. CALIFORNIA, OXNARD DISTRICT. 3-year average. Average (5 farms) . Farm No. 406 407 410 411 412 Acres. 115.33 74.00 50.00 416.67 1,640.00 'Yield per acre. Toru. 11.00 9.51 15.27 14.36 10.57 459.20 11.34 Expense per acre. $31.48 30.92 34.72 29.31 36.58 Expense per ton. $2.86 3.25 2.27 2.04 3.46 34.78 3.07 Profit per acre. Profit per ton. $45.80 I 31.00 I 48.03 ! 56.85 i 34.04 ! 38.97 -i CALIFORNIA, LOS ANGELES DISTRICT. 2.90 ■ 3-year average. ** ■ 4 $3.84 1.83 2.98 2.77 2.61 2.18 • r Average (30 farms) . i 413 414 415 418 421 423 424 425 427 428 429 430 431 433 434 435 436 437 43S 439 440 441 442 443 444 448 449 450 451 452 66.50 27.67 12.67 45.00 76.33 129.00 \ 150.00 124.33 35.00 55.00 146.67 83.67 126.67 81.67 75.00 436.67 250.00 30.00 161.67 135.00 34.67 156.67 110.00 124.00 90.00 18.67 49.67 253.00 213.33 13.67 110. 41 16.91 17.43 14.53 16.01 13.30 10.29 6.74 9.57 21.17 9.33 16.91 10.97 14.32 9.28 10.90 14.82 10.40 13.56 13.30 18.50 20.46 17.82 15.83 17.01 9.63 17.48 17.42 15.00 9.52 14.63 13.48 $43.61 41.29 38.13 45.73 43.15 31.25 30.16 3262 38.17 31.47 47.58 31.91 36.23 34.77 36.37 3&84 43.78 39.11 46.17 49.65 40.18 46.98 34.41 30.86 33.67 38.58 41.56 46.40 39.67 35.13 39.69 $258 2 37 2.62 2.86 3.25 3.04 4.47 3.41 1.80 3.37 2 81 291 2.53 3.75 3.34 2.62 4.21 2 89 3.47 2.68 1.96 2.64 2.17 1.81 3.50 2.21 2.38 3.09 4.17 2.40 294 $40.20 65.70 49.03 45.16 30.82 32 29 11.03 21.22 99.43 27.53 53.01 25.29 46.78 30.50 26.96 50.88 15.92 44.26 31.06 45.01 69.29 59.11 53.49 66.49 7.22 71.83 64.90 35.60 20.71 48.90 38.34 $4.16 3.26 3.15 3.96 3.22 3.44 $23S 3.77 3.38 2.82 2.32 3.14 1.M 2.22 4.70 2.85 3.13 2.31 3.27 3.29 2.47 3.43 1.53 3.26 2.34 2.43 3.39 3.32 3.38 3.91 .75 4.11 3.72 2.37 2. IS 3.34 2S4 ^*" ■*■-■ '"'^""' <'--'-'''-^'-' 56 THE BEET SUGAR IXDUSTRY IN THE UNITED STATES. BEET GROWING. 57 rA- 1 I No details of cost are shown in the foregoing table for the reason that the variations in the several items of cost are sufficiently indi- cated in Table 11. The size of farms ranges from less than two acres to several hundred and the average yield per acre shows a very wide range. These facts indicate the general representative character of the farms included. The farms represented in this table probably show results considerably above the average of all farms in the respective districts because more accurate information could gen- erally be obtained for them. No effort, however, was made to secure statements from the best farmers only, and as a matter of fact the results of a number of rather indifferent farmers are included in the table. It is believed that these figures show in general what fairly good farmers have done. In arriving at profits it should be borne in mind that every item of actual expense has been considered. Nothing, however, has been allowed for depreciation of equipment or rental value of land, nor has anything been allowed for superintendence by the farmer. On the other hand, where the farmer or any member of his family did any part of the work he was allowed the customary rate of hire for men with teams, which would include repairs of tools. It may be noted that if beets were not grown some members of the family, particularly children, would earn nothing at all. The profits shown by these farms, therefore,' is what is left after a fair allowance has been made for the work of the farmer and the members of his family and also for the hire of his teams. For reasons already stated nothing has been allowed for the value of tops or pulp. If this had been done many of these farms would show considerably larger profits. It is probable that in most cases the tops are worth enough to more than pay the taxes on the land. It is known that in some cases they would much more than do this. Relation of profits to yifxd.— The importance of a large yield is brought out in the table with striking emphasis. As a rule a yield of less than from 7 to 10 tons per acre shows a small profit and 12 tons or above show good net returns. There are some exceptions but not enough to disprove the rule. The cost of growing an acre of beets, except the expense of harvesting, does not differ materially in a given locality, whether the yield is 10 tons or 20 tons. It is appa- rent, therefore, that every ton above a yield necessary to meet ex- penses is nearly all profit. For example farm No. 142 in the north- ern Wisconsin district showed an average profit of only $2.36 an acre. It cost this farmer $40 to grow about 8J tons of beets. He received an average price of $5 per ton. If his' yield had been 12^ tons per acre he would have received as additional profit the value of 4 tons less the expense of hauling, which was about 60 cents per ;» V /•, / ton. Therefore his net profits with 12^ tons would have been about $20 per acre instead of $2.36. A comparison of the yield per acre with the expense per ton clearly reveals the importance of a high yield. In many cases of low yield shown in the table the farmer received barely enough to meet liis expenses. This was rarely ever the case where the yield was high. In Kansas where the yield of the 4 farms involved was uniformly low the net profits per acre were correspondingly low, and in northern Colorado where the yield was generally high the profits were correspondingly high. Average results by districts. — The average results of a district is a better standard by which to measure profits than are the results of any single farm. A summary by the districts represented in Table 12 is shown in Table 13 below : Table 13.— AVERAGE COSTS AND PROFITS, BY DISTRICTS, 1912, AND 1913. FOR THE 3 YEARS 1911, District. Acres. Yield per acre (tons). Expense per acre. Expense per ton. Profit per per acre. Profit per per ton. Ohio-Indiana 14.79 17.90 11.98 7.18 7.84 48.70 10.02 41.38 37.19 29.85 34.22 26.57 30.37 22.58 11. 18 134. 33 459.20 110.41 11.85 10.92 11.83 14.15 12.56 11.92 12.39 7.52 14.77 13.12 14.99 12.90 15.30 16.73 15.86 15.50 11.. 34 13.48 $37. 70 41.15 39.77 42.72 40.77 34.71 34.12 30.20 46.29 40.11 51.45 43.56 54.45 42.04 52.43 36.79 34.78 39.69 $3.18 3.77 3.36 3.02 3.25 2.91 2.75 4.02 3.13 3.06 3.43 3.38 3.56 2.51 3.30 2.37 3.07 2.94 $23.59 17.80 23.83 33.68 22.84 25.12 27.84 8.20 34.48 37.46 27.14 36.03 22.06 37.54 25.50 44.95 38.97 38.34 $1.99 Michigan, lower oeninsula 1.63 Wisconsin: Northern district 2.02 Southern district 2.38 Minnesota 1.82 Iowa 2.11 Nebraska 2.25 Kansas 1.09 Colorado: « Northern district 2.33 Southern district 2.86 Grand Junction district 1.81 Montana 2.79 Idaho 1.44 Utah: Northern district 2.24 Central district 1.61 California; Snreckels district 2.90 Oxnard district 3.44 Los Angeles district 2.84 The return per acre is a better test of profitableness than the net return per ton. By this test it would appear that beet growing is most profitable in California, though Utah has the higher yield. By reference to the tables it Avill be noticed that the expense per acre in Utah is considerably greater than in California. This is mainh^ due to considerable cost for fertilizing materials in the former State. It 58 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. should be noted also that the price per ton paid the farmer in Utah is lower than in California. Among the most important beet-growing States Michigan has the lowest yield and the smallest net return per acre. This State has comparatively high costs due to the high cost of fertilizer. The average net returns do not fall below $22 per acre in any district except Kansas and the lower peninsula of Michigan. Whether or not the profits in beet growing are sufficient to encourage cultivation depends in a measure upon how they compare with those that can be realized from growing other crops. Section 10. Profits from beets compared with profits from other crops. While the absolute profits from growing beets may be high, this does not of itself indicate that they are the best crops to grow, because some other crops may yield better returns. Of course there must always be taken into consideration the quantity of ptoduct thut can be marketed at a profit. Thus an acre of cabbage may yield twice as great a return as an acre of beets, but if upon planting as many acres in cabbage as he does in beets the farmer finds that he has oversup- plied the market his profit may disappear. There are no definite figures showing the profits in crops generally to indicate precisely how the profits from beet growing compare with profits from other crops. The average annual gross returns and the average annual profit per acre of beets in the various districts hereto- fore discussed are shown in the statement below. These are averages for three years and are summarized in round figures as follows : Ohio-Indiana Michigan, lower peninsula Wisconsin: Northern district Southern district Minnesota Iowa Nebraska Kansas Colorado: Northern district Southern district Grand Junction district... Average annual gross returns per acre. Average annual net profits per acre. $81.00 $23.00 59.00 17.00 63.00 23.00 76.00 33.00 63.00 22.00 59.00 25.00 61.00 27.00 38.00 8.00 80.00 34.00 77.00 37.00 78.00 27.00 Montana Idaho Utah: Northern district . . . Central district California: Spreckels district . . . Oxnard district Los Angeles district Average annual gross returns per acre. $79.00 76.00 79.00 77.00 81.00 73.00 78.00 Average annual net profits per acre. $36.00 22.00 37.00 25.00 45.00 39.00 38.00 Assuming that wheat is ordinarily worth $1 per bushel delivered at the railroad station, the lowest yield in any of the districts in question that would give a gross return equivalent to the gross return on beets r . r ti i " / 't i BEET GROWING. 59 would be 38 bushels per acre. While the average cost of growing an acre of wheat has not been investigated, it is undoubtedly very much less than the cost of growing an acre of beets. A comparison of Avheat with beets upon the basis of net profits on beets would indi- cate that, with the exception of Kansas, the farms in these districts would have to show from 17 to 45 bushels of wheat per acre above the quantity, needed to pay all expenses before the results would be equal to the results from beets. Thus the beet farmers in Nebraska, after paying in wheat at $1 per bushed for all expenses incident to growing, harvesting, and marketing an acre of wheat, should have 27 bushels left in order to equal the results from beets. On the same basis those in Ohio, Indiana, and the northern district of Wisconsin should have 23 bushels, those in northern Colorado 34 bushels, those in Montana 36, those in Utah from 25 to 37, and those in California from 38 to 45. It is certain that such results in wheat could not be realized. Corn, on the basis of 50 cents a bushel, would require twice the quantity of surplus bushels as in the case of wheat. In some of the States, particularly in the West, alfalfa is a very important crop and is considered profitable. On the basis of $10 per ton net the beet growers in those States would require a crop that would pay all expenses and leave from 2 to 4 tons per acre remaining as profit. Similar comparisons might be made with other staple crops. It is not probable that any important standard crop would vear^ after year yield better net returns per acre than beets. Many farmers 3 insist, however, that they are entitled to a better return on beets than on most other crops. There is some reason for this contention because of the care and diligence necessary to cultivate beets as com- pared with general field crops and the unusually large outlay of cash for labor. The ordinary farmer can not care for as many acres of beets as he can of general field crops. It is probable that a givenl number of laborers can plant, cultivate, and harvest three times as' many acres of corn as of beets and from five to six times as manv acres of such small grains as wheat. Thus the smaller return per acre for these crops might be as profitable to the farmer who owns a large or fairly large farm as the larger returns per acre from the much smaller acreage of beets. This is an important factor to take into account when considering the profit on beets. On the other handT! it should be lioted that the beet groweri sells his crop at a fixed, price before it is planted. He is thus assured that if he has a good crop he will receive a definite return. In other words, he assumes nol risk as to conditions in the market. This is a very important advan-J tage and is an offset to some of the disadvantages noted. An important consideration in this connection is the peculiar adaptation of beets to the conditions existing in certain districts. ^^ - 60 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. iy Some beet regions of the West are long distances from markets for other crops. Grain and hay, for example, are so bulky that the freight rates do not permit their reaching profitable markets. BeetSy on the other hand, can be sold near by, with a consequent low carrying charge. Furthermore, practically all the lands in the beet- growing sections of the West must be irrigated. When this is prop- erly done it is usually quite expensive. This makes it desirable to grow crops that yield large net returns per acre. In many sections beets meet this requirement, perhaps, more satisfactorily than any other crop. After taking into account all of the above considerations it does- not seem probable that intelligent beet growers can reasonably hope for more satisfactory returns from other crops than from beets. It is evident that this feeling prevails to a wide extent among those farmers who have engaged in this branch of farming. There are some who have abandoned this crop for various reasons, in part, no doubt, because of the exacting nature of the crop, and also because of a lack of water and difficulties in securing labor. But, on the other hand, a very large proportion of the beet growers desire to continue and sometimes express deep concern over the possibility of the closing of factories. It is not reasonable to suppose that the farmers would manifest such keen interest in the beet-sugar industry if they did not find it profitable. Their protest against any reduction in the price of beets is natural, but taken alone affords no indication that this branch of farming has not been profitable. r Y > *•• / * 'Y i CHAPTER III. COST OF PEODUCING BEET SUGAR. Section 1. Introduction. The cost tables shown in this report cover the average results of the five campaigns or seasons beginning with the year 1909-10 and ending with the year 1913-14. During this time 78 different fac- tories made sugar, but not all of them were operated in any one year. Three of these factories were moved during this period, so sugar was made in 81 different places. The greatest number producing sugar in any campaign during the period was 73 in 1912-13. There were some idle factories and some new ones were built durinor the period covered. Cost statements were secured for 76 different es- tablishments. The greatest number covered for any one year was 73, for 1912-13. On account of losses on beets due to weather con- ditions the data for one factory show such abnormal results that they are not included in any of the cost tables. In this investigation access was had to all the records and books of account of all the active factories in the United States except one unimportant concern. The data were taken in such detail as to show separately each important item of cost. The accounts of all the com- panies were not kept in precisely the same form, but there was gen- erally little difficulty in making such adjustments as to place them all on an exactly comparable basis. In order to insure absolute accuracy the cost statements were in every case made up from the books of the companies and checked with their balance sheets, profit and loss accounts, and income statements. Costs cover only the sugar manufacturing business. — Several beet-sugar companies are also engaged in other business than manu- facturing sugar, such as farming and cattle feeding. Some of them own or control irrigation projects and other outside interests. In all such cases these outside operations have been separated from the sugar business and only the latter is included in the cost tables. Likewise the cost of marketing sugar has been kept distinct from manufacturing costs except in two unimportant particulars. First, the proportion of general administrative expense properly chargeable to selling could not be separated from the total administrative ex- pense with any degree of accuracy. For this reason all of this ex- pense has been charged into the cost of manufacture. The amount 61 li- ri^' 62 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. of this item chargeable to selling is so small per 100 pounds of sugar produced as not appreciably to affect the total cost. Second, amounts paid for insurance on sugar in warehouses at the point of manufac- ture could not be separated from insurance on plant and it has been charged in the cost of production. Insurance on sugar in transit or in storage at distribution points away from the place of production has been charged to selling expense. In analyzing certain miscellaneous expenses it was sought to elimi- nate every item not properly chargeable to sugar. In a few instances there was some doubt as to certain charges. For example, there were sometimes small miscellaneous gains and losses that could not be identified. These were included in the cost statements, but the amounts involved were always extremely small and the average costs are not materially affected thereby. Bases of cost computations. — The cost of production is shown on two bases. In one case the unit is 100 pounds of sugar, and in the other case the unit is a ton of beets. Practicallv all the discussion of the cost of producing sugar is based upon the sugar produced. For this reason the tables computed upon this basis are much more detailed and elaborate than those based upon the tonnage of b^ets worked. The computations on the latter basis, however, are of con- siderable interest and value, particularly in connection with any study of the efficiency of plants. The tables based upon the cost of 100 pounds of sugar show the details for the entire period for all factories operating not less than 3 years during the period 1909-10 to 1913-14. They also show the cost by States for the 5 years and a summary for groups of factories arranged according to a certain range of cost. The average cost of working a ton of beets is shown for the 5-year period. Identity of factory concealed.— The identity of no factory is disclosed in any of the cost tables. Each factory is given a number and this number is different from the same factory in different tables. It is thus impossible from these tables for one manufacturer to ascertain the costs of another. In many cases beet sugar manu- facturers have furnished their costs in considerable detail to various committees of Congress and such companies doubtless would not object to identifying their figures. Others, however, who have not thus freely disclosed their costs might reasonably object to having their factories identified. Since no useful purpose would be served by revealing the costs of individual factories or companies, they are not disclosed in this report. Section 2. Proportion of total production covered by cost tables. The total production of beet sugar in the United States during the 5 years covered by the cost tables in this report was 3,020,800 short — »^i^i>. / Y ^ / / i COST OF PRODUCING BEET SUGAR. 63 tons. Of this 2,904,626 tons, or more than 96 per cent of it, are cov- ered by the principal table, which shows the average cost of produc- tion for 5 years by factories. The table showing the cost by States covers 2,981,112 tons, or nearly 99 per cent of the total quantity pro- duced during the 5-year period. The table by States includes more «ugar than the one by factories, because some factories operating less than 3 years were excluded from the latter to avoid disclosing their identity. The table by factories includes the operations of 64 fac- tories, while that for States includes the operations of 75. Section 3. Details of elements of cost. The books of most of the companies made it necessary to make two general groups of items for the cost statement. The first group in- cludes the cost of beets and the cost of factory operation. The second ^roup includes the charges for general administrative expense, taxes, interest, rentals, results from farming in those cases where farms ivere operated, and a number of miscellaneous gains and losses. A statement of the form in which these data were obtained is shown below : Group 1. 1. Procuring and supervising beet acreage. "2. Purchased beets and company- grown beets. 3. Freight paid on beets. 4. Other expenses, handling and re- ceiving beets. 5. Col^e. «. Coal. 7. Fuel oil. 8. Lime rock and burnt lime. 9. Sugar bags, barrels, and twine. 10. Filter bags and cloths. 11. Oil, waste, etc. 12. Operating labor. < 13. Factory salaries, officers, clerks, storemen, and watchmen. 14. Repairs and maintenance. 15. Insurance. 16. General and miscellaneous factory expense. 17. Stock in process from preceding year. 18. Stock in process at end of year. 19. Pulp produced. 20. Molasses sold. Group 2. 1. General administration expense. 2. Taxes. S. Miscellaneous gains and losses. 4. Depreciation. 5. Interest. 6. Rentals. 7. Farming and land operations. All the items in group 1, from 1 to 17, inclusive, are debit items in the cost account. Items 18, 19, and 20 are credit items, and their sum is deducted from the total of the other items. Thus the stock in proc- ess at the end of the year was credited because it appeared in the next year's operations. The pulp and molasses produced and sold were credited to the sugar account and thus the cost was reduced to that extent. The items in this group make up the net manufacturing cost. • r •_<_ 64 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Some of the items in group 2 are not properly chargeable to the sugar account. General administrative expense, taxes on the beet- sugar plant and equipment and depreciation are properly chargeable to cost. Interest was not included in the cost tables for reasons stated elsewhere (see p. 65). Miscellaneous gains and losses when pertain- ing to sugar manufactures were credited or charged to the cost ac- count, as the case may be, but such it^ms if arising from transactions that did not pertain to the manufacture of sugar were disregarded. For instance, any gain or loss on account of the feeding of cattle or the operation of a farm was not charged to the cost of sugar. Rentals refer to rent paid for offices and have been included in cost. The explanation of variations in the cost of some items, such as insurance and taxes and office expenses, are generally obvious. Speaking broadly these expenses are practically fixed, and if a fac- tory for any reason has a small production as compared with its ca- pacity they are of course unduly high per unit of production. On the other hand, variations in the cost of fuel, supplies, and labor can not be so accounted for. Details of certain cost ite3is.— A number of the separate cost charges are made up from numerous small items. The details of some of the charges in group 1 above are here shown. The charge in item 1 for beet acreage consists of salary and expense of superintendent and automobile expense. Other expense for beets which is covered by item 4 includes 11 sep- arate charges as follows : Travel iniET expenses of Receiving labor in beet sheds. Receiving material in beet sheds. Unloading beets. Maintenance of receiving stations. Piping or siloing beets. Depreciation (beet dumps). expenses supervision. Beet implements (ex- pense or earnings). Agricultural stable. Transportation of labor- ers. Procuring of laborers. The charge for oil, waste, etc., item 11, includes the following 16 separate items: Sulphur. Knives, files. Hardware. Pipe, A-alves, and fittings. Lubricants and waste. Rubber goods and pack- ing. Factory chemicals. Laboratory supplies. Electrical supplies. Water and drainage. Belting and laces. Machinery parts and castings. Rubber boots and oiled suits. Centrifugal supplies. Tubes. Kieselguhr. ' )' COST OF PRODUCING BEET SUGAR. 65 Y ■ t A / t i Factory salaries of officers, etc., included in item 13, embrace sal- aries of managers, superintendents, main office, and superintendents' clerks, and watchman and storeroom employees. Item 16, which covers general and miscellaneous factory expense, includes the following: Telegrams and telei^hones. Main office supplies. Managers' traveling ex- penses. Superintendent's office ex- penses. Superintendent's travel- ing expenses. Special supervision ex- penses. Sr)ecial engineering ex- penses. Stable. Item 12, which covers operating labor, includes expenditures under 18 heads, as follows: Supervision. Main house. Boiler house. StelTens house. Limekilns. Laboratory. Sugar warehouse. Machine shop. Water drainage. Yards. Securing labor. B, p. 2o94a f> COST OF PRODUCING BEET SUGAR. 69 tC. i; There was computed, in the manner already explained, for each company, and in most cases for each factory where a company owned more than one factory, the average annual cost of investment for •factory buildings and equipment and the depreciation thereon for each of the five years. The depreciation for a bag (100 pounds) of sugar for each factory was found by dividing the aggregate produc- tion for five years into the aggregate depreciation thus computed. It should be borne in mind that the amount of depreciation for a given plant is generally uniform from year to year unless there have been important changes in the plant investment ; that is to say, if a plant costs $1,000,000, and no important additions were made and 5 per cent is a proper rate for depreciation, then the amount charged against cost for each year would be $50,000. The rate per bag of sugar, however, would necessarily vary as the production varies. Thus, if a factory produced twice as much sugar one year as it did in another, the depreciation per bag would be half as much for the year of large production as for the year of small production. It will be seen by reference to Table 14 (see p. 72) that the depreciation ranged from 12 cents to $1.13 per 100 pounds of sugar. This varia- tion in the rate of depreciation per bag of sugar is partly if not mostly due to the variation in the relation of production to cost of plant. Section 5. Average cost of production for 5 years, by factories. Obviously, the average costs for several years are more representa- tive than the costs of a single year. Such averages are shown in Table 14 (see p. 72), which includes the results of 64 factories, each of which operated at least 3 years during the 5 years from 1909-10 to 1913-14, inclusive. Of this number 53 operated 5 years, 4 operated 4 years, and 7 operated 3 years. The factories operating less than 3 years have been excluded from the table. These 64 factories pro- duced 5,809,253,650 pounds of granulated sugar during the period covered. This was more than 96 per cent of all the beet sugar pro- duced in the United States during that period. There are some factors in connection with the cost computations that slightly affect their exactness and these should be pointed out before discussing the results shown. This will be better understood by showing the cost per 100 pounds for a factory in the form of an account. Factory No. 30 in Table 14 will serve as an illustration. 87731—17 6 •4. 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As a rule the highest cost is found in those factories where the cost of beets per 100 pounds of sugar was highest. The lowest cost per 100 pounds of sugar, how- ever, is not so often accompanied by the lowest cost of beets. When the abnormally high net cost is not due to an extremely high cost of beets it can usually be explained by some peculiar condition or un- usual circumstance. For example, factory No. 48, excluding depre- ciation, had a net cost of $5.3165, while the cost of beets was only $2.8784, which was much lower than several other factories paid for beets. The cost of fuel, operating labor, and administration expense were unusually high. This factory had also unusually heavy mis- cellaneous losses, which could not be assigned to any particular cause and were therefore charged against sugar. The extremely high cost for factory Xo. 74 was largely due to very high costs for maintenance and repairs and to very high administrative and office expense. It should be noted that when depreciation is taken into account the high cost in both factories No. 48 and No. 74 is still more conspicuous. Because of the short period of operation the production of these fac- tories was very small, and therefore the depreciation per 100 pounds of sugar was correspondingly high, being $1.13 in No. 48 and $1.12 in No. 74. These high charges for depreciation made the cost in each of these factories exceed $6.40 per 100 pounds. Relation of various cost items to the total factory cost. — The margin between the total cost of producing sugar, not including depreciation, and the cost of beets (see p. 77) indicates the extent to which strictly manufacturing costs influence the final cost of sugar. For example, it cost factory No. 48, $2.5358 gross per 100 pounds to manufacture sugar from its beets. Its credits for stock in process and by-products reduced this to $2.4381 as the net cost of manufacture. Its cost for fuel, operating labor and administra- tive expense were extremely high, amounting to $1.8193. In factory No. 18, the total net cost was almost exactly the same although the beet cost was much greater. It cost the latter factory only $1.4389 gross per 100 pounds to manufacture and the credits for stock in process and by-products reduced this to $0.8364 net. The difference in the net cost of manufacture between factorv No. 18 and f actor v No. 48 offset the difference in cost of beets and equalized their net factory costs. While, broadly speaking, the cost of beets is the most important factor in the total cost of sugar this comparison empha- sizes the importance of low manufacturing cost. By reference to Table 14, it will be seen that the value of stock in process and by-products is very large for a number of those factories that show a low net manufacturing cost. The influence of by-prod- ucts upon the net cost of sugar is discussed elsewhere. The relative :»._m-:-TUi mi. 76 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. importance of the cost of beets and the other cost items is clearly brought out in Table 15 below. In this comparison only items re- quiring an actual cash expenditure are included and depreciation is not considered. Table 15.-RELATI0N OF CERTAIN COST ITEMS TO NET FACTORY COST FOR THE 5- YEAR PERIOD 1909-1913, BY FACTORIES. [Expressed in percentages of total net factory cost, not including depreciation.] COST OF PRODUCING BEET SUGAK^ 77 V ■ \ Factory No. Beets. 1 2 «5. . . I . . 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 ,20 21 23 24 25 26 29 30 31 34 35 36 37 38 78.3 75.7 84.3 74.6 75.8 81,7 79.6 77.6 81.9 83.4 79.9 84.6 79.1 74.2. 76.1 86.0 84.3 79.0 77.0 82.5 74.7 72.4 75.4 87.2 63.9 71.5 58.9 68.3 72.0 76.1 77.2 72.2 Mainte nance and repairs, 3.6 4.6 7.3 5.8 4.5 3.9 3.5 2.9 1.6 2.0 5:8 j 4.7 I 4.1 5.9 5.6 4.6 3.1 4.0 4.5 4.5 3.7 5.2 6.1 2.4 7.6 5.2 10.0 5.4 3.2 4.7 4.0 4.1 Oper- ating labor. 6.0 8.4 5.0 10.1 9.2 6.8 10.0 12.4 6.8 7.6 6.7 6.2 7.5 7.7 8.5 6.1 7.0 7.8 6.4 8.5 6.9 9.4 8.0 8.7 10.3 8.2 7.2 7.8 8.1 6.1 6.9 6.7 Admin istra- tive and office ex- pense. Other ex- penses. 5.4 4.3 4.3 3.8 4.8 4.7 3.5 3.9 5.1 5.4 *4.6 4.3 4.1 4.6 4.5 4.6 3.7 3.0 5.4 2.2 4.7 3.9 4.5 5.1 9.4 5.8 7.3 5.9 5.9 7.0 6.5 5.6 6.7 7.0 1.9 5.7 5.7 2.9 3.4 3.2 4.6 1.6 3.0 .2 5.2 7.6 5.3 U.3 1.9 6.2 6.7 2.3 10.0 9.1 6.0 »3.4 8.8 9.3 16.6 12.6 10.8 6.1 5.4 11.4 Factory No. Beets. 39 40 , 41 42 43 44 45 46 47 48 50 51 52 53 54 55 56 57 60 61 62 63 64....... 65 66 67 68 69 70 71 73 74 77.2 75.8 71.5 69.0 68.3 76.7 60.0 67.6 61.4 54.1 53.9 68.4 67.8 69.5 65.7 67.9 68.2 66.7 72.3 64.4 74.4 65.3 60.4 74.6 62.7 75.8 60.7 69.7 73.9 69.5 56.6 58.5 Mainte nance and repairs. 4.5 4.6 4.0 5.3 4.8 4.4 7.0 5.6 5.4 1.8 10.4 6.5 7.2 6.7 8.0 4.6 6.2 8.2 4.7 5.7 4.7 5.3 10.7 1.5 6.8 h.O 10.0 5.1 4.1 5.3 9.1 7.3 Oper- ating labor. 5.9 6.6 7.1 7.8 7.8 6.7 9.0 7.3 8.9 12.9 12.6 9.1 9.2 9.3 7.8 7.6 6.9 8.0 6.9 7.9 8.7 7.6 6.3 9.1 9.2 14.9 9.9 6.8 6.0 12.5 13.3 10.5 Admin istra- tive and office ex- pense. 6.8 7.5 5.8 5.4 6.5 6.9 8.3 7.4 10.7 9.9 6.6 5.5 5.0 4.7 5.4 6.4 5.6 5.0 6.8 5.9 5.4 7.4 7.7 7.2 8.8 6.1 6.8 5.0 7.0 3.4 5.2 12.3 Other ex- penses. 5.6 5.5 11.6 12.5 12.6 5.3 15.7 12.1 13.6 21.3 16.5 10.5 10.8 9.S 13.1 13.5 13.1 12.1 9.S 16.1 6.» 14.4 14. » 7.6 12.5 1.2 12. & 13.4 9.0 9.3 15. & 11.4 1 Other expenses exceeded by miscellaneous gains. Relation of cost of beets to cost or sugar.— The cost of beets indicated m Table 15 represents from less than 54 per cent to about' 8^ per cent of the net cost of sugar. The average for the 64 fac> tones was about 72 per cent. Speaking broadly, those factories that paid the least for beets had the lowest costs of production. It should be kept m mmd that the cost of beets used in all these cost tables is the expenditure for the beets necessary to make 100 pounds of sugar. The cost of beets per 100 pounds of sugar does not necessarily mean T Y \ / < a high cost per ton of beets, but a high cost for each per cent of sugar extracted. Thus $5.50 per ton for beets showing an extraction of 12 per cent is a higher price to the factory than $6 for beets showing an extraction of 14 per cent. The relation of sugar cost to beet cost is brought out in Tables 16- and 17 below. In Table 16 the net factory cost is arranged in descending order, and in Table 17 the gross factory cost is arranged in the same way. The difference between the net factory cost shown in Table 16 and the gross cost shown in Table 17 represents the amount credited for by-products and miscellaneous gains or the amount added for miscellaneous losses. It should be noted that the value of by-products varies greatly. This is explained hereafter. (See p. 81.) The cost of beets in each factory is shown parallel to the- net factory cost not including depreciation. TABLE 16.— COMPARISON OF COST OF BEETS WITH GROSS COST OF SUGAR, NOT INCLUIV ING DEPRECIATION; AVERAGES FOR THE 5 YEARS 1909-10 TO 1913-14, INCLUSIVE. [Computed on basis of 100 pounds of sugar produced.] Factory No. Gross cost of sugar. Cost of beets. Margin. Factory No. Gross cost of sugar. Cost of beets. Margin. ifl $5.9215 5.8879 5.6818 5.6735 5.4575 5.4142 5.4064 5. 1218 5.0720 5.0278 4. 8870 4.8294 4. 7970 4.6478 4.6286 4.6224 4.4522 4.4465 4.4366 4.4249 4.4148 4.3524 4.3184 4.3168 4.3135 4.2572 4. 1770 4.1505 4.0882 4.0829 4.0192 3.9875 $4.4826 3.2449 3.8068 3.0913 4.0992 2.8784 3.6718 3. 4896 3. 8698- 3.5510 '2.4514 3.4657 3.2680 3.1783 3.4178 3.2775 3.3248 3.3326 3.0932 3.2678 3.1247 2. 7514^ 2.4860 3.0183 3.0896 3. 1562 2.2996 2.8779 2.3060 3.0602 2.6365 2.2858 $1.4389 2.6430 1.8750 2.5822 1.3583 2.5358 1.7346 1.6322 1.2022 1.4768 2.4356 1.3637 1.5290 1.4695 1.2108 1.3449 1.1274 1.1139 1.3434 1.1571 1.2901 1.6010 1.8324 1.2985 1.2239 1.1010 1.8774 1.2726 1.7822 1.0227 1.3827 1.7017 14 $3.9171 3. 8718 3.8622 3. 7912 3.7218 3.6734 3.6703 3.6700 3.6615 3.6563 3.6557 3.6541 3.6046 3.5949 3.5914 3.5685 3.4753 3.4374 3.3940 3.3902 3.3746 3.3623 3.3545 3.3481 3.^170 3.2822 3.2550 3.23.T3 3.0632 3.0442 3.0355 2.7830 $2.8280 2.8327 2.6878 2.5089 2.6164 2.5465 2.5840 2.6129 2.2541 2.4360 2.6055 2.7293 2.0770 2.3243 2.3462 1.9930 2.3948 2.3528 2.1535 2.3128 2.0964 2.1630 2.3056 2.1457 2. 1425 2.1191 2.0756 2.0835 1.7907 2.0619 2. 0775 1.6357 $1.0891 OQ 7 1.0391 4 ... 36 1.1 44 74 . .. 65 1.2823. 3 40 1.1054 AH ... 35 1.1269 24 44 1.0863- 2 39 1.0571 26 . 54 1.4074 25 34 1.2203. 50 . . .. 37 1.0502 20 17 0.9248- 5 68 1.5276 23 43 1.2706 19 42 1.2452 8 .'.... 73 1.5755 6 70 1.0805 10 30 1.0846< 16 11 56 1.2405 41 1.0774 12 61 1.2782 67 45 53 1.1993 38 1.0489- 62 57 1.2024 1 • 71 1.1745 13 ... 51 * 1.1631 66 ... 52 1.1794 15 55 1.1518 47 • .. 63 1.2725 21 60....: 0.9823 46 69 0.9580 31. 64 1.1473; <4i!3lfc. l^ltfSlfT^^A'^y %l^ 78 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 17.-C0MPARIS0N OF COST OF BEETS WITH NET COST OF SUGAR, NOT INCLUDING DEPRECIATION; AVERAGE FOR THE 5 YEARS 19(»-10 TO 1913-14, INCLUSIVE. [Computed on basis of 100 pounds of sugar produced.] Factory No. 18. 48. 74. 4.. 29. 24. 3.. 25. 2.. 50. 20. 26. 19. 5.. 23. 8.. 45. 10. 6.. 16.. 62.. 1... 11.. 12.. 46.. 31.. 15.. 47.. 13.. 21.. 66.. 67-. Net factwy cost of sugar. S5.3190 5.3165 5.2879 5.1005 5.0813 5.0728 4.8652 4.7126 4.6074 4.5449 4.5037 4.4366 4.3255 4.3107 4.2566 4.2233 4.1435 4.0712 4.0686 4.0615 4.0589 3.9439 3.9180 3.9091 3.8986 3.8818 3.8795 3. 7532 3. 7319 3.7088 3.6696 3.6310 Cost of beets. Margin. $4.4826 2.8784 3.0913 3.8068 3.2449 3. 6718 4.0992 3.5510 3.4896 2.4514 3.4657 3.8698 3. 4178 3.2680 3.1783 3.2775 2.4860 3.3326 3.3248 3.0932 3.0183 3.0896 3.2678 3. 1247 2.6365 2.2858 2.8779 2.3060 3.1562 3.0602 2.29% 2. 7514 $0.8364 2.4381 2.1966 L2937 L8364 1.4010 .7660 1. 1616 1. 1178 2.0935 1.0380 .5668 .9077 1.0427 1.0783 .9458 1.6575 .7386 .7438 .9713 1.0406 .8543 .6502 .7844 1.2621 1.5960 1.0016 1.4472 .5757 .6486 1.3700 .8796 Factory No. 14. 34. 7.. 35. 36. 73. 40. 54. 68. 43. 42. 39. 37. 44. 65. 30. 61. 70. 41., 57.. 38.. 17.. 56.. 53.. 51.. 71.. 55.. 52.. 69.. 60.. 63.. 64.. Net factory cost of sugar. Cost of beets. Margin. $3. 5744 3.5660 3.5589 3.5350 3.5318 3. 5215 3.4521 3.4334 3. 42.38 3.4046 3.4006 3.38 o CO < QQ « tJ GQ Q . < o Em O Q 2; D O o, S CJ S5 O aj a, O Ci !» o > t 00 H >J CQ -< E- c2 .S •c-c i ^ «■.£ s £ 5 ■^ S. S C r © as •— c tl '-' o £ 5J y C SI a ^ g — '2 5dC3 M =« U • « ce J? *a o C X Q 2 « CO ^•- >» - ^^ » j£ s= 5 ^ C 03 «8 eS 05 en 13 © t- o O 08^ to ' '»m _^ .^^ © O flS C8 cs O J, OS •^/o ® J CD t^ CO t^ of c«» 1^ X -; S 3C fr* oc CI — « «C -"l" o •■c ^^ 'j5 05 f^ ■^ -^ ■^ n n »c ce i ^ I 3 ^ i^ ? i 2 S S g? s 8 g 8 g i g §' ^ 05 g - 2» £2 ^ OJ •x> CO ?o eo I: S £ 2 2 2ft t- M 1^ evj © »H x 06 X CO f3 C<5 X iisiiiii -< CJ >— W OS tC •O 13 ;£ o S S CJ A o •^ X »C » ?o 10 N. g s i fe s g n 1^ 2 ?^ X Sf !>. CC -H a S «c ;* 05 !C X i-< t>. !>. o r; =c >fl M g I I I a i i § e«» "3 S CM n o S3 J? -* '^2 OC -- 50 h» « ;C t>. X 05 !0 £0 2 <*« S C5 -4 -* (N »^ ,-. S ?» X U5 IP CM O i § g s X X « Q :C ® jc t © it J2 "O ^ !>. 0000 o £J »C X .0 X -^ 50 ~ -K £S 3C o cc r- co ■* ^ g*^ o X 2? X « M ^ t>. ^ 3; ?c ;* q ■* c^ d o e»» i>. ,— I c>j ar ^ jg d I r2 2 ^ g CJ jr^ ^ e«5 S CO ?5« s ^ I Em s. CO 8 S OJ X CM §5 X 8 CM es 44 3 xs o 15 » < a> 3 "^ > J2 .2 ® I ^ ~ « = qT M en .Q ill © as ■*^ .0 ^^ SO O <^ is *^ ^ •2 o ® S S T 3 q" 3 •0 •§ M •o § o £ > 5j *s •« 73 111 55 O 3 fes g o -- «• « •O 09 © q B "5 C "m B i 1 §.i •S E C3 m g © A ' "5 S3 E 2 02 '^ A >- o o ©I S ^ S t? O -w ^ •w e8 >> ©• CO III <:.■ ■e E as 2 l^-S CJ JE c8 C:i.;-:x:o«j:^ > .■« .t A / •' •/ < » COST OF PRODUCING BEET SUGAR. 81 The above table shows the cost of production for all 74 factories for 5 years. The average net factory cost per 100 pounds of sugar in the entire United States during the 5 years ending with the campaign of 1913-14, not including depreciation, was $3.5011 per 100. pounds, and $3.7641 including depreciation. The lowest average cost, includ- ing depreciation, of any State was $3.27-26 in California. This was followed by $3.4256 in Utah and Idaho. The highest average cost ih any State, not including depreciation, w as $4.4860 in Wisconsin, and the highest cost, including depreciation, was $5.0193 for the group in scattering States. The table indicates that the factories in Cali- fornia, Colorado, Montana and Nebraska, Utah and Idaho are the most favorably situated for a low cost of production. These States contain 43 of the 74 factories included in the table, and they pro- duced about 73 per cent of the total beet sugar production in the United States during 5 years. More than half of the beet sugar in the United States during these 5 years was produced in California and Colorado at an average cost of $3.28 per 100 pounds, not includ- ing depreciation. The lowest cost of beets per 100 pounds of sugar in any State was $2.0461 in California and the highest $3.5033 in Wisconsin. The States having the lowest cost of production also had the lowest cost of beets per 100 pounds of sugar, except the States embraced in the group of " other States." The highest cost of fuel was in the group of States covering scattered fnctories and the lowest was in Colo- rado. The cost of operating labor was highest in Ohio and lowest in Colorado. A significant fact brought out in the above table is the high value of by-products in the Lake States. The amounts in the column showing credits for stock in process and by-products are mainly for by-products consisting of. pulp and molasses. This is true of Ohio, Michigan, and Wisconsin, and it is also true of the group of States including the factories in Indiana, Iowa, and Minnesota. This large credit for by-products in these States is due to the great value of ^lulp. The factories in the Western States are so situated that they must dispose of their pulp in the green state at the factory, since freight rates as a rule do not permit the shipping of dried pulp to the chief consuming centers. The factories in the Lake States, how- ever, have accessible markets for dried pulp, and this is quite a profitable feature of their business. Effect of by-products on net cost. — The by-products of a beet- sugar factory are very important. The extent to which they can be utilized materially affects net costs and consequently profits. The principal by-products, as already stated, are pulp and molasses. In fact, there is no other by-product worth considering. The circum- /•.' •-<.iit..-s- ..n^rr-f/ v > > . / 82 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. stances affecting the value of these by-products are so different that they are here considered separately. The extent to which pulp and molasses affect the net cost of sugar in the various States is shown in the following table : Table 19.— AVERAGE NET VALUE OF BY-PRODUCTS PER 100 POUNDS OF SUGAR PRO- DUCED, BY STATES, FOR 5 YEARS ENDING 1913-14. state. Pulp. Molasses. Total. California $0.0623 .0543 .1355 .1939 .2487 .0612 .0461 .0795 $0.0479 .1097 .2143 .1558 .1701 .0745 .0706 .1781 SO. 1102 .1640 .3498 .3497 .4188 11S7 Colorado Wisconsin Michigan . ; Ohio Montana-Nebraska Utah-Idaho .1167 .2576 Other states Average, United States .0904 .1025 .1929 From the foregoing table it is seen that the average net value of by-products per 100 pounds of sugar for the United States during the 5 years ending with 1913-14 was more than 19 cents. The high- est net value was nearly 42 cents in Ohio while the lowest was 11 cents in California. The net value of by-products in the three Lake States averaged more than 35 cents per 100 pounds of sugar pro- duced, whereas the average in the States from Colorado west was very much less than one-half as much. The reason for this differ- ence in the value of by-products will appear in the discussion imme- diately following. Pulp. — Some factories realize much more for pulp than others. This is not because they produce relatively more pulp than others but it is due to conditions in the region where the factories are located. This product is used mainly for feeding stock. If other feeds are plentiful and cheap in the vicinity of the factory, pulp brings a correspondingly lower price unless a market can be found in other localities. There are ample markets to take all the pulp made, but they are sometimes so far from factories, particularly those in the West, that high freight rates prohibit its profitable shipment. From the foregoing table it is seen that the value of pulp per 100 pounds of sugar produced is very much higher in the Lake States than elsewhere. In those States the value ranges from about 14 cents in Wisconsin to nearly 25 cents in Ohio. Pulp when dried yields a better return to the factory than when green. This is due mainly to the fact that dried pulp can be kept and put upon the market gradually as the demand seems to assure the best price, whereas green pulp can not be kept indefinitely and can not be A) < \ / • y ( COST OF PRODUCING BEET SUGAR. 83 shipped any considerable distance. To some extent the difference in the value of dried and green pulp is that the former is suitable for a greater variety of purposes than the latter. For instance, the green article is not considered a satisfactory feed for dairy cattle, but is useful mainly for fattening purposes. Molasses. — The value of molasses as a by-product depends mainly upon the same conditions that affect the value of pulp — that is, the demand for feed for stock. Like pulp, it is a valuable food for stock ; but, unlike pulp, it can be otherwise utilized. Many factories put their molasses through a process that results in the extraction of a considerable quantity of sugar. When this process is employed the quantity of molasses left as a by-product is very much reduced, but this is compensated for by the additional quantity of sugar extracted from the molasses. If the value of molasses is considered greater than the value of the extra sugar that can be extracted from it, the factory would not go to the expense of extracting the sugar. Whether all the molasses produced is sold, or whether it is run through the factory for the purpose of extracting more sugar, depends upon the relative prices of sugar and molasses. In cases where the sugar is extracted from the molasses the credit for this item is much less than in factories which dispose of the entire molasses output. It will be seen from the foregoing table that, taking the country as a whole, the average value of molasses per 100 pounds of sugar slightly exceeds the average value of pulp. As in the case of pulp, the credits from molasses are highest in the Lake States. The chief reason for this difference is that the proportion of molasses put through the process for extracting additional sugar is much greater in the West than in the Lake States. This difference in the treatment of molasses is reflected in the gross factory cost of sugar. The reason for the selling of the greater proportion of the molasses as such in the Lake States than elsewhere is due to a better market. There is a greater demand for molasses as a stock food and for the production of alcohol in the Lake States than in the West. Unusually high costs for some factories in 1911-12. — About 25 of the 64 factories shown in Table 14 had costs very much higher in 1911-12 than in any other year under consideration. Most of the factories having these high costs are located in the Lake States. During that season these companies incurred heavy losses on their beets due to unfavorable weather conditions. This is indicated by the unusually high cost of beets for those factories in that year. One of these factories lost more than a third of a million dollars on beet? during that season. The beets were purchased and paid for, but spoiled before they could be converted into sugar. The effect of this abnormal year upon the average cost of produc- tion in Michigan, Ohio, and Wisconsin for the five years is especially » 9 r^i-^- - »"*r J-^^"-^^*^g3 [*K^> a - S4 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Striking. This is brought out in Table 20 below. This table shows the average net cost in these States for the 5-vear period ending with 1913-14, the average cost for 1911-12, and the average for four years omitting the abnormal year. There is also shown the excess of the cost in 1911-12 over the average for four years. TABLE 20.-COMPARISON OF AVERAGE NET COST, NOT INCLUDING DFPRFrTArrTnv THE 5 YEARS ENDING WITH 1913-14, THE YEAR 1911-12, AND FOR 4 YEARS EXCLUDING Excess Average Average Average Excess of cost of State. net cost net cost net cost 1911-12 beets in for for for over av- 1911-12 5 years. 4 years. 1911-12. erage for 4 years. over av- erage for 4 years. Michigan $3.9334 4.3030 $3.6203 3.9629 $5.1123 5.9823 $1.4920 2.0194 Ohio $1.2741 -.-...--..,..,,.,,, 1.9142 w isconsin 4.4860 4.0700 5.8239 1.7539 1.6475 United States 3.5041 3.4299 3.8149 .3850 .3010 Excluding 1911-12 from the five-year period, the average net cost, not including depreciation for the other four years, was below the average net cost for 1911-12 $1.49, $2.02, and $1.75. respectively, for Michigan, Ohio, and Wisconsin. The average for the four vears was ^8J cents per 100 pounds less than the average for 1911-12. "^ The last column of the above table shows the excess of the cost of beets per 100 pounds of sugar in 1911-12 over the average for four years. It is seen that the excess cost in these States during this abnormal year Tvas due almost entirely to the extraordinarily high cost of beets. The factories in these States contracted for their beets as usual. There was a very large crop, accompanied by exceptionally unfavor- able weather during the operating season. Many of the beets spoiled, and some factories, finding they would be unable to work their beets, permitted them to remain in the field. However, they had contracted for the entire yield and had to pay for them, even though they did not use them. All the expense for beets was properly charged against sugar whether the beets were worked or not. The abnormally high cost of production in 1911-12 is reflected in the 5-year averages. This is clearly indicated by a comparison of the averages in these States for the 5-year period and for the 4 vears excluding 1911-12. The difference in the averages was from 30 to 40 cents per 100 pounds. Of course, the high costs in these three States are reflected m the average for the United States. Thus the costs for the whole United States for the 4 years was about 7 cents per 100 pounds less than the average for the 5 years, including the ab- normal year. This difference is also seen to have been due to a dif- ference in the cost of beets per 100 pounds of sugar. 1 I] COST OF PBODUCIN^a BBBT BUGAB. 86 Section 7. Average costs by groups of factories. Grouping the 64 factories covered by Table 14 according to their net cost of production brings out the percentage of the total produc- tion in the United States during the 5 years ending with the cam- paign of 1913-14 that was produced within certain cost limits. For this purpose 6 groups have been made, 4 of them according to the net cost per 100 pounds, not including depreciation, and 2 of them according to the net cost including depreciation. Table 21 below shows the number of factories included in each group, the percentage of the total production manufactured by each group, the average net cost per 100 pounds, excluding depreciation, the depreciation per 100 pounds, and the average net cost per 100 pounds, including de- preciation. There is also shown the total for the 64 factories in- cluded in Table 14. Table 21.— AVERAGE NET COST PER 100 POUNDS OF SUGAR, AND THE PERCENT- AGE OF THE TOTAL SUGAR PRODUCED DURING THE FIVE YEARS ENDING WITH THE CAMPAIGN OF 19ia-14, FOR 64 FACTORIES GROUPED ACCORDING TO THE NET COST OF PRODUCTION. Groups. Number of foetorles. Percent Average net oost I Average 1 Cost not exceeding $3.25, not including depreoiation. 2. Cost over $3.25, but less than $3.50, not including depreciation 3. Cost over $3.50, but le« than $4, not ineluding de» preciation 4. Cost over $4, not including depreciation 5. Cost over $4, including depreciation 6. Cost less than $4, including depreciation Total ^!:i':ii ..... 15 11 11 21 28 36 64 rer u«uv per 100 I DepTBCl- ^r lf« **i.!Sif* I W? jationper PJ^ sugar I not In- i 100 indud- produced.1 eluding | pounds i^gdepre- tlon. 37 20 24 15 22 74 1 13.03 3.37 3.60 4.49 4.29 $.26 96 3.49 SO. 20 .2S .35 .35 .n 13.23 3.60 3.96 4.g4 4.64 3. It .25 S.74 Particular attention is directed to the fact that the foregoing table includes 96 per cent of all the beet sugar produced in the United States during the 5 years covered by this report. Of the 15 factories included in the first group, 4 had an average cost of less than $3 per 100 pounds, excluding depreciation, and only 3 had an average cost of over $3.20 per 100 pounds. These 15 factories produced 37 per cent of the total sugar produced in the United States. The second group produced 20 per cent of the total production. It is thus seen that 57 per cent of all the sugar produced in the United States was made at a cost of not exceeding $3.50 per 100 pounds, excluding depreciation. The average cost, not including depreciation, for these two gi'Qups was slightly above $3.15 per 100 pounds. 87731—17 7 I [I 86 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. A particularly interesting fact brought out in the above table is the comparatively small percentage of the total sugar produced by the 21 factories having a cost of over $4, not including depreciation. These 21 factories made only 15 per cent of the total sugar produced in the United States. The 36 factories having a cost of less than $4 per 100 pounds, in- cluding depreciation, produced 74 per cent of the total production in the United States at an average cost of $3.25, not including depre- ciation, and $3.46 including it. The 28 factories having a cost of over $4 per 100 pounds, including depreciation, produced only 22 per cent of the sugar at an average cost of $4.64. It is interesting to note that of the 28 factories having a cost of over $4 per 100 pounds, including depreciation, 10 are in Michigan, 5 in Colorado, 4 in Wis- consin, 3 in Ohio, and one each in Minnesota, Iowa, Kansas, Ne- braska, Arizona, and Oregon. The factory operating in Oregon has been removed to Idaho. By comparing the figures in the table, it will be observed that the groups of factories having the lowest cost, not including depreciation, also have the lowest depreciation per 100 pounds. Group 4, which has the highest cost, has nearly twice as great a charge for depreciation as group 1, which has the lowest cost. Section 8. Comparative cost of production for all factories, by years. Details of cost of production by factories, by years, are not shown in this report for reasons already stated (see p. 62), arid for the further reason that it was not possible to arrive at a satisfactory basis to compute depreciation for some factories for individual years, though this could be done by companies. It is of some interest, however, to show the cost of producing 100 pounds of sugar, not including depreciation, for all factories by years to compare these results with the average cost for 5 years. Such a comparison is made in the statement below : Year. 1909-10 1910-11... 1911-12 1912-13 19ia-14 Average for 5 years Average for 4 years, omitting 1911 Number of factories operating, 59 58 63 71 69 Cost of beets. $2.3432 2. 4215 2. 7671 2.5257 2.5243 Net cost of manu- facture, not in- cluding depre- ciation. $0.9368 .9916 1.0478 1.0231 .9039 Total. $3.2800 3.4131 3. 8149 3.5488 3.4282 74 74 2.5247 2. 4661 .9794 .9629 3.5041 3.4290 / ^\ / COST OF PRODUCING BEET SUGAR. 87 From the foregoing statement it is seen that the lowest average cost, not including depreciation, was $3.28 in the campaign of 1909-10 and the highest was $3.81 in the campaign of 1911-12. As already stated (see p. 83) the unusually high cost in the latter cam- paign was due to the fact that in the Lake States a great many beets bought and paid for by the beet-sugar companies spoiled before they could be used. Consequently, the average cost of beets per 100 pounds of sugar in the United States for that year Avas considerably higher than usual and the net cost of manufacture, partially due to the same cause, was also higher. The average net cost for all factories for the hye years, excluding depreciation, was $3.50, while the average for the four years, omitting 1911, was $3.43. Section 9. Cost of sugar manufactured per ton of beets. Costs in the beet-sugar business as well as in most other industries are usually determined on the basis of a unit of product. In the case of sugar the basis is 100 pounds. In European countries, however, a ton of beets worked is frequently considered the unit and costs are discussed in that relation. For the technique of sugar manufacture there is considerable interest in the study of costs on this basis. A general statement of the costs of extracting the sugar from a ton of beets has but little real value in a comparati^ e study of costs. If all beets were of the same quality such a comparison in different fac- tories would afford a valuable guide in the determination of factory efficiency. It rarely ever occurs, however, that anv two factori^ have beets of exactly the same quality. The average cost of manu- facture per ton of beets, therefore, does not add much, if anything, to the knowledge derived from a study of costs per 100 pounds of suo^ar produced. *^ Notwithstanding the foregoing facts, a statement of costs based on a ton of beets sliced is here given as a matter of interest and because it may be of some use to the sugar manufacturer. The cost data of the 64 factories covered by Table 14 have been compiled on the basis of 1 ton of beets sliced and the results are shown in Table 22. The elements of cost are classified as in the cost table based on 100 pounds of sugar, except that depreciation is not considered. The results are usually the average-for 5 years, though a few factories operating only 3 or 4 years have been included. The column show- ing the average number of pounds of sugar extracted from a ton of beets by each factory is inserted in the table. By dividing the aver- age net factory cost per ton of beets by the average extraction, the net cost per 100 pounds of sugar can be found. This result will agree with the net costs shown in Table 14 (see p. 72). Multiplying the depreciation per 100 pounds of sugar shown in Table 14 by the extraction per ton of beets shown in Table 22 will give the amount of depreciation per ton of beets. 88 o OQ o o OQ o m s8 W -H W OQ t^« N <; o ^ H>< CQ o w o > «s o ^H « tt w f^ 2§ Q Ph ^2; . -< to w s w o fe t •J PQ ■< E^ THE BEET SUGAR INDUSTRY IN THE UNITED STATES. MOW ?4 Q to •H 55 SO 00 0» 'tft pi t- O lA ^ <-" <-! rt 05 S2«^- <^oio<»;^ :2:^iil ill!! ^3KS§5 S;3J52S r;-oo^oo «^^^£3 SoSS^i i2^§SS Sl5gf2g S "' ^ ^ -: Oi-lOOi-l ooo I I I I ;s S S S g OOO S I § s s ^ 05 OS 1^ tH OS C» 00 N o o Ilia bS- (55^3 i2 $ C T3'-^ »« «iS ft+J-O c35+3 S ge > o H2i!n 111^^ iiS^S ii§S§ ^ ^ S ::i ^ osoooo. oosooo oS^Joooi = § § ^ •"• to CO r-t i^ fe 2 S S »o to 1-1 W — 3 OOl-1-Hi.H S'^il §§iii mi i i i ^ s CO CO cvi lo 1-^ I S S M ^ -^ ! ^ 3 i i i 2 § i i i i ,S § I g g g 3 *"" f-H pil§ iiis§ 5im|g|.. §Si2i §S2fe8 isg^B iiis^ 00 Ol SKSg§j: S:3Sgi5 ooo»o»c «s^§3oo S;3g^5; ssssgis « O •*• OS 1-1 -♦< s ^ ^^pi^?i s?a^gs s » S3 - si^Si i§SBi §5S2g ssisg s 3 r>- CO N $ S !S: CO 'v lo «o SO eo OS _„ l^ b- t^ ^ O US iC S S S 8 lO M5 ■?!< U5 iisi^ Sf2^5.5 asgQoo W-.N *52^:] '^'^^^^ 3j;p|;*3 ggg J^t^oot^,^ t^t^t^t^O r>:r>:t^t^r^ r^^^ t^ t>. t^ t^ 00 1^: r>. h- li Jl* 00 UJ C^» M •5 ?i cs 55 CO Si c^ CM 1-1 R 54 5i sg^ §iigi iiagg Y \ / • \ i .f-^k «-• C« CO ^ lO r r* , ■• / ' . • • • . , ', ' ! ' . * ' friH • , • • > ' • • I , "■ > o r«: 00 2 n s^':;? 2: s g si-s. ;?i,s S.w(^.^f, ^^.^ < COST OF PRODUCING BEET SUGAB. sssss sssss^; gsssa ^^5«| sSssI SSSii oO'^P-oJh wosi-HOCt i-ioo»o»-i c»eo««ooo t*rHcot>.oo e«5>-ii-<«oec osoosooi^ osddosoo oo^ooooos ososoodos os«^dr^t» t^»oooooo iH i-l r-l i-l rt »H 1-1 <©•■<# Qt>- ost^t^coa £2^19522 SSJErlfSS! SSif: ^SSJSS i:§feS^ SSS^^ e^ o « csi r^ uo o r^ o OS o OS » -H 00 N r^ ^ ^ lO o T»t CO o e«5 to eo o "^sPi 8 2 & S S t^e«^ eo«o»o»H?o cpoor-'-! wt-os'^it^ tf)i-ioepN S88 isiss iisss 8S^SS ssssb I I I I I I I I I I OS ^ ^ PO O 1^ ^ s i i ss s 51 o li o S ?o <© 5P0PtrC^eS ■*eOOO;CO CiOSOO*-*"} u5 ^osooo t>-osesr^«p n tfi oi c<* ->oco ooooe^i'^^ »co-^oc< »H o»t*'*'*e5 oeOF-(-*N aspirissx CsSi-i-Ptr XCOCjeo t^ asOfHtnco towS^OM a9c6^t>.ko cooqi-^9os ^o>ooqi-i S SS^WOT ao^^-i-teo F.5o»osi-i «5w5-. CO 00 t- •r!S0ooos cot^eoioao OSCMOO '^fl»C4o5i-< «-i«5-^co co^ic-^'* t^-MOOeOCO t-Hi-iOOOCM t^oor^>c>o t-iososCMO ?oo5i~-t^i-i oot>.i>»t>.»o ujooo ^oft'^i^CM CO'» »o o o CM r^ 1-1 CO o „_-oS «eot»e>55 i-IO«0»0 ■^t— C0»0!0 ^ 5JsS2^ ggsss ssssg SSgss ^i§§S ^ii i-ii-(i-IOeO i-lc5r^i-lO ,M-^^4^^i^ i-i»*. ^e900»0 i-HCMt^QOS 00 ^ eo 00 ^ 00 ^ w eo c.i_i'^oo o> to a -^ r-{ sofc-rtcovs t-oyjO'^ ^icf'^i-t cot-oo'** CO^COiO^ ^pSg^ui (§o$9«^co ^S^^^ fiS*4^S ^CM^SoO eotccou5i-< o^a5<9c4 ra^CM^us to ^ ci eo tS oor-eo^ i-ioioooio t>^t^i>ti^t>^ i>cdo los^tototo CM««i-ICi eOCMC4CM 55 eo «o ;« ^ CO go 55 R cS el cJ 8 m O CO I-l U3 SO t5 CO Hi ui eo so sp t- C4 CM CM C« (K CM ■ t t*«ii «•••• •*•! • • ••••» ••••« fill II ••••1 ••••• ••II Ilk IIIVV lllll llll I k ■•'• I I 1 11 I ^ I I • I • iii'i'iia* lllll III! I'ah'i'^lll ••••• llll ^N^SS Sweoroco feeoW§5 rr5?5«5'* ^?pS"3«o «ou5»cS«o •s o e s C3 a 00 Qt^^i-(OS •^'-•W'^a "^QcSt-ioo 2J-^i©so^ S "3 ^cM«OkocM eouaeccooo'rfS'a"*''^ «£SSrJ* P T-l T_|r-ii-ii-iiH -^iHi-ieOi-l COC^^rHi-< ^CMNCMt-f J- a ••«•• •»••• ■••■• ••••• gi S83SS I CO c a o CO cc 00 1 £ m O OS s el •5 cMco 52'~'SS'^°S 35'^SS* ^"^iSSS^ 3 coco 58S«3^ SSso^'* »c«»ososo "o i CQ ^^ c S < 89 \ 90 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. COST OF PRODUCING BEET SUGAB. 91 A QQ CO m A o o H c OD fa Si O &^ o o > > Q GO » m o Pi o CO « o Eh O P=4 o « Jz: o t-t Eh . X « o t) > OQ O -< > S3 pa -< ' eo M (M OS N r^ -tJ ^J~ 3 p. ^ O ST! O ^ o axj — ' ^5 '^ O «0 00 W •H »^ 3_r zj: *^ "rf ^^ •• "^ ^r* "^ •*? '■'W c^ ^^ t^ r^aooJoooJ ooosoJoo oioscSeo 09 O r? t" "5 t^ '^ O C^ t^ o -^ >0 CC iC ^ (M c5 ■ • • ■ P »C 55 in ^ (N ■<<< t^ lO Oi 00 lO 1-t 00 o CD t^ 00 lO i-H OS «; = ° S!!i S o M gii- .2 2 S M ® TS 03— <0 ;^ oococ ooo-^o o ■*^ O S L- 00 05 t^ Ot>.00rftOt--.00Co era o w is *j o 03 ■ "^ -. ^ o CO S =3 c3 C >j o « be o 03 2 =3 ^ S« 2 CO fc, q M •-. en 2 03 9 S fc< ® w III OQ- O h OS OS OS O OSi— ii— (1— (O OOSO'** i5S?*:2;s;; S!2;s«^* os-^osi-h O— lOOO i-hOSi-hOO O^S'^ o OS 2} OS O (N qsiMoesi eo-^eoM lo N OS _ rot^osoo»o osoor^ ^owcir^ 050SO OS -H t^ ■.!< (M <5 O »C t^ 00 O U3 r-l ec CO o uj a UO 00 ^ 1— II— iriO'-' •-''-ii-ieoci i-i— hc^cj — J ^H Tf OS 00 O — < t-- O l-~ CO CO C ^pOst-co s CO r^ M ■»»« .^ •-< o o o •* •* 00 -^ to ■^ 5 ^ . c^ 3 j§ t^ O 00 CO 00 CO 00 OS CO " "3 CO t^ o t^ 00 -< (M -^ •^ »0 CO 00 o 00 t^ t^ CO »o eo—iooc^oo CO'*'— *<0O'J"00 '^ so -^ ia u ■A CO O to to — ' !-• eo <— I o CO t>^ CO r-^ J2 OS '^^ 00 CO CO to t>^ OS Tj« e<5 ^ O to r- c^ o 00 (N C« M 00 eo CI t^ OS to CO OS o S5 S iS 2 3J 00 o N e^ N CO e<5 ot n n 00 OS •* sssss ^ssss P .H 00 r^ t^ t- o ■? CHAPTER IV. DISTEIBTTTiaN OF SUGAR. J us - . UJ UUl' ■iM>; 'to Section 1. Introduction. The product of the beet-sugar factories is all granulated sugar ready for table use. The factories located in the West pack their product in bags containing 100 pounds each. Some of the sugar produced in the eastern factories is packed in this manner, but most of It is packed in barrels which contain about 340 pounds each. Some is also sold in bales, a bale containing four 25-pound bags packed in this manner for the convenience of the trade. Practically aU of the product is sold through jobbers, a small quantity being sold directly to the beet growers for their own use. One or two companies also dispose of their product to near-by cane refineries. Section 2. Where beet sn^r is consumed. Data showing the quantity of sugar sold in each State by factories were secured from the majority of the companies. In some cases this information was not available, and in others, due to the amount of work involved, it was not obtained. Such information was secured from 29 of the 37 companies which in 1913 sold 1,006,884,238 pounds. The great bulk of the total sales is thus accounted for, as the sales of the largest companies are included. In 1912 information was secured from only 24 companies, which sold 1,039,789,058 pounds. The fol- lowing table shows the quantity and per cent sold in each State by these companies for these two years: Table 23— BEET SUGAR SOLD BY 24 COMPANIES IN THE VARIOUS STATES FOR THE YEAR 1912 AND 29 COMPANIES IN 1913. State. 1912 Alabama Arizona Arkansas CalifomiaJ Colorado Connecticut Delaware District of Columbia, Pounds. 1,855,500 6,671,000 14,670,900 80,788,000 39,680,300 440,936 161, 741 2,337,434 Per cent. .18 .64 1.41 7.77 3.82 .04 .02 .22 1913 Pounds. 528,500 9,739,400 17,098,294 93,254,700 24,656,400 Per cent. .05 .97 1.70 9.26 2.45 649,947 .06 92 » Includes the sugar sold by the Alameda Sugar Co. in Oregon and Washington, T / « I « > \ DISTBIBXJTION OF STJGAB, ^8 T „, oo BEET SUGAR SOLD BY 24 COMPANIES IN THE VARIOUS STATES FOR T.B.» 2S-BEET I^^B SOLD^^ ^^ COMPANIES IN 1913-Contln»ed. State. [1/ Florida Georgia Idaho - Illinois - - — ' Indiana • Iowa • Kansas -' Kentucky Louisiana • — Maryland Massachusetts, .il 1 i JJ^J^ :i i ^ 1912 Pounds. I Per cent ..Tt; ■■•'V- f »'« ' ' 't ; ' 1 r ...... . ..iiiiU^i Michigan — Minnesota... Mississippi . . Missouri Montana — Nebraska . . . Nevada New Jersey . New Mexico New York North Carolina. North Dakota i Ohio.... Oklahoma Oregon .IJ Pennsylvania . Rhode Island . . South Carolina South Dakota I Tennessee. ... ^ .;. ^ . . -.v j u * :"4 ii'i^-f- - •fc*-- Texas.... ...........^-.•.--•Tf^-^^fv^-* Utah •.••.-•:"•» Vertoont.li..'- J Virginia Washington.. . .,4^. .,j,r |.- • vr.-";i West Virginia ■ Wis6Wian..;....i....i- ::i .J ?.. 900.600 5,024,700 5,395,900 121,505,253 i 17,832.464 86,129,227 45,977,800 10,903,317 893,500 11,033,973 253,163 24,643,246 82,306,186 1,553,400 95,132,839 23,661,600 56,324,791 350,900 2,215,215 6,906,400 23,618.336 1,831,000 21,147,972 31,116,651 38,125,700 5,991,800 $6,682,927 300,239 1,743,S00 20,485.573 10,971,1^ 36,321,900 22,185,100 444,449 8,303,074 8,359,000 3,426,046 Ji ;;iikU . Wi. JJiUl^. -fP ^^ * ■ 19, 843, 92S "fi',> •..: .7, Mi j ]':'••> -iflOJi 'iif^m.ML - ) »i:j.H' Wyoming.. .... i,...».KO^^•*♦^ki•■«^>4H•^•^4••^^^• >i i < i >.• I «• > :t I !•* > 3,760,100 .09 .48 .52 11.69 1.72 8.28 4.42 1.05 .09 1.06 .02 3.37 7.92 .15 9.15 2.27 5.42 .03 .11 .66 2.27 .18 2.03 2.99 3.67 .54 8.53 .03 .17 1.97 1.06 3.49 2.13 .04 .80 .80 .33 1.91 .36 1,099,789,058 100.00 1913 Pounds. 239,500 2,648,700 6,493,800 98,555,963 17,289,666 75,532,098 50,110,777 12,147,»18 701,000 3,112,454 Percent. .02 .26 .64 9.79 1.72 7.60 4.98 1.21 .07 .81 50,481,976 89,864,364 501,200 96,635,911 11,079,700 56,466,300 510,000 65,000 6,668,900 13,675,932 363,900 7,936,549 57,066,671 51,904,000 4,089,300 19,310,482 300,000 17.377,918 6,l28,a'0 32,427,200 i4, 671, 500 113,000 5,536,093 6,502,300 2,063,234 29,998,166 2,704,700 5.01 8.92 .05 9.59 1.10 5.61 .05 .01 .66 1.36 .04 .79 ft. 66 5.15 .40 1.91 .03 1.73 .61 3.22 2.45 .01 .55 .65 .20 3.f7 .28 1,006,884,238 \ 100.00 1 Includes the sugar sold by the HoUy Sugar Co* in South Dakota. From the above table it is seen that beet sugar is sold in nearly every State in the Union. CaUfornia, Illinois, Iowa, Michigan, Minnesota, Missouri, Nebraska, Ohio, and Oklahoma received the largest quantities of beet sugar, 66 per cent of the amount shown in the table, for 1913, being sold in these States. It is probable that a larger proportion of the product was sold m California i -M .iTSTxri^ ^7^ 94 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. DISTRIBUTION OF SUGAR. 95 than is shown above, as the table does not include the product of a large company which sold its entire product to a cane refinery which in turn disposes of a large part of its product in this State. In 1912 more than 50,000,000 pounds was sold in each of the States of California, Illinois, Iowa, Minnesota, Missouri, and Nebraska, 50 per cent of the quantity shown in the table being sold in these six States. No doubt more than 50,000,000 pounds was sold also in Michigan, as the table does not include the product of the Michigan Sugar Co. Small companies can usually dispose of their product either locally or in near-by States, but the largest com- panies must of necessity find markets in various States. The com- panies in Utah, Idaho, and Colorado are forced to invade the " eastern markets, since their production far exceeds the home de- mand and because California produces large quantities of both beet and cane sugar and largely supplies the Pacific coast markets. The Great Western Sugar Co. in 1*913, for example, sold sugar in 33 different States. Of course the bulk of their product was sold in the central Western States, but small quantities were sold even as far east as Vermont, New York, New Jersey, and Virginia. Only small quantities are sold in the Southern States for the reason that the Louisiana cane refineries have the advantage of lower freight rates. Section 3. Cost of distribution. In this discussion all expense incident to selling except a small amount for administration and for insurance of sugar in warehouses at the factories has been charged to cost of distribution. As already explained (see p. 61) the two latter items could not be separated from other administrative expense and from insurance on plant and equipment and therefore they have been charged against cost of pro- duction. Since each company sells the product of all its factories as one unit only averages for companies can be shown. The average brokerage commission and freight per 100 pounds are shown sepa- rately, and the other items of cost, such as insurance, storage allow- ances, and cash discounts, are included under the head of other ex- pense. The average price received per 100 pounds, the average net price at the factory, and the principal items making up the selling expense are shown in Table 24 below: ^ s / > A ~ o^ <-.ur>ao niT'Ti'TPTS PER 100 POCNDS OP BEET SUGAR, SELLING EX- "^'lENs'ET^rNl/SfAT'^TcTOKY PER 100 POONDS, BY COMPANIES, FOR THE YEARS 1909-10 TO 1913-14, INCLUSIVE. 1909-10. Gross receipts. Selling expense. Company. Broker- age and commis- sion. Freight. other expense. , . Total selling expense. Net price at fac- tory. 1 $5.0866 4.9702 5.0431 5.0587 4.9632 4.7655 $0.0309 .0589 .0299 .0300 .0207 .0846 $0. 4424 .1410 .2946 .0919 .0872 .1249 $0.0818 .0543 .0599 .0790 .0582 .0476 $0.5551 .2542 .3844 .2009 .1661 .2571 $4. 5315 9 4.7160 o 4.65S7 4 4.857S R 4.7971 6 4.5084 7 o 5. 7104 5.0393 4.9360 4.9959 .0808 .0288 .0173 .0959 .6784 .5576 .3542 .1437 .2334 .0432 .0585 .0549 .9926 .6296 .4300 .2945 4.7178 q 4.4097 1ft 4.5060 11 4.7014 12 4. 8787 .0062 .0865 .0927 4.7S60 13 14 ir^ ........•■••••• 4.8393 5. 0155 5.1906 5.0032 5.0864 4.9985 .0289 .0281 .0417 .0319 .0335 .0324 .0989 .1208 .0677 .0876 .0814 .0553 .1278 .2826 .5616 .2556 .3434 .2295 4.7115 10 ifi .1337 .4522 .1361 .2285 .1418 4.7329 17 4.6290 1G 4.7476 1Q 4.7430 Oft ....; 4.7690 21 22 5.8809 .1342 .4273 .0253 .5868 5.2941 23 94 5. 1752 4.9740 5.2217 5.0550 4.9921 5. 1590 4.9344 . 5.0171 .0360 .0283 .0330 .0260 .0801 .0302 .0281 .0361 .4421 .0722 .4153 .0961 .1202 .2771 .0677 .0867 .0552 .1397 .1002 .0816 .1057 .0362 .0534 .0681 .5333 .2402 .5485 .2037 .3060 .3435 .1492 .1909 4.6419 or. 4.7338 Oft 4.6732 97 4.8513 9fl 4.68M 90 4.8155 OA 4.7852 31 4.S262 32 33 . 4.9652 .0245 .1317 .0521 .2083 4.7500 34 35 Oft 5.2221 . 4.9134 . 5.3229 .0298 .0321 .0311 .0683 .0960 . 4130 .0050 .0980 .0841 .1031 .2261 .5282 5.1190 4.6873 07 4.7947 .'.^..•Mn-fifK .. bl 96 THE BEET SUGAE INDUSTRY IN THE UNITED STATES. Tablb 24.— gross RECEIPTS PER 100 POUNDS OP BEET gUGAB, SELLING EX- PENSE AND NET PRICE AT FACTORY PER 100 POUNDS, BY COMPANIES, FOR THE YEARS 1909-10 TO 1913-14, INCLUSIVE — Continued. 1/i.i '■ 1910-11. ■ •■- " - --^-----■v __ , ■! ■ » Gross receipts. Selling expense. Company. Broker- ftgeand commis- sion. Freight. Other expense. Total selling expense. Netprioe atfito- tory. 1 $6.0609 4.6798 5.1366 4.7463 4.9414 4.3709 $0.0301 .0571 .0310 .0244 .0268 .0265 $0.4603 .1442 .2836 .1333 .0982 .1241 $0. 0881 .0989 .0657 .0736 .0614 .0391 $0.5785 .3002 .3803 .2313 .1864 .1897 $4.4824 2 ^ 4.3796 8 4.7563 4 4. 5150 5 4.7550 6 4. 1812 7 ... 8 5. 2407 4. 8116 5. 1102 4.6738 .0201 .0310 .0074 .0880 .2036 .0922 .1791 .1482 .1286 .1118 .0639 .0741 .3523 .2350 .2504 .3112 4.8884 9 4.5766 10 4.85(98 11 4.3626 12 13 4.6145 .0128 1.0009 .0119 4.6026 14 " 16 5.0019 4. 6174 5.2523 4.6453 5. 1818 4.6538 .0474 .0333 .0377 .0310 .0337 .0491 .1913 .0321 .0694 .0917 .1013 .0822 .2387 .1937 .5624 • .2621 .4143 .2762 4.7632 16 .1283 .4553 .1394 .2793 ,1449 4.4237 17 4.6899 18 4.3832 19 4. 7675 20 - 4. 3776 21 22 5.9262 .1342 .4273 .0253 .5868 5.3394 9a 24 5.1788 4.6891 5. 2713 4.7763 4.6506 5.1411 5.0409 4.7623 .0359 .0309 .0338 .0284 .0800 .0299 .0536 .0351 .4496 .0734 .4021 » .0865 .1207 .3525 .0916 .1075 .0509 .1971 .1005 .0946 .0967 .0509 .1339 .0693 .5364 .3014 .5364 .2095 .2974 .4333 .2790 .2119 4.6424 25 ... 4. 3877 20 4. 7349 27 4.5668 28 4.3532 29 4.7078 ao 4.7619 »1 4.5604 M S8 4.7340 .0310 .0910 .0632 .1852 4.5488 34 35. . 4 5.0634 4.7182 5.3339 .0344 .0273 .0367 .2709 .0841 .4621 .0094 .0938 .1120 .3147 .2052 .6108 4.7487 36 4.5130 37. 4.7231 > Credit from insurance fund. ) T^ 1 V '\ ) \ DISTRIBUTION OP SUGAE. 97 TABLE 24.-GROSS RECEIPTS. PER 100 POUNDS ^^ BBOT SUGAA, SB^^^^^^ PENSB AND NET PRICE AT FACTORY PER 100 POUNDS, BY COMPANIES, FOR THE YEARS 1909-10 TO 1913-14, INCLUSIVE-^ontinued. i9ii-ie. Selling expense. Company. Gross receipts. 1 1 $5.3859 2 j 5w6275 3 5.5033 4 "" /_ 5.6959 K 5.5840 6 ' 5.6246 Broker- age and commis- sion. Freight. g ! 5.4358 9 : 4.8627 10 j 4.9181 11 5.7955 10.0298 .0483 .0805 .0255 .0252 .0411 12. 13. 14. 15. 16... 17... 18.. 19.. 20.. 21. 22. 23. 24. 25. 5.1211 5.6369 4.6912 5.7569 5.5045 5.7338 5.4817 5.8003 '6.7545 5.6984 .0710 .0293 .0152 .1104 $0.4471 .1862 .2884 .1454 .0944 .1386 Other expense. .8121 .1067 .2889 .1564 $0.1202 .1065 .1131 .1139 .0904 .1160 Total selling expense. $0.5971 .3410 .4320 .2848 .2100 .2957 Net price at fac- tory. $4.7888 5.2865 5.071S 5.4111 5.3740 5.3289 .0021 .0320 .0126 .0565 .0376 .0322 .0301 .0534 .0881 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 5.3815 5.6150 5.4163 5.7402 5.8096 5.5741 4.9979 5.8611 .0352 .0308 .0314 .0325 .0888 .0313 .0268 .0303 .0436 .3904 .0266 .1063 .5612 .1440 .2496 .1712 .2584 .1267 .1153 .1244 1.1415 .1727 .4194 .3912 .3694 .1130 .0679 .0910 .1851 .1186 .1408 .1022 .1198 .1958 5.2869 ' 4.5138 .0354 5.6542 5.9035 .0600 .0242 .0375 .4433 .1363 .3919 .0806 .1893 .4043 .1702 .0900 1257 .0569 .0975 .4782 .1085 .1751 .0928 .1480 .1378 .0997 .1324 .1368 ,1587 .4903 .1302 .3479 .7174 .3170 .3819 .3444 .9971 .6033 1073 .0125 .1711 .1782 .5870 .3422 .5161 .26U .4150 .5353 .3294 .2571 .268i .1294 .2928 .6939 4.294S 4.6900 4.4987 5.4013 4.9634 5.1466 4.5610 5.4090 4.7871 5.4168 5.0998 5.4559 5.7574 5.0051 4.7945 5.2728 4.9002 5.4791 5.3937 5.0388 4.6685 5.6040 5.0185 4.3844 5.3614 5.2096 1 !i 98 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. DISTRIBUTION OF SUGAR, 99 Table 24.— GROSS RECEIPTS PER 100 POUNDS OF BEET SUGAR, SELLING EX- PENSE AND NET PRICE AT FACTORY PER 100 POUNDS, BY COMPANIES, FOR THE YEARS 1909-10 TO 1913-14, INCLUSIVE — Continued. 1912-13. Gross receipts. Selling expense. Company. Broker- age and commis- sion. Freight. Other expense. Total selling expense. Net price at fac- tory. 1 $4.8953 4.7757 4.9695 4.7306 5.0347 4.5393 4.6682 5.1925 4.9923 5. 1708 4.6497 4.4901 4.5460 5.1434 5.1531 4.7784 5.2337 4.6225 5.3650 4.6582 5.7543 5.9856 4.7063 5.2835 4.7331 5.3196 4.8257 4.7148 4.8241 5.1864 4.7623 4.9411 4.7859 4.9747 4.4670 4.7501 5.1858 $0.0299 .0899 .0304 .0351 .0291 .0537 .0300 .0252 .0504 .0140 .0897 .0436 .0001 .0403 .0767 .0291 .0356 .0435 .0278 .0521 $0.4286 .1776 .3509 .1739 .0918 .1016 .1185 .1958 .7561 .2684 .1374 .1202 .0114 .3940 $0. 1526 .1171 .1410 .1129 .1265 .0895 .1093 .1280 .1331 .1065 .1120 .0446 .1039 .1528 .3371 .2854 .1353 .1159 .1496 .1187 $0.6111 .3846 .5223 .3219 .2474 .2448 .2578 .3490 .9396 .3889 .3391 .2083 .1154 .5871 .4138 .4331 .5996 .2911 .5709 .3434 .5181 .7396 .3132 .6260 .3350 .6166 .3065 .3689 .6455 .3540 .3218 .2708 .2620 .7971 .1582 .4386 .7037 $4.2842 2. 4.3911 3 4.4472 4. 4.4087 5. • 4.7873 6 4.2945 7. 4.4104 8 4.8435 9 4.0527 10 4.7819 11 4.3106 12 4.2818 13 4.4306 14 4.5563 15 4.7393 16. 1186 .4287 .1317 .3935 .1726 4.3453 17. 4.6341 18. 4.3314 19 4.7941 20 4.3148 21 5.2362 22. .0358 .0943 .0363 .0291 .0350 .0081 .0825 .0300 .0333 .0262 .5049 .1175 .4607 .0926 .4467 .0827 .1737 .4996 .2278 .1129 .2241 .1052 .4919 .0673 .1019 .4924 .1989 .1014 .1290 .2133 .1349 .2157 .1127 .1159 .0929 .1827 .0467 .1281 .2805 .0099 .3097 .1821 5.2460 23. 4.3931 24 4.6575 25. 4.3981 26. 4.7030 27 4.5192 28 4.3459 29 4.1786 30 4.8324 31 4.4405 32 4.6703 33 .0287 .0247 .0810 .0270 .0292 4.5239 34 4.1776 35. 4.3088 36 '. 4.3115 37. 4.4821 f <, / TABLB 24.— GROSS RECEIPTS PER 100 POUNDS OF BEET SUGAR, SELLING EX- PENSE AND NET PRICE AT FACTORY PER 100 POUNDS, BY COMPANIES, FOR THE YEARS 1909-10 TO 1913-14, INCLUSIVE— Continued. 1913-14. Gross receipts. Selling expense. Company. Broker- age and commis- sion. Freight. Other expense. Total selling expense. Net price atmc- tory. 1 $4.4321 4.2492 4.4366 4.3212 4.4089 4.1616 4.0744 4.6257 4.2163 4.3180 4.2751 $0.0299 . 0798 .0335 .0295 .0295 .0256 .0800 .0387 .0149 .0141 .0822 $0.4321 .1842 .3077 .1253 .1087 .1222 .1248 .1812 .1342 .2565 .1444 $0.1345 .1309 .1335 .1017 .1214 .0768 .1204 .1834 .1747 .0939 .1647 $0.5965 .3949 .4747 .2565 .2596 .2246 .3252 .4033 .3238 .3645 .3913 $3.8356 2 3.8543 3 3.9619 4 4.0647 5 4.1493 6 3.9370 7 3.7492 8 4.2224 9 3.8925 10 .. 3.9535 11 3.8838 12 13 3.9568 4.5003 4.4057 4.2560 4.4180 4.1788 4. 5708 4.1273 5.1551 5.3347 4.3975 4.5087 4.5230 4.5617 4.2642 4.2314 4.4341 4.4572 4.3733 4.4454 4.2594 4.5864 4.6498 4.7786 4.5795 .0039 .0390 .0098 .0331 .0371 .0267 .0327 .0558 .0251 .0497 .0861 .0367 .0431 .0345 .0375 .0952 .0408 .0284 .0094 .0198 .2688 .1433 .1061 .4162 . 1382 .1895 .1475 .3259 .3865 .1628 .4512 .0728 .3842 .1205 .1763 .4160 .1396 .0764 .1517 .0872 .3981 .0888 .0911 .3736 .0810 .1399 .0648 .1754 .1101 .1107 .1303 .1056 .1351 .1999 .1590 .1194 .1645 .1578 .1812 .1261 .1017 .1890 .1029 .0278 .1243 .2452 .0103 .1609 .2052 .1047 .4477 .2179 .3146 .5634 .2756 .3525 .3089 .4861 .6361 .4079 .6073 .2804 .5765 .3392 .3976 .5585 .3570 .1887 .1795 .2423 .6707 .1904 .2924 .6138 3.8521 14 4.0526 15 4. 1878 16 3.9414 17 3.8546 18 3.9032 19. 4.2183 20 ^ 3.81S4 21 4.6690 22 4.6986 23 3.9896 24 3.9014 25 4.2426 26 3.9852 27 3.9250 28 3.8338 29 3.8756 30 4.1002 31. 4.1^46 32 4.2659 33 .0308 .0274 .0913 .0404 .0350 4.0171 34 3.9157 35 4.4594 36 4.4862 37 3.9657 I i • j 100 THE BEET SUGAB INDUSTRY IN THE UNITED STATES. In the foregoing table it is seen that the cost of selling in 1913-14 ranged from $0.1047 in company No. 13 to $0.6707 per 100 pounds in company No. 34. The average for all companies was $0.4542. The average for all companies in 1909-10, was $0.3865; in 1910-11, $0.3782 ; in 1911-12, $0.4281 ; and in 1912-13, $0.4731. The differences in selling expense for the various companies are due largely to the differences in the amount of freight paid. i Freight charges.— The freight on sugar, which is the largest item of selling expense, is usually prepaid by the company. Freight is also paid on the containers, the weight of a bag being considered as one pound and that of a barrel as 16 pounds. Naturally, the average freight per 100 pounds of sugar is higher for large companies, since the larger proportion of their product is sold in more distant markets and consequently on higher freight rates. Also, companies in the East enjoy some advantage over companies whose factories are located in the West, due to their nearness to the great consuming centers. In 1913-14 the highest average freight charge for any east- ern company was $0.1842 per bag. The average for the four largest western companies was $0.3672 per bag. The highest average freight in this year was $0.4512 for company No. 24 and the lowest was $0.0198 for company No. 13. The latter company and company No. 35, however, dispose of most of their product on an f . o. b. factory basis. For this reason selling costs are not strictly comparable with those of other companies. Six companies in all had an average freight cost of less than 10 cents per bag, while the cost exceeded iO cents per bag in only four cases. Usually the average freight in one year does not differ materially from that paid in other years. Apparently such differences are chiefly due to variations in points to which sugar is shipped. The wide differences in 1909-10 and 1912-13 as compared with the other years for company No. 9 can not be explained unless the amounts for these two years include some freight paid in other years. In 1911 a larger per cent of the product was sold outside the State than in 1912, and yet only about $2,700 freight was paid as compared with $69,000 in the latter year on a slightly larger amount. It will also be noticed that for company No. 8 the average freight in 1909 and 1911 was much higher than for other years. Some sugar was returned to this company as being off color which necessitated the paying of the freight three times, although it is not known what per cent of the total amount sold is affected thereby. The freight cost is shown for company No. 21 for only one year as the detailed cost of selling was not secured for other years. Other expenses.— The average brokerage paid is about 3 cents per 100 pounds. The usual charge paid brokers is 3 cents per bag, 5 I DISTBIBUTION OP SUGAR. 101 cents per bale, or 10 cents per barrel. Companies Nos. 2, 6, 7, 11, 23, and 28 paid an additional 5 per cent since the broker in these cases assumed the responsibility to the customer and in some instances advanced money to the company before the sugar was sold. Com- pany No. 32 disposed of its product locally and paid no brokerage, and company No. 13 paid no brokerage, all its sugar being taken by one concern. The cost of selling for company No. 22 in 1909 was charged in the accounts of 1910, and the amount has been prorated on the basis of the quantity sold in each year. In 1909 and 1910 the regular cash discount was 1 per cent. Since then the usual discount has been 2 per cent for cash in seven days. Company No. 35 sold its sugar net as did No. 13 in 1909 and 1910. Practically all sugar is sold on a cash basis, and the losses from bad debts are practically nothing. Storage and insurance are charges on unsold sugar which has been shipped to distributing points. A dealer, for example, at some central point may buy less than a car load. The company ships a car to him in order to save freight charges and some time may elapse before the remainder of the car is sold. The dealer buying the remainder of the car pays the freight from the distributing point. Insurance on sugar in their own w^arehouses, hoAvever, is included with the insurance of factory buildings, etc., and therefore included in factory costs. The charge for allowances arises from the fact that the price to the wholesaler is guaranteed. That is to say, when the manufac- turer makes a sale he guarantees the wholesaler or jobber against a decline in price. When sugar was sold it was billed at the market price on the day of sale, but the manufacturer guaranteed the whole- saler or jobber that in final settlement the price should not exceed the market at the time of delivery. Thus, if a quantity of sugar was sold on a day when the price was, say, $5 per 100 pounds, but when delivered, say, 10 or 20 days hence, the market was then $4.80 per 100 pounds, the wholesaler was allowed the difference. On the other hand, if the market advanced to, say, $5.10 per 100 pounds, the wholesaler still got his sugar at $5. In other words, the manufac- turer guaranteed the wholesaler or jobber against loss on a declining market, but did not receive the reciprocal advantage of an advanced price upon a rising market. While it was formerly the custom among cane-sugar refiners to guarantee the price against decline, this has not been the case for some years. A large refiner states that the cane-sugar refiners aban- doned this custom because the margin between the price of raw and refined sugars has been so reduced that there was nothing left as an insurance against the risk' taken in guaranteeing against decline. t \ t 1 I 87721— IT- 'S ■ i 102 THE BEET SUGAK INDUSTRY IN THE UNITED STATES. The argument in favor of the guarantee is that it enables the manu- facturer or refiner to keep a considerable amount of business on his books under contract. The beet factories operate but about three months in the year and contract for their raw material a year ahead at a fixed price. They thus know about what it will cost to produce granulated sugar so that a rising market simply increases their profits without affecting their cost of production. They are, there- fore, in a better position to guarantee the price than cane refiners. \ Probably the main reason, however, for maintaining this custom / among beet sugar manufacturers is their desire to sell as much of I their product as possible in territory near the point of manufacture. By guaranteeing against a decline in price they are better able to book their output in near-by territory where they have the most favorable freight rates. Since their cost of production is practically determined long in advance of the time of manufacture they are placed at no greater competitive disadvantage because of guaran- teeing the price than they would be at if they did not do so but met competition from cane sugar as it comes. Net prices received. — The delivered price for beet sugar is based upon the price of granulated cane sugar at New York, New Orleans, or San Francisco. This price is adjusted by the freight to the dis- tributing point, and by the allowance of a differential against beet sugar. Although beet and cane sugar are chemically the same, there is a preference for cane sugar which compels beet sugar to be sold at a lower price. The amount of this differential depends largely on the strength of the preference for cane sugar in a par- ticular territory but to some extent on market conditions. The usual differential is 10 cents per 100 pounds though it is sometimes as low as 5 cents and at others as high as 20 cents or more. Other condi- tions which account for the difference in the selling price of the various companies are the time of marketing the product, freight rates, competitive conditions in the different markets, quality of I the sugar produced, etc. t-^^^In 1913-14 the average net price received at the factory ranged from $3.7492 for company No. 7 to $4.6986 per 100 pounds for com- pany *No. 22, the average for all companies being $3.9597. The dif- ferences of course are due in many cases to the differences in the cost of selling. For example, the selling price of companies Nos. 1, 17, 24, 29, and 34 was higher than the average for all companies, yet due to the high freight charges the average net price received was less than the average for all companies. In this year some differences may also be accounted for by the fact that during the first half of 1914 the price of sugar was low, so that the average price for the companies which closed their books January 1 would be somewhat higher than DISTBIBUnON OF SUGAR. 103 H f t < / V X for those which did not close their books until the f olloAving April or May. The averages for companies Nos. 21 and 22 are high in all years since they are able to sell their product largely in noncom- petitive territory. The average net price received for all companies in 1909-10 was $5.0561 per 100 pounds, in 1910-11 $4.9674, in 1911-12 $5.4216, and in 1912-13 $4.9225. The range in prices re- ceived by the various companies is widest in the year 1911-12. This was due to the sudden rise in the price of sugar during the year caused by the shortage of the beet crop in Europe. Companies whose season began early no doubt sold large quantities in August or early in September, while others sold a large part of their product in October or November when the price was highest. For example, the difference in the average net price received by company No. 5 and company No. 30 was not more than 5 cents in other years, while in this year the latter company received 71 cents per bag less than com- pany No. 5. In 1911-12 company No. 30 sold more sugar in August than in any other month, while company No. 5 did not begin making sugar until the 1st of October. As will be seen, however, in Table 25 below, the bulk of the product is not sold during the short producing period as might be supposed and as is sometimes claimed. When beet sugar is sold.— Although practically all beet sugar is made between August 1 and January 1 it is placed on the market h throughout the greater part of the year. The quantity sold in each r month was secured from 30 of the 37 companies which in 1913-14 sold 95 per cent of the total quantity sold by all companies. No in- ( formation as to the time of selling was secured from any factory in Wisconsin. In the table below the per cent of sales made in each ' month is shown by States: Table 25.-PERCENTAGE OF TOTAL SALES OF BEET SUGAR MADE IN EACH MONTH BY YEARS AND BY STATES OF PRODUCTION, 1910-11 TO 1913-14. Mar. Apr. May. June. July. Aug. Sept. Oct. Nov. 6.6 7.4 9.2 30.2 10.8 15.6 5.7 16.6 33.2 7.1 Dec. Jan. Feb. Total. 1910-11. Arizona 3.7 10.4 10.5 5.0 2.4 3.8 9.2 2.9 7.6 16.5 2.8 6.3 5.9 5.7 7.8 7.7 20.1 8.3 12.3 17.6 5.6 9.4 10.1 6.0 11.7 3.5 7.3 5.4 10.0 6.2 3.3 7.5 7.0 13.4 31.6 15.7 23.6 10.6 22.7 i 33.3 8.6 ! 7.5 5.8 8.5 16.7 6.6 16.9 6.9 13.7 24.8 5.4 8.7 7.8 13.0 9.8 20.7 30.5 11.5 37.0 2.5 8.2 California 100.0 Colorado 100.0 Iowa..i 100.0 Kansas Michigan 13.9 2.8 33.6 2.2 0.2 2.3 3.2. 0.2* 4.7 8.6 0.0 4.2 5.2 0.0 6.2 4.7 1.2 3.9 4.9 1.7 5.0 100.0 100.0 Montana 100.0 Nebraska 100.0 Ohio 100.0 Utah and Idaho... 16.7 14.6 10.5 7.0 5.7 4.9 8.0 100.0 100.0 Total 10.1 3.9 4.6 1 3.8 4.9 9.6 8.7 7.2 10.2 13.3 1 9.3 14.4 100.0 \t II ■.,A 104 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. TABLE 25 -PERCENTAGE OF TOTAL SALES OF BEET SUGAR MADE IN EACH MONTH. BY YEARS AND BY STATES OF PRODUCTION. 1910-11 TO 1913-14-CoBtlnued. DISTRIBUTION OF SUGAR. Mar. 1911-12. Arizona California Colorado Iowa Kansas Michigan Montana Nebraska Ohio Utah and Idaho... Total 4.9 7.3 12.0 39.1 19.2 16.4 10.6 0.6 5.9 Apr. 8.7 4.0 4.2 May. June. July. 11.2 16.5 3.0 2.8 4.0 5.3 7.2 3.5 7.1 9.0 0.3 5.7 3.8 8.6 5.0 5.8 14.9 0.0 7.9 3.3 Aug. Sept 8.8 3.9 6.5 11.6 12.0 6.5 O.D 6.1 7.1 14.4 17.3 1.9 0.1 0.0 1.8 5.9 10.1 4.5 17.5 21.4 1.4 Oct. 4.3 13.6 11.8 11.0 Nov. 0.0 1.7 0.4 2.7 15.4 14.4 23.3 17.4 17.9 5.5 3.0 10.8 41.6 0.0 20.0 5.4 11.5 26.1 3.0 Dec. 4.0 5.0 1912-13. Arizona California Colorado — Iowa Elansas Michigan' Montana Nebraska Nevada Ohio Utah and Idaho. 0.2 4.5 2.6 2.3 3.9 20.2 2.6 0.5 4.3 2.5 0.1 9.1 Total. 1913-14. Arizona California Colorado Iowa Kansas Michigan' Minnesota Montana Nebraska Nevada Ohio Utah and Idaho. 4.9 1.3 3.5 2.2 4.2 5.3 0.8 4.6 1.3 0.0 6.0 0.3 6.5 5.7 2.6 14 3.6 \2.6 7.3 14.4 6.8 42.9 4.1 Total. 7.9 14.3 0.4 2.4 7.1 12.2 4.8 7.2 2.8 24.9 0.7 11.8 7.0 10.9 7.0 12.5 0.2 0.7 14.7 4.8 29.0 3.8 3.0 7.0 7.8 14.2 9.0 1.7 5.5 6.9 7.1 17.5 10.3 7.4 5.3 0.6 15.5 9.7 2.8 4.5 10.1 9.7 18.7 9.9 0.0 8.8 3.6 0.6 2.1 6.7 0.1 4.3 11.6 8.9 5.4 15.3 3.4 1.2 7.6 3.6 7.1 14.5 2.3 5.2 5.7 8.6 13.4 0.6 10.5 5.0 7.2 19.5 3.9 Jan. 14.5 3.0 11.9 20.8 6.5 19.2 10.2 7.7 29.3 6.4 Feb. 7.3 9.6 4.3 8.8 8.9 36.2 5.4 12.8 5.4 9.1 50.3 23.0 3.9 5.7 7.2 9.9 5.9 6.2 2.2 0.9 6.2 5.5 8.5 8.0 5.6 0.1 9.9 7.4 7.6 8.0 1.6 4.0 0.2 28.1 6.6 9.5 L7 8.8 22.1 18.3 4.4 0.0 5.8 19.2 2.8 7.4 10.7 10.9 19.8 12.8 23.4 9.1 15.2 35.5 24.2 5.4 0.4 12.3 18.0 13.2 6.8 12.4 22.6 15.2 7.1 16.7 Total. 8.4 9.6 19.3 22.3 22.1 21.2 12.8 15.9 3.5 25.1 6.7 0.0 9.4 0.1 7.9 7.1 7.3 0.9 0.3 14.3 7.5 10.1 6.6 2.4 0.0 19.2 0.0 7.7 8.5 0.3 0.0 9.7 0.1 12.1 6.5 16.7 8.0 5.8 2.6 8.5 8.3 10.6 16.4 31.7 8.6 7.6 4.4 18.5 5.7 7.5 10.0 31.9 1.8 19.9 40.5 11.9 10.0 58.1 20.4 1.8 13.1 15.1 14.8 9.9 10.1 27.0 6.4 36.2 15.0 17.2 19.6 3.6 11.4 9.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 16.3 5.7 5.6 13.1 4.1 16.7 22.0 5.4 9.2 12.6 10.6 4.9 2.5 11.6 15.3 5.8 22.1 5.2 9.7 8.7 2.4 22.2 5.2 8.0 9.6 10.5 1.4 9.1 3.1 4.0 19.5 0.6 9.2 7.8 8.1 24.6 2.4 100.0 7. 2 9. 5 7.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1 Includes the sugar sold from the Decatur, Ind., factory. The above table shows that the companies with factories in Michi- gan sold practically all of their product before April, except in the year 1912-13. In that year 22.5 per cent of the total amount was sold during the period from April to September, no doubt due to the fact that many of the factories did not close the 1911-12 cam- paign until March. In California manufacture begins earlier than in other States and about one-third of the product is sold in August f Y / V i 105 and September, although large quantities are sold in each month. In Colorado, Montana, Utah, and Idaho a larger per cent is mar- keted later in the year, and the companies with factories in Utah and Idaho in 2 of the 4 years sold more than 30 per cent of their product during June and July. The product of the companies in Nevada, Ohio, Arizona, Iowa, and Minnesota is small and is disposed of shortly after it is made. In Arizona manufacturing usually begins in July, a large part of their product being sold during July and August. In Kansas and Nebraska the product is sold at various times of the year, but usually the larger per cent of it is disposed of by the end of February. In 2 years, however, the Garden City Sugar & Land Co. sold about 40 per cent of its product in March. Of the total amount sold by the companies included less than ont- half was sold during the sugar-making season. In 1910-11 49 per cent was sold during the period from August 1 to January 1; in 1911-12 45.3 per cent, in 1912-13 44 per cent, and in 1913-14 43.6 per cent. In the latter year the per cent was even less than shown since the quantities sold during January and February by certain California companies which closed their books January 1 is not included. In three of the four years more sugar was sold in Febru- ary than in any other month. While the total product amounts to only about one-sixth of the sugar consumed in the United States, if it were all put on the market during the producing period no doubt the effect on prices for cane granulated sugar would be quite noticeable. Beet sugar is produced during only five or six months of the year and most of it in three or four months, but it is sold through- out the year. Not more than 16.3 per cent of the product in any year is sold in a single month. That the average price for cane refined sugar is more often higher than loAver while beet sugar is being made is shown in the statement below. As the campaigns of certain fac- tories sometimes extend into January, the average price for the six months from February 1 to July 31 has been compared with the average price for the six months ending January 31. AVERAGE QUOTATIONS FOR GRANULATED SUGAR AT NEW YORK, FEBRUARY, 1906, TO JANUARY, 1915, BY 6-MONTH PERIODS. [Cents pe." pound.] Feb. 1 to July 31. Aug. 1 to Jan. 31. 1914-15 1913-14 3.97 5.63 4.20 4.25 1912-13 5.15 4.79 1911-12 4.79 5.99 1910-11 1909-10 5.08 4.82 4.68 4.90 1908-9 1907-8 5.12 4.73' 4.68 4.&4 1906-7 4.43 4.63 \ It is noted in the above statement that the price of sugar was higher during the period in which beet sugar is made in 5 of the 9 years than during the period in which no beet sugar is made. The average price during the latter period for the 9 years was 4.68 cents per pound as compared with 4.93 cents for the period in which beet sugar is produced. 106 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Quotations of granulated sugar at New York by months, for the 26 years ending with 1915, are shown in Table 27, at the end of this chapter. This table also shows the price of Cuban raw sugar 96 de- grees duty paid and the margin between raw and refined sugar at ] New York. In some years prices of granulated sugars were lower during the beet-sugar producing period and in some they were higher. In 1908, 1910, and 1912 the range was lower during the beet season. In 1909, 1911, and 1914 it was higher. In 1913 there was not much variation. If prices were uniformly lower during the beet-produc- ing season it would indicate that it was due to the influence of beet sugar. Since this is not the case, the cause of lower prices in some years must be sought elsewhere than in the sale of beet sugar. Fluc- tuations in price are probably due mainly to world conditions in the sugar market and in times past no doubt monopolistic conditions have had considerable influence on prices in this country. In this connection it is of interest to note that the prices of sugar are considerably higher in those sections of the country where there is little or no competition from Cuban sugar. This lack of competi- tion is due mainly, if not entirely, to high freight rates from refin- ing centers. A compilation of weekly quotations in Detroit, Denver, and San Francisco for beet sugar has been made for the year 1913-14 and the differences between the quotations in these markets and the New York quotations for granulated cane sugar are shown in Table 26 below. At practically all times the quotations for beet sugar in these three markets are above the quotations for cane sugar in New York. The quotations for Detroit were taken from the Detroit News and the Detroit Free Press ; those for Denver were supplied by the Great Western Sugar Co., while those for San Francisco were taken from the San Francisco Examiner. Table 26 —EXCESS OF DETROIT, DENVER. AND SAN FRANCISCO QUOTATIONS FOR GRANITLATED SUGAR (BEET) OVER NEW YORK QUOTATIONS (CANE), WEEKLY 1913 AND 1914. icents per 100 pounds.] DISTRIBUTION OF SUGAB. 107 1913 Date. Jan. 2.. 9., 16. 23. 30. Feb. 6. 13. 20. 27. Detroit over New York.» $0.25 .24 .24 .24 .39 .43 .44 .48 .38 Denver over New York. SO. 40 .54 ,54 .54 .59 .63 .59 .63 .63 San Fran- cisco over New York. 1914 $0.20 .24 .24 .24 .29 .33 .29 .33 .33 Date. Jan. 8.. 15. 22. 29. Feb. 5. 12. 19. 26. Mar. 5. Detroit over New York. $0.33 .23 .23 .23 .23 .23 .33 .38 .38 Denver over New York. $0.53 .53 .53 .53 .53 .43 .43 .43 .43 San Fran- cisco over New York. $0.23 .23 .23 .23 .23 .13 .13 .13 .13 t < / V < Table 26.— EXCESS OF DETROIT, DENVER, AND SAN FRANCISCO QUOTATIONS FOR GRANULATED SUGAR (BEET) OVER NEW YORK QUOTATIONS (CANE), WEEKLY, 1913 AND 1914 — Continued. 1013 1 1914 Date. Detroit over New York.i Denver over New York. San Fran- cisco over New York. Date. Detroit over New York. Denver over New York. San Fran- cisco over New York. Mar 6 ..... $0.34 .39 .43 .33 .33 .43 .33 .28 .28 (1) $0.59 .59 .63 .63 .63 .73 .73 .68 .58 .58 .58 .68 .58 .58 .58 .58 .59 .49 .49 .49 .49 .49 .39 .49 .49 .59 .69 .69 .69 .59 .54 .63 .58 .48 .48 .54 .54 .54' .54 .58 .58 .53 .53 .53 $0.29 .29 .33 .33 .33 .43 .23 .18 .18 .28 .28 .38 .28 .28 .28 .28 .29 .19 .19 .19 .19 .19 .09 .19 .19 .29 .39 .39 .39 .29 .54 .43- .28 .18 .18 .24 .24 .24 .24 .28 .28 .23 .23 .33 1 Mar.l2 $0.48 .43 .48 .48 .57 .57 .51 .51 .42 .33 .38 .38 .38 .38 .29 .39 .39 .39 .49 .49 .63 .50 .29 .80 .79 .79 .79 .79 1.27 1.03 .62 .87 .47 .51 .60 .50 .25 .25 .35 .35 .40 .50 .40 $0.53 .43 .43 .43 .52 .52 .46 .46 .47 .43 .43 .43 .43 .43 .44 .44 .44 .44 .44 .44 .48 «.05 .49 .50 .49 .49 .49 .49 .97 .73 .42 .42 .52 .36 .15 .15 .15 .25 .45 .65 .55 .65 .45 $0.23 13 19 .06 20 26 .OS 27 Apr.2 .08 Anr 3 9 .17 10 i6 .17 17 . . 23 .11 24 . . 30 .11 Mav 1 May7 .12 8 14 .08 15 21 .06 22 28 .06 28 June4 .06 June 5 11 .06 12 18 .09 19 25 .00 26 July 2 .00 Julv 2 9 .09 10 16 .09 17 23 .09 24 30 .13 31 Aug.6 «.40 Aue. 7 13 «.06 14 • 20 «.05 21 27 «.06 28 Sept. 3 «.06 Sept. 4 11 «.06 11 17 «.06 18 ... 24 .42 25 Oct. 1 .18 Oct. 2 8 .17 9 15 .17 16 22 .27 23 .... 29 .36 30 . . Nov.5 .15 Nov 6 .49 .49 .49 .39 .43 .33 .38 .33 .43 12 .15 13 19 .15 20 25 .15 26.. . .. Dec. 3 .25 Dec. 4. . 10 .25 11 17 .25 18 24 .25 24 ... 30 .15 31 Weekly average Weekly average .37 .67 .27 .48 .45 .12 1 No quotations in Detroit from May 8 to Oct. 30. « Under. \/ I No quotations in Detroit from May 8 to Oct. 30. «KiMi Htm HPI ^ / 108 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. No quotations for Detroit were available from the sources used from May to October, inclusive, 1913. This is due to the fact that during that year there was but little beet sugar upon that market dur- ing these months. The 1912 crop had been sold by the end of April and the 1913 crop was not on the market until about November 1. The margin between the quotations in Denver and New York were generally considerably wider than the margins between the other markets and New York. The only exception was between Detroit •ind New York during a few months in 1914. From about August 1 to the middle of September, 1914, the San Francisco price was .lightly under the New York price, and this is true with respect to Denver for a few days near August 1. The probable explanation for the disturbed margins from August to November, inclusive, 1914, is that the sugar market was rapidly adancing about this time on ac- count of war conditions in Europe. The more narrow margins between New York, Detroit, and ban Francisco are due to the fact that sugar from the Atlantic seaboard can reach the natural markets of Michigan sugar factories upon a low freight rate, and that the cane sugar refineries in San Francisco compete with the beet-sugar factories in California. To reach Den- ver cane sugar must pay an ocean and rail rate of 71 cents from New York or an all-rail rate of 62 cents from New Orleans. The com- \ parisons shown in the table clearly indicate that the competition of >cane sugar from the eastern refineries and the presence of cane- ' sugar refineries in San Francisco tend to reduce the price. Ihe average excess of the San Francisco price over New York due to the competition of cane sugar was 27 cents in 1913 and only 12 cents in 1914 while in Denver, where there is little cane sugar competition, the average excess over New York was 57 cents in 1913 and 45 cents in 1914 The average excess of prices in Detroit over those of INew York in 1914 was 48 cents, but as stated this was due to abnormal conditions. The average excess of Detroit over New York for six months in 1913 was only 37 cents. o- r^ir^T TTON^ OF R \W SUGAR AND REFINED GRANULATED SUGAR AT ^NEWYORK?InD MARGIN BETWEF^N RAW AND REFINED, BY WEEKS, 1890 TO 1914. DISTKIBUTION OF SUGAB. 109 Dates. Jan. 1890.> 2 9 16 23 30 Granu- lated. Cuban centrifu- gals 96° (duty paid). Cents. 6.50 6.50 6.50 6.50 6.375 Cents. 5.75 5.75 5.625 5.688 5.625 Margin between raw and refined. Cents. 0.75 .75 .875 .812 .75 Dates. 1890. Feb. 6. 13. 20. 27. Mar. 6. Granu- lated. Cents. 6.25 6.375 6.313 6.313 6.375 Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. Cents. 5.625 5.625 5.625 5.625 5.688 Cents. 0.625 .75 .688 V .688 .687 t Less 2 per cent for cash, for granulated; less 2§ per cent for cash, for Cuban centrifugal 90' (duty paid). Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. Dates. r t Apr. May < 1890. Mar. 13 20 27 3 10 17 24 1 8 15 22 29 June 5 12 19 26 July 3 10 17 24 31 Aug. 7 14 Sept Oct. / Nov. > Dec. 21. 28. 4. 11. 18. 25. 2. 9. 16. 23- 30. 6. 13. 20. 28. 4. 11. 18. 26. 31. Average. 1891. Jan. 8. 15. 22. 29. Granu- lated. Cents. 6.438 6.313 6.125 6.063 6.032 6.188 6.188 6.188 6.063 6.032 6.00 6.125 6.344 6.781 6.625 6.250 6.25 6.281 6.25 6.156 6.125 6.063 6.125 6.188 6.188 6.50 6.625 6.625 6.625 6.625 6.625 6.625 6.625 6.50 6.375 6.125 6.125 6.125 6.125 6.125 6.00 6.00 6.00 6.171 Cuban centrifu- gals 96° (dutv paid). Cents. 5.688 5.688 5.438 5.375 5.375 5.50 5.50 5.563 5.563 5.375 5.375 5.438 5.50 5.563 5.438 5.375 5.375 5.375 5.438 5.438 5.50 5.50 5.625 5.625 5.688 5.875 6.063 6.063 6.00 5.938 5.938 6.00 6.00 5.938 5.875 5.50 5.50 5.375 5.375 5.313 5.25 5.25 5.25 5.445 Margin between raw and refined. 5. 84 5. 12 5. 84 5. 12 6.13 5.50 6. 00 5. 50 ' About 2< per Cents. 0.750 .625 .687 .688 .657 .688 .688 .625 .500 .657 .625 .687 .844 1.218 1.187 .875 .875 .906 .812 .718 .625 .5ti3 .50 ! .563 .50 .625 .562 .562 .625 .687 .687 .625 .625 .562 .50 .625 .625 .75 .75 .812 .75 .75 .75 ,726 .72 .72 .63 .50 Dates. 1891. Feb. 5. - . . 12,... 19..-. 26.... Mar. 5 — 12. . . . 19.--. 26.... Apr. 21... 9..-. 16.... 23..-. 30.-.. May 7 14..-- 21-... 28.... June 4 11.... 18.--. 25.... July 2.... 9.--. 16--.- 23..-. 30.... Aug. 6.... 13---- 20-... 27.... Sept. 3 10- - - - 17.... 24-... Oct. 1-... 8..-- 15. . - . 22.--- 29--.- Nov. 5 12 19 25 3 10 17 24 31 Dec. Granu- lated. Cents. 6.13 6.37 6.37 6.41 6.61 6.37 6.13 6.13 4.50 4.50 4.50 4.50 4.50 4.375 4.50 4.25 4.18 4.125 4.06 4.06 4.18 4.25 4.25 4.31 4.25 4.25 4.06 4.125 4.25 4.18 4.25 4.31 4.375 4.375 4.375 4.375 4.375 4.06 4.125 4.06 4.06 4.25 4.18 4.18 4.18 4.00 4.00 4.00 Average pound duty taken off April 1 1891. 4.641 Cuban centrifu- gals 96° (duty paid). Cents. 5.50 5.62 5.62 5.62 5.62 5.62 5.56 5.6S 3.53 3.625 3.50 3.50 3.44 3.25 3.25 3.25 3.25 3.375 3.375 3.31 3.44 3.375 3.31 3.375 3.44 3.31 3.375 3.44 3.44 3.44 3.44 3.50 3.44 3.44 3.31 3.375 3.44 3.27 3.31 3.44 3.50 3.50 3.50 3.50 3.375 3.31 3.375 3.375 Margin between raw and refined. 3.863 Gents, 0.63 .75 .75 .79 .99 .75 .57 .45 .97 .875 1.00 1.00 1.06 1.125 1.25 1.00 .93 .75 .685 .75 .74 .875 .94 .935 .81 .94 .685 .685 .81 .74 .81 .81 .935 .935 1.065 1.00 .935 .79 .815 .62 .56 .75 .68 .68 .805 .69 .625 .625 778 V 1 1 110 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Tablb 27.— quotations OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC.— Continued. Dates. 1892 Jan. 7 14 21 28 Feb. 4 11 18 25 Mar. 3 10 17 24 31 Apr. 7 14 21 28 May 5 12 19 26 June 2 9 16 23 30 July 7 14 21 28 Aug. 4 11 18 25 Sept. 1 8 15 22 29 Oct. 6 13 20 27." Nov. 3 10 17 25 Dec. 1 8 Granu- lated. 4.04 3.92 3.92 3.92 3.92 3.92 3.92 3.92 4.07 4.19 4.29 4.29 4.28 4.28 4.28 4.18 4.18 4.22 4.22 4.22 4.22 4.22 4.28 4.28 4.22 4.28 4.22 4.16 4.16 4.22 4.23 4.23 4.35 4.47 4.71 4.90 4.90 4.90 4.90 4.72 4.72 4.72 4.72 4.72 4.60 4.60 4.60 4.60 4.60 Cuban centrifu- gals 96' (duty paid). Cents. 3.50 3.47 3.47 3.44 3.44 3.44 3.44 3.41 3.41 3.375 3.375 3.25 3.125 3.125 3.125 3.125 3.125 3.125 3.125 3.06 3.06 3.06 3.125 3.125 3.18 3.125 3.125 3.06 3.06 3.125 3.125 3.18 3.25 3.375 3.56 3.56 3.56 3.625 3.75 3.50 3.50 3.44 3.44 3.375 3.375 3.375 3.375 3.376 3.375 Margin between raw and refined. Cents. 0.54 .45 .45 .48 .48 .48 .48 .51 .66 .815 .915 1.04 1.155 1.155 1.155 1.055 1.056 1.095 1.095 1.16 1.16 1.16 1.165 1.155 1.04 1.155 .995 1.10 1.10 1.095 1.105 1.05 1.10 1.095 1.15 1.34 1.34 1.276 1.15 1.22 1.22 1.28 1.28 1.345 1.225 1.225 1.225 1.225 1.226 Dates. 1892. Dec. 15. 22. 29. Average. 1893. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. 5. 12. 19. 26. 2. 9. 16. 23. 2. 9. 16. 23. 30. 6. 13. 20. 27. 4. 11. 18. 25. 1. 8. 15. 22. 29. 6. 13. 20. 27. 3. 10. 17. 24. 31. 7- 14. 21. 28. 5. 12. 19. 26. Granu- lated. Cents. 4.60 4.60 4.60 4.346 Cuban centrifu- gals 96° (duty paid). Cents. 3.375 3.44 3.44 4.60 4.60 4.60 4.60 4.60 4.60 4.54 4.47 4.47 4.47 4.47 4.54 4.72 4.84 4.84 3.90 5.08 5.08 5.20 5.08 5.08 5.08 5.21 5.27 5.27 5.27 5.27 5.34 5.34 5.08 5.08 5.08 5.08 5 08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 Margin between raw and refined. 3.311 3.44 3.44 3.50 3.50 3.44 3.44 3.44 3.375 3.375 3.375 3.34 3.50 3.625 3.75 3.75 3.875 4.00 4.00 4.125 4.00 4.25 4.25 4.25 4.50 4.50 4.375 4.375 4.375 4.18 3.75 3.75 3.75 3.75 3.50 3.50 3.50 3.75 3.84 3.875 3.875 3.875 4.00 4.00 Cents. 1.225 1.16 1.16 1.035 1.16 1.16 1.10 1.10 1.16 1.16 1.10 1.095 1.095 1.095 1.13 1.04 . 1.095 1.09 1.09 1.025 1.08 1.08 1.075 1.08 .83 .83 .96 .77 .77 .895 .895 .965 1.16 1.33 1.33 1.33 1.33 1.58 1.58 1.58 1.33 1.24 1.205 1.205 1.205 1.08 1.08 ..J.I, DISTRIBUTION OF SUGAR. Ill Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC.— Continued. Dates. ^ I- ( 1893. Nov. 2 9.... Dec. Y 16. 23. 1. 7. 14. 21. 28. Avers^e.. 1894. Jan. < Feb. Mar. / Apr. May June >' July Aug. V I A Sept. 4. 11. 18. 25. 1. 8. 15. 23. 1. 8. 15. 22. 29. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7. 14. 21. 28. 5. 12. 19. 26. 2. 9. 16., 23., 30.. 6.. 13.. Granu- lated. Cuban centrifu- gals 96° (dutv paid). Cents. 4.72 4.47 4.47 4.23 4.23 4.23 4.23 4.23 4.10 4.842 3.74 3.98 4.10 4.04 3.98 4.04 4.17 4.17 4.17 4.17 4.17 3.98 3.98 3.98 3.98 3.98 3.98 •3.86 3.91 3.91 3.91 3.86 3.80 3.98 3.98 3.98 3.98 3.98 4.23 4.23 4.35 4.47 4.47 4.60 U.72 4.72 4.72 1 Cents. 3.25 3.25 3.18 3.00 3.00 3.00 2.875 2.875 2.875 3.689 2.75 2.875 3.00 3.00 3.06 3.25 3.31 3.31 3.18 3.18 3.18 3.00 2.875 2.875 2.875 2.75 2.81 2.875 2.91 2.81 2.75 2.875 3.00 3.125 3.125 3.125 3.125 3.18 3.125 3.125 3.125 3.375 3.50 3.75 3.75 3.75 3.75 Margin between raw and refined. CefUs. 1.47 1.22 1.29 1.23 1.23 1.23 1.355 1.355 1.225 1.153 .99 1.105 1.10 1.04 .92 .79 .86 .86 .99 .99 .99 .98 1.105 1.105 1.105 1.23 1.17 .985 1.00 1.10 1.16 .985 .80 .855 .855 .855 .855 .80 1.105 1.105 1.225 1.095 .97 .85 .97 .97 .97 Dates. 1894. Sept. 20... 27... Oct. Nov. Dec. 4. 11. 18. 25. 1. 8. 15. 22. 29. 6. 13. 20. 27. Average. 1895. Jan. Feb. Mar. Apr. May June July 3. 10. 17. 24. 31. 7. 14. 21. 28. 7. 14. 21. 28. 4. 11. 18. 25. 2. 9. 16. 23. 31. 6. 13. 20. 27., 5., 11.. 18.. 25.. 1.. Granu- lated. Aug. Including 40 per cent duty from Aug. 28, 1894. Cents. 4.54 4.41 4.35 4.35 4.35 4.35 3.98 4.10 4.10 3.98 3.98 3.80 3.74 3.74 3.74 4.12 3.74 3.74 3.74 3.74 3.74 3.68 3.68 3.74 3.74 3.80 3.86 3.86 3.86 3.86 3.86 3.86 3.86 3.98 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 4.35 Cuban centrifu- gals 96° (duty paid). Cents. 3.75 3.75 3.75 3.75 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.25 3.125 3.125 3.24 Margin between raw and refined. Centt. 0.79 .66 .60 .60 .85 .85 .48 .60 .60 .48 .48 .30 .49 .615 .615 ,88 3.00 .74 3.00 .74 3.00 .74 3.03 .71 3.09 .65 3.125 .555 3.00 .68 3.00 .74 3.00 .74 3.00 .80 3.00 .86 3.00 .86 3.00 .86 3.00 .86 3.00 .86 3.00 .86 3.00 .86 3.125 .855 3.25 1.10 3.375 .975 3.375 .975 3.375 .975 3.375 .975 3.31 1.04 3.31 1.04 3.25 1.10 3.25 1.10 3.25 1.10 3.25 1.10 3.25 1.10 3.25 1.10 112 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Tablbs 27.— quotations OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. DISTRIBUTION OF SUGAR. 113 Dates. 1895. Aug. Oct. 8. 15. 22. 29. Sept. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7. 14. 21. 27. 5. 12. 19. 27. Nov. Dec. ill Average. 1896. Jan. Feb. Mar. Apr. May June 3. 9- 16. 23- 30. 6. 13. 20. 27. 5. 12. 19. 26. 2. 9. 16. 23. 30. 7. 14- 21. 28. 4. Il- ls. Granu- lated. Cents. 4.35 4.35 4.23 4.10 4.16 4.23 4.41 4.47 4.53 4.47 4.47 4.35 4.23 4.23 4.23 4.23 4.35 4.35 4.35 4.35 4.72 4.152 4.72 4.59 4.59 4.72 4.66 4.58 4.65 4.72 4.72 4.72 4.72 4.84 4.84 4.84 5.08 5.20 5.20 5.14 5.08 5.08 4.84 4.97 4.72 4.78 4.66 Cuban centrifu- gals 96" (duty paid). Ceiits. 3.31 3.31 3.25 3.25 3.25 3.25 3.31 3.50 3.56 3.625 3.625 3.50 3.40 3.375 3.375 3.375 3.375 3.50 3.50 3.50 3.75 Margin between raw and refined. 3.27 3.75 3.75 3.75 3.875 3.875 3.875 4.00 4.125 4.125 4.125 4.125 4.18 4.18 4.18 4.25 4.375 4.31 4.25 4.25 4.25 4.00 4.00 3.75 3.81 3.625 Cents. 1.04 1.04 .98 .85 .91 .98 1.10 .97 .97 .845 .845 .85 .83 .855 .855 .855 .975 .85 .85 .85 .97 .882 .97 .84 .84 .845 .775 .705 .65 .595 .595 .595 .595 .66 .66 .66 .83 .825 .89 .89 .83 .83 .84 .97 .97 .97 1.035 Dates. June July Aug. Sept. Oct. Nov Dec. 1896. 25-... 2... 9.... 16--.. 23-..- 30--.- 6-..- 13-... 20--.- 27. . - - 3.... 10. . - - 17.... 24.-.. 1.... 8-... 15...- 22. - - - 29.... 5 12..-. 19.... 27..-. 3..-. 10--.. 17.... 24.... 31.... Average 1897. Jan. 7... 14.. 21.. 28.. Feb. 4... 11.. 18-. 25- Mar.4.. IL 18. 25. Apr. 1.. 8.. • 15. 22. 29. May 6.. Granu- lated. Cents. 4.47 4.60 4.47 4.47 4.35 4.35 4.60 4.60 4.47 4.47 4.47 4.47 4.47 4.47 4.24 3.98 3.86 3.86 3.98 3.98 4.23 4.10 4.10 4.10 4.10 4.10 4.10 4.10 4.532 Cuban centrifu- gals 96° (duty paid). Cents. 3.50 3.50 3.44 3.375 3.31 3.31 3.50 3.375 3.375 3.375 3.25 3.25 3.06 3.00 3.06 3.00 3.00 3.00 • 3.25 3.25 3.44 3.25 3.25 3.31 3.25 3.25 3.18 3.18 Margin between raw and refined. 3.624 4.10 3.18 .92 4.10 3.18 .92 3.98 3.18 .80 3.98 3.18 .80 3.98 3.18 .80 4.10 3.18 .92 4.10 3.25 .85 4.10 3.25 .85 3.98 3.25 .73 4.10 3.18 ^ .92 4.23 3.25 .98 4.23 3.31 .92 4.47 3.375 1.095 4 47 3.375 1.095 4.23 3.28 .95 4.23 3.25 .98 4.23 3.25 .98 4.29 3.31 .98 Cents. 0.97 1.10 1.03 1.095 1.04 1.04 1.10 1.225 1.095 1.095 1.22 1.22 1.41 1.47 1.18 .98 .86 .86 .73 .73 .79 .85 .85 .79 .85 .85 .92 .92 .908 '1 f Y < / V Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. Dates. 1897. May 13 20 27 June 3 10 17 24 July 1 8 15 22 29 Aug. 5 12 19 26 Sept. 2 9 16 23 30 Oct. 7 14 21'. 28 Nov.4 11 18 26 Dec. 2 9 16 23 30 Average... 1898. Jan. Feb. Mar. 6- 13. 20- 27- 3- 10- 17- 24. 3. 10. 17- Granu- lated. Cents. 4.29 4.23 4.23 4.23 4.47 4.47 4.47 4.47 4.59 4.59 4.66 14.72 4.72 4.72 4.72 4.72 4.72 4.815 4.815 4.815 4.85 4.85 4.85 4.85 4.72 4.72 4.72 4.72 4.72 4.72 4.72 4.84 4.96 4.96 4.503 Cuban centrifu- gals 96° (dutv paid). Cents. 3.31 3.25 3.25 3.31 3.50 3.50 3.50 3.50 3.50 3.625 3.625 «3.75 3.75 3.75 3.75 3.75 3.75 3.875 3.875 3.94 3.94 3.875 3.875 3.81 3.81 3.81 3.81 3.875 3.875 3.875 3.94 4.00 4.125 4.25 3.5^7 4.96 4.96 4.96 4.84 4.84 4.96 4.96 5.02 4.96 4.84 ...| 4.84 1 Including 1.95 « From July 24, 4.18 4.18 4.06 4.06 4.06 4. IS 4.18 4.18 4.18 4.125 4.06 Margin between raw and refined. Cents. 0.98 .98 .98 .92 .97 .97 .97 .97 1.09 .%5 1.035 .97 .97 .97 .97 .97 .97 .94 .94 .875 .91 .975 .975 1.04 .91 .91 .91 .845 .845 .845 .78 .84 .835 .71 .946 .78 .78 .90 .78 .78 .78 .78 .84 .78 .715 .78 r-o I Dates. Mar. Apr. May June July Aug. Sept. Oct. Nov. De^ 1898. 24-... 31.... 7---. 14..-. 21.-.. 28--.. 5..-. 12- - - . 19-.-. 26- - - . 2---. 9---- 16-.-- 23---- 30-.-. 7.... 14.-.- 21-..- 28---- 4-.-. 11.-.- 18.-.. 25---. 1.... 8.-.. 15- . . . 22...- 29.... 6.... 13-... 20-... 27.--- 3.--. 10- - - . 17-..- 25-..- 1.-.- 8.--- 15-.-- 22... 29 Average. 1899. Jan. 5. 12. 19. 26. Granu- lated. Cents. 4.84 4.84 4.96 4.90 4.96 5.15 5.15 5. OS 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.08 5.15 5.21 5.21 5.21 5.08 4.72 4.72 4.72 4.78 4.78 4.72 4.96 4.96 4.96 4.96 4.84 4.75 4.72 4.965 4.69 4.72 4.72 4.72 Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. Cents. 4.00 4.125 4.125 4.125 4.125 4.25 4.18 4.18 4.25 4.31 4.31 4.31 4.31 4.25 4.25 4.125 4.125 4.125 4.125 4.125 4.25 4.25 4.31 4.375 4.375 4.375 4.31 4.31 4.21 4.18 4.25 4.31 4.31 4.31 4.44 4.50 4.44 4.44 4.44 4.375 4.31 4.235 4.31 4.31 4.25 4.25 Cents. a84 .715 .835 .775 .835 .90 .97 .90 .83 .71 .77 .77 .77 .83 .83 .955 .955 .95S .955 .955 .83 .83 .77 .775 .835 .835 .« .77 .51 .54 .47 .47 .47 .41 .52 .46 .52 .52 .40 .375 .41 730 .38 .41 .47 .47 i 1 I cents per pound duty from July 24, 1897. 1897, duty on raw sugar was 1.685 cents per pound. H^'.^r^'ri^ ■ ■ 1t<-^ y 114 THE BEET SUGAB INDUSTRY IN THE UNITED STATES. Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK. ETC. — Continued. DISTRIBUTION OP SUGAB. 115 Dates. Feb 1899. , 2 9 16 23 Mar . 2 9 16 23 30 Apr 6 13 20 27 May 4 11 18 25 June 1 8 15 22 29 July 6 13 20 :.. 27 Aug. 3 10 17 24 31 Sept. 7 14 21 28 Oct. 5 12 19 26 Nov. 2 9 16 23 Dec. 1 7 14 21 28 Average Grsmu- lated. Cents. 4.72 4.72 4.72 4.72 4.72 4.84 4.84 4.84 4.84 4.84 4.96 4.96 4.96 5.08 5.08 5.08 5.08 5.08 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 5.21 4.99 4.99 4.99 4.925 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.795 4.919 Cuban centrifu- gals 96° (duty paid). Cents. 4.31 4.31 4.31 4.375 4.375 4.41 4.375 4.375 4.44 4.50 4.56 4.625 4.625 4.75 4.625 4.625 4.625 4.62.5 4.69 4.69 4.625 4.50 4.50 4.44 4.375 4.50 4.56 4.56 4.50 4.50 4.50 4.44 4.375 4.375 4.31 4.31 4.31 4.31 4.31 4.31 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.419 Margin between raw and refined. Cents. 0.41 .41 .41 .345 .345 .43 .405 .465 .40 .34 .40 .335 .335 .33 .455 .455 .455 .455 .52 .52 .585 .71 .71 .77 .835 .71 .65 .65 .71 .49 .49 .55 .55 .42 .485 .485 .485 .485 .485 .485 .545 .545 .545 .545 .545 .545 .545 .545 .50 Dates. 1900. Jan. Feb Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 4. 11. 18. 25. 1. 8. 15. 23. 1. 8. 15. 22. 29. 5. 12. 19. 26. 3. 10. 17. 24. 31. 7., 14., 21.. 28.. 5.. 12.. 19.. 26.. 2.. 9.. 16.. 23.. 30.. 6.. 13.. 20.. 27.. 4.. 11.. 18.. 25.. 1.. 8.. 15.. 22.. 30.. 6.. 13.. Granu- lated. Cents. 4.75 4.85 4.85 4.95 5.00 5.00 5.00 5.00 5.00 4.90 4.90 4.95 4.95 4.925 4.95 4.95 4.95 4.95 4.95 4.9S 5.10 5.30 5.40 5.50 5.50 5.59 5.69 5.79 5.89 5.89 5.89 5.86 5.86 5.86 5.88 5.88 5.88 5.88 5.88 5.49 5.49 5.49 5.49 5.49 5.34 5.34 5.34 5.265 5.315 5.315 Cuban centrifu- gals 96° (duty paid). Cents. 4.25 4.31 4.375 4.375 4.44 4.50 ' 4.44 4.44 4.375 4.31 4.375 4.44 4.44 4.375 4.50 4.44 4.42 4.47 4.44 4.47 4.50 4.56 4.625 4.625 4.625 4.69 4.75 4.75 4.81 4.875 4.875 4.81 4.875 4.875 4.875 4.94 5.00 5.00 5.00 4.91 4.75 4.75 4.625 4.375 4.375 4.375 4.375 4.375 4.44 4.41 Margin between raw and refined. Cents. 0.50 .54 .475 .575 .56 .50 .56 .56 .625 .59 .525 .51 .51 .55 .45 .51 .53 .48 .51 .48 .60 .74 .775 .875 .875 .90 .94 1.04 1.08 1.015 1.015 1.05 .985 .985 1.005 .94 .88 .88 .88 .58 .74 .74 .865 1.115 .965 .965 .965 .89 .876 .905 . f < / ■i % V k Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAB AT NEW YORK, ETC. — Continued. Dates. Granu- lated. Cuban centrifu- .gals 96° (duty paid). Margin between raw and refined. Dates. Granu- lated. Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. 1900. Dec 20 Cents. 5.315 5.315 Cents. 4.376 4.376 Cents. 0.94 .94 1 1 1901. Nov. 7 Cents. 4.75 4.65 4.65 4.65 4.65 4.65 4.46 4.37 Cents. 3.75 3.72 3.69 3.75 3.75 3.75 3.75 3.66 Cents. 1.00 27 14 .93 21 .96 Average 6.32 4.566 .764 29 .90 90 1901. 6.24 5.34 5.34 6.24 6.24 6.24 6.24 5.24 5.24 5.24 5.00 .6.00 5.00 6.00 6.10 6.20 5.20 5.20 5.29 5.29 6.29 5.22 5.22 5.22 5.22 6.215 6.215 5.216 5.145 6.145 5.145 5.10 5.10 5.00 6.00 5.00 6.00 6.00 6.00 4.85 4.85 4.85 4.86 4.86 4.376 4.375 4.375 4.25 4.26 4.26 4.25 4.22 4.19 4.06 4.00 4.03 4.03 4.06 4.10 4.19 4.19 4.25 4.28 4.28 4.28 4.26 4.25 4.26 4.26 4.25 4.25 4.19 4.15 4.19 4.16 4.125 4.00 4.00 3.81 3.75 3.75 3.75 3.76 3.75 3.75 3.75 3.81 3.81 .866 .965 .966 .99 • 99 • 99 .99 1.02 1.05 1.18 1.00 .97 .97 .94 1.00 1.01 1.01 .96 1.01 1.01 1.01 .97 .97 .97 .97 .966 .965 1.025 .995 .966 .986 .976 1.10 1.00 1.19 1.25 1.25 1.25 1.25 1.10 1.10 1.10 1.04 1.04 12 .90 Jan. 3 19 .71 10 26 .71 • 17 Average — 1902. Jan. 2 24 1 31 6.05 4.047 1.003 =™ Feb. 7 4.48 4.48 4.39 4.485 4.485 4.485 4.485 4.535 4.535 4.485 4.485 4.485 4.535 4.51 4.51 4.51 4.51 4.46 4.46 4.41 4.41 4.41 4.41 4.45 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.41 4.45 3.625 3.56 3.375 3.50 3.69 3.69 3.625 3.625 3.625 3.375 3.40 3.44 3.625 3.625 3.375 3.375 3.44 3.50 3.50 3.50 3.44 3.44 3.44 3.50 3.50 3.31 3.375 3.31 3.31 3.375 3.375 3.40 3.40 3.375 3.375 3.41 3.50 3.47 14 .855 21 9 .92 28 16 1.015 Mar. 7 23 .985 14 30 .795 21 Feb. 6 .7A5 28 13 .86 Apr. 4 r 20 .91 11 27 .91 18 Mar. 6 1.11 25 . . .. • 13 1.085 May 2 20 1.045 9 27 .91 16 Apr. 3 .885 23 10 1.135 81 17 1.135 Juno 6 ^ . . , 24 1.07 13 May 1 .96 20 8 .96 27 15 91 July 3 22 .97 11 29 .97 18 June 5 .97 25 12 .05 Aug. 1 19 .91 8 26 1.10 15 July 3 1.035 22 10 1.10 29 17 1.10 Sept. 5 24 1.035 12 31 1.035 20 Aug. 7 1.01 26 14 1.01 Oct. 3 21 1 035 10 28 1.085 17 Sept. 4 1.00 24 11 .91 31 18 .96 ^;»^_ 116 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. DISTRIBUTION OF SUGAE. 117 \\\ Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC.— Continued. Dates. Granu- lated. Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. Dates. Granu- lated. Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. 1902. Sept. 25 Cents. 4.45 4.41 4.41 4.41 4.41 4.41 4.31 4.21 4.41 4.50 4.60 4.70 4.60 4.55 4.55 Genu. 3.50 3.50 3.50 3.56 3.625 3.625 3.625 3.69 3.81 3.875 3.97 3.94 3.94 3.94 3.875 Ccnls. 0.95 .91 .91 .85 .785 .785 .685 .52 .60 .625 .63 .76 .66 .61 .675 1903. Aug. 6 Cents. 4.875 4.775 4.825 4.825 4.825 4.825 4.775 4.775 4.775 4.55 4.55 4.55 4.50 4.50 4.60 4.45 4.36 4.36 4.36 4.36 4.36 4.31 Cents. 3.72 3.72 3.81 3.875 3.875 3.875 3.875 3.91 3.91 3.86 3.875 3.875 3.875 3.81 3.81 3.75 3.75 3.69 3.625 3.625 3.56 »3.47 Cents. 1.166 Oct. 2 13 1.055 9 20. 1.015 16 27 .95 23 Sept. 3 .95 30 10 .96 Nov. 6 17 .90 13 24 .865 20 Oct. 1 .865 28 8 .70 Dec. 4 15 .675 11 22 .675 18 29 .625 24 Nov. 5 .69 31 12 .69 19 4.455 3.542 .913 .70 Average 27 .61 4.55 4.68 4.68 4.68 4.55 4.65 4.58 4.625 4.675 4.675 4.625 4.625 4.55 4.55 4.675 4.75 4.76 4.75 4.725 4.726 4.70 4.70 4.725 4.725 4.725 4.675 4.675 4.775 4.876 4.875 3.875 3.875 3.81 3.69 3.625 3.69 3.75 3.76 3.78 3.75 3.72 3.625 3.66 3.60 3.59 3.69 3.69 3.69 3.69 3.69 3.625 3.59 3.59 3.59 3.56 3.56 3.66 3.69 3.69 3.66 .676 .805 .87 .926 .86 .83 .875 .895 .926 .906 1.00 .99 1.05 1.085 1.06 1.06 1.06 1.035 1.036 1.075 1.11 1.136 1.136 1.165 1. 115 • 1.116 1.085 1.185 1.216 Dec. 3 .67 1903. Jan. 8 10 .735 17 .735 15 24 22 .80 31 .84 29 Average 1904. Jan. 7 Feb. 5 4.638 3.72 11 .918 19 4.36 4.36 4. 31', 4.20 4.26 4.20 4.26 4.26 4.31 4.41 4.50 4.50 4.50 4.50 4.40 4.40 4.55 4.55 4.55 4.76 4.80 4.80 4.75 3.47 3.35 3.31 3.31 3.35 3.35 3.35 3.38 3.44 3.44 3.50 3.eo 3.67 3.67 3.61 3.54 3.70 3.73 3.75 3.88 3.95 3.95 3.875 26 .89 Mar. 5 14 1.01 12 21 1.05 19 28 .95 26 Feb. 4 .91 Apr. 2 11 .91 9 18 .91 16 25 .88 23 Mar, 3 .87 30 10 .97 May 7 17 1.00 14 24 .90 21 31 .83 28 Apr. 7 .83 JuTif» 4 14 .79 11 21 ! 28 May 5 1 12 ' '■^ 19 i ^ June 2 j 9 i .m 18. i .85 25 .82 July 2 .80 9 .87 16 .85 23 .85 30 .875 I Since Dec. 27, 1903, sugar imported from Cuba has been allowed a concession of 20 per cent and assessed 1.348 cents per pound duty. Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. Dates. 1904. June 16. 23. 30. July 7.. 14.. 21.. 28.. Aug. 4.. 11.. 18.. 25.. Sept. 1. 8. 15. 22. 29. Oct. 6... 13.. 20.. 27.. Nov. 3. . 10.. 17.. 23.. Dec. 1.. 8.. 15.. 22.. 29.. Average. 1905. Jan. Feb. Mar. Granu- lated. Cents. 4.75 4.75 4.75 4.85 4.85 4.85 4.95 5.00 5.00 4.95 4.95 5.00 5.00 4.95 4.95 5.00 4.90 4.90 4.80 4.80 5.00 5.26 5.30 5.30 5.30 5.40 5.50 5.60 5.60 Cuban centrifu- gals 96' (duty paid). 4.7837 6 6.70 12 6.80 19 5.90 26 6.00 2 6.00 9 5.90 16 6.90 23 5.90 2 5.90 9.... 6.90 16 5.90 23 5.90 30 5.90 Apr. 6 5.90 13 5.90 20 5.90 27 6.90 May 4 5.90 87731—17 ^9 Cents. 3.84 3.94 3.94 3.94 3.94 3.94 3.94 4.06 4.125 4.25 4.25 4.31 4.31 4.31 4.25 4.31 4.29 4.25 4.25 4.22 4.41 4.41 4.625 4.75 4.75 4.75 4.875 4.875 4.875 3.98391 4.875 5.06 5.24 5.25 5.26 4.94 4.94 5.06 5.125 5.06 4.88 4.84 4.81 4.94 4.88 4.72 4.625 4.625 Margin between raw and refined. Cents. 0.91 .81 .81 .91 .91 .91 1.01 .94 .875 .70 .70 .69 .69 .64 .70 .69 .61 .65 .55 .58 .59 .84 .675 .55 .55 .65 .625 .025 .725 Dates. 1905. June July Aug. 7998 0.825 .74 .66 .75 .75 .96 .96 .84 .775 .84 1.02 1.06 1.09 .96 1.02 1.18 1.276 1.275 I May 11. 18. 25. 1. 8. 15. 22. 29. 6. 13. 20. 27. 3. 10. 17. 24. 31. 7. 14. 21. 28. 5. 12. 19. 26.. 2.. 9.. 16.. 23.. 29.. 7.. 14.. 21.. 28.. Sept Oct. Nov. A/©C« Average. 1906. Jan. Feb. Mar. 4. 11. 18. 25. 1. 8. 15. 21- 1. 8. 15. 22. 29. Granu- lated. Cents. 5.70 5.50 5.60 5.60 6.60 5.60 5.36 5.25 5.26 6.16 5.05 4.90 6.05 5.10 5.10 5.10 5.00 5.00 4.90 4.65 4.56 4.55 4.55 4.45 4.46 4.35 4.35 4.36 4.45 4.45 4.45 4.45 4.45 4.45 5.247 Cuban centrifu- gals 96° (duty paid).. Cents. 4.50 4.34 4.375 4.375 4.375 4.25 4.31 4.25 4.19 4.00 4.00 4.06 4.06 4.125 >1.125 4.00 4.00 4.00 3.875 3.625 3.69 3.61 3.625 3.58 3.50 3.50 3.44 3.44 3.55 3.56 3.56 3.625 3.626 3.625 Margin between raw and refined. Cents. L2Q L16 L225 1.225 1.225 1.35 1.04 1.00 1.065 1.155 LOS .M .90 .97 .97 LIO LOO LOO L025 L025 .86 .94 .925 .87 .95 .85 .91 .91 • .00 .825 .825 .825 4.267 .98 4.45 3.625 .825 4.55 3.75 .70 4.35 3.626 .725 4.35 3.56 .79 4.36 3.50 .85 4.35 3.36 .99 4.30 3.36 .9* 4.30 3.36 .94 4.35 3.39 .90 4.45 3.44 LOl 4.45 3.52 .93 4.46 3.56 .89 4.45 3.50 .05 i i < |l[ 118 THE BEET SUGAE INDUSTRY IN THE UNITED STATES. Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. » IT DISTEIBUTION OF SUGAB. 119 Dates. 3906. Apr. 6 12 19 26 May 3 10 17 24 31 June 7 14 21 28 July 5 12 19 26 Aug. 2 9 16 23 30 Sept. 6 13 20 27 4 11 18 25 1 8 , 15 , 22 28 , Dec. 6 13 20 27 Oct. Nov. Average. 1907. Jan. 3. Feb. 10. 17. 24. 31. 7. 14. Granu- lated. Cents. 4.55 4.45 4.40 4.30 4.40 4.45 4.35 4.35 4.35 4.45 4.45 4.45 4.45 4.55 4.55 4.45 4.65 4.65 4.75 4.75 4.65 4.65 4.65 4.75 4.75 4.75 4.55 4.65 4.65 4.65 4.55 4.55 4.55 4.55 4.55 4.62 4.62 4.62 4.62 4.516 4.62 4.50 4.62 4.60 4.65 4.50 4.55 Cuban centrifu- gals 96° (duty paid). Cents. 3.55 3.48 3.42 3.375 3.48 3.48 3.42 3.42 3.45 3.47 3.50 3.50 3.61 3.75 3.72 3.72 3.75 3.80 3.875 3.875 3.94 4.00 4.00 4.09 4.09 4.06 4.00 4.00 4.00 4.00 3.88 3.81 3.81 3.81 3.84 3.84 3.875 3.875 3.58 3.69 3.56 3.56 3.50 3.48 3.48 3.42 3.42 Margin between raw and refined. Cents. 1.00 .97 .98 .925 .92 .97 .93 .93 .90 .98 .95 .95 .84 .80 .83 .73 .90 .85 .875 .875 .71 .65 .65 .66 .66 .69 .55 .65 .65 .65 .67 .74 .74 .74 .71 .78 .745 .745 1.04 .826 1.06 .94 1.12 1.12 1.17 1.08 1.13 Dates. 1907. Feb. Mar. Apr. May June 21. 28. 7. 14. 21. 28. 4. 11. 18. 25. 2.. 9.. 16. 23. 29. 6. 13. 20. 27. July 3. Aug. Sept Oct. Nov. Dec. 11. 18. 25. 1. 8. 15. 22. 29. 6. 12. 19. 26. 3. 10. 17. 24. 31. 7.. 14. 21. 27. 5. 12. 19. 26. Average. Granu- lated. 1908. Jan. 2. 9. Cents. 4.55 4.55 4.55 4.55 4.55 4.55 4.55 4.65 4.65 4.60 4.60 4.70 4.85 4.85 4.85 4.85 4.85 4.85 4.85 4.85 4.75 4.75 4.70 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.65 4.60 4.60 4.60 4.55 4.55 4.55 4.55 4.65 Cuban centrifu- gals 96° (duty paid). Cents. 3.38 3.42 3.51 3.50 3.51 3.58 3.61 3.735 3.765 3.73 3.765 3.83 3.86 3.92 3.90 3.84 3.73 3.71 3.876' 3.835 3.835 3.835 3.94 3.94 3.94 3.89 3.89 3.92 3.92 3.95 3.95 3.95 3.95 3.95 3.90 3.90 3.90 3.90 3.80 3.70 3.625 3.625 3.85 3.85 3.85 3.753 4.55 4.75 3.85 3.94 Margin between raw and refined. Cents. 1.17 1.13 1.04 1.05 1.04 .97 .94 .915 .885 .87 .835 .87 .99 .93 .95 1.01 1.12 1.14 .975 1.015 .915 .915 .76 .71 .71 .76 .76 .73 .73 .70 .70 .70 .70 .70 .75 .75 .75 .75 .80 .90 .975 .925 .70 .70 .70 .897 ( < < -> * y Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. Dates. < .70 .81 Jan. 1908. 16 23 30 Feb. 6 13 20 ' 27 Mar 5 12 19 26 Apr. 2 9 16 23 30 May 7 14 21 28 June 4 11 18 25 July 2 9 16 23 30 Aug. 6 13 20 27 Sept. 3 10 17 24..... Oct. 1 8 15 . 22 29 Nov. 5 12 19 25 Dec. 3 10 17..... Granu- lated. CerUs. 4.75 4.76 4.76 4.75 4.66 4.55 4.66 4.75 4.85 5.06 6.25 6.26 6.25 5.35 5.36 6.35 5.15 6.35 5.36 5.20 6.20 6.20 5.26 6.25 5.26 6.26 5.25 6.26 6.15 6.05 5.06 6.06 4.75 4.95 4.96 4.95 4.96 4.95 4.86 4.86 4.76 4.86 4.75 4.60 4.56 4.55 4.56 4.65 4.60 Cuban centrifu- gals 96° (duty paid). CeiUs. 3.92 3.80 3.76 3.75 3.67 3.67 3.885 3.89 4.05 4.126 4.36 4.36 4.36 4.36 4.42 4.42 4.36 4.36 4.24 4.27 4.36 4.40 4.31 4.25 4.39 4.39 4.36 4.26 4.25 4.125 4.08 4.08 3.90 3.96 3.90 3.96 3.98 3.98 3.98 3.96 4.04 3.98 3.96 3.94 3.94 3.94 3.92 3.86 3.77 Margin between raw and refined. Cents. 0.83 .96 1.00 1.00 .98 .88 .765 .86 .80 .92 .89 .89 .89 .995 .93 .93 .79 .99 1.11 .93 .84 .80 .94 1.00 .86 .86 .89 1.00 .90 .925 .97 .97 .85 .99 1.06 1.00 .97 .97 .87 .89 .71 .87 .80 .66 .61 .61 .63 .69 .83 Dates. 1908. Dec. 23. 30. Average. 1909. Jan. 7 14 21 28 Feb. 4.... 10.... 18.... 25.... Mar. 4 11.... 18.... 25.... Apr. 1 7.... 15.... 22.... 29.... May 6 13 20 27 June 3 10.... 17.... 24.... July 1 8..... 15 22 29 Aug. 6 12.... 19.... 26.... Sept. 2 9.... 16.... 23.... 30.... Oct. 7 14....' 21 28 Granu- lated. Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. Cents. Cents. Cents. 4.60 3.70 0.80 4.50 3.67 i .83 4.940 4.064 .876 4.45 3.73 .72 4.50 3.73 .77 4.50 3.67 .» 4.60 3.67 .8$ 4.60 3.64 .8& 4.50 3.61 .» 4.30 3.61 .69 4.40 3.735 .66& 4.45 3.736 .71& 4.56 3.80 .75 4.70 3.92 .78 4.70 3.92 .78 4.80 3.985 .815 4.80 3.985 .815 4.80 3.92 .88 4.80 3.86 .94 4.90 3.92 .98 4.90 3.86 1.04 4.75 3.92 .83 4.70 3.96 .76 4.80 3.92 .88 4.80 3.89 .91 4.60 3.86 .74 4.70 3.92 .78 4.75 3.92 .83 4.70 3.92 .78 4.70 3.92 .78 4.70 3.92 .78 4.70 3.96 .75 4.80 3.985 .815 4.80 4.05 .75 4.80 4.08 .72 4.80 4.11 .69 4.90 4.11 .79 4.90 4.17 .73 4.90 ' 4.20 .70 6.00 j 4.21 .79 4.85 4.235 .615 4.85 4.235 .615 4.86 1 4.235 .615 4.90 4.27 .63 4.90 4.30 .60 4.90 ! 4.30 .60 120 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC.— Continued. DISTRIBUTION OF SUGAR. 121 Dates. Nov 1909. . 4 11 18 24 Dec 2 9 16 23 30 Jan. Average 1910. 6 13 20 27 Feb. 3 10 17 24 Mar. 3 10 17 23 31 Apr. 7 14 21 28 Mav 5 12 19 26 June 2 9 16 23 30 July 7 14 21 28 Aug. 4 11 18 25 Sept. 1 8 16 Granu- lated. CenU. 4.95 5.00 5.00 5.00 5.00 5.00 5.00 4.80 4.80 4.762 4.80 4.90 4.90 4.90 4.90 4.90 4.90 5.00 5.10 5.20 5.20 5.20 5.10 5.10 5.05 5.10 5.10 5.10 5.20 5.20 5.20 4.95 5.10 5.10 5.10 5.00 5.05 5.05 5.10 5.10 5.05 5.10 5.10 5.20 5.20 5.00 5.00 Cuban centnfu- gals 96° (dutv paid). Centf. 4.30 4.45 4.42 4.36 4.33 4.315 4.17 4.02 4.02 4.005 4.02 4.11 4. OS 4 08 4.17 4.11 4.20 4.36 4.39 4.36 4.36 4.36 4.36 4.36 4.36 4.30 4.30 4.30 4.24 4.24 4.27 4.24 4.24 4.17 4.24 4.30 4.33 4.30 4.36 4.36 4.36 4.39 4.42 4.45 4.425 4.36 4.36 Margin between raw and refined. Cents. 0.65 .55 .58 .64 .67 .685 .83 .78 .78 .757 0.78 .79 .82 .82 .73 .79 .70 .64 .71 .84 .84 .84 .74 .74 .69 .80 .80 .80 .96 .96 .93 .71 .86 .93 .86 .70 .72 .75 .74 .74 .69 .71 .68 .75 .775 .64 .64 Dates. 1910. Sept. 22 — 29.... Oct. Nov Dec. Jan. Feb, Mar. Apr. May June July 6. 13. 20. 27. 3. 10. 17. 23. 1. 8. 15. 22. 29. Aug. Average. 1911. 5 12 19 26 2 9 16 23 2 9 16 23 30 6 12 20 27 4 11 18 25 1 8 15 22 29 6 13 20 27 3 Granu- lated. Cents. 5.00 5.00 4.95 4.85 4.75 4.70 4.55 4.55 4.55 4.55 4.55 4.75 4.75 4.75 4.75 4.966 Cuban centrifu- gals 96° (duty paid). Cents. 4.24 4.05 3.95 3.90 3.85 3.86 3.80 3.86 3.90 3.90 3.93 4.05 4.00 3.985 3.985 4.19 4.75 3.86 4.75 3.675 4.60 3.515 4.60 3.42 4.55 3.45 4.55 3.48 4.55 3.545 4.55 3.67 4.55 3.73 4.65 3.76 4.75 3.83 4.75 3.92 4.75 3.86 4.655 3.86 4.606 3.86 4.802 3.92 4.802 3.92 4.802 3.795 4.802 3.86 4.802 3.86 4.802 3.86 4.802 3.86 4.90 3.86 4.90 3.89 4.90 3.98 4.90 3.98 4.90 4.05 5.047 4.23 5.047 4.36 5.341 4.61 5.537 4.61 Margin between raw and refined. Cents. 0.76 .95 1.00 .95 .90 .84 .75 .69 .65 .65 .62 .70 . 75 .765 .765 776 C.89 1.075 1.085 1.18 1.10 1.07 1.005 .88 .82 .89 .92 .83 .89 .795 .746 .882 .882 1.007 .942 .942 .942 .942 1.04 1.01 .92 .92 .85 .817 .687 .731 .927 9 Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK, ETC. — Continued. T 7 Dates. Granu- lated. Cuban centrifu- gals 96° (duty paid). Margin between raw and refined. Dates. Granu- lated. Cuban centrifu- gals 96° (dutv paid). Margin between raw and refined - 1911. An«r 10 Cents, 5.537 5.635 5.831 6.125 6.37 6.615 6.615 6.615 6.615 6.615 6.615 6.566 6.37 6.174 6.076 5.978 5.88 5.537 5.635 5.635 5.635 CenU, 4.8675 4.92 5.00 5.25 5.75 5.75 5.92 5.965 5.80 5.96 5.96 5.735 5.30 5.12 5.12 5.0625 5.0625 4.9375 4.875 4.715 4.65 Cents. 0.6695 .715 .831 .875 .62 .865 .695 .65 .815 .655 .655 .831 1.07 1.054 .956 .9155 .8175 .5995 .76 .92 .985 1912. June 27 CenU. 4.851 4.851 4.851 4.90 4.90 4.90 4.90 4.851 4.90 4.998 4.998 4.998 4.998 4.949 4.851 4.802 4.802 4.802 4.802 4.802 4.802 4.802 4.802 4.802 4.802 4.802 4.802 Cents. 3.83 3.77 3.80 3.985 4.05 4.05 4.05 4.05 4.11 4.235 4.36 4.36 4.30 4.17 4.14 4.11 4.11 4.05 4.05 4.05 4.05 4.05 4.05 4.05 3.92 3.92 3.92 Cents. 1.021 17 . ... July 3 1.081 24 11 1.051 31 18 .915 Sent 7 25 .85 14 . .. Aug. 1 ■ .85 21 8 .85 28 15 .80 Oct 5 22 .79 11 29 .763 19 Sept. 5 .638 26 12 .638 Nov 2 19 .698 9 26 .779 16 Oct. 3 .711 ) 23 . . .. 10 .692 b 29 17 .692 Dec. 7 24 .752 14 31 .752 • 21 Nov. 7 .752 28 14 .752 - Average 1912. Jan. 4 21 .752 5.345 4.453 .892 ... ... 27 .752 T)pr« ."i .752 5.537 5.39 5.39* 5.194 ' 5.194 5.39 5.586 5.684 5.684 5.684 5.488 5.439 5.341 5.145 5.0% 5.096 4.949 4.949 4.949 4.90 4.90 4.998 5.096 4.949 4.998 4.42 4.42 4.45 4.39 4.41 4.55 4.735 4.80 4.67 . 4.52 4.52 4.42 4.36 4.30 4.11 4.11 3.985 4.05 3.985 3.92 3.92 3.985 3.92 3.92 3.86 1.117 .97 .94 .804 .784 .84 .851 .884 1.014 1.164 .968 1.019 .981 .845 .986 .986 .964 .899 .964 .98 • .98 1.013 1.176 1.029 1.138 12 .882 19 .882 . 11 26 .882 IS ! Average 1913. Jan. 2 lo 25 5.041 4.162 .879 TPoVi 1 reo. 1 8 4.802 4.557 4.459 4.459 4.214 4.165 4.214 4.165 4.165 4.214 4.214 4.165 4.165 4.165 4.067 4.067 4.116 4.116 4.116 3.73 3.48 3.48 3.48 3.48 3.48 3.48 3.48 3.51 3.54 3.68 3.58 3.48 3.45 3.36 3.36 3.39 3.39 3.36 / 15 1.072 21 9 1.077 29 16 .979 Mar. 7 23 .979 14 30 .734 • 21 Feb 6 .685 28 13 .734 k Apr. 3 20 .685 •V 11. 27 .655 18 Mar. 6 .674 25 13 .634 m May 2 19 .585 9 27 .6&) ■ 16 Apr. 3 .n5 23 10 .707 i 29..' 17 1 .707 June 6 24 .726 • 13 20 May 1 8 .726 .756 1 _& m£ • / 122 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. Table 27.— QUOTATIONS OF RAW SUGAR AND REFINED GRANULATED SUGAR AT NEW YORK. ETC. — Continued. Dates. 1913. May 15 22 28 June 5 12 19 26 July 2 10 17 24 31 Aug. 7 14 21 28 Sept. 4 11 18 25 Oct. 2 9 16 23 30 Nov. 6 , 13 20 26 Dec. 4 11 18 , 24 31 Average.. 1914. Jan. 8 .\ 15 , 22 29 Feb. 6 11 19 Granu- lated. Cents. 4.116 4.018 4.116 4.116 4.116 4.116 4.214 4.410 4.410 4.508 4.508 4.508 4.606 4.606 4.696 4.606 4.508 4.508 4.508 4.606 4.361 4.165 4.067 4.165 4.165 4.214 4.214 4.214 4.214 4.165 4.165 4.116 4.018 3.92 4.278 3.92 3.92 3.92 3.92 3.92 3.92 3.92 Cuban centrifu- gals 96° (duty paid). Cents. 3.30 3.30 3.33 3.33 3.33 3.33 3.36 3.48 3.54 3.57 3.54 3.64 3.73 3.73 3.73 3.76 3.76 3.76 3.73 3.61 3.45 3.48 3.48 3.48 3.61 3.54 3.64 3.70 3.61 3.54 3.54 3.23 3.23 3.23 3.506 3.23 3.29 3.355 3.48 3.48 3.48 3.42 Margin between raw and refined. Cents. 0.816 .718 .786 .786 .786 .786 .854 .93 .87 .938 .968 .868 .876 .876 .876 .846 .748 .748 .778 .996 .911 .685 .587 .685 .555 .674 .574 .514 .604 .625 .625 .886 .788 .69 .772 .69 .63 .565 .44 .44 .44 .50 Dates. 1914. Feb. 26... Mar. 51.. 12... 19... 26... Apr. 2... 8... 16... 23... 30... May 7... 14... 21... 28... June 4 — 11... 18... 25... July 2..., 9... 16... 23... 30... Aug. 6.... 13..., 20... 27.... Sept. 3..., 10..., 17..., 24... Oct. 1..., 8..., 15.-., 22..., 29... Nov. 5 — 12. . . , 19... 25.... Dec. 3.... 10.... 17.... 23.... 30.... Granu- lated. Cents. 3.92 3.92 3.822 3.773 3.773 3.773 3.675 3.675 3.735 3.735 3.832 3.92 4.018 4.116 4.116 4.116 4.214 4.214 4.214 4.214 4.214 4.214 4.165 4.90 6.86 7.35 6.86 . 6.86 7.105 7.105 6.125 6.37 6.125 5.88 5.782 5.488 4.90 4.90 4.998 4.998 4.90 4.90 4.753 4.753 4.851 Cuban centrifu- gals 96° (duty paid). Cents. 3.39 3.01 2.95 3.01 2.95 2.95 2.92 2.98 3.01 3.04 3.14 3.20 3.32 3.39 3.32 3.32 3.39 3.32 3.32 3.26 3.26 3.26 3.29 4.26 6.52 6.00 6.02 6.01 6.27 5.89 5.02 5.01 5.02 4.51 4.26 3.64 3.45 4.07 4.01 4.04 3.95 3.89 3.95 4.01 4.01 Margin between raw and refined. Cents. 0.53 .91 .872 .763 .823 .823 .755 .695 .725 .695 .692 .72 .698 .726 .796 .796 .824 .894 .894 .954 .954 .954 .875 .64 .34 1.35 .84 .85 .835 1.215 1.105 1.36 1.105 1.37 1.522 1.848 1.45 .83 .988 .958 .95 1.01 .803 .743 .841 1 Full duty on Cuban 96** sugar from Mar. 1, 1914, is 1.0048 cents per pound. Refined sugars will pa7 duty according to polariscopic test. CHAPTER V. INVESTMENT, CAPITALIZATION, AND EARNINGS OF BEET-SUGAE COMPANIES. Section 1. Investment and capitalization. The books of 38 beet-sugar companies were examined in 1914, and y adequate financial statements were secured from 37. These 37 com- panies owned the factories that produced 98.6 per cent of all the sugar produced in the United States. In determining the net investment no allowance has been made for good will. In every case the exact cost of building, machinery, and other equipment was ascertained as nearly as possible, and this amount was added to the net current assets to arrive at the total net investment. The net current assets consist of the difference between . the amount of inventories, bills and accounts receivable, and cash and . -(^ the amount of bills and accounts payable. The method of ascertaining the cost of buildings and equipment has already been described in the discussion of depreciation (see p. 67) . The value of inventories cov- ering granulated sugar and supplies were generally accepted as stated in the books of the companies, and the book entries for cash, bills, ac- counts, sugar in process, etc., were likewise accepted. Comparison of cost of investment with capital LiABiLrnES. — The aggregate outstanding capital stock of the 37 companies con- sidered in this discussion at the close of the fiscal year ending nearest March 1, 1914, was $114,930,622, and these companies had in addition bond and mortgage indebtedness aggregating $10,596,258, or total capital liabilities of $125,526,880. The aggregate net investment shown by the books of the companies was $115,947,775. It thus ap- ) pears that these 37 companies taken collectively were overcapitalized i to the extent of $9,579,105, or 8.3 per cent. ^ [• f Taken individually, however, some of these companies were under- capitalized, while others were much more heavily overcapitalized than the 37 companies taken as a whole. Table 28 below shows the relation between the capital liabilities and net investment for the individual companies. The amounts of investment and capital are not shown in this comparison because the use of the absolute figures might identify some of the companies. Since such identification would probably serve no useful purpose and might possibly em- 123 i' \ * ' «^ 124 THE BEET SUGAB INDUSTEY IN THE UNITED STATES. barrass some concerns only percentages are used to show the extent to which overcapitalization or undercapitalization exists. The re- lation of investment to capital liabilities for the 37 companies is shown as of the close of the fiscal year ending nearest March 1, 1910, and the fiscal year ending nearest the same date in 1914. Table 28.— PERCENTAGE OF OVERCAPITALIZATION OR UNDERCAPITALIZATION OP BEET-SUGAR COMPANIES AT THE END OF THE YEARS 1909-10 AND 19ia— 14. Com- pany nnmber. 1909-10 1913-14 • Com- pany namoer. 1909-10 1913-14 Over- capitali- zation. Under- capitali- zation. Over- capitali- zation. Under- capitali- zation. Over- capitali- zation. 1 Under- capitali- zation. Over- capitali- zation. Under- capitali- zation. 1 Per cent. Per cent. 9.48 29.04 Per cent. 40.54 13.95 178.34 Per cent. 20 21 22 Per cent. 85.97 95.81 Per cent. Per cent. 129.95 41.65 Per cent. 2 3 31.62 39.79 (0 .31 51.08 52.41 15.03 4 20.32 26.74 23 24 0) .70 5 37.34 54.50 66.52 1,972.51 16.63 2.86 7.70 9.29 22.07 6 18.60 35.93 0) 11.08 16.78 (0 70.06 6.07 25 43.31 7 26 27 28 29 72.02 (1) 60.10 8 0) 71.42 74.95 1.94 9 0) 5.54 10 11 0) 30 31 32 33 34 26.90 0) 0) 0) 15.53 12 78.99 (») 0) 14.30 147.20 13 8.24 106.84 94.85 20.61 14 35.07 0) 84.37 15 0) 36.48 43.51 16 27.59 35 36 129.82 145.57 17 84.79 79.85 26.74 34.83 30.88 18 17.65 20.68 37 -» 10.43 19 125.47 60.68 V 1 Organized since 1909. The second column in the table shows the relation of capital to investment for each company at the close of the year 1909-10, ex- cept, of course, for the eight companies that were organized after 1909. The net assets of companies organized prior to that year have been adjusted from the time of their organization, in order to arrive at a proper figure for this year. The third column of the table shows the corresponding relation for the year 1913-14. The figures for the three years intervening between 1909-10 and 1913-14 are noi; given, because the important figure is that relating to the latest year, while the data for 1909-10 are shown merely to indicate the changes during the five years. From the above table it is seen that in 1913-14 14 companies had capital liabilities less than the cost of their net assets. Some of these 14 companies, however, were overcapitalized in the beginning. The other 23 companies had capital liabilities greater than the cost of INVESTMENT, CAPITALIZATION, AND EARNINGS OF COMPANIES. 125 ! their net assets, and the excess measures their overcapitalization. In the present discussion the cost of investment, as distinguished from its present value, is considered. At the beginning of the period covered by the table some of the companies were overcapitalized, but during the intervening years they increased their assets or diminished their capital liabilities, or f both, until in 1913-14 they were undercapitalized. On the other hand, some of the companies shown in the table were not overcapi- talized at the beginning of this period, but subsequently they either dissipated their assets or increased their capital stock and bonds without adding anything to their assets, so that they were overcapi- talized in 1913-14. / The above points may be ma'de clearer by citing two examples. Thus, when company No. 24 began business it was overcapitalized more than 65 per cent, but since then it has earned enough to pay dividends on its outstanding stock and to add to its assets, so that if its property had been sold at the end of 1913-14 for what it cost, the proceeds would have redeemed all its stock at par and left $22 for each $100 share. In the case of company No. 10, the net assets exceeded the capital liabilities by nearly $17 per share at the close of the year 1909-10. During the four years, however, its net assets ^. diminished until its capital stock exceeded its net property by $7.70 per share. Thus, if this company's assets had been sold at cost at the end of 1913-14 it would have lacked, after paying its debts, more than $7 per share of having enough to redeem its stock at par. The most striking fact disclosed by the table is the great extent to which some companies are overcapitalized. Of the 23 overcapitalized companies in 1914, 6 had a capitalization in excess of the cost of \ their net assets of more than 100 per cent, and the capital liabilities of one company was 20 times the cost of its nejb assets. As already~^^ / stated, overcapitalization in some cases is due to losses in the business t and not to excessive stock issues at the time of organization. Only a 3 few years ago the company just referred to as being highly over- capitalized was undercapitalized to the extent of about 35 per cent, but in recent years it has incurred heavy losses and thereby almost . entirely dissipated its assets. In this particular case the holders of f the stock have abundant means and they have individually loaned money to the company to meet its current obligations. This is also true of one or two other companies. The capital liabilities of most of the companies consist of both stocks and bonds. In case of liquidation the bonds would have to be <[ paid off before the stockholders would be entitled to anything. As- suming that the 37 companies in the foregoing table could dispose of '•''In ■* -«_ ••m 126 THE BEET SUGAE INDUSTRY IN THE UNITED STATES. their assets at cost, 14 of them would be able to pay all their current indebtedness, retire their bonds, and have left more than enough to re- deem all of their stock at par. Under these circumstances the other 23 companies would not be able to return to stockholders the par value of their stock. A statement showing the amount av^ailable for each $100 of outstanding stock after paying current debts and re- tiring its bonds is given below. The companies have been arranged in descending order according to the book value of net assets for each $100 of capital stock. 75 58 131 9i The earnings shown in the above groups are net after making deductions for depreciation. It is worthy of note that the 13 com- panies earning less than 5 per cent during the period produced only 13J per cent of the total production of the country. None of the companies in this group earned as much as 4J per cent, and 9 of them operated at an absolute loss. It should also be particularly noted that the companies producing 78 per cent of the production of the 29 companies and 75 per cent of the total production of the United States earned an average of more than 9 per cent on the capital employed during the five-year period. k ) INVESTMENT, CAPITALIZATION, AND EARNINGS OF COMPANIES. 133 Section 4. Bates of earningfs on net investment. The earnings shown and discussed in the preceding section are net on the capital actually employed in the business regardless of whether it was owned or borrowed and after depreciation has been deducted. The annual rates of earnings on net investment, computed in the usual way, diflPer slightly from those in Table 29. Such a statement of earnings is shown in Table 30 below. Tablb 30— annual RATES OF EARNINGS FROM SUGAR ON NET INVESTMENT IN THE SUGAR BUSINESS, BY COMPANIES, 1909-10 TO 1913-14, AND THE AVERAGE ANNUAL RATE OF EARNINGS FOR THE 5 YEARS. [Note.— No company operating less than 5 years is included in this table.] Company No. 1. 2. 3. 4. 5. 6.. 7.- 9.. 10. 12. 13. 14. 16. 17. 18. 19. 20. 21. 22. 24. 25. 26. 27. 29. 30. 04. 35. 36. 37. Avera g e for 29 compa- nies P.ct. 18.2 15.0 110.8 9.0 23.0 7.1 16.1 13.2 4.5 36.0 15.3 6.1 21.6 3.1 14.8 21.8 9.0 7.9 8.8 17.9 18.9 46.4 4.2 6.2 14.7 20.1 5.1 6.5 27.0 16.0 Not including depreciation. P.ct. 14.7 4.7 14.8 1.5 15.8 5.4 8.2 9.2 2.8 23.9 9.2 1.2 14.0 2.9 13.8 25.1 11.5 5.7 19.3 10.2 12.8 39.7 2.3 20.9 12.2 21.8 3.8 23.6 28.6 I 14.2 P.ct. 2.2 19.8 18.4 11.9 10.5 11.0 148.7 11.8 124.3 7.9 15.6 114.3 13.8 6.2 17.3 25.0 2.8 12.3 24.0 19.0 19.5 41.0 11.8 14.7 19.3 24.0 5.3 17.9 32.9 14.9 87731—17 10 CO e!, 1-1 at P. Ct. 3.6 2.6 8.1 7.2 2.5 5.6 133.4 15.5 7.9 3.5 3.2 17.1 4.7 4.8 18.7 10.2 4.1 10.0 8.5 12.4 15.0 20.1 11.8 20.6 11.1 5.9 1 11.4 14.8 34.0 a> 9.9 P. a. 5.7 2.9 1 11.3 5.0 12.0 19.4 110.3 2.5 1.3 8.3 11.6 14.1 5.3 19.4 3.2 8.8 17.8 7.2 18.6 5.5 5.4 5.4 5.4 9.2 7.1 2.8 16.0 14.9 16.4 o 6.0 P.ct. 7.7 1.9 15.2 7.0 12.8 4.2 1 13.2 3.1 12.9 14.4 4.3 13.8 10.3 1.6 13.5 17.7 3.7 8.8 10.6 12.8 13.9 30.1 7.4 14,0 12.6 13.3 1.8 15.5 27.5 Including depreciation. 11.9 P.ct. 20.3 22.5 118.3 7.1 22.6 3.6 15.4 12.4 .0 37.9 16.0 2.3 20.8 1 1.6 15.'3 27.2 5.9 4.9 7.6 17.2 18.6 57.1 .1 3.0 15.1 17.1 1.2 3.9 30.1 15.5 P.ct. 16.2 1.3 1 11.1 4.3 14.9 1.9 5.9 7.1 12.2 24.2 7.8 13.8 11.3 12.3 14.3 32.3 9.4 2.4 23.5 8.7 12.0 47.4 12.4 19.6 12.2 19.2 .0 22.0 32.7 I CO P.ct. 11.3 137.1 116.1 12.1 8.4 9.4 168.7 18.3 38.8 5.1 116.6 123.0 11.5 2.6 19.3 32.5 1 1.4 10.1 30.4 19.4 2.0 i 4.9 11.2 13.5 22.9 22.1 1.3 16.6 39.9 P.ct. 11.3 14.3 5.2 5.2 12.1 2.2 159.6 1 16.3 I P.et. . 1.7 14.1 122.3 1.7 11.1 121.9 121.9 13.2 5.2 i 19.2 .2! 6.6 13.6 15.0 1.2 1 15.1 1.1 .1 20.8 10.3 .3 7.5 7.8 11.9 15.2 23.3 11.8 21.4 11.3 2.5 119.6 13.7 43.4 110.5 112.4 1.4 127.1 1.0 8.1 116.6 4.3 122.9 3.7 4.1 3.6 2.8 7.2 5.3 11.3 114.7 14.2 18.7 8.7 3.6 1 Loss. W Mi p.ct. 5.1 15.5 112.2 4.7 11.4 .2 123.0 11.9 1 10.9 13.5 .5 110.2 7.2 14.6 14.2 21.8 .3 6.1 10.8 12.1 13.6 36.3 5.0 12.5 13.1 10.5 16.0 14.0 32.7 11.2 I A ■ A?!^*' J- ■ *«■ 134 THE BEET SUGAB INDUSTRY IN THE UNITED STATES. The average rate of earnings from sugar on the net investment for the 29 companies for the five years, after deducting deprecia- tion, is only four-tenths of 1 per cent less than the average rate on the capital employed. The difference in the earnings computed on this basis and on the basis used in Table 29, after taking deprecia- tion into account, is less than 1 per cent in each year during the period. CHAPTER VI. EFFICIENCY IN THE BEET-SUGAR INDUSTRY. \ /., \ ■! I Section 1. Principal elements to consider in studying efficiency. Speaking broadly, efficiency in production means the degree of I cheapness with which an article can be produced and sold. In this J broad sense every element of cost must be included. In a narrower I sense productive efficiency refers to the cheapness with which me- chanical processes can be performed. In a practical sense efficiency^ is only relative ; that is to say, a factory in any industry is efficient or inefficient only as compared with some other factory or with some recognized standard. A fair basis of comparison is the average results of several well-equipped, well-located, and well-managed plants with the results of plants not so well located or so well equipped and managed. This would seem to be more reasonable i than to adopt as a standard the results of the best factory in an industry. Such a factory would indicate the possibilities under the most favorable conditions, but it would not indicate probabilities under ordinarily favorable conditions. The elements of efficiency may be grouped into two classes, namely, mechanical and economic. Or, to put it another waj^, it may be said that there are two phases of efficienc}^, namely, factory efficiency and business efficiency. A factory may be mechanically efficient and yet utterly fail. Its conversion of raw materials int^ the finished product may be at the lowest possible cost, but if on account of location or for other reasons its raw material has cost too much or if the expense of distributing its product is excessive, it can not succeed. On the other hand, a manufacturing plant may be situated to the best possible advantage, but if it is equipped with poor machinery, or even with good machinery badly arranged, it is apt to fail. Mechanical elements. — The principal mechanical elements in- I volved in a study of efficiency are equipment and organization. By ^ equipment is meant the kind of appliances, machinery, and processes used; by organization is meant the adaptation of buildings to the ^ purposes for which they are used and the arrangement and coordi- V nation of appliances and machinery. In respect to mechanical equip- ment and organization, three comparisons are important. The first 135 %/ •■)- 1/ vA 1 1 •11 I I I « 136 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. / is a comparison of factories of substantially like equipment and eqtial capacity; the second is a comparison of factories with like equipment and organization, but of unequal capacity; the third is a comparison of factories of equal capacity and similar organiza- tion, but with unlike equipments. The first is practically a com- parison of organization and arrangement of machinery. The second resolves itself into a comparison of large and small scale operations. It is this second comparison that is now receiving attention from business men and economists. The third comparison is a test of the merits of different appliances, machines, t)r processes. Exact comparisons under all of these different circumstances re- quire that the raw material used and the manufactured product turned out shall be substantially identical in character, condition, and quality. Identical raw material becomes especially important where, as in the case of the beet-sugar industry, it constitutes a very large percentage of the total cost. It is obvious therefore that a wide variation in the quality of beets makes impossible any exact compari- son of the general efficiency of beet-sugar factories even though all the other elements are favorable. Strictly speaking, factory efficiency need not take account of anything except equipment and organiza- tion. Therefore, if the same quality of beets were used in the fac- tories compared, the element of raw material could be entirely elimi- nated in arriving at relative factory efficiency. This, however, is not the case, and here lies difficulty in a study of efficiency in this industry. Economic elements to be considered. — The most important eco- nomic elements are location of plant, distribution of product, and business management. From the standpoint of business success, which is the final test, the economic elements in the beet-sugar in- dustry are perhaps of greatest importance. Some of the best- equipped sugar factories in the country have been unsuccessful be- cause of bad location in respect to raw materials. Others have faileu because of bad business judgment in the construction of plants, or other matters. DirncuLTiEs in a comparative study of efficiency in beet- suGAR FACTORIES. — Similarity in the fundamental elements necessary to exact comparisons of efficiency in the beet-sugar industry are sel- dom if ever found. In fact, there is such a lack of harmony among these elements, as found in various factories, as to compel all' com- parisons to be more or less general. In the first place, as already pointed out, there is a wide variation in the quality of beets used in different factories and sometimes a wide variation of the quality used in the same factory in different years. The value of beets depends upon the quantity of sugar they contain and the purity of the sugar content. These elements vary widely. Some beets test i EFFICIENCY IN THE BEET-SUGAR INDUSTRY. 137 ! 18or20percent sugar, .while others test not over half as much. The purity of the beets as worked in factories ranges from as low as 7T to above 88 per cent. Upon these elements depends the possible quantity of sugar that can be extracted. On account of variation in the quality of beets, sugar extraction varies from only about 200 pounds of sugar per ton of beets in some factories for some years to V over 300 pounds in others. While this variation in the principal raw. material does not preclude a comparison of factory efficiency, it does affect its exactness. This is so because the cost of working beets of high quality differs from the cost of working low-quality beets. A peculiar feature of the beet-sugar industry is the fact that nd factory can operate more than a few months in each year. The rea-\ son for this has been explained (see p. 2). The length of time that) a factory can be operated depends upon the quantity of available! fresh beets and varies from less than two months to sometimes as much as four months. The average is less than three months. This variation in periods of operation disturbs fair comparisons of me- chanical efficiency. This is so because certain fixed charges and some ) charges for labor do not stop when the factory closes, and all must be/ p ,, charged to the sugar produced. Of course the shorter the time of' [ X operation the less the quantity of sugar produced and the greater are the fixed charges per 100 pounds. Furthermore, certain factory employees are retained the entire year and a part of the time they are not profitably engaged. Thus the element of labor cost is pro- portionately increased by a short period of operation. \ In spite of these difficulties, however, some valuable comparison^ can be made. From the mass of data ^cured it is possible to com- pare groups of factories having low manufacturing costs witli other groups having high costs. It is also possible to compare the results of large plants with those of small ones. Probably the surest test of an efficient factory is the percentage of sugar lost in the course of manufacture, or to put it another way, the percentage of available sugar that is saved. Comparisons of economic efficiency are more easily made. It is easy to demonstrate that some V factories are badly located and that no matter how efficient they may f) be mechanically they can not be profitably operated. This sort of comparison clearly indicates some mistakes that have been made in selecting locations for beet-sugar manufacture. Section 2. Comparisons based on scale of operations. i : The capacity of a beet-sugar factory is measured by the numoer of tons of beets which can be sliced in a dav of 24 hours. The sizQ of a factory should depend upon the field from which the beets arej to be drawn and its possibilities. It is the usual plan in erecting > t' L ' m iii t! 138 THE BEET SUGAE INDUSTRY IN THE UNITED STATES. factories to build them so that their capacity, may be later increased. How large to build a factory is no more than a guess, especially in communities where beet growing is not established. There is no' doubt that districts that gave little promise have afterwards became remarkable beet districts, while others which were thought to be promising have resulted in failures. iJ/!!!™"^ ^^^ ''''^''"'^ *** *^^ ^'•^^ factories built was small. In 1896 there were seven factories reported to be in operation, none of which had a rated capacity of more than 1,000 tons. Four were rated at only 350 tons. In later years, as the industry became more fimly established, larger factories were built or the capacity of the o der ones increased. During the campaign year 1913-14 there were 71 factories in open^tion. From the best information available 26 of these were rated as having a daily slicing capacity of 1,000 tons or more. In addition to this number 22 were capable of slicing 700 tons or more per day, 23 were rated as less than 700-ton plants, only 4 of which were less than 500-ton plants. Due to local conditions it is rather difficult to compare the efficiency of large and small plants. It can be seen that the increase in th. .reight on beets might easily overcome any advantage obtained by large-scale operation. The importance of being favorably located IS discussed elsewhere (see p. 141). Although the extraction is not increased m the larger factory it is the opinion of men well informed regarding the industry that the operating costs, especially the cost of labor and overhead charges, are less per bag of sugar produced. The views of certain managers on this point are of in- terest. The general manager of one of the largest beet-sugar con- cerns in the United States, in a statement to the commission regard- ing the. efficiency of large and small plants, said : Assuming that size is the only essential point of difference vfr^'j^-fJ^'^lT' ^""^ 'T^'l''^'^ ''"'• «^P«rience t^re would he very little difference in the efficiency of a large and a small fac- tory, with the slight difference in favor of the large factZ & mam reason for this is that a large factory's overhead Yipens^ per bag of sugar would not be quite so largYas that of a smaHel lactory; but this overhead expense is such a small part of the total cost of producing a bag of sugar that the saving would be nominal. A large house might also make a slight saving in "Operating Labor" per bag of sugar. The saviSg mentioned^ however, might easily be offset by a heavier average freight rate per ton of beets m case of the larger factory, as it would un- ioSdlE smluer. '" '*' '"^^^^ ^^'^ " ^^**^^ '^^^^^'^'^^ ^^^"^ The manager of another important company was even more em- phatic m his statement, which was as follows: Concerning the efficiency of large and small plants having the same equipment, would say that the figures you are gathering EPFICIENCT IN THE BEET-SUGAE INDUSTRY. 139 < } \ { should show very distinctly that the plant of large capacity can produce sugar at a less cost than one of a smaller capacity. I believe you will find, however, in comparing these figures, that the lesser cost is due mostly to labor and not to materials used, although there is some slight saving in the amount of material used per ton of beets in a large factory as against a small one. I think you will find that the greater saving is the cost of over- hauling and maintaining the factory. Statements received from others engaged in the industry were in accordance with the above, especially with regard to labor costs. There was some difference of opinion as to how large a factory should be before the highest degree of efficiency was attained. Naturally these differences were due to the different conditions in the various localities. An exception was noted in the statement submitted by an official of the Utah-Idaho Sugar Co., in which he said that Utah and Idaho were better adapted to small plants of say 450 tons normal capacity. This was attributed to the fact that small factories could be worked to their utmost capacity, whereas if the capacity were increased the territory would necessarily have to be extended which was not advisable because of the uncertainty of railroad accommo- dations. For example, if sufficiemt cars could not be had beets would - have to be piled at loading stations which would entail an additional expense in reloading and also greater shrinkage on account of more beets being exposed to atmospheric conditions. The table below shows the results of factories according to their size. For comparative purposes, the total number of factories oper- ating during the campaign 1913-14 have been divided into four groups: Group I includes the factories which sliced less than 500 tons of beets per day; Group II, those slicing more than 500 tons but less than 800; Group III, those slicing more than 800 tons but less than 1,200; and Group IV, those slicing more than 1,200 tons per day. Table 31.— AVERAGE COST PER 100 POUNDS OF SUGAR PRODUCED, BY GROUPS, FOR THE YEAR 1913-14. . v Cost of beets. Labor. $0. 419 .326 -.228 .217 Re- pairs and mainte- nance. Admin- istra- tive and oflace ex- pense. other ex- pense less credits. • Paid fermer for beets. Freight. other beet ex- pense. Total. Net factory cost Group I (12 factories) Group II (25 factories) Group III (20 factories) .... Group IV (12 factories) $2,572 2.235 2.230 2.121 $0,306 .183 .151* .135 80.307 .217 .158 .130 $3,185 2.635 2.539 2.386 $0. 216 .195 .139 .122 $0,279 .202 .172 .179. $0,426 .261 .224 .398 $4,523 3.619 3.302 3.302 The foregoing table shows that the net cost is without exception lowest in the groups which include the largest factories, ranging from % \ ii / 140 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. $3,302 in Group IV to $4,525 in Group I. This is due to a large extent to the difference in beet cost. The largest factories as a rule are situated in the best beet regions. The average price per ton of beets paid the farmers by the factories in the various groups is $5.67, $5.57, $5.65, and $6.04, respectively. The average cost for beets per 100 pounds of sugar produced in Group I was 33.7 cents more than m Group II and 34.2 cents more than in Group III. The aver- age price per ton paid for beets was highest in Group IV, yet the beet cost per bag of sugar was lower in that group than in any other. The operatmg costs, excluding the cost of beets, are lower in the larger fac- tories. The average costs of labor, repairs and maintenance, and admimstrative and office expense are materially lower in Groups III and IV. The largest difference is in the cost of labor, the average cost m Group IV being only 21.7 cents per bag, as compared with 41.9 cents m Group I. The difference in the costs for Groups III and IV are not great for any item. The average for other expenses less credits is higher IP the latter group, since most of these factories are equipped with Steffens houses (see p. 147), thus reducing the credit allowed for molasses. In fact the operating costs, excluding the cost of ^ beets, IS 10.9 cents less in Group III than in Group IV. This may be offset by the profit on the additional sugar extracted by this process, but it is evident any important advantage obtained by lactones m Group IV as compared with those in Group III is only m the cost of beets. • In Table 21 (p. 81) it is noted that the average cost of produc- tion for the 5-year period covered was more than 4 cents per pound in 28 factories. Of this number, only one was rated in 1913 as having a capacity of more than 1,000 tons per day, while 17 were rated as less than 700-ton plants. The average cost was less than 4 cents but more than 3^ cents per pound in 17 factories, 10 of which were rated as being capable of slicing more than 1,000 tons pes day. In 26 factories the average cost was less than 3* cents per pound, the rated capacity of 15 being more than 1,000 tons. The largest factories are included in this group, and outside of the factories m Ltah and Idaho there was only one whose capacity was less than 800 tons per day. Thus it is seen that, as a rule, the costs are higher in the smaller factory. It should be noted that the hi^h cost of production in the majority of the small factories is due to their inability to get a sufficient supply of beets, rather than to their limited capacity. There is no doubt but that the effi- ciency of a factory depends largely on its being able to work near Its ful capacity. As the size of the factory is increased it becomes more difficult to obtain a sufficient supply of beets, so that in certain localities small plants are probably just as efficient, if not more / EFFICIENCY IN THE BEET-SUGAR INDUSTRY. 141 / < \ so, than larger factories would be. An example is noted in the case of the Utah-Idaho Sugar Co. This company has only one factory of a greater daily capacity than 1,200 tons, but the costs of its 600 and 800 ton factories compare favorably with the costs of the larger factory. Thus it is shown that while the results by comparison, in general, are in favor of large-scale operations, a \ comparison of individual factories would sometimes be favorable to small ones. Section 3. Important economic advantage of favorable location. It is obvious that mechanical efficiency is possible almost anywhere. This is not by any means true as to economic efficiency. In respect to the latter, location is of prime importance. This must be con- sidered with respect to the quality and quantity of beets which cau be and which are likely to be produced in the vicinity, the procuring of factory supplies and labor at comparatively low cost, and prox- imity to markets for sugar and the by-products from its manufac- ture. While it may not be possible for a factory to have the great- est advantage in all of these respects, it should be located with due regard to all and with particular regard to the first. Location with respect to the supply of beets. — It is probable that a great majority of the failures among beet sugar factories has been due to poor location in respect to the supply of beets. There should be a supply sufficient to assure an operating period of ap- proximately 3 months at least. These beets must contain a sufficient percentage of sugar to warrant their manufacture. It would thus seem that in locating a factory the first element to be considered is the quality of beets that can be grown in a locality and, second, the quantity. While the climate and soil in a large part of the United States will permit the growing of sugar beets, the beets grown in a large portion of this area do not have a high sugar content. This materially limits the area in which factories can be built with the reasonable expectation of success. This report shows that as a rule the beet cost of the factory is lowest in the factory located in the regions where the best beets are grown, and since the beet cost represents such a large percentage of the total cost, the net factory cost of sugar is also usually lower in these factories. While the higher average extraction in some factories is due to the employ^ ment of the Steffens process and also to a slight extent to superior mechanical efficiency, it is mainly due to the difference in the quality of the beets worked. ^ The 75 factories operating all or part of the time during the 5 years ending with the season 1913-14 have been divided into three groups according to the average extraction of sugar per ton of beets f II 142 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. sliced. Group I includes those in which the average extraction was more than 270 pounds per ton, Group II embraces those in which the extraction was more than 240 pounds but less than 270 pounds, and those having an average extraction of less than 240 pounds are included in Group III. The results are shown in Table 32 below : Table 32.— COMPARISON OF THE AVERAGE COST OF BEETS AND THE NET COST OF PRODUCTION, NOT INCLUDING DEPRECIATION, DURING THE 5-YEAR PERIOD 1909-13, BY FACTORIES GROUPED ACCORDING TO THE AMOUNT OF SUGAR EXTRACTED PER TON OF BEETS SLICED. Group I (includes 18 factories). . Group II (includes 27 factories) . Group III (includes 30 factories) Total for United States. . . Cost of beets. Average Extrac- tion (pounds). Per ton Per 100 of beets I jwunds sliced. I (u sugar. 299.6 255.4 221.7 $6.46 6.54 7.18 264.5 6.68 Net cost. Per ton of beets sliced. S2. 16 2.56 3.24 $9.51 8.97 9.25 2.52 9.27 Per 100 pounds of sugar. ^.17 3.51 4.17 3.50 A particularly significant fact disclosed by the foregoing table is that the cost of beets per ton was lowest for those having the high^ est sugar extraction. This was due to two main causes — first, the factories working the poorest beets had difficulty in getting them at all and had to pay the farmer more than the sugar in them was worth; and, second, the difficulty in securing beets forced them to be brought from a wider territory, with the result that incidental expenses and freight charges were inordinately high. The average cost of beets per ton in Group I, with an extraction of almost exactly 300 pounds per ton, was $6.46, while in Group III, with an average extraction of only 222 pounds, the cost of beets was $7.18 per ton. In other words, the factories in Group III paid 72 cents more for 222 pounds of sugar than those in Group I paid for 300 pounds. This condition is strikingly reflected in the cost of beets per 100 pounds of sugar. In Group I, with an extraction of approximately 300 pounds per ton, the factory paid $1.08 per 100 pounds less for the sugar in the beets than was paid by the factories in Group III that had an extraction of only 222 pounds. The cost of beets per 100 pounds of sugar was 40 cents more in Group II than in Group I, although the extraction per ton of beets was 44 pounds less. The net cost in Group I, where the cost of beets was lowest, was exactly $1 less than in Group III, where the cost of beets was highest, and it was 34 cents less than in Group II, where the cost of beets was 40 cents higher. The difference in the cost of beets per 100 pounds of sugar more than accounts for the difference in the net cost of produc- 1- r y^ K p /9 f' 't K EFFICIENCY IN THE BEET-SUGAR INDUSTRY. 143 tion in each case. It is thus apparent that a low cost of production must depend primarily on a low beet cost, and the lowest beet cost is in the factories in regions that produce the best beets. Of the fac- tories whose net cost was more than $3.50 per 100 pounds, in only three was the average extraction more than 270 pounds, and their high cost is due to the fact that not enough beets were secured for a profitable run. Of those whose net cost was less than $3.50 per 100 pounds, in only one case was the average extraction less than 235 pounds per ton, and it was able to secure its beets at much below the average cost. The factories included in Group I produced 47 per cent of the total quantity produced by the 75 factories during thi- period, while the factories included in Groups II and III produced 31 per cent and 22 per cent, respectively. All of the factories having the most favorable location with respect to the quality of beets are located west of the Mississippi Kiver. The 18 factories included in Group I of Table 32 are all in that region. Of these, 8 are in California, 5 in Colorado, 2 in Idaho, and 1 each in Utah, Montana, and Kansas. Of the 27 factories in Group II, 20 are west of the Mississippi. Of this 20, 7 are in Colorado, 4 each in California and Utah, 3 in Idaho, and 1 each in Nebraska and Ne- vada. Of the remaining 7, 6 are in Michigan and 1 in Wisconsin. Of the 30 factories having an extraction of less than 240 pounds of sugar per ton of beets, only 10 are west of the Mississippi. These figures emphasize the superior quality of the beets grown in Colo- rado and the West as compared with those grown in the Lake States. One of the chief inherent disadvantages of the industry is the shortness of the campaign, the average length of the campaign in California for the five-year period being only 109 days and this was from 12 to 63 days longer than in any other State. The results in many factories would be much more satisfactory if enough beets could be had to insure a longer campaign. This is shown by the following excerpt from a statement issued by the officers of one com- pany to its stockholders at the end of the 1913 campaign : The campaign just closed has been like the four preceding ones, extremely disappointing. The tonnage of beets secured has not been sufficient to give our mill a profitable run. The burden of debt accumulated as the result of the many adverse circumstances against which the company has had to contend has become so great that it can no longer be carried. It is obvious that the overhead charges for salaries, taxes, etc., are practically the same in a factory whether it operated for a long or short period. The average cost for these items per 100 pounds of sugar produced are therefore higher in factories operating for a short time. This is also often true of other items of cost. This is shown by the higher manufacturing cost for such factories as compared -:t 144 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. . with the cost of those which operated for a longer period. The average manufacturing cost of the factories whose average campaign for the 5-year period was less than 70 days was $1.40 per 100 pounds, as compared with 95 cents for those which were in operation longer than 70 days. Of the 19 factories whose average length of campaign was less than 70 days in only 3 was the manufacturing cost less than $1, while in 5 it was more than $2 per 100 pounds of sugar produced. A concrete idea of the importance of a sufficient supply of beets to operate a factory at its normal capacity can be had by considering a few instances where the supply was greatly deficient. It is generally agreed among beet sugar manufacturers that the highest efficiency in a beet sugar factory depends mainly upon being operated at practi- cally full capacity for a period of 100 days. The figures used in these illustrations are based upon such an operating period. A factory, mechanically well equipped, and having a capacity of 900 tons, had only about 30,000 tons of beets in 1913, when it should have had 90,000 tons. Another factory with a daily capacity of 500 tons sliced during that year less than 8,000 tons, when the most efficient opera- tion would have required 50,000 tons. Still another, with a daily capacity of 600 tons sliced less than 17,000 tons of beets instead of 60J300 tons which it should have had. These are striking examples of economic inefficiency, and a number of others almost if not quite as significant could be cited. Inability to secure a sufficient quantity of beets, however, can not always be -foreseen. This is especially true in localities where the in- dustry is not well established. The failure of irrigation projects, the introduction of better paying crops, or the general dissatisfaction among growers may change what promises to be an ideal beet region into a poor one. In one case it is said that as an inducement the chamber of commerce of a certain town represented to the promoters of a factory that they had signed contracts for the growing of several thousand acres of beets. After the factory had been moved there, it developed that the contracts were signed largely by people who owned no land and who never intended to grow beets. In other cases larger factories have been built than the immediate vicinity would or could supply, and the factory has been either compelled to grow its own beets at a higher cost or secure its beets at a greater distance from the factory with a .consequent inordinately high cost. The lack of beets in certain sections may also be due to the fact that the facto- ries and growers have failed to fully realize the proper relation that should be maintained between the factory and the beet grower. Labor and factory supplies are less important, since the cost for these items represents a smaller per cent of the total cost. Differences in costs are also due to the difference in the size of the factory, as tV •J r ' t \ il. ., 1 1# EFFICIENCY IN THE BEET-SUGAR INDUSTRY. 145 shown in section 2 (see p. 137) . Differences in the labor costs and ad- ministrative and office expense are also due to the fact that wages and salaries are materially higher in the West than in the Lake States. The cost of fuel also varies to some extent in the various factories. It is not probable that the high cost of freight on the supplies used in connection with the manufacture of sugar or even the high cost of labor would preclude any factory from manufactur- ing sugar profitably if sufficient beets of a good quality were avail- able. Advantage of proximity to markets. — Since the price of beet sugar is based primarily on the price of refined cane sugar at the seaboard, it is obvious that any advantage obtained in markets must l be due to the location of the factories Avith respect to this competi- tion. Prices for sugar, therefore, are higher at interior markets than at points nearer the refineries. The factories which have the greatest j advantage in this respect, however, are located in the sections of the country which consume the least sugar, so that their advantage is not as great as it would be if they were able to sell all of their prod- uct locally or in near-by States. The average price received by the factories in the various States and the cost of selling per 100 pounds of sugar, including freight, during the five-year period is shown in the following table : Table 33.-COMPARISON OF THE AVERAGE PRICES RECEIVED FOR BEET SUGAR; THE COST OF SELLING AND THE NET PRICE RECEIVED AT THE FACTORY PER 100 POUNDS, FOR THE 5-YEAR PERIOD 1909^13, BY STATES. State. Selling price. Cost of selling. Net price at factory. California $4. 8795 4.9231 5.0835 4.8251 4.9327 4.7C02 5.1573 4.9838 $0. 4574 .4462 .5780 .3010 .2616 .3429 .4953 .2986 S4. 4221 Colorado 4.4769 Utah-Idaho 4.5055 Michigan i 4.5241 Wisconsin ^ 4. 6711 Ohio 4.4173 Montana-Nebraska 4.6620 Other States 2 4.6852 Total, United States 4.9277 .4278 4.4999 1 Includes factories at Decatur, Ind., and Paulding, Ohio. > Includes factories in Arizona, Nevada, Kansas, Oregon, Minnesota, and Iowa. In the above table it is seen that the price at which sugar is sold is highest in Montana-Nebraska and Utah-Idaho and lowest in Ohio and Michigan. In California competition with the refineries at San Francisco is encountered so that the selling price is lower than in other Western States. Factories, although located at a great dis- tance from the large consuming centers, are enabled to realize as high an average price for their product as those which disposed of j V 1 1 a 146 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. their product on lower freight rates. For example, in Utah-Idaho the average net price received was only 2 cents per 100 pounds less than the price in Michigan, although the cost of selling, including the freight, was 28 cents more. The average net price received at the factory was highest for the factories included in the group " Other States," Wisconsin and Montana-Nebraska, while the lowest was in Ohio and California. The larger part of the product of the factories in the first-named States is disposed of locally or in adjoin- ing States, thus giving them a decided advantage over companies which must sell the greater part of their product in competitive territory on higher freight rates. In two companies the average net price received for the five-year period was $5.11 and $5.29 per 100 pounds, respectively, while the average for all companies in the United States was only $4.50. In large companies, however, the dif- ference in the average net price received is less, rarely exceeding 20 or 30 cents per 100 pounds. Some advantage is also obtained in the marketing of the two chief by-products from the manufacture of sugar, namely, pulp and molasses. In Chapter III (see p. 61), the net value of these products s affecting the net cost of production is discussed. In Table 10 ^(see p. 82), it is shown that the profit from these sources is greater in the factories located in the Lake States than in factories located in the West. The advantage obtained with respect to molasses is largely overcome, however, by the use of certain processes by which a large per cent of the sugar in the molasses is extracted. Section 4. Comparisons based on factory equipment. Most of the beet-sugar factories in the United States are similarly equipped, except as to that portion of their equipment provided for the utilization of by-products. There are but two by-products resulting from the manufacture of sugar from beets that have any important value. These are pulp and molasses. A number of factories have special equipment for the better utilization of one or both of these by-products. Pulp and molasses are both utilized to advantage by all factories. Some, however, are so situated as to require special equipment for their most advantageous utilization. . Pulp is utilized entirely as a food for stock, and this is in a great measure also true of molasses, though the latter is used to some extent in the manufacture of alcohol. Where pulp can not be sold to advantage in its green state at the factory, it is necessary to dry it in order that it may be shipped at a reasonable cost. The molasses resulting from the process of sugar manufacture contains a large percentage of sugar, and unless there is a profitable market for the molasses itself it is often profitable to extract the sugar left therein. There are two or three processes •I ')'••' ( / a h I A !'■ ^ii EFFICIENCY IN THE BEET-SUGAR INDUSTRY. 147 for the extraction of sugar from molasses, but that principally used in this country is known as the Steffens process. Steffens process. — While beet sugar molasses contains a large per cent of sugar it is not used for human food because of the large quantity of mineral salts present. These mineral substances prevent the sugar from crystalizing by t\m use of the ordinary processes of clarifying, and special processes have been employed in extracting the sugar from the molasses. As just stated, the most common method is the Steffens process. About 25 pounds of sugar are ex- tracted from the molasses resulting from the working of each ton of beets. All the sugar in the molasses, however, is not recovered, the proportion varying from 80 to 90 per cent of the sugar content of the molasses. By the Steffens process a larger percentage of the sugar is recovered than by other processes. Whether it is profitable to use this process depends upon the price of molasses and of sugar. If the market value of molasses is high, say about $12 to $15 per ton, it is the general opinion that it is not profitable to install a Steffens plant unless tile price of sugar is very high. The manager of an e^astern factory stated that he questioned the practicability of operating a Steffens house, even after the plant had been constructed, with molasses at $12 per ton ; and that if the price of molasses had been as high when the industry was started in this country as it is now no Steffens plants would have been erected. Since molasses is used chiefly for a stock food, much de- pends therefore on the location of the factory. Factories near the stock- feeding sections may be able to dispose of their molasses at a high price while those some distance from these markets may find it more profitable to convert as much of their molasses into sugar as possible. A few factories are able to dispose of their molasses to manufacturers of alcohol. In 1913 there were at least 26 factories equipped with Steffens houses. Of these 6 were located in California, six in Colorado, 5 in Michigan, 2 each in Ohio and Wisconsin, and 1 each in Kansas, Ne- braska, Montana, Utah, and Idaho. The Steffens plants in the Wis- consin factories have not been operated for some years. It is im- portant to note in this connection that more molasses is subjected to this process than that produced by the factories operating Steffens houses. Some concerns buy molasses from other factories and some companies having two or more factories have a Steffens plant in one and ship the molasses from their other plants to this factory. For instance, the Great Western Sugar Co. has 9 plants located in north- ern Colorado, only 4 of which are equipped with Steffens houses, but the molasses from the other 5 plants is worked up in these 4 Steffens plants. 1| I f I I t 148 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. During the season of 1913-14 there were 23 factories operating aftf 'thi' f ■ ^\' Tu'^' P^**"* "" "'^ ^««'<^-' molasse^that -r, in sir fT ?'*^ 'T. '''^^^^ *'^^*'"«'^ ""« process-was 17.2 remaining 46 factories in operation that year amounted to 39 1 cents as much from this by-product as was realized by the factories which sold their entire output of molasses would have had to extract enough additional sugar to overcome all expenses incidental to operating S maintaining the process, and in addition about 5*, pounds from each ton of beets worked, assuming that the net value of sugar wSl cents per pound. The costs incidental to the Steffens procesf werSot reported separately by all companies and as stated above mZfac idTtaW r ''""^ f ''••^'' **^'"™^' ^" *^* tJ^^ St^ffen« coste in- cidental to workmg up their own product can not be ascertained However the cost of operating and maintaining the process in two ZTT'l '"*?" T'v!* ^'^ "*>* P"-'^^- mola'^'wVs onTy about 10 cents per ton of beets worked. The cost- per ton of beets worked no doubt would be somewhat higher in a smaUer factory bu .t IS apparently fair to assume that if the factories which had Steffens plants increased their average extraction 10 pounds they reaHzed as The average extraction for the factories not employing the process wh ch hT^i'^ 'T""^' "'^"^ *^^ ^--^« extraction of rS vvmie this difference is partially due to the better qualitv of beets StSt" *" *'t 1'^*""^^^ ^"^^^ "^*^^-<^ from' the mo^ase^lv the latter factories. In the statement below are shown the results for the five years 1909 to 1913 in two California factoriS, one w hh Steffens process and one without, where the difference in qualitv of tee s was not great. The average purity of the beets worked by each factory was above 85 per cent. ^ Factory No. 1 (without Steffens process). Factory No. 2 (with Steffens proc- ess). 1909-10. 1910-11. 1911-12. 1912-13. 1913-14. tion. content. content. Average, 5 years. Per cent. 18.88 18. 8i 18.87 18.87 18.06 Pounds. 304.4 310.6 311.2 298.6 281.0 Average extrac- tion. 18.68 300.5 Percent. 17.33 18.28 18.03 18.80 18.57 18.16 Pounds. 306.4 337.6 341 8 341.2 345. S i ,t- V EFFICIENCY IN THE BEET-SUGAE INDUSTRY. 149 333.6 Factory No. 1 was not equipped with a Steffens plant, and although the average sugar content of its beets was generally higher than m factory No. 2, the extraction in each year was less than in the latter factory. The purity of the beets worked in factory No. 1 was also higher than in factory No. 2 in 4 of the 5 years, and in 1913-14 practically the same. For the 5-year period the sugar con- tent of the beets sliced in the former factory was 0.52 per cent higher, while the average extraction was 33 pounds per ton less. Thus it is seen that by employing this process the extraction is mate- rially increased. While the per cent of increase would be less in factories shcing a lower grade of beets, the average extraction for all factories would probably have been increased 25 pounds per ton of beets had the molasses from all factories been subjected to this process. While it would seem that if the extraction could be increased by this amount, a Steffens house would almost be necessary to the equipment of an efficient factory, it should be borne in mind that the cost of mstalling the process is high and much more labor is required m a factory so equipped. Companies which have more than one factory might find it profitable to install a Steffens house at one of Its factories, which could utilize the molasses from those not so equipped, while a company with only one factory and of small capacity could not do so at a profit. Others have a good market for their molasses, so that a company adding this process should be governed largely by the conditions peculiar to its own factory or factories. Pulp driers.— When beets are worked about 80 per cent of their weight comes out in the form of palp. As this pulp comes from the factory it contains a small amount of sugar, most of the nonsugars or impurities shown in the chemical analysis of the beets and a large per cent of water. In the green or undried state it can not be kept for any great length of time nor can it be profitably transported anv considerable distance. It is used for stock^food, and where it can nJt be fed to cattle or sheep in the locality of the factory it must eithei be dried for shipment or go to waste. In the earlier days of the in^ dustry practically all the pulp was disposed of at the factory. In fact, much of it was given away to farmers supplying the factory with beets. It is said that in the State of Michigan there were times when considerable pulp had to be removed as waste. This fact prob ably resulted in the installation of driers, since the first drying appli- ances were installed in that State. The pulp is dried in revolving cylindrical drums, the heat being applied either directly from hot gases or indirectly by steam. The more recently installed driers are of the steam type! 87731—17 11 f !| M I raan^sr 150 THE BEET SUGAR INDtTSTRY IN THE UNITED STATES. An increased demand for dried pulp is indicated by the number of factories which have added driers to their plant equipment in recent years. In 1908, according to the report issued by the Depart- ment of Agriculture (Report No. 90, Progress of the Beet Sugar In- dustry in the United States, 1908) there were only 11 factories which had driers, all of which were located in the Lake States. In 191o there were 30 factories reporting sales of dried pulp. These factories were distributed as follows: Fifteen in Michigan, 5 in California, 4 m Wisconsin, 3 in Ohio, and 1 each in Indiana, Kansas, and Minne- sota. It will be noted that the 5 factories in California have installed driers since 1908, and that there are no driers in Colorado. The absence of pulp driers in Colorado factories is no doubt due mainly to the fact that there is sale for the pulp to the cattle feeders in the vicinity of the factories and partly to the fact that these factories are such a distance from other cattle- feeding regions that freight on the pulp is so high as to absorb most of the profits. In some localities dried pulp is sold for as much as $20 per ton. The comparative advantage of selling pulp green or dried is diffi- cult to state with exactness. This depends of course upon the location of the factory with respect to cattle feeders and upon the price of other foods. One factory in California sells its pulp in the wet state, and during the three years ending with the season 1913 realized a profit for pulp of only 12 cents per ton of beets worked. In another California factory, equipped with a drier, the profit was $1.11 per ton of beets worked. The installation of a drier costs approximately $100,000, and with the prices for dried pulp that have prevailed in recent years this seems to be a profitable investment. In Table 19 (see p. 82) there is shown the average net value of pulp per 100 pounds of sugar produced during the 5-year period by States. It will be noticed that the averages for Wisconsin, Michigan, and Ohio, where most of the factories are equipped with driers, are materially higher than in other States. Since the date of installation of pulp driers in a number of factories is not precisely known to the commission it is not possible to make comparisons in the industry as a whole except for the one year 1913-14. Of the 69 factories operating in that year from which reports were obtained 30 reported the sale of dried pulp. The net profit on pulp realized by those factories having driers was 21.2 cents per 100 pounds of sugar pro- duced, while in the other 39 factories which had no driers the profit was only 5.7 cents. The importance of this by-product is also indicated by a com- parison of the profits from this source with the total earnings for all companies. The total earnings in the beet sugar business in 1913-14 before deducting depreciation was $5,777,226.92, and $1,610,351.78, or 28 per cent of this, was net receipts on pulp. If i () V / t^ < r^ /. I I > i EFFICIENCY IN THE BEET-SUGAR INDUSTKY. 151 all the factories operating in that year had been equipped with pulp driers and had they all realized this rate of profit on pulp, the earnings in the industry as a whole would have increased nearly $1,500,000. While it is not reasonable to assume that all factories could have realized so large a profit from this source, due to the faci that some are inaccessible to the markets, these figures do indicate that a pulp drier is a very important factor in the efficient equipment of those factories within reach of dried pulp markets. Section 5. Conclusions. There is opportunity for materially increased efficiency in many beet sugar factories. The figures in Table 17 (see p. 78) abundantly confirm this view. During the 5 years covered by this report fac- tory numbered 17, as shown in that table, had an average conver- sion cost of only 44 cents per 100 pounds of sugar, not including depreciation. Other factories in the same vicinity, and some of them operated by the same company that operates factory No. 17, had a cost of from 65 cents to $1. Factory No. 26 had a conver- sion cost of 87 cents, while factory No. 25, operated by the same company in the same State, had a cost of $1.16. Factory No. 37 had a cost of 77 cents, while other factories operated by the same company in the same immediate region had costs ranging as high as $1.08. The costs of conversion here enumerated are the net cost after deducting the net profits from by-products. The factories In each of the groups here enumerated operated under similar condi tions with respect to the supply and quality of beets. Comparisons of this sort could be multiplied. While it is not to be expected that every beet sugar factory could reduce its conversion cost to 44 cents per 100 pounds, it is not unreasonable to conclude that no factory that is well located with respect to an ample supply of beets of good quality should have a net conversion cost of as much as $1 per 100 pounds of sugar. It at least seems probable that with even ordinary regard for effi- ciency in equipment and methods of operation the average cost of conversion in a considerable number of factories could be greatly reduced. Of course no degree of efficiency in operation can result in a low cost of conversion for those factories so situated as to have an inadequate supply of beets or those in regions where the quality of the beets is extremelv low. I SUGAR MANUFACTUREES AND BEET GKOWEES. 153 CHAPTER VII. RELATIONS BETWEEN SUGAR MANTJFACTTJRERS AND BEET GROWERS. Section 1. Interdependence of the two interests. Perhaps no other manufacturing industry is so sensibly dependent upon agriculture as the beet sugar industry. On the other hand, no other branch of farming of equal importance is so entirely dependent upon a strictly local industry. Other industries are dependent upon the farmer for their principal raw material, but their relations with the farmer are so distant as not to be a sensitive factor. The cotton manufacturer and the miller must depend upon the cotton and grain grower respectively for their supplies of raw material, but millions of farmers in various parts of the world grow these commodities. These farm products are of such a character and their manufacture is -of such a nature that they can be economically shipped thousands of miles. Thus the farmer and the manufacturer may be widely sep- arated. Sugar beets, however, can not be economically shipped a long dis- tance. Only about 12J per cent of the weight of beets is extractable sugar, the extreme range being from about 10 per cent to about 16 per cent, and the average is about 12^ per cent. Thus, if freight charges on a ton of beets is 40 cents, or 2 cents per 100 pounds, the charge on the extractable sugar will average about 16 cents per 100 pounds. It is apparent, therefore, that the sugar factory and the beet grower must be near each other; otherwise, the farmer must sell his beets at a lower price than he can afford. The sugar manufacturer must obtain his beets at a price that will enable him to sell his prod- uct in competition with cane sugar or he will fail. Furthermore, be- fore a sugar factory is built, owners of capital should be assured of a sufficient quantity of beets not merely for one year but for several years. These conditions result in a close bond of common interest between the manufacturer and the farmer. This interdependence, however, is not evenly balanced because when the farmer can grow other crops at a profit equal to or greater than that derived from beets he is likely to do so. That is to say, if for any reason beets should not be as satisfactory as some other crop, he can generally utilize his land 152 • ,i«-( \ without suffering disadvantage. The farmer therefore is not en- tirely dependent upon the sugar factory. If he expects to grow beets at all, however, he must have a factory reasonably near him. It may be argued by some that the manufacturer is not entirely dependent upon the farmer for the reason that he has the alternative of grow- ing his own supply of beets. Practical experience, however, does not support this argument. In general, the growing of beets by the manufacturer in sufficient quantity to supply his factory is not feasible. Sometimes the necessary land can not be had, and even when it can experience has frequently failed to commend this method of obtaining a beet supply. The results of farming operations en- gaged in by sugar manufacturers have often resulted in loss. Prac- tically, therefore, the manufacturer is dependent upon the farmer for his supply of beets. The history of the beet-sugar industry in this country has conclu- sively demonstrated this interdependence of the two interests. With few exceptions no beet-sugar factory has been successful where it could not depend upon the farmers in the community where it was erected. The failure of a number of factories, and probably most of those that have been unsuccessful, has been due to the unwillingness or the inability of the farmers to supply a sufficient quantity of beets, or if the quantity was sufficient the quality was too low to be profit- able to the factory. This close relation between the sugar ,manuf ac- turer and the beet grower suggests the desirability of hearty, friendly cooperation between the two interests. . Section 2. Contract prices for beets. Practically all sugar-beet growers enter into contract with the sugar manufacturers for the sale of their beets before the seed are planted. It is a rare thing to find a farmer growing beets without a contract. This is due in the first place to the fact that the beet- sugar manufacturer must have reasonable assurance of a sufficient quantity of beets to operate his factory, and in the second place to the desire of farmers generally to have some assurance in advance of planting as to the price they will receive for their beets. There are numerous variations in the terms of the contracts, particularly in respect to the price that is to be paid. Speaking broadly, all prices are based on the sugar content of the beets. In many cases, however, this basis embraces a considerable range of sugar content, and it is therefore rather indefinite. Generally there is a base price for a specified range in the percentage of sugar and a ^/ I J scale of advance in price as the percentage increases above the maxi- lum of the basis range. In other cases there is a flat rate for all beets where the sugar content does not fall below a certain per cent. 7 t 11 154 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. There is also frequently a imnimum content below which the factory will not take the beets. Sometimes there is a limitation as to the maximum size of the beets, those that are extremely large not being desirable. That portion of the contract relating to the price to be paid for beets during the past 2 or 3 years is shown below for several com- panies operating in the principal beet sugar producing sections. These contracts do not cover all the factories, but they represent those companies that produce the bulk of the beet sugar. Contracts in 1913 and 1914.— The contracts for the year 1914 used by most of the companies operating in Michigan provided for the payment for beets as follows: Said beets shall be harvested and loaded by the grower for the company on cars, or delivered at factory sheds, at such time and in such quantities as may be directed by the company. The company will not be liable to receive or pay for beets which do not test 12 per cent sugar, are rotten, or otherwise unfit or un- desirable for making sugar. For beets delivered under this contract and loaded on cars by the grower, the company will pay five dollars ($5) per ton at loading point ; and for beets delivered to the company's fac- tory by wagon and unloaded by the grower into the company's beet bins, the company will pay five dollars and sixty cents ($5.60) per ton. Both of above prices are to be applied to weight of beets after making deductions for dirt and improper topping. Payments to be made on the 15th of the month follow- ing the delivery of beets. Prior to 1914 the contracts of the Michigan companies provided for a rate of $4.50 a ton for beets having a sugar content of not less than 12 per cent and 33^ cents for each additional 1 per cent of sugar. Some of the factories in Ohio have had two forms of contract, one with a sliding scale and the other providing for a flat rate. The slid- ing scale contract used in 1913 was as follows : For all beets grown and delivered at the factory under the above conditions, the sugar company agrees to pay four dollars and fifty cents ($4.50) per net ton weight for beets, and 33^ cents per ton more for each 1 per cent of increase in the amount of sugar above 12 per cent. The grower will be paid under this contract all the beets are worth according to test, and is guaranteed not less than $5 per ton delivered at railwav station. The provisions of the flat rate contract were as follows : The beets are to be given due care, and as far as practicable the undersigned will follow instructions in regard to selecting S) r ^ SUGAR MANUFACTURERS AND BEET GROWERS. 155 ■I* and preparing the soil, seeding, caring for and harvesting the crop. The beets will be paid for at the rate of five dollars ($5) per ton. Said beets shall be harvested and delivered by the grower to the company at such times and in such quantities as may be di- rected by the company, allowing each grower his pro rata amount. The company will not be liable to receive or pay for beets improperly topped or which are rotten or otherwise unfit or undesirable for making sugar. It will be noted that the 1913 sliding scale contract above quoted guarantees not less than $5 per ton and it is assumed that this guar- antee was made upon the theory that the beets would have a sufficient sugar content to call for $5 per ton under the contract. The contract with the beet growers in the vicinity of Billings, Mont., for the year 1913 with regard to prices was as follows : Beets delivered and accepted will be paid for by the company as follows: $5 per ton for beets testing not less than 12 per cent sugar and under 14 per cent. 5.12^ per ton for beets testing not less than 14 per cent sugar and under 14.5 per cent. $5.25 per ton for beets testing not less than 14.5 per cent sugar and under 15 per cent. $5.50 per ton for beets testing not less than 15 per cent sugar and under 15.5 per cent. $5.62^ per ton for beets testing not less than 15.5 per cent sugar and under 16 per cent. $5.75 per ton for beets testing not less than 16 per cent sugar and under 16.5 per cent. $5.87^ per ton for beets testing not less than 16.5 per cent sugar and under 17 per cent. $6 per ton for beets testing not less than 17 per cent sugar and under 17.5 per cent. $6.12^ per ton for beets testing not less than 17.5 i)er cent sugar and under 18 per cent. $6.25 per ton for beets testing not less than 18 per cent sugar and under 18.5 per cent. $6.37^ per ton for beets testing not less than 18.5 per cent sugar and under 19 per cent. $6.50 per ton for beets testing not less than 19 per cent sugar and under 19.5 per cent. And 12^ cents per ton additional for each one-half per cent above 19.5 per cent. The contracts in Montana for 1914 prescribed a base price of $4.75 per ton, but because of the increase in the price of sugar when the time of delivery came the growers were paid according to the con- tract for 1913. The contract with the growers in the vicinity of ScottsblufF, Nebr., in 1912 and 1913, provided for a flat rate as follows : That it, its successors or assigns, will purchase all beets suit- able for sugar-niaking purposes, grown, harvested, and delivered in accordance with the terms, specifications, and requirements of this contract and pay therefor at the rate herein specified (less I I I I f V ~T ~i Tra -a^^^ii^ma JU. 156 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. the usual deductions for dirt, leaves, and improperly topped or damaged beets), to wit: For all beets delivered at factory or designated receiving sta- tions in good condition, of eighty (80) per cent purity or better, and containing twelve (12) per cent or more sugar $5.00 It being agreed and understood that the company shall not be obliged to receive any beets prior to October 15th containing less than fifteen (15) per cent sugar. The contract for 1914 with the growers at Scottsbluff provided for a flat rate of $4.50 per ton, but at the time of delivery the manufac- turers restored the 1913 price. The contract with the growers in northern Colorado for 1913 was as follows: Beets delivered and accepted will be paid for by the company as follows: "^ $5 per ton for beets testing not less than 12 and under 14 per cent sugar $o.l25 per ton for beets testing not less than 14 and under 14.5 per cent sugar. $5.25 per ton for beets testing not less than 14.5 and under 15 ner cent sugar. ^ $5.50 per ton for beets testing not less than 15 and under 15.5 per cent sugar. ^ $5,625 per ton for beets testing not less than 15.5 and under 16 oer cent sugar. ^ $5.75 per ton for beets testing not less than 16 and under 16.5 per cent sugar. ^ $5,875 per ton for beets testing not less than 16.5 and under 17 oer cent sugar. ^ !^ ?o J **^° ^^^ ^^^*^ testing not less than 17 and under 17.5 per cent sugar $6,125 per ton for beets testing not less than 17.5 and under 18 per cent sugar. ^ $6.25 per ton for beets testing not less than 18 and under 18.5 per cent sugar. ^ $6,375 per ton for beets testing not less than 18.5 and under 19 ner cent sugar. ^ $6.50 per ton for beets testing not less than 19 and under 19.5 oer cent sugar. ^ And 12^ cents per ton additional for each additional one-half of 1 per cent increase thereafter. ^ In 1914 the Great Western Sugar Co. paid a flat rate of $4.50 a ton to some growers in northern Colorado, but generally a sliding-scale contract was adopted that fixed the base price at $4.75. As in the case of Montana and Nebraska, the Great Western restored the 1913 price when the price of sugar rose in 1914. A contract used by one company in southern Colorado provided the following prices for the year 1913 : The company agrees to purchase from first party the net beets grown on acreage as above mentioned. First. To pay therefor for all beets grown under this con- tract, after proper tare deductions have been made for dirt, rocks, leaves, and improper topping, as follows : $5 per ton for beets testing not less than 12 per cent sugar and under 14 per cent. $5.12* per ton for beets testing not less than 14 per cent sugar and under 14.5 per cent. SUGAR MANUFACTURERS AND BEET GROWERS. 157 $5.25 per ton for beets testing not less than 14.5 per cent sugar and under 15 per cent. $5.50 per ton for beets testing not less than 15 per cent sugar and under 15.5 per cent. $5.62^ per ton for beets testing not less than 15.5 per cent sugar and under 16 per cent. $5.75 per ton for beets testing not less than 16 per cent sugar and under c^ 16.5 per cent. ^'^ $5.82i per ton for beets testing not less than 16.5 per cent sugar and » under 17 per cent. $6 per ton for beets testing not less than 17 per cent sugar and under I 17.5 per cent. $6.12^ per ton for beets testing not less than 17.5 per cent sugar and under 18 per cent. $6.25 per ton for b^ets testing not less than 18 per cent sugar and under 18.5 per cent. $6.27^ per ton for beets testing not less than 18.5 per cent sugar and ^ under 19 per cent \ $6.50 per ton for beets testing not less than 19 per cent sugar and under 19.5 per cent. And 12^ cents per ton additional for each additional half of 1 per cent increase thereafter. Another factory in southern Colorado in 1913 secured contracts at the following rates : For beets delivered, samples of which test not less than twelve (12%) per cent and up to sixteen (16%) per cent sugar to the weight of the beet, and a purity of not less than 80%, per ton of ( 2,000 lbs $5 50 For beets delivered, samples of which test sixteen (16%) per cent sugar or more, per ton of 2,000 lbs 6. 00 In 1914 this latter factory adopted the following scale of prices: For beets delivered, samples of which test not less than twelve (12%) per cent and up to sixteen (16%) per cent sugar to the weight of the beet, with a purity of not less than 80%, per ton of 2,000 lbs $5. 00 For beets delivered, samples of which test sixteen (16%) per cent sugar to the weight of the beet, and above, with a purity of not less than 80%, per ton of 2,000 lbs 5. 50 This company stipulated in its contracts for both years that it would not be bound to receive any beets testing less than 12 per cent in sugar or containing less than 80% purity. The schedule of prices shown in the contract of another company operating in southern Colorado was as follows : For beets testing— Per ton. 25 per cent sugar ^9^ 33^ 24 per cent sugar 9 00 23 per cent sugar g ggj 22 per cent sugar g 33^ 21 per cent sugar g oo 20 per cent sugar 7 qq^ 19 per cent sugar 7^ 33^ 18 per cent sugar 7 00 17 per cent sugar 6.66f 16 per cent sugar g^ 33^ I \ 158 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. For beets testing — Per ton. 15 per cent sugar $6. 00 14 per cent sugar 5. 66§ 13 per cent sugar 5. 33i 12 per cent sugar 5.00 33i cents per ton additional for eacli per cent above 25 per cent, fractions in proportion. This company reserved the option of rejecting beets showing less than 12 per cent of sugar or less than 80 per cent purity. The schedule of prices shown in the contract employed in the vicin- ity of Grand Junction, Colo., in 1913, was as follows: Beets delivered and accepted will be paid for by the company as follows : $5 per ton for beets testing not less than 12 per cent sugar and under 15 per cent. $5.25 per ton for beets testing not less than 15 per cent sugar and under 15.5 per cent. $5,375 per ton for beets testing not less than 15.5 per cent sugar and under 16 per cent. $5.50 per ton for beets testing not less than 16 per cent sugar and under 16.5 per cent. $5,625 per ton for beets testing not less than 16.5 per cent sugar and under 17 per cent. $5.75 per ton for beets testing not less than 17 per cent sugar and under 17.5 per cent. $5,875 per ton for beets testing not less than 17.5 per cent sugar and under 18 per cent. $6 per ton for beets testing not less than 18 per cent sugar and under 18.5 per cent. $6,125 per ton for beets testing not less than 18.5 per cent sugar and under 19 per cent. $6.25 per ton for beets testing not less than 19 per cent sugar and under 19.5 per cent. $6,375 per ton for beets testing not less than 19.5 per cent sugar and under 20 per cent. And twelve and one-half cents (12ic.) per ton additional for each one- half per cent above 20 per cent. In 1914 this company reduced the price to a flat rate of $4.75 per ton. In 1911, 1912, and 1913 beets were bought under at least two rates in Idaho. The following were the rates paid under one form of contract : For all beets in good condition of eighty (80) per cent purity or better, and containing fifteen (15) per cent sugar, five dol- lars ($5) per ton. For all beets in good condition of eighty (80) per cent purity, containing no less than twelve (12) per cent and under fifteen (15) per cent sugar, four dollars and twenty-five cents ($4.25) per ton. -^ ( > ■* *w r -^ ¥ IV SUGAR MANUFACTURERS AND BEET GROWERS. 159 Under another form of contract the following rates were paid : For all beets in good condition of eighty (80) per cent purity or better, and containing fifteen (15) per cent or more sugar, five dollars ($5) per ton. For all beets in good condition of eighty (80) per cent purity, containing not less than twelve (12) per cent and under fifteen (15) per cent sugar, four dollars and seventy-five cents ($4.75) per ton. • Under both of the above contracts the sugar company was not bound to receive beets of less than 80 per cent purity or that tested less than 12 per cent sugar. In Utah and Idaho in 1913 both a sliding scale and a flat-rate con- tract were in use. The provisions of the flat-rate contract were as follows : Such beets shall contain not less than 12 per cent saccharine, with a purity of 80 per cent. * »^ * 4e * « * It shall be optional with the sugar company to accept or reject any beets not delivered on or before the last day of November. 4: iF 4c 4c 4: « * The sugar company agrees that on or about the loth day of each month it will pay $4.75 per ton at factory for all beets re- ceived during the preceding calendar month. The sliding-scale contract in Utah was as follows : < During the month of September and up to October 20, in- clusive, it will purchase at $5 per ton all beets grown upon • said land that may have an average polarization of not less than 15 per cent saccharine and 80 per cent purity; such beets to be delivered only as ordered by the sugar company, but after October 20 as rapidly as the grower may desire. In case any part of the beets raised hereunder shall not be delivered before November 1, or if the delivery of any part thereof shall be stopped before that date because the polariza- tion shall not equal the required standard, then the sugar com- pany agrees thereafter and up to November 30 to purchase all such beets not previously ordered or delivered as may polarize more than 12 per cent and less than 13 per cent saccharine with 80 per cent purity at $4.25 per ton; and all containing 13 per cent and less than 14 per cent saccharine with 80 per cent purity, at $4.50 per ton; and all containing 14 per cent and less than 15 per cent saccharine with 80 per cent purity, at $4.75 per ton; and all containing 15 per cent or more saccharine with 80 per cent purity, at $5 per ton. It shall be optional with the sugar company to accept or reject any beets not delivered on or before the last day of November. The above prices were also paid in Utah in 1914. There was considerable variation in the prices paid in California. Those representing the purchase of probably the greater portion of I r ^1 I 160 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. beets grown are here shown. A sliding-scale contract used in 1912, 1913, and 1914 by one company was as follows : The company will weigh and pay the grower for all beets de- livered and accepted, after above deduction, the following prices per ton of 2,000 pounds : Beets testing 15 per cent sugar, $5.25 per ton, with an addi- tional 25 cents per ton for each 1 per cent of sugar above 15 per cent. Fractions of a per cent in proportion. Beets testing under 15 per cent sugar down to 11 per cent sugar, $5 per ton. The company reserves the right to reject beets testing under 11 per cent sugar not suitable for making sugar. The company will also pay all railroad freights on beets loaded on cars, provided cars be loaded to full capacity. Demur- rage charges shall be paid by the grower. A flat-rate contract used by the same company was $5.50 per ton and the company reserved the right to reject beets testing under 11 per cent. Another company in 1912 and 1913 paid for its beets on a scale as follows : Beets testing fifteen (15) per cent sugar, five ($5) dollars per ton, with an addition of thirty (30) cents per ton for each one (1) per cent of sugar above fifteen (15) per cent and a deduc- tion of twenty-five (25) cents per ton for each one (1) per cent below fifteen (15) per cent, down to and including eleven (11) per cent; fractions in proportion. Beets testing under eleven (11) per cent will be accepted as if testing eleven (11) per cent if weighing under five (5) pounds. The factory reserves the right to reject beets testing under eleven (11) per cent sugar and weighing over five (5) pounds. In 1909, 1910, 1911, and in 1914 the base price was only $4.50 for beets testing 15 per cent. The contracts for these years had the same reservation for beets testing under 11 per cent as that quoted above. Contracts in 1915.— In some sections the contracts offered the farmers in 1915 differed considerably from those adopted in any previous year. In other sections they were substantially the same. In Montana and northern Colorado the 1915 contracts were the same as those entered into in 1913 and those made effective in 1914. Practically all the factories operating in Michigan adopted a flat rate of $6 per ton in 1915. This was quite an advance over the con- tract price paid in that State in 1914 and considerably higher than was paid in any year prior to that time except for beets that tested above 16 per cent. In Utah and Idaho contracts in 1915 generally provided for $5 per ton for beets testing 15 per cent and a deduction of 25 cents per ton for each per cent of sugar less than 15. Some of these contracts, however, provided that the price for all beets testing not below 12 per cent should be $4.75. SUGAR MANUFACTURERS AND BEET GROWERS. 161 ^M^ \ i* (( # t V r i '4 y V A significant clause was found in the 1915 contracts offered by the companies operating in Ohio and some companies operating in California. The companies in Ohio offered a flat price of $5 per ton for beets delivered at the railroad station, with the provision that if the average price of beet sugar exceeded $5 per 100 pounds the grower would receive as additional compensation per ton of beets the dif- ference between $5 and the average price of sugar. Thus, if the average price of beet sugar per 100 pounds should be $5.75, then the price of beets would be $5.75. Some of the Wisconsin factories en- tered into similar contracts. In California the contracts of some of the factories provided for $4.50 for 15 per cent beets plus 30 cents for each additional per cent, or a deduction of 25 cents for each per cent below 15, and a bonus of 50 cents per ton if the average net selling price of sugar exceeded 4^ cents per pound. At one of the factories in Nebraska a bonus of 50 cents per ton was offered if all the growers together delivered more than 135,000 tons of beets. In general, contracts in the Lake States and in California were more favorable than those adopted in any previous year. Apparent inconsistencies in contracts. — ^An analysis of these contract prices discloses points of apparent unfairness. The flat rates do not take into account the sugar content above a stated minimum. Thus, for example, if a contract to pay a certain price per ton for beets having a sugar content of 12 per cent is a fair one, that price is manifestly unfair to farmers whose beets test more than 12 per cent and who are paid no more. That the flat rate contract is unfair is recognized by the extent to which manufacturers have adopted a sliding scale of prices graduated according to the sugar content. The sliding scale contracts, however, are not free from incon- sistencies. For example, if $4.50 is a fair price for 12 per cent beets then each additional per cent of sugar should be worth at least 37^ cents. And so, if 12 per cent beets are worth $5 per ton then each additional per cent of sugar should be worth at least 41§ cents. No manufacturer in the United States pays as high a price as this for additional sugar in the beet. As a matter of fact each additional per cent of sugar above 12 per cent is worth more relatively than each per cent below 12. Experience shows that a greater percentage of the sugar content is extracted from high-grade beets than from low- grade beets. These apparent inconsistencies were pointed out to an official of one of the large sugar companies, who is one of the best informed men on this subject in the country. He stated that the inconsistencies referred to were not merely apparent but real. As a matter of fact, according to this official, $5 per ton is too high a price for beets testing only 12 per cent. He stated that the ex- perience of his company had been that 16 per cent beets were worth f I A' 162 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. upon an average about $5.75 per ton, or 36 cents for each per cent of sugar. The reason stated for the relatively high price for low- grade beets is that the farmers insist upon a guaranty of a fairly high minimum price. In other words, the farmers in some com- munities will not grow beets at all unless they can have a guaranty of at least $5 per ton. When the minimum price is too high, the manufacturer protects himself by adopting a lower price for the additional sugar. If it is assumed, as stated by the authority above referred to, that in beets testing 16 per cent, each per cent of sugar is worth about 36 cents, then in actual practice the apparent inconsistencies in the contracts are partially overcome. The factories operating in Colo- rado have paid during the 5 years ending with the compaign of 1914 almost exactly 36 cents for each per cent of sugar in the beets as they enter the factory. The percentage of sugar in the beets when introduced into the factory is somewhat lower than the percentage shown when they are tested at the receiving stations. The average sugar content of the beets entering the factories in the State of Colorado for 5 years was a little less than 15^ per cent and the aver- age price paid the farmer for this sugar was almost exactly 36 cents for each per cent of sugar shown in the factory test. In Montana • the discrepancy was greater, the price paid for 17 per cent beets being about 34 cents for each per Cent of sugar. In Utah and Idaho the price was considerably lower, being only about 30 cents for each per cent of sugar. In California the average was about the same ' as in Utah and Idaho. In the Lake States the average price was higher. There it was approximately 40 cents for each per cent of sugar. Beside the inconsistencies in the contracts themselves there is a striking contrast between the contracts in various beet -growing sections. Thus, the Michigan manufacturer will pay $4.50 for 12 per cent beets, whereas most of the manufacturers in Colorado will pay $5 for beets of the same sugar content. In Utah some of the contracts allow only $5 flat for 15 per cent beets. In other words, they allow 33^ cents for each per cent of sugar in 15 per cent beets, but if the beets should test 18 per cent they will still take them at $5 per ton. The payment of a different price in different sections may be justified by distance from consuming markets or possibly for some other reason, but there is no apparent justification for different prices in the same community by the same company. From the standpoint of those who insist upon encouraging the extension of the industry in new and untried localities some of the in- equalities just pointed out may be justified. It is certainly true that capital can not be expected to venture into beet-sugar manufacturing unless there is an assurance of a supply of beets. It is probably /► " i ;> I/- \i r SUGAR MANUFACTURERS AND BEET GROWERS. 163 true that farmers would not agree to grow beets unless they were guaranteed a remunerative price for their product, even though the quality might not warrant it. Under such circumstances differ- ences in price not justified by the quality of beets may be necessary to promote the industry in new fields, but their continuation after the quality of the beets has been improved from experience in growing them can not be justified. The maintenance of such a system results in the farmer who grows low-gi-ade beets being paid more than they are worth, while the grower of high-grade beets is paid less. Section 3. The test of a fair price for beets. The beet grower often complains that he does not receive a fair price for his beets. The sugar manufacturer replies that the farmer makes as much or more money on his beets as he does on any other crop. This is probably, in the main, true. The farmer re- joins with the assertion that the manufacturer makes large profits extracting sugar from beets and that he can afford to pay more for them than he does pay. This also is sometimes true. It is thus seen that the manufacturer applies one test as to the fairness of the price and the beet grower applies another. The contention of the grower that the large profits of the manufacturer would often enable him to pay a higher price than he does pay implies the idea of cooperation. If the profits of a manufacturer are a fair cri- terion for the establishment of the price of beets, then the grower should be willing always to accept a price low enough to enable the manufacturer to realize a profit. In other words, on this basis of establishing the price of beets, when the sugar business is prosperous the beet grower would receive a high price, and when it is not prosperous he would receive a low price. If this system of determining prices had been employed in the past the farmers sup- plying a number of factories would have received a very much lower price for beets than they have received. On the other hand, the farmers in the vicinity of other factories would have received a very much higher price. Some factories have never made much money and have often lost large sums. If the farmers had shared these losses, the results of their beet-growing operations would have l)een disastrous. With a fixed price for beets the intelligent, industrious farmer is generally assured a fair return for his efforts. As soon as he har- vests his beets he knows precisely what he has made. This ad- vantage of certainty is unquestionably worth considering. If the price of beets depended absolutely upon the vicissitudes of the sugar market it is doubtful whether any considerable number of farmers would be willing to engage in this branch of agriculture. Upon the whole, therefore, it would seem that the principle involved in J L ■ -Jl 164 THE BEET SUGAR INDUSTRY IN THE UNITED STATES. the present system of determining prices of beets is the more ad- vantageous to the beet grower. This system, however, might be more equitable by basing the fixed price more nearly upon the sugar content and purity of beets. The sugar manufacturer knows the relative value of beets of different tests, and he should be willing to pay a price that will place all farmers upon an equal basis. It is manifestly inequitable to fix a flat price for beets based upon a range of sugar content embracing as much as 2 or 3 per cent. If the farmer who grows 12 per cent beets is entitled to a given amount, say $4.50 per ton, then beets testing 13, 14, or 15 per cent are worth proportionally more and should be paid for on that basis. On the other hand, if the base price is fixed on a sugar content of, say, 15 per cent, then the farmer's beets which test below this are not worth as much as the basis price and he should not expect to receive that price for them. The reasonableness of basing the price of beets upon the price OF SUGAR.— As already pointed out, the terms of some beet contracts made in 1915 provided for a minimum price for beets and an addi- tion to that price in case the price of sugar should be above a cer- tam figure. Such a basis for determining the price of beets deserves careful consideration. The fixing of the price of a raw material a year in advance of the time when the value of the manufactured product can be determined involves considerable speculative risk. If it is practicable to base the price of beets upon the price of sugar, such a system would appear to be entirely reasonable and fair. Under such circumstances the beet grower would be assured of all his beets are worth, and the manufacturer would in no case be compelled to pay more than the price of sugar would warrant. It would seem much more reasonable to determine the price of beets upon this basis than upon the basis of the profits of the manufacturer. It is realized that there would be some difficulty in determining the proper relation between the price of sugar in the beet and the manufactured product. If the price of beets could be determined upon some such basi?, it would at least tend to eliminate the controversies that are nov/ so frequent between the beet growers and beet sugar manufacturers with respect to the price of beets. Whether determining price^^ for beets on such a basis would discourage their cultivation is a question which only experience could answer. O j»n i A ^ y J n .-ii COLUMBIA UNIVERSITY LIBRARIES This book is due on the date indicated below, or at the expiration of a definite period after the date of borrowing, as provided by the library rules or by special arrangement with the Librarian in charge. ) DATE BORROWED DATE DUE DATE BORROWED DATE DUE '*> ] . '_' « C20(114»)1OOM ■ ■ ftiM ^M ■r '■1 ^^H [ 'M ^H tU ^^1 V PVHH H TTTT- . ■: B v:l \ ^Hu' ''' I^M 1 ^^HT .^H i, ^^Hi ^HJ »' v -1 i 1 1 »>', ■■■f..-A QAyLAMOUNT PAMPHLET MHOU Mamm/aetuMi ly 6AYLORDBROS.IIICI SyracoM, M. V. StoekteM, CmHS. ^^^9^ f^l 4 m COLUMBIA UNIVERSITY LIBRARIES 0041402812 D510 Dn25 D510 \3n35 U.S. Federal trade conunission. Report on*e beet sugar industry ^S ihe united States. MR9- / / » ,.- fc--■ ' ~^ >* ^' ■ W'' ■ -i] END OF TITLE