Show r Manager Manageri i l I Issues Statement on on ony y Wi Company's company S Position c W IS' Nibley Ible general manager of ot the tho Utah Idaho Sugar com corn J l esterd issued a a. statement defining tho thc company's position situation sugar existing e follows Aie statement r. I A Salt Lako Lake City Utah July 24 1920 the the Stockholders of at the Utah-Idaho Utah SU Sugar nr Company To better acquaint you ou with tho status and of the alleged causes f tb hp e proceedings between th the tho government o and our company I Tit 2 it proper to submit to you tho following report or statement S-In S rn In June 1919 a complaint was wa filed at nt Washington before tho S.-al S. si trades commission In which it Is charged that the Utah Utah- 4 Sugar company compan and Amalgamated Sugar company had entered MI l. l fa a conspiracy to and nd suppress suppress' competition and to prevent Ier ller sugar companies In Utah and Idaho from building and po tIng sugar ugar factories and had Induced railroad companies not erve ern them em and banks and other moneyed corporations not to toe e loans or advances of money to them and especially through a iracy had engaged in unfair practices In Interstate commerce Upon these charges the tho government from April 1 to July 10 of or h rear feu dr was 83 a en enraged aed in putting In Its Hs evidence Tho The defendants begin egin putting In their defense defenso August 29 We do not care at ati i time Ume to comment on tho the testimony so 60 far adduced There ar are arc two sides Bides to a litigation All we ask you Ou at this time time- Is a. a I. I your our Judgment on tho merits until both sides have hav been iY f h berd rd When that la ia done we have bavo no fear as to the ultimate come J In My 1920 another complaint was filed rUed against the company ft JI silt jilt Lake City and one ono In Idaho In which It Is ia charged d that tho the ny had sold sugar at these places at an unreasonable and ond andrate he rato rate or charge when admittedly such alleged sales were at tho the general market price of or tJ jAe e only sugar BUbar i p I DurIn the war the government go took over the sugar products ts of or s J country and b by agreements with the sugar producers and established the price of ot sugar of both cane cn and beet beott reducers t This company as well ell as os all aU other beet sugar producers ly entered Into these contracts with the tho government and them In particular To better Insure 1 with every a supply ru r for Its people the tho government for tor two years ears purchased the 1 crop of ot sugar and resold about third one of ot It to the allies 1 il d distributed the rest reat of ot It In the United States In July 1919 e b beet bett et sugar producers of ot this country countr including the Utah-Idaho Utah I company recommended the continuation by the government If f the sugar equalization board and of the tho beet sugar distributing and the he purchase b by the government of ot tho the 1920 Cuba sp tp p and arid again offered to contract with the Ute government for the tho sale ale their sugar ugar on a parity with cane CAno sugar for another year as the ther 5 r practical plan whereby tho the people ot of this country could be bej j lIed a supply of or sugar at a reasonable price The board and strongly urged this and did all they could to induce the ident to again purchase the Cuban crop The Tho recommendation ju not followed and tho Cuban crop wa was not purchased At that e It could have been purchased at 6 cents a n pound for tor ra raw pr r. r About SS 58 per cent of ot th the sugar consumed In the United States c ane ne sugar largely produced and obtained from Cuba Hawaii and ho to 10 Rico The Utah-Idaho Utah Sugar company produces produce approximately per cent of or the sugar consumed In the United States Since the nj vii nithe the production of at sugar In Cuba fixed and con controlled troll cd the r-r r ral market price of ot sugar Bugar In thIs country The Cuban cane cano sugar not having been purchased by our eminent the Cuban producers steadily advanced the price of ot the theMO MO crop of ot ra raw sugar until It reached 23 cents cent tho the highest mark kh h with the cost of ot transportation duty and refining of ot necessity I de ie cent 25 to cent 30 sugar to the consumer It Is common commont t that the thc general market price of ot sugar Is fixed at New irk k New ew Orleans and San Francisco based entirely upon thel the l' l demand find and supply of ot sugar No one cognizant of ot the thc facts this or asserts the contrary And It also Is common lulu that last winter and spring and even en up to the tho present L ipe e to sugar generally over the country has been selling at the tho jeral oeral market price of from Crom 25 cents to 30 20 cents per pound i No o one has charged nor can the charge chargo be successfully made madet at t the Utah Idaho Sugar company In any m manner had anything top to p with fixing influencing or controlling the general marl market et price of ot Producing less than 1 per cent of ot tho the sugar consumed In 5 United States this company could no more fix or influence the eral market price of ot sugar than could the production of oC wool In tah fix or Influence tho the general market price of ot wool Woot J company compan last year produced One Million Three Hundred iad ud Thirty Thirty- Thirty Nine Nine Thousand bags of sugar Of Ot that amount It sold I Jut jt 1 fall talt last winter and last spring up t to about May fRy 1 1920 fi over o One Million bags at an average price of or Ten I Dollars ollars 1 Seven Eighty Cents per bag notwithstanding the tho general market of sugar was greatly In excess of or that price Other sugar p In Utah and Idaho sold substantially all their sugar last and mi-and J and winter on the thc Eastern market and at the general market ct price r The cane producer of ot the South when his sugar came on the sold and was wag permitted to sell sen It from seventeen dollars to dollars per pound bag Heretofore only about bags of sugar of ot the Utah Idaho E far ar company were required to supply the local market In Utah ho iho o and contiguous territory The rest of or Its sugar was required i ibe be be sold and was heretofore sold on the Eastern market This last Cisal tal year however tho the Utah-Idaho Utah Sugar company compan sold find and dis dig buted In this local territory over bags at an average price iOSi a bag baS Of that amount evidently about bags were aked up by speculators at nt the low price and sold In the Eastern at a n profit of oC from rom 2 to 10 a bag On May 1 1 1920 the Idaho Sugar company had hod on hand only a limited amount of r ft The he local Jobbers who understand market conditions better than ont and seeing that tile the sugar of this company compan as thus being eked up by speculators at the low price and antI shipped and sold elsewhere else else- where there at tho tio market price and realizing that sugar manufacturers M refiners reIner elsewhere would not ship and sell sugar in the tho cheaper ik t but would continue to ship and sell it elsewhere at the hl higher hr arket and perceiving that with such conditions conditionS' the local territory soon be without sugar suar and the Jobbers without a supply for tor Wr petitioned this company that It itself go to the gentl genal gen- gen tl al market price and by so doing the shipping of sugar Bugar from rom the I market would be avoided or else elso other manufacturers and reer re- re er ers of ot sugar be induced to ship and sell sen sug sugar r in this market and the tho requisite amount of or sugar for local consumption would I preserved and supplied It Is evident that had this company last V I and winter sold Its sugar on the Eastern market as did other jar nr companies o 0 Utah and Idaho consumers of the local territory ul uld have hare been obliged to pay to for tor sugar at the same sarno pee te that sugar ugar elsewhere generally sold on the market And It Is IsI I t as evident e that If It this company had continued to sell Its sugar e low price the greater part of ot Its sugar Bugar on hand would have o rn picked up b by speculators at the low price an shipped East and andO andt t on nn O the general market t I Because of ot this and after going goIns over the situation with our at- at who advised us that the department of or Justice had not the wt to fix th the price of ot sugar and the department itself having dis- dis med any such power and since we WC were In no sense responsible if 6 the tle general market price of ot sugar and had nothing whatever cr to J 4 with fIxing or determining such prIce arid and had not nol entered and Wee not entering into an any combination to advance or control contral the Lice and nd since the market or of not the re- re v. v t nj general price tv vi o ot sugar t ui was ta 9 u fc vii j ot of f the and demand universal and natural la law of supply t-J t 1 being advised b by our attorneys that in their opinion a sugar Saucer selling at such a price was not selling at an unreasonable le charge or rate within the meaning of the Lever act we on o 0 Ma May 1 I after atter notice to our customers listed Hated 2 B Price locally on the basis of the general market price as fixed 11 i prevailed at San Francisco K It U has always been the cu custom tom of or the company compan as 19 well vell as of ofer er r companies to sell Its products at the general market price te believe we have nave a right to do that that- It II Is obvious that we must I F Ow w the market whichever way It goes up or down so 50 long as fat market Is the natural market price based on the law of or supply if p uJ demand mand and uninfluenced h by any combination or artificial or unK un- un K interference It Is difficult to see how this company or any Sr fr r company or person can carry on a business in any other way Certainly would be neither Just nor fair to require for instance 4 wool grow grower r or miner of ot Utah or of or the West Vest to sell his product w ln the general market price if Ir 88 per ier cent of or f that product coned coned con- con rc ed In ln this country were permitted to be sold at the general marM mar mar- tt Price And nd u Jt ls Js this obvious and unjust discrimination made by ti M KM i ln agents and officials of the government against he home pron proon pro- pro tIon on n o ot of beet heet production of cane sugar and in favor tavor of the foreign gat ar r of which we complain and contend and shall contend to the tho thoI I ditch f I Beet sugar in the United States is' is produced by white labor and arid andL L American Amerin citizens and builders of homes C Cane ne sugar ar is prot pro- pro t j 1 a largely by negro and Japanese labor yet tho the cane sugar which a about out s 88 per cent cont of the thc sugar consumed In this country is flitted A to come into our markets and sold to our people at the f fUal r mark market t price without complaint or even without any attempt sell a restrict Or curtail curtal the price And the contention Is that pro pro- erg r n and vendors of ot cane sugar may avail themselves of ot our ter i and sell with impunity and without molestation at the OBI feral market price but that the beet sugar producer of ot this and especially the Utah Idaho Sugar company and beet tt Producers of or th the West Vest ma may not avail avaH themselves or Itself of at market price but is asked to sell Its sugar at a price third one half Hie-half IC less leis I and if It It shall not do so 80 80 and antI if It it shall shaU as does cane producer sell Bell at the general market price it is to be bett tv i tt- tt f a crIminal and punished 4 e 6 do not believe that It Jt was tho the Intention of ot congress to so 80 against white labor and producers of ot beet sugar in this ry and nd in favor of ot negro and Japanese labor and arid producers of or Isa Ioa Porte POtto Rico all aU to discriminate Hawaii or the South or at t beet producers producer and In favor CavOr of cane producers In this coun coun- t Or e Nor do we believe that the courts will wm so interpret N a ap to permit such tuch results It certainly would be strange o of Australia and Argentina tho the of or and nd the tb copper miner o of Peru permitted to avail ovall them them- f selves s of at our market and sell sen their products to our people at the general market price but that tho the wool and and copper miner of Utah and Idaho and of ot the West were denied the right to sell their product at the same general market price and obliged to sell it at one third one third to one half less It has been said that the government may not control tho the cener general l market price of ot the 88 per pcr percent percent cent of ot the sugar shipped Into tho the United States and consumed by our people but buL that It can by certain threatened prosecutions arbitrarily arbitrarily arbi arbi- control and fix tho the price of ot the beet sugar produced in this country Such statement or claim is self destructive and is an unjustifiable discrimination against the producers of our own country country coun coun- try and In no manner accomplishes cheaper sugar for tor our countr country For attempting to fix a low price on the home homo product of sugar produced and consumed In this country when confessedly no power exists to regulate or control the price of or the l large rge foreign product shipped and consumed in the United States but creates a harvest for tor speculators with no corresponding benefit to the consumer Moreover contracts with this year are based on a scaling price of or sugar Bugar If It for example tho the price of ot beet sugar should be held down to say 12 per pound bag the farmer tanner will receive 1300 a 1 ton for beets If on the other hand the beet sugar produced by white labor is treated in the tho same manner that cane sugar produced b by b by br negro and Japanese labor Is treated and the price of or sugar placed on a a. parity with cane can sugar which according to present indications will be approximately from 15 16 to 20 O a pound bag bas then tho the will receive from 1 16 G to 21 a ton for tor his beets It Is 18 estimated that there will be raised in Utah and southern Idaho about two million tons of ot beets this season If the beet sugar be treated and placed on a parity with cane cano sugar then according to present Indications it would mean an Increase to the cr of or from Twelve o Million to Twenty Million Dollars Not Nota a cent of or this will go to the sugar companies but will go direct directly to the farmers That additional money distributed through Utah and antI Idaho would mean a great deal to the prosperity of or these states statts Every ery farmer every ery merchant every overy banker and every worker Is Js Interested in such a n proposition and ought to be bc willing to demand for tor the beets of ot Utah and Idaho and of or tho the West Vest the same rights and antI privileges granted to the Anything less than this Is an unjust discrimination against the home products of SU sugar dr which brings and distributes more real money to the tho people of ot Utah and Idaho than the production of ot any other one ono product Respectfully submitted C. C W. W NIBLEY DLEY G General n ral Mana Manager cr Utah-Idaho Utah Sugar Co |