:michigan beet sugar 409 



Ci. It is the natural anrajiouis-t of inouopdly, ami by its very nature 

 is im-a]»able of foiniin;^' a trust of any kind. 



7. It is the only <j,reat nuinufactuiing industry in which the farmer 

 must secure his share of the profits. 



K. C. KEDZIE. 



A^ricuItMral College, Michigan. 



THE FAKMEK AND BEET SUGAR. 



[From Free Press Editorial. Oct. 11. I'.xil.] 



Reduced to its simplest form Prof. Kedzie's ai-gument in behalf of 

 the beet sugar industry which was published in yesterday's issue of 

 the Free Press, is this: The beet sugar industry is an excellent thing for 

 the farmers that raise the beets. 



This we can readily belieAe. Whether tlie industry is likeh' to prove 

 ])r(»fital)le from the standpoint of the public is another matter. 



I'rof. Kedzie makes the point that it is impassible to form a trust 

 in the beet sugar business; but we hardly think he has maintained his 

 thesis. In fact, the entire beet sugar industry thus far has been to all 

 intents and purposes in accordance w'ith trust methods. There has been 

 practically no competition between the producers of beet sugar and 

 the company that controls the business of refining cane sugar. If the 

 prices of beet sugar have been shaded slightly in certain districts for 

 the benefit of the jobber, the consumer has not juofited. He has paid 

 as much for his sugar as he would have paid if there had not been a ton 

 of sugar beets raised in the United States, and it is yet to be proved 

 that the development of the industry is likely to lower the price to the 

 lon.sumei". 



There is a wide diversion of expert opinion as lo the cost of production. 

 It is maintained by some that beet sugar can be manufactured and 

 sold for three cents a pound, leaving a reasonable margin of profit. It 

 is claimed l»y others that it cannot be manufactured profitably for less 

 than \i\i' cents a [»ound. \\'hellier then the jiublic has anything to gain 

 by encouragement of tlie industry depends on the cost of manufacture. 

 It also depends in a way upon the relations of the United States to 

 their new ]>ossessious. With Hawaii. Porto Rico and the Phili]i])ines 

 annexe<l, an<l Cuba in the way of annexation, the great cane sugar dis- 

 ti'icts of the world belong either actually or jjrospectively to the United 

 States. If the tarilV barriers were removed these islands would sup- 

 ply sufficient sugar to meet all the wants of the rajiidly increasing jtojiu- 

 lation of the United States proper. Even if the refining business re- 

 mained in the hands of a trust, the price of sugar would be less than 

 beet sugar could actually be produced for. including the profit made by 

 the refining company. To maintain a tarilT then on raw sugar from 

 these i(Ossessions amounts to a discrimination in favor of one section 

 of the country as against anotluM", for the benefit of comi)aratively few 

 persons. 



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