IC-NRLF SOb REPORT OF THE MANUFACTURERS' COMMITTEE OF The Chamber of Commerce, OF PORTLAND, OREGON, OX THK BEET SUGAR INDUSTRY. THK LKUIS & DRVDKN PRINTING COMPANY PORTLAND, OR KG ON. ^^ \- > ' '{<? '&wwsy ~ (- ^ '^ ~ R E PO R T OF THK MANUFACTURERS' COMMITTEE The Chamber of Commerce, OF PORTLAND, OREGON ON THE BEET SUGAR INDUSTRY. 1891. THK L,E\VIS & DRYDEN PRINTING COMPANY. PORTLAND, OREGON. PORTLAND, Oregon, Feb. 7, 1891 To the Portland Chamber of Commerce: GENTLEMEN, Your Committee on Manufactures report upon the communication you referred to them relative to the manu- facture of beet sugar in Oregon, and the request of Mr. Charles Grissen in same communication. Mr. Grissen is a resident of McMinnville, Oregon, is well known to and highly recommended by many of our leading merchants, and requests that this Chamber give him a general letter of introduction to use upon his visit to Germany, where he contemplates going soon, and such financial aid as in their judgment this Chamber may give him, all aid so furnished to be used for the purpose of gaining information abroad upon the beet sugar industry there, and the possible future introduction and cultivation of the sugar beet in Oregon and its manufacture into sugar. Your committee, after giving consideration to many facts upon this industry, which make part of this report, and the possible aid that Mr. Grissen may be able to give our state by the obtainment of the facts that he purposes to gather, and the possibility of interesting German capitalists and labor in that industry here, are constrained to ask this Chamber that the first request of Mr. Grissen be granted and that a general letter of introduction be furnished him, signed by the president and secretary, under seal. Regarding the second request, your committee cannot recommend that an appropri- ation of money be made for this purpose, preferring to leave to the Chamber further action in this matter, if by them deemed necessary. Mr. Grissen proposes further to interest German manufacturers of beet sugar in the climate and soil of Western Oregon and its adaptability to this special industry. Having given much attention to this subject, he well maintains that there is no section in the world better adapted to the cultivation of the sugar beet than our Willamette valley and the coast coun- ties, and that if the German manufacturer can be induced to come over here, investigate through experiment for himself or M27695 . V r S*' : \ * 4 send his 'representative to'; do so, he will soon be induced to interest foreign 'capital irf this manufacture here. Your com- mittee have given this matter considerable attention since it was referred to them, and believe Mr. Grissen's view is the correct one. From comparisons with experiments abroad ours are very encouraging. In Europe, where for the past seventy years the beet sugar manufacture has been in successful operation and where for the past one hundred and forty years they have been experimenting in its cultivation and manufacture, the present average per cent, of yield of sugar from the beet is g}4 to 10 per cent. In Germany, however, where this industry has been carried to its greatest perfection, the per cent, for season of 1889- 90, according to German tables, was 12.55 P er cent. At Al- varado, California, where the beet sugar industry has been carried on for twenty years and in successful and profitable opperation for the past ten years, the per cent, of yield is 10^ per cent ; at Watsonville, California, according to report to department of agriculture for season of 1888-89, from a produc- tion and manufacture of over 14,000 tons beets with an average polarity of 14.65, the per cent of sugar recovered was 11.65 P er cent. In Oregon, Professor Irish, of the Agricultural College at Corvallis, says the following per cent, of sugar was obtained in beets from the different sections of the state : Medford, 5.50 per cent ; The Dalles, 8.40 per cent. ; Beaver- ton, 8.50 per cent. ; Corvallis, 8.41 per cent. ; Oak Ridge, 9.75 per cent; West Fall, 9.85 per cent. ; Mink, n.66 per cent. ; Fall Creek, 10.15 per cent. ; Oswego, 10.50 per cent, ; Ashland, 11.40 per cent. ; Newberg, n per cent. ; Independence 11.50 per cent. ; Athena, 11.75 P er cent. ; Roseburg, 11.35 per cent. ; Mil- waukee, 11.30 per cent. ; Vale, 11.40 per cent. ; Alsea, 12.65 per cent. ; Union, 13.90 per cent. ; Woodburn, 13.75 P er cent. ; McCoy, 13.75 per cent. ; Toledo, 16 per cent. W. S. lyadd, Esq., sent samples of sugar beets raised on Koin Kempster Farm, three miles south of Portland, to Claus Spreckels' beet sugar factory in Watsonville, California, for analysis, with the result of 10.30 per cent, sugar; also from Koin Cemetery Farm, two and one-half miles east of Portland, with result of 12.40 per cent., and from farm at Middleton, 14 miles south of 5 Portland, with result of 13.40 per cent. The highest average is 1 6 per cent., at Toledo, Oregon ; the lowest 5^ per cent., at Medford, Oregon. The average of these twenty-four places is 11.24 P er cent. ; of the highest sixteen, 12.40 per cent. ; of the highest eight, 13.45 per cent. ; and the highest five, 14.16 per cent. The Oregon results were had by polarization. Good beets should polarize not less than 14 per cent. With the dis- semination and use among our farmers of knowledge pertaining to sugar beet culture, this per cent, should be increased one-half as much more. The Yaquina Post, published at Toledo, Oregon, where the average is the highest, estimates that there are three thousand acres of land suited for sugar beet cultivation within a radius of three miles from that place ; that much of this land has been dyked during the last season and will be ready to cultivate to beets next season, some of which has produced seventy-eight tons of sugar beets per acre before dyking, and, which it is believed will produce for an indefinite term of years from fifty to one hundred tons of beets per acre, and which will yield from 15 to 20 per cent, of saccharine. Mr. Alisky, who returned from a trip to Germany a short time since, informs your committee that after investigating this sub- ject while abroad and further investigation of the same matter since his return home, he is well satisfied that the soil and climate of Oregon is better suited to the cultivation of the sugar beet than Germany or France. He says that the highest price for sugar in Germany is four cents, and at that price a bounty is paid to the government upon the beet produced instead as here a bounty paid to the producer of sugar by the government of two cents a pound. Professor Hilgard, of California, in his Report, volume vi, Tenth Census, page 665, says, ' ' I am inclined to believe we have in Washington and Oregon soil and climate favorable to the growth of the sugar beet of high saccharine strength. The mildness of the winter is, though to a less degree than in Cali- fornia, favorable to the season of manufacture. With a wise and careful encouragement of the industry, I have no hesi- tation in saying that the prospects for the development of an indigenous sugar industry in the extreme Northwest part of our country are decidedly bright, and it is a field worthy of the attention both of experimenters and capitalists. Dr. McMurtrie, who has made a careful study of the climatic conditions of the United States favorable to the production of the sugar beet, says in Report No. 28, to the United States Depart- ment of Agriculture, that the section of the United States most favorable to beet root culture are confined to the North, in- cluding New England, New York, a narrow band south of the Lakes, Michigan, parts of Wisconsin, Minnesota and Dakota. Here the line of the southern limit passes into the British posses- sions and enters the United States again in Washington and crossing Western Oregon passes to the coast to the extreme north of California. Mr. E. H. Dyer, of the Alvarado, California, beet sugar refinery and factory, which factory last season turned out over three million pounds of refined sugar at a cost of less than four cents a pound, and who says that had they had a sufficient supply of beets they could have turned out over five million pounds, writes your committee that the beets raised in Oregon are good. He has furnished Professor Irish, of the State Agriculture experiment station at Corvallis, Oregon, and others, beet seed for several years past, and the beets are richer in saccharine than in Europe. The same gentleman, in an article published in the Oregonian six months ago adds that beets can be produced in our own state at actually less cost than in Germany, and that in the United States there is more land suited for sugar beet culture than in France, Germany and Austria combined, and either of these counties produce enough to supply the United States. In the same article he says, land in Oregon will be increased in value by beet cultivation not less than $100 per acre, and as it requires the cultivation of three thousand acres to supply the quantity of beets necessary to run a plant with a capacity of three hundred tons of beets per day, the increased value of this land will amount to the cost of the plant, and that his company are willing to furnish the skilled labor to construct a factory and the technical skill to run it until your own people acquire sufficient knowledge to do so for a reasonable and satisfactory compensation. Mr. Samuel Sussman, who is interested with Claus Spreckels in the beet sugar factory at Watsonville, California, visited Portland a few weeks ago, and very kindly furnished your com- mittee facts of much interest on this question. Mr. Sussman confirms what has already been said that there can be no ques- tion of the fact that the soil and climate of Oregon are better adapted to the sugar beet culture than those of Europe, that a larger per cent, of sugar can be obtained from the beet here than there, that our seasons for beet culture and manufacture are much longer and more favorable, and adds that capital will be forthcoming to take hold of this matter in Oregon as soon as our farmers demonstrate that they can and will pay attention to sugar beet cultivation, raise beets of the requisite saccharine strength, and under contract agree to raise a quantity for a term of years suincent to justify the erection of a plant with a capacity for using about four hundred tons beets per day, which will cost about $300,000. Man}- other authorities could be cited who have given this matter particular attention upon its adaptability to Oregon, and all agree that if the attention of our farmers and capitalists, and particularly the farmer, will be given to this question, the result will unquestionably be a success. With such testimonials of the favorable situation in Western Oregon for the cultivation of the sugar beet, this Board have strong reasons for assisting, so far as it can, anything leading towards success in this direction. The result of the beet root sugar industry in Europe is wonderful to contemplate. Its value in production alone in dollars amounting to $385,840,000. In Germany, which is the chief sugar-producing and largest exporting country in the world, and which paid an export bounty on beet sugar in 1889 of $9,000,000, has three hundred and seventy thousand acres in sugar beets. There are six hundred and thirty-seven factories, using 13,400,000 tons of beets and producing 1,260,000 tons raw sugar per annum, one-third of all the beet sugar and one-fourth of all sugars produced in the world. In France there are 552 beet sugar factories. They turn out 775,000 long tons sugar, worth over eighty millions of dollars, and give employment to 60,000 persons besides those in the field. In Austria-Hungary there are 245 factories with a production of 750,000 tons ; Rus- sia 225 with a production of 475,000 tons ; Belgium 200 with a production of 200,000 tons ; Holland 32 with a production of 60,000 tons ; for the rest of Europe, in Denmark 2, Sweden 4 and ' Italy 3, making 1,853 beet sugar factories in Europe, with a total of beet sugar production of 3,600,000 tons, or ^ of the total of all kinds of sugar produced throughout the world. In the United States the comparison is small. The profitable cultivation and manufacture of beet sugar is an event of the past few years. Since 1830, when the first beet sugar enterprise started in Philadelphia, until a few years ago, this industry in the United States has been an experimental one. Now, however, enough is known of the climate, soil and machinery required, to make, under favorable conditions, success in this country assured. The greatest success has been in California. There the average yield of the soil is about fifteen tons of beets to the acre. The price is $4.50 per ton of beets delivered at the door of the factory. The cost of cultivation per acre is from $20 to $23, or a net profit there to the farmer of $44.50 per acre. The Alvarado company, as already stated, turned out over three million pounds of refined sugar last year, and according to their last report to the United States Department of Agriculture, page 26, bulletin 27, made a net profit of 33 per cent, on the capital invested. This company is now building a factory in Utah, which will be in operation September i, 1891. The machinery will cost $300,000, and the capacity of the works will be eight million pounds of sugar each season. Providing coal is not costing over $6 per ton and beets $4.50 per ton, this company claim they should be able to make refined sugars for less than 3^ cents per pound. Claus Spreckels, who has a controlling interest in the success- ful beet sugar factory at Watsonville, California, is nearly ready, your committee are informed; to erect another beet root sugar factory in another part of California. The Watsonville factory is an investment of $500,000 ; it turned out during the short beet season of 60 days last year forty tons raw sugar from a consumption of 400 tons beets per day, or for the season 2,200 short tons of sugar. If run for the full season of one hundred and twenty days, it would have produced 4,400 tons or nearly 5,000,000 pounds. The factory is so built that now with an outlay of about $50,000 this capacity can be increased to an output of 7,500 tons, strictly number one raw sugar, if run the full season of one hundred and twenty days, and then sugar 9 should be produced at 3 cents per pound ; the present price is 3^4 cents. At Grand Island, Nebraska, the Oxnard Beet Sugar Factory has lately started with a capacity of 350 tons of beets per day. At Chino, California, San Bernardino county, the owner of 10,000 acres of beet-producing soil offered a bonus of 2,000 acres to responsible parties starting a factory there. A factory is there being built with expected capacity of five hundred tons beets daily. It is expected that the production of beet sugar in the United States for 1891 will be at least double what it was in 1 890, when its estimated total product was between five thousand and six thousand short tons or about 12,000,000 pounds against imports last year of beet sugar amounting to 563, 206, 600 pounds, or nearly fifty times as much as our own production. Germany alone shipped us 512,100,240 pounds with a valuation of $25,600,512. The best cane sugar years our country ever had were 1854, 1859 and 1862, when the domestic yield was, in 1854, 495,156,000 pounds; 1859, 427,962, 150 pounds ; in 1862, 528,321,500 pounds, or in these years about three-fourths of the imports, while for the season of 1889-90 they were but 275,000,000 pounds against importations of all sugars the same year of 2,632,4.47,440 pounds. This country will never be able to raise from the cane sufficient sugar to satisfy the sweet taste of her people. It is estimated by one of our heaviest dealers in sugar that Portland alone con- sumes and distributes over 25,000,000 pounds per annum. This is nearly all cane sugar, although a little beet sugar is shipped here from California and sold with as great satisfaction as the other. If this twenty-five million pounds could be manufactured in Oregon, it would open up to beet sugar cultivation over eight thousand acres of land ; give the farmer a return of over $550,000; establish five sugar factories, each having a capacity as large as the one now in Alvarado, and employ several hundred persons besides those in the field. There is, besides, the increased value of the land to the farmer. According to Mr. Dyer, land at Alvarado will rent, cash in advance, for sufficient to pay interest and taxes on land worth $300 per acre. Another correspondent from the same place writes that land for beet growing is worth $350 per acre. Mr. Oxnard, a large American producer of beet 10 sugar, says that in Europe wherever the beet is grown the selling value of the land has increased in the most noticeable way ; experiments everywhere in sugar beet culture prove this, and the more successful the Oregon farmer proves to be in knowing and practicing the methods of plant cultivating and harvesting the beets, which are matters of vital importance, the higher in value will be the beet he produce, the greater will be the increase in the value of his land, and the sooner will a factor} 7 be built to take his product. The best substitute yet for cane sugar is sugar from the well-cultivated sugar beet. According to Senator Paddock, in his speech before the United States Senate last year, the beet sugar industry is more important than any twenty others in this country. This beet can be grown to better ad- vantage in our state than in any other section of the United States. Its cultivation should have the attention and encouragemnet of every Chamber of Commere in Oregon, of our State Board of Commerce, and our State Legislature. Respectfully submitted, BUHL LAMBERSON, EDWARD HUGHES, J. FRANK WATSON, L- H. PARKER, G. A. MOONKY, J.. E. HASELTI>;K, ELLIS G. HUGHES. II CANE SUGAR YIELD, 1889-90. TONS. Cuba_ 600,000 Java-- 310,000 Manilla, Cibu and Iloilo 180,000 Brazil - 150,000 Louisiana - 125,000 Mauritinus . 125,000 Demerare , 125,000 Sandwich Islands 120,000 Porto Rico 70,000 Trinidad _ _ 60, ooo Barbadoes __. 60,000 British India 60,000 Guadeloupe _. 50,000 Martinique . 40,000 Egypt _ 35 oo Peru- 30,000 Reunion 30,000 Jamaica - 30,000 Antigua and St. Kitts __. 28,000 Total 2,228,000 BEET SUGAR YIELD, 1889-90. TONS. Germany 1,260,000 Austria __. 750,000 France . 775,000 Russia . 475,000 Belgium 200,000 Holland __. 60,000 Others _ .^ .. 80,000 Total - 3,500,000 TONS. Beet - 3,500,000 Cane 2,228,000 Total 5,728,000 Gaylamount Pamphlet Binder Gaylord Bros., Inc. Stockton, Calif. T.M. Reg. U.S. Pat. Off. THE UNIVERSITY OF CALIFORNIA LIBRARY