In a large stockpot or Dutch oven, combine the beef (do not brown), grated onion, tomato paste, tomato sauce, water, sugar, chili powder, garlic salt, salt, and pepper. Mix until combined. Add bay leaves.
Cover and simmer over medium-low heat for approximately 2 hours.
Stir in white wine vinegar and simmer another 30 minutes. (I cooked on low heat for 4 hours.)