manding a settlement for his cane each week as had heretofore been the custom, would accept an advance upon each ton of cane delivered to the manufacturer of $3 per ton to cover the cost of harvesting, etc., and he would wait for final settlement until the manufacturer had finally disposed of all the first sugars produced in his factory, at which time the manufacturer would make settlement with the grower based upon the actual average relative price per pound received throughout the season for sugars made by the manufacturer. Because of this agreement entered into on October 29, the grower shares with the manufacturer the risk of rise or fall of the market and what the grower will receive can not be determined until the demand for sugar will absorb the production, when settlement will be made in accordance with the agreement above recited. The Louisiana manufacturer is at the same time a cane grower and ordinarily produces from 40 per cent to 50 per cent of all cane manufactured in Louisiana. For the crop of 1919, the last accurate figures available, the total cane crushed was 2,073,160 tons. Of this amount, 45 per cent was grown by the owners of factories, 54 per cent was grown by small farmers and tenants and one-half of 1 per cent was ground on toll. This substantiates the claim of the Louisiana sugar producers that they are primarily agriculturists as the chief element of cost, time and risk is in the agricultural side of the production of Louisiana sugar. It is clearly stated by the United States Tariff Commission on page 11 of Tariff Information Series-No. 9 entitled "Costs of Production in the Sugar Industry." SUGAR AN AGRICULTURAL PRODUCT. That sugar is essentially an agricultural product may be shown by an analysis of the principal items into which the total cost is divided-cane or beet cost, factory cost, marketing cost, and depreciation. Such an analysis (Table III) shows that the cost of the raw material, cane or beets, is by far the most important item. Comparative statement of agricultural operations for the year 1920, showing operating cost of producing and harvesting a ton of cane, exclusive of overhead expenses. Comparative statement of agricultural operations for the year 1920, showing operating cost of producing and harvesting a ton of cane, exclusive of overhead expenses-Continued. Mr. CHAFFE. Answering Senator Gay's question as to whether the bulk of figures show a gain or loss, the loss amounts to more than the total value of the product raised. The cane, we figure, will bring approximately $6 a ton. Corn and hay crops made amount to 42 to 48 cents per ton of cane crop harvested that is, $6.48 against an average cost of production of $13 per ton-which is just below half. Cost of production of cane harvested.. All crops of cane, corn, and hay will probably sell for per ton of cane harvested Probable loss $13.00 6. 48 6. 52 The CHAIRMAN. Any data that Louisiana Senators indorse will be inserted in the record. Senator RANSDELL. Thank you. And you would ask permission— both Senator Gay and myself-to include in the record several telegrams which we have received. However, we do not want to incumber the record with all of them, but we will just collate and take out several from each batch. The CHAIRMAN. They will be printed. (The telegrams referred to were subsequently submitted by Senators Ransdell and Gay and here printed in full, as follows:) Hon. EDWARD J. GAY, LAKELAND, LA., December 19, 1920. United States Senate, Washington, D. C. We learn through the press emergency tariff bill excludes sugar. The financial condition of the Louisiana sugar belt is distressing; and it is imperative that cane producers and sugar manufacturers receive some relief. We respectfully urge you to exert your utmost efforts to get sugar included in the bill at a substantial rate and suggest duty at 3 cents per pound. Your effors will be appreciated by your constituents. R. MUMFORD PHILLIPS. N. B. PHILLIPS. A. J. LYNN. J. B. CHURCHILL. E. S. CHURCHILL, C. RITCHIE. Hon. EDWARD J. GAY, JEANERETTE, LA., January 8, 1921. United States Senate, Washington, D. C. Please appear before the Senate committee giving sugar a hearing and urge with all your power the absolute necessity of giving sugar growers' some assistance in the emergency tariff bill. Conditions here are deplorable, present price of sugar fully 4 cents under cost of production, and unless aid is given fully 50 per cent of the land will remain idle this year. CITIZENS BANK OF JEANERETTE, LA. JEANERETTE, LA., January 8, 1921. Hon. EDWARD J. GAY, United States Senate, Washington, D. C. Entire sugar and rice belt facing disaster. Passage of emergency tariff bill absolutely necessary. SIMS & GILES. Hon. EDW RD J. GAY, JEANERETTE, LA., January 9, 1921. United States Senate, Washington, D. C. As you are no doubt aware of existing conditions that we consider deplorable, our sugar industry being threatened with great loss and probable destruction, we would appreciate you using your best efforts toward securing a tariff on sugar. FIRST NATIONAL BANK. Senator GAY, Washington, D. C. LOCKPORT, LA., January 8, 1921. We highly recommend the proposed amendment relative to the emergency tariff bill submitted by Senator Gay. Senator EDWARD J. GAY, BANK OF LOCKPORT, ABBEVILLE, LA., December 18, 1920. United States Senate, Washington, D. C. Understand Senate Finance and House Ways and Means Committees drafting protective tariff or embargo act protecting several products but rice ignored. Please get busy to-day and have rice included. Industry threatened with importation from outside at lower ruinous prices. Answer. EDWARD J. GAY, L. O. BROUSSARD. NEW ORLEANS, LA., December 18, 1920. United States Senate, Washington, D. C.: Notice morning's paper proposition to put heavy tariff on a number of agricultural products. If sugar could be included in the list and a tariff of 4 or 5 cents placed thereon, it would keep out of the bankruptcy courts a number of producers who would otherwise be sure to fail. With proper legislation sugar could be held at not exceeding 10 to 12 cents for refined and around 8 cents for raws. Wire quick if anything can be done, and if I can be of any service I will leave for Washington to-night with data showing the desperate condition of the sugar planter. Hon. EDWARD J. GAY, Washington, D. C.: R. E. MILLING. LAFAYETTE, La., December 20, 1920. The Billeaud Sugar Factory (Ltd.) claims to be in an undoubted position to make the statement that neither they nor their customers can successfully continue in the raising of cane and manufacture of sugar as conditions now presage, therefore be it resolved that you make most earnest efforts to effect the passage of a bill to protect such a necessary industry when it is in such woeful stages of extinction; and therefore be it resolved that the rice and cotton crops also being in unhealthy financial condition are entitled to the mothering wing of the United States Government, we beg to remind you to leave no stone unturned that would bring sufficient tariff to fruition. Senator E. J. GAY, Washington, D. C.: BILLEAUD SUGAR FACTORY (LTD.), Per M. BILLEAUD, Jr., "President. NEW ORLEANS, LA., Deccember 19, 1920. Indorsing sentiments expressed regarding sugar industry vital to the State and the necessity of including its protecting under legislative acts projected to cover agricultural products, members of this association would urge you to use your prerogative to foster these interests to the fullest extent possible. JNO. E. BOUDEN, Jr., President New Orleans Clearing House Association. |