THE BEET-SUGAR INDUSTRY IX 1920. 53 



varies from year to year in the same locality. The direction and 

 extent of the variation depend upon labor conditions and upon the 

 wholesale price of sugar. 



Sliding scale. — The second form of contract so far as the price of 

 the beet roots is concerned is the so-called sliding scale. The other 

 features in the contract, aside from the price to be paid for the beets, 

 are usually the same as in the flat-rate contract. The sliding scale 

 of beet prices is based either upon the percentage of sugar in the 

 beet or upon the market price of sugar at a given time and place, 

 or it is based upon a combination of the sugar in the beet and the 

 price of sugar. In those contracts in which the scale of prices for 

 beets depends upon the sugar content of the beet root there is a mini- 

 mum price per ton for a beet of a given quality and an increased price 

 per ton for each unit or fraction of 1 per cent of sugar in the 

 beet above the minimum. The minimum price and the minimum 

 quality of the root agreed upon differ in different localities, but are 

 definitely stated in the contract. The rate of increase also varies in 

 different localities; for example, one sugar company may agree to 

 pay a minimum price of $5 per ton for beets testing 12 per cent 

 sugar, while another company may agree to pay a minimum price of 

 $6 per ton for a minimum of 14 per cent sugar content. They may 

 also agree to increase the price 25 cents or 33^ cents per ton for each 

 per cent of sugar above the minimum. 



The price scale for beets, based upon the market price of sugar, 

 was in use in several localities for the first time in 1917. Since that 

 date the price of sugar has played an important part in the price of 

 beet roots in all sugar-beet areas. In these contracts the price of 

 sugar at a given time and for a definite stated period is taken as the 

 basis. If the price of sugar at the place and for the time specified 

 is $6 per hundred, for example, the price paid for the beets will be 

 $G per ton or $7 per ton, as may be agreed upon and specified in the 

 contract. Usually a minimum price to be paid for the roots is stated 

 in the contract with a stated increase for each unit of increase in the 

 price of sugar. This would seem to be an equitable arrangement, 

 since the greatest profit to the grower and to the sugar company 

 would result when the price of sugar is high, and both would share 

 the smaller profit or the loss when the price of sugar is low. 



Profit sharing. — In the profit-sharing contract the grower is guar- 

 anteed a fixed minimum price for beets, the sugar companies to ac- 

 cept a minimum price for sugar, which presumably will give the 

 grower and the sugar company approximately the same profit per 

 ton of beets. It is further agreed that all profits in excess of the 

 amounts above mentioned shall be divided equally between the 

 grower and the sugar company. In areas where this contract or the 



