4 THE SUGAR INDUSTKY. 



operating this fall, representing additional millions of capital and of money paid to 

 farmers. But for an unprecedented drouth in California, the product of beet sugar in 

 1398 would have been much larger. 



For a complete insight into the progress of the industry prior to 1897, see Parts 

 Two and Three, while the results and lessons of 1897 and 1898 are fully stated in Part 

 Four. 



ALL THAT IS NOW NEEDED 



to insure a speedy, permanent and profitable development of this industry in the United 

 States, is the declaration by Congress that sugar from the tropics shall continue to pay 

 the same duties in the future as in the past. Also prohibit coolie-contract labor in the 

 Sandwich Islands, and avoid unjust reciprocity. 



Millions upon millions of capital, domestic and foreign, will at once flow into this 

 industry. It is conservative to say that, if Congress thus acts promptly, upward of 

 $50,000,000 will be invested in new factories in time to work up the 1900 crop of beets. 

 This would make a home market for some $25,000,000 worth of beets in 1900, in addition 

 to the crop required for existing factories. Several millions would also go into the cane 

 sugar industry of Louisiana, Florida and Texas. 



I also venture the prediction that, if such politico-economic policy is at once deter- 

 mined upon and is not changed for ten years, long before 1910 the United States will be 

 producing practically all ,the sugar it now consumes. This is a consummation devoutly 

 to be wished. 



THE VITALITY OF THIS INDUSTRY, 



especially beet sugar, is shown by its development in the face of the greatest economic 

 and political changes and uncertainties that ever beset a new industry. Just as it began 

 to attract attention, the free-sugar law of 1890 offered a mighty stimulus to Europe's 

 established beet sugar factories at the expense of the struggling industry in the United 

 States, which our domestic bounty of 2c per Ib by no means equalized. "Free sugar and 

 a bounty," at that time was one of the greatest economic errors ever committed. 



This was overthrown by the Wilson revenue tariff of 1894, which introduced au 

 entirely new set of conditions. Then camo the Dingley tariff of 1897, which had not been 

 in operation a year before the Spanish war brought in wholly unexpected complications 

 and uncertainties. 



Surely it is not unreasonable to demand that now the present law be steadily main- 

 tained in full effect for a series of years. This demand is all the more reasonable in view 

 of the fact that existing duties are less than one-half the average tariff now enforced by 

 eight European nations. 



WHY DID NOT THE AMERICAN SUGAR INDUSTRY DEVELOP EARLIER? 



Because when the sugar beet was first tried, 20 and 25 years ago, other crops paid 

 so much better that farmers did not have the patience to learn how to grow beets. The 

 first factories were not well located to secure an abundant supply of rich beets. The 

 whole thing was comparatively new, and beets were of poorer quality than now. Then, 

 10 and 12 per cent, of sugar in the beets was considered fair; now anything below 12 per 

 cent, is not accepted at the factory, averages of 14 to 15 per cent, over large areas are 

 not uncommon, while tests of 18 to 24 per cent, sugar in American beets are on record. 

 The beet is a thoroughbred that improves in richness as a result of proper inbreeding 

 and care. Another powerful obstacle to the beet-sugar industry in America 10 and 20 

 years ago was, that with high-priced wheat and virgin land free of cost, other crops were 

 more profitable in comparison with the labor involved. 



