USA > Colorado > History of Colorado; Volume I > Part 60
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The Agricultural College was following up its experiments, and those of the Federal agricultural department. On offers of seed to the farmers of the state about fifty plantings were made in as many parts of the state in 1898. The re- sults of these were on the whole unsatisfactory, for little was known concerning beet culture. But in a few sections experiments had been followed by actual crops. In fact as early as 1898 Fort Collins, Greeley and Loveland shipped a trainload of beets to Grand Island, where the Oxnards were operating a factory successfully.
In these years (1897 and 1898) the agitation in Colorado had assumed such proportions that construction of factories was assured. Prizes, much in the nature of bonuses, were offered to the farmers of the state. The Denver Cham- ber of Commerce put up $2,000, and to this the railroads added $4,000. In Grand Junction the Western Colorado Beet Sugar Association was formed, with S. D. Delan, of Glenwood Springs, as president, C. E. Mitchell, of Grand Junction, secretary, and H. J. Holmes, of Glenwood Springs, treasurer. Under its auspices successful experiments were conducted in nearly all the Western Slope counties. In 1898, 1,200 acres had been signed up for the Grand Junction project, and when all these facts were presented to John F. Campion and Charles S. Boettcher in Denver they at once gave it not alone enthusiastic moral support but financial aid as well. This made possible the erection of the first beet sugar factory in Colorado, in 1899.
The factory at Grand Junction, while low in capacity-only 350 tons-was equipped with Dyer Company machinery, the best in the market at that time. But its failure in the first few years was due more to the fact that its promoters had not mastered the agricultural requirements. There was a tendency, too, to grow sugar beets on new lands; in fact to open up these lands with the cultiva- tion of this crop. The failure, which should have been foreseen by agricultural advisers, was, of course, inevitable.
The original company was The Colorado Sugar Manufacturing Company, and several of the men to whom the success of the industry in Colorado is due, notably Charles S. Boettcher, were in this first project.
540
HISTORY OF COLORADO
In 1903 it was purchased by the Western Sugar Land Company, the stock of which was owned almost altogether by J. R. Mckennie, R. P. Davie, Verner Z. Reed, all of Colorado, and Alfred Hand, of Scranton, Pennsylvania. The daily capacity was increased to 600 tons, and in 1904 it bought 29,554 tons of beets. By 19II this had grown to 56,069, although its banner year for the period was 1907, when the tonnage was 67,002. For this period its yearly average was 50,280 tons. Its production ranged from 4,809,400 pounds in 1904 to 11,102,400 in 1911, with 14,611,110 as the production in 1907. The acreage planted in 1904 was 3,733, and in 1911 it was 6,290.
The Grand Junction factory gets its beets from Grand Junction to Colona on the Ouray branch of the Denver & Rio Grande, and intermediate points ; from Grand Junction to Paonia on the Somerset branch; from Grand Junction to Glenwood Springs; and from Grand Junction to Green River, Utah.
The Grand Junction Sugar Company, with a top-heavy capitalization of $2,- 000,000, went into the hands of a receiver two years ago, and is now under lease to the Holly Sugar Company, giving this company two plants in Colorado.
THE GREAT WESTERN SUGAR COMPANY
In 1901 the first of what are now known as the Great Western group of factories was erected by Colorado capital at Loveland. In this Charles S. Boettcher and J. E. Kinney were heavily interested. Its title then was the Great Western Sugar Company, and its capital stock was $1,000,000. The capacity was 600 tons, and this was eventually enlarged to 1,200 tons. The Eaton Sugar Company's factory was built in 1901, by a group of men headed by W. D. Hoover, of Denver. In the same year the Greeley Sugar Company began business, with Chester S. Morey as president.
At the close of that year the American Sugar Refining Company, better known as the Havemeyer interests, came into the field, and first of all purchased the Eaton Sugar Company, followed immediately by the purchase of a controlling interest in the factories at Loveland and Greeley. Thus in 1903 the American Sugar Refining Company controlled the Eaton Sugar Company, the Great West- ern Sugar Company and the Greeley Sugar Company.
In 1903 the Windsor Sugar Company, which had been organized with a cap- ital of $750,000 by W. D. Hoover and associates, sold a controlling interest to the American Sugar Refining Company before the completion of the factory at Windsor.
In 1903 the Longmont Sugar Company built the factory at Longmont. Of this Chester S. Morey was president, its ownership being controlled by the new eastern interests. The factory at Fort Collins was built by the Fort Collins Sugar Company, and was put into operation in January, 1904. At that time B. B. Hottel, of Fort Collins, was its president. This factory had a capacity of 1,200 tons at the very outset. This also was completed by the new eastern inter- ests. Its first year was, however, disastrous, as it started too late, and much of its beet supply rotted.
In his testimony before the Senate. Finance Committee Mr. Morey thus graphically describes this period :
"Rumors were pretty thick about the beet sugar business in those years. They
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HISTORY OF COLORADO
were falling over each other to get locations, and every town that had 300 people wanted a sugar factory. In fact all of them were circulating petitions for acre- age."
The old company which built the factory at Loveland, was known as the Great Western Sugar Company of Colorado. In 1905 the Great Western Sugar Company was organized and incorporated in the State of New Jersey. This took over all of the existing sugar factories in northern Colorado in which Charles S. Boettcher, Chester S. Morey, of Denver, M. D. Thatcher, of Pueblo, Charles S. Waterman, Henry M. Porter and associates and H. O. Havemeyer and the American Sugar Refining Company were interested.
The capital stock was originally $20,000,000, $10,000,000 preferred and $10,- 000,000 common. This was later increased to $15,000,000 each, or $30,000,000 in all. The purchase of the properties included also the purchase of the Great West- ern Railroad, to which in the last year part of the Denver, Laramie & North- western has been added.
The company paid 7 per cent on preferred stock since 1905, and, since 1910, 5 per cent on the common.
In 1905 the factory at Sterling was constructed, followed in 1906 with those at Brush and Fort Morgan, and in 1917 the latest Colorado plant was erected at Brighton. The company in 1906 built the factory at Billings, Montana, and in 1910 that at Scottsbluff, Nebraska, was erected. The factories at Lovell, Wyo- ming, Gering, Nebraska, Missoula, Montana, and Bayard, Nebraska, were built in the preceding years. The factory at Lovell was a transfer of the plant at Monte Vista.
In 1911 the company had 4,460 growers, who grew 97,484 acres; in 1917 at its ten factories it harvested 119,200 acres and produced 370,000,000 pounds of sugar.
The price paid to the farmer per ton for beets began with $4.50 for the years 1901 to 1903 inclusive, with the exception of the Eaton factory, which paid $5.00 at the beginning. Commencing with the year 1904 the price was $5 in all localities up to and including the year 1906. In 1907 the price was the same with the exception that 50 cents per ton extra was paid for all tonnage which was silved. The silving of beets consists of placing the beets into piles about five feet high, five feet wide, and of any desired length, and covering them with dirt enough to protect the beets from freezing and thawing in order to deliver them in good condition after the harvest work in the fields is finished. These prices continued until 1910. In that year the contract was changed, so that the growers were paid according to the sugar content. They received an increase of 25 cents per ton for each increase of I per cent in sugar content for all beets testing 15 per cent and above. This change resulted in an increase of from 31 to 88 cents per ton. In 1917 it paid from $6.50 to $8.00. For 1918 it will pay from $8.37 to $9.75.
From 1901 to 1911 the company, or its antecedent companies, purchased beets to the value of $37,400,000. In 1917 it paid the farmers $10,362,000.
At the beginning of the beet sugar industry in the state it was necessary to procure laborers from other states to work in the fields. The greater part of these laborers were Germans, whose ancestors 200 years ago emigrated from Germany to Russia, but retained their native language. In Russia these people
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HISTORY OF COLORADO
were engaged in beet farming, so that they came to the fields in Colorado thor- oughly equipped for the work.
The production of sugar ranged from 13,920,900 lbs. in 1901-2 to 38,786,800 in 1902-3, and to 295,648,500 lbs. in 1907-8 and to 264,194,300 in 1911-12. In 1917 it was 370,000,000 lbs.
In 1901 the acreage was 5,610. In 1909-10 it was 98,095; in 1911-12 it was 83,059. In 1917 it was 119,200.
The Great Western Sugar Company has paid dividends regularly since the consolidation in 1905. This was increased from 5 per cent to 13/4 quarterly in July, 1916. In July, 1917, an extra dividend of 10 per cent was paid. Moody's Manual states in its 1917 issue that while the American Sugar Refining Company holds a large interest, it does not control a majority of the stock.
Its officers in 1917 were : C. S. Morey, chairman ; W. L. Petrikin, president ; W. S. Dixon, first vice president and general manager ; Charles Boettcher, second vice president ; S. M. Edgell, third vice president. The directors are the above and John H. Porter, Godfrey Schirmer; E. R. Griffin, R. M. Booraem, S. D. Seerie, M. D. Thatcher, Horace Havemeyer, and R. J. Marsh.
THE AMERICAN BEET SUGAR COMPANY
The American Beet Sugar Company, which owns the factories at Rocky Ford. Lamar and Las Animas, in the Arkansas Valley, had its beginnings at Grand Island, Nebraska, where Henry T. Oxnard with his brothers Robert, Ben- jamin and James G., and W. Bayard and R. Fuller Cutting of New York, built the first beet sugar factory in 1889. The machinery was brought over from Ger- many. The Oxnard Brothers Company had operated a refinery in Brooklyn from 1876 to 1887, when it was bought out by the trust, the Oxnards getting $750,000 worth of trust certificates of the Sugar Refineries Company for their holdings.
The factory at Grand Island was built by the Oxnard Beet Sugar Company, and aside from the Oxnards and the Cuttings the only other stockholder was J. G. Hamilton. This plant cost $350,000, and had a capacity of 350 tons. In 1890 and 1891 the company built the factory at Norfolk, Nebraska, which was later moved to Lamar, Colorado, and the one at Chino, California. In 1897-8 the largest plant of the company was built at Oxnard, California, with a capacity of 2,500 tons. In 1899 the American Beet Sugar Company was incorporated under the laws of New Jersey, consolidating all the existing Oxnard companies.
In 1900 the factory at Rocky Ford was built, followed at once by that at Las Animas. In 1906 the factory at Norfolk was moved to Lamar and greatly en- larged. The capitalization of the American Beet Sugar Company was fixed at $20,000,000, of which $5,000,000 is preferred.
The American Beet Sugar Company, with a capacity of 7,200 tons daily, broke all records for the fiscal year ending March 31, 1917. . Its gross revenues for this period were $15,333,224, and net operating earnings $6,126,677. This com- pared with earnings of $3,174,831 in 1916, $1,426,778 in 1915, $517,427 in 1914; $775,660 in 1913 and $2,325,589 in 1912. Its earnings on preferred stock for 1917 were 97.64 per cent; on common stock, 30.55 per cent.
Its production for the year ending March 31, 1917, was 2,155,963 bags of sugar ; in 1916, 1,752,662 bags.
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HISTORY OF COLORADO
Its land holdings in Colorado in 1917 were : 5,936 acres about Rocky Ford; 212 acres at Las Animas, and 13,453 acres about Lamar.
Its officers in 1917 were : H. Rieman Duval, president ; Robert Oxnard, vice president ; Henry T. Oxnard, vice president. Its directors include the above and Kalman Haas, Charles J. Peabody, J. Horace Harding, R. Walter Leigh, E. M. Bulkeley, Franklin Q. Brown, William Fellows Morgan, and F. A. Schoon- maker.
THE NATIONAL SUGAR COMPANY
The National Sugar Manufacturing Company owns one 500-ton daily slicing capacity beet sugar factory at Sugar City, Colorado, which was built in 1900. The absence of farmers close to the plant compelled the company to seed about sixteen hundred acres of prairie land to beets the first year, only a few farmers living ten to twenty miles west of Sugar City, contributing beets. The second year there was a large increase in tonnage, and in 1906 the tonnage harvested was 70,000. Each year new farmers came to this part of the Arkansas Valley, largely from Illinois, Iowa and Missouri, and purchased or leased land near the factory. Prairie conditions were slowly conquered, and today land values which ranged from $35 to $50 per acre run from $100 to $125 flat per acre without im- provement. The production of the factory in 1916 was 122,429 bags.
The headquarters of the owning company are at Baltimore, and its officers are : President, Francis K. Carey ; vice president, Frances J. Carey ; general man- ager, John H. Abel. The capital stock of the company is $750,000.
THE HOLLY SUGAR CORPORATION
The Holly Sugar Company was organized by Colorado men in 1905, with a capital of $1,500,000, and began its work by cooperating with a subsidiary com- pany then and still in existence and called The Arkansas Valley Sugar Beet and Irrigation Company. In 1905 the factory at Holly was built, and this was suc- cessful, but in 1915 was moved to Sheridan, Wyoming. In 1906 the factory at Swink was built and the capacity of this after 1915 sufficed to cover the entire acreage of the company both at Holly and Swink. In 1910 the company built a factory at Huntington Beach, California.
When Swink was decided on as the site for a factory a railroad was pro- jected from Holly to Swink. This was partially built, and then sold to the Santa Fé, by which system it was completed and is now operated. In 1917 the company leased the factory at Grand Junction, the first one erected in Colorado.
The inception of this project, which is in the hands of Colorado men, was due largely to the efforts of W. M. Wiley, its first manager.
The Holly Sugar Corporation was incorporated April 4, 1916, under New York laws, taking over the stock of the Holly Sugar Company and controlling the Sheridan Sugar Company, the factory at Swink, the Huntington Beach, Cali- fornia, refinery, and now also has the lease on the factory at Grand Junction. In 1916 it acquired 50 per cent of the capital stock of the Southern California Sugar Company at Santa Ana, California.
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HISTORY OF COLORADO
Its earnings for the year ended March 25, 1916, were $1,226,374; for year ended March 31, 1917, its net profits were $1,874,478.
Its officers in 1917 were: A. E. Carlton, president; S. W. Sinsheimer, vice president ; Remsen McGinnes, secretary; E. P. Shove, treasurer. Its directors include J. H. Post, T. A. Howell, Spencer Penrose, and Ray Morris.
BEET SUGAR STATISTICS
for 1917
.
Great Western Sugar Company
American Beet Sugar Company
Holly Sugar Corporation
Number Factories
IO
2
2
Acres harvested
119,200
21,823
18,500
Average Yield per Acre
11.80
12.50
IO
Gross Tonnage
1,405,000
273,000
185,000
Average Sach. Content
16.34
14.50
-
Pounds Sugar produced
370,000,000
60,000,000
50,000,000
Money paid Farmers
$10,362,000.00
$1,900,000.00
$1,250,000.00
Money paid Factory Men
2,700,000.00
450,000.00
190,000.00
Money paid Farm Labor
2,500,000.00
910,000.00est.
500,000.00
Money paid for Supplies
2,100,000.00
510,000.00
500,000.00
Money paid for R. R. Transp'tion
2,600,000.00
250,000.00
225,000.00
Number Factory Employes
4,350
910
650
Length of Campaign (Days)
100
100
100
Pounds Beet Seed raised
3,000,000
-
-
This covers all but the National Sugar Company factory at Sugar City. Dur- ing the year the Lamar factory was idle.
Dry pulp, as a food for various classes of animals, is not an experiment. In Germany about 70 per cent of all pulp, from about twenty million tons of beets was dried before the war and now virtually all is dried, partly with, and partly without, molasses.
The dry pulp is fed to cattle of all kinds, to sheep and also to horses.
In Colorado, California, Michigan and Ohio almost all pulp is dried and mainly used as dairy food.
Dry pulp is a food similar to corn, that is, it is valuable mainly for its fat- tening, but not meat-making qualities. Wherever corn or barley has been used in a ratio, part of it can be replaced with good results by dry pulp.
SIXTEEN BEET SUGAR FACTORIES IN STATE
Location
Erected
Capacity tons
Rocky Ford
. 1900
1,800
Lamar
1905
500
Las Animas
1917
1,000
Loveland
1901
2,000
Greeley
1902
1,000
Eaton
1902
1,100
Fort Collins
1903
2,150
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HISTORY OF COLORADO
Location
Erected
Capacity tons
Windsor
1903
1,100
Longmont
1903
2,350
Sterling
1905
1,100
Brush
1906
1,100
Fort Morgan
1906
1,200
Brighton
. 1917
1,000
Swink
1906
1,200
Sugar City
1900
500
Grand Junction
1899
700
The San Luis Valley Beet Sugar Company was organized through the efforts of W. D. Hoover in 1909, and erected a factory at Monte Vista, making its first run in 1911. This opened up a new territory in the San Luis, and upper Rio Grande valleys. Beets for the factory were grown in Rio Grande, Saguache and Cos- tilla counties. Other Colorado and New Mexico factories now cover this acre- age, as the factory came under the control of the Great Western Sugar Com- pany and was removed to Lovell, Wyoming.
Vol. 1-35
CHAPTER XXVII
THE STRUGGLE TO BUILD UP MANUFACTURING
THE FIRST MANUFACTURERS IN COLORADO -- SOME EARLY STATISTICS-DEVELOPMENT DESPITE REBATES AND DISCRIMINATIONS-U. S. CENSUS FIGURES FROM 1870 TO 1914-LATER FIGURES FROM STATE RECORDS-PROFESSOR PHILLIPS WRITES THE IIISTORY OF COLORADO'S GREATEST STRUGGLE-FORMING THE COLORADO MANU- FACTURERS' ASSOCIATION-KINDEL SCORES FIRST VICTORY-DEFEAT IN GALVES- TON CASE-COLORADO MANUFACTURERS ASSOCIATION SECURES PARTIAL READ- JUSTMENT-COLORADO FAIR RATES ASSOCIATION BEGINS COMPREHENSIVE SUIT WHICH WAS STILL PENDING EARLY IN 1918-MISCELLANEOUS NON-METALS THAT ENTER INTO THE MANUFACTURING HISTORY OF COLORADO-THE STONE QUARRIES OF THE STATE-OIL PRODUCTION OF COLORADO.
FIRST MANUFACTURERS
It was not a difficult task to take the census of manufacturing in Colorado in 1860, for there were in the entire region only 163 blacksmiths, 542 carpenters and joiners, 4 coopers, 29 painters and 30 stone cutters. No mention is made of any other skilled labor needed in manufacturing. Manufacturing, however, began in April, 1859, when the timber about twenty-five miles south of Denver was needed for the construction of buildings in the two Cherry Creek settlements, and in the Clear Creek section a little later. The Bennett & Wyatt and the Oakes saw mills were the first to use machinery for the needed lumber supply in the north and at Golden City. Within a year A. G. Langford & Company estab- lished the first machine shop in Denver and smelted the first iron ore which had been brought down from Coal Creek. In December, 1860, Joseph M. Mar- shall began getting iron from the ore brought down from Erie at the foundry which he had just purchased from Fraser & Scoville and which they had started in the summer of that year. In 1865 his production of iron from a small furnace at Erie, was considerable.
But within two years the processes for handling Boulder, Jefferson, Clear Creek and Gilpin County ores were so completely changed that many hundred thousand tons of discarded machinery were put into the furnace and remelted into necessary iron utensils. Tarr & Cushman, owners of the Denver foundry were getting a good quality of gray pig iron by mixing scrap and the Colorado product of hematite and limonite ores.
In 1860 James Endlich began the brewing of beer, which grew finally into one of the large establishments closed up after the state went dry. In that year John W. Smith actually brought a grist mill to Denver and began making flour
546
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HISTORY OF COLORADO
and corn meal. A grist mill had been projected in 1859 by Gen. William Larimer to be operated with water power from the Platte, but this was never constructed. Smith after erecting a mill in West Denver, which was operated with high-priced cord wood as fuel, closed a contract for water power with the Union Ditch Con- pany's canal built in 1864 and, selling his second mill, erected a third one a little way above the town. In 1874 Smith built the Excelsior mill at Eighth and Law- rence streets and this in 1879 became part of the J. K. Mullen interests. Whit- temore & Company were also among the early milling interests. In 1868 the Colorado Salt Works were in operation about twenty miles below Fairplay at the Salt Springs.
By 1868 pottery, tiles and fire brick were being made at Golden City where three flour mills had also began to do business. The commercial report for 1868 gives the value of the flour, feed and bran manufactured in that year as $180,000; the beer, $5,000; manufactured goods, $66,400. On the South Boulder the furnace for smelting iron ore was in operation. In Gilpin County 181 engines with an aggregate of 4.500 horse power were giving power to sixty-five stamp mills, reducing works, etc.
Pueblo was agitating for a woolen mill to manufacture "blankets and fabrics for heavy wear from the wool of the country, which is annually shipped east at an expense per pound nearly equal to the cost of the raw material, wool being sold in the fleece at the ranch at 10 cents to 121/2 cents per pound." This woolen mill became a reality in 1870 when John W. Smith and John Winterbottom began the manufacture of flannels, blankets and yarns, but prohibitive freight rates then as later, prevented the success of the venture and it was closed up in 1877.
Rocky Mountain flour in those years commanded a high price in eastern markets, but little of it was shipped out for it was barely enough to supply home demands.
In 1877 a rolling mill was taken from Danville, Pennsylvania, and set up in Pueblo. On March 1, 1878, it was in operation, producing re-rolled rails. Late in the year Denver offered a substantial subsidy and Faux, the owner removed the plant to a point near the old fair grounds in the northern part of the City of Denver. While operating in Denver the first rolling mill supplied the iron for the Denver & South Park road. The Colorado Coal & Iron Company, now the Colorado Fuel & Iron Company, bought it in the early 'Sos and transported it back to Pueblo, where it has remained.
The new company in 1880 commenced the erection of a large coke furnace at what was then known as South Pueblo, now Bessemer. This was put in blast September 7, 1881. It also at the same time began building the Bessemer steel works. Coke ovens on an extensive scale had even before this been built by the same company at El Moro. In 1880 the U. S. Census reports 200 ovens com- pleted. This marked the beginning of the state's greatest manufacturing in- dustry, the history of which is covered in other chapters.
Mrs. Elizabeth Stone and H. C. Petterson in 1868 built the first flour mill, the Linden in the Cache la Poudre. Later in the same year Andrew Douty built his mill in the Big Thompson Valley.
The first commercial cheese manufactured in Larimer County was made by Mrs. George E. Buss in 1886. Her facilities at the start were crude, the hoop being hollowed out of a cottonwood tree and the press being the parts of an
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HISTORY OF COLORADO
old grain reaping machine. In 1887 the first creamery was built at Fort Collins but Mrs. Buss made and sold from 10,000 to 20,000 pounds of cream cheese each year until 1889.
The first sawmill, a portable one, in Larimer County, was located northwest of Laporte by James Obenchain in 1863. The logs cut in the canyon of the Cache la Poudre in the winter were floated down to the mill by the spring floods. Later Joseph Rist's mill supplied the booming Cheyenne market with lumber. In the 'zos the industry became very important, logging crews going into the moun- tains in the fall and preparing the timber and in the spring sending it down in the flood waters to Greeley and to a mill located at the Linden Street bridge at Fort Collins.
Between 1882 and 1890 over a thousand men were employed at the quarries at Bellvue, Stout and Arkins in Larimer County, getting out building stone, pav- ing blocks, curbings and flaggings for Denver, Omaha and Kansas City contract- ors. At Ingleside, sixteen miles northwest of Fort Collins, immense limestone quarries were opened in 1904.
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