14 STATE BOARD OF AGRICULTURE. 



and U])OU a product of two hundred pounds of sugar from each ton 

 of beets, and a run of 40,000 tons of beets. Whatever the size of the 

 factory, or whoever erects it, the cost is not far from $1,000 for each 

 ton of daily capacity. This would make the factory •cost not less than 

 1600,000. One-half of this sum is generally secured from stock and the 

 remainder by the issue of bonds. 



The following represents the cost of running the factory for one year: 

 Taxes, |13,119.37; insurance, |4,459.09; interest, $4,366.99; interest on 

 bonds, $15,000; labor and salaries, $64,600; beets, 40,000 tons at $5.00, 

 which has been the average price paid per ton, $200,000; coal, $21,600; 

 lime rock, $5,400 ; coke, $2,016 ; barrels for eight million pounds of sugar, 

 which has been the average output, $9,660; sulphur, acids, chemicals, 

 tools, etc., $7,250. Total expenses for running the factory, $347,471.45. 



The receipts will be as follows : White sugar, $352,000 ; brown sugar, 

 $9,000; molasses, $3,000; total, $364,000. The amount left for depre- 

 ciation on plant and interest on investment is about $16,500. This will 

 be no more than the bare return for the money invested by the stock- 

 holders and will not leave anything for depreciation in machinery and 

 buildings. This is always very great, especially as it frequently be- 

 comes necessary to substitute new and expensive machinery for that 

 of the past. 



Under the present conditions, the factory cannot afford to raise the 

 price of beets, and, in fact, cannot even afford to pay the present price. 

 Unless the farmers increase their acreage some of the factories will be 

 closed and the product worked up by the others. 



At the present time, the solution of the acreage question that seems 

 most probable is for the companies to lease or buy large tracts of land 

 and raise their own beets. 



THE RELATION OF THE FACTORY TO THE FARMER. 



BY PERRY G. TOWAR, LANSING. 



If there is one person connected with the beet sugar industry who 

 appreciates the friendly relations that ought to exist between the fac- 

 tory and the farmer, it is the agricultural superintendent. He is sup- 

 posed to have a full general knowledge of the industry that he may be 

 able to answer any question asked by the farmer. He must be able to 

 explain in detail the most modern methods of growing beets, that the 

 farmer may realize the greatest profit. He should be familiar with the 

 cost of growing beets, as well as the cost of manufacturing sugar, that 

 he may assist in the adjustment of the differences between the farmer 

 and the factory. He should be in touch with all new improvements 

 that tend to better the conditions. He is the go-between or peace-maker 

 in his relations to both. Apparently he is double-faced or two-sided, 

 for he must take the part of the farmer in discussing questions of policy 



