THE BEET-SUGAR INDUSTRY IN 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 ma}^ 
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 
$6 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 
