The sun. [volume] (New York [N.Y.]) 1833-1916, 1875-10-18
THE SUGIR REFTNERS.
The Problem Of Double Profits ON the Im-
portntion Of Raw Sugnr aud the kNpor-
tntion Of the Refined Article to Europe.

The sugar swindle, as 1t is termed by the
revenue officers, was inquired into by Collector
Arthur and his deputies on Saturday Several
merchants protested against the Treasury de-
cision OF Tuesday reducing the rate Of draw
back on refined hard sugar exported to foreign
countries. Thew said that the new rate would
ruin the American export sugar trade, and close
up tho renneries.
The ratio OF drawback established by Congress
In 1872 was 1918, gold, to be paid the exporter
for every hundred pounds OF refined hard sugar
shipped abroad, less ten per cent. OF the amount
to be retained by the Government toward pay
ing the expenses OF revenue collection. In
March last the rcnners, who do most OF the ex-
porting. rot Congress- to reduce the percentage
OF the drawback retained from ten 10 one per
cent and Immediately there .fter there was an
astouish increase In sugar expOrtatiOns Over
twenty-four million pounds OF american refined
sugar was sent to Europe, chiefly to Great
Britain, In the lve months from April to August
this wear. being an advance OF twenty million
pounds over the same period In 1874. For some
| cause tho American renners were able to COM
pete with the British rennerS. and to undcrse
| Them i'm their own market The result has bee n
10 paralyze the trade Of many OF the foreign
| merchants and drive them out OF business. one
Of the latest rcnnrted failures Is that Of a
| wealthy renner in Glasgow, who could not COM
pete against the Americans. The English re-
| nners complained that the ratio OF drawback in
this country as excessive. and Secretary lirls-
tow recently directed Collector Arthur to make
| an invest igatiOn into the chsrzes.
| From Custom House STANDPOINT, the OLD
rate OF draw back was n fraud on the Govern
| ment. IL virtually gave the renners under that
| rate, Vt Is claimed, n bounty of ono-half per
| cent ON every pound OF sugar exported. That
| Il, tho Government paid ont more In draw backs
| on the exported sugars than II received IA du-
ties on the raw material at the time Uf Its i'm
| portaton for the r.luers. In paying the draw
] back the Government recognized hfty-six
| pounds of refined sugar as rcprcsentlng one
huud ed pounds Of raw sugar, and gave back to
| the exporter on every nftN-,ix pounds Of refined
| sugar the same amount previously collected on
! the crude article, less the one per cent with
| held for Gus oms expenses. The revenue au-
| tnnrities say that this standard h too low. In
| England, France. anil belgium, eighty SIX
| pounds il fixed as the standard quantity oI
| sugar that eau be refined from one hundred
| pounds OF raw. American refners can refine
nearly as close as ihis, and n II charged thai the
| low standard which prevailed befoIe the recent
| Treasury order worked against the Government
| and In their favor.
| While American refined crushed sugar wa'
! selling In England at eight cents pound II sold
| here for about twelve cents. The explanation
| OF TINS anomaly given by the wholesale crorcrs
| TO the revenue officers IS that the rehners sent
| most Of their sugar abroad, where the mos
money vas to be made. and left shor. supply
for this market. In two months nearly SOo,OU
was paid out IN draw wDacks. chiefly on sugar, ent
the 10 30 to the Government on this sum Is rep
resented TO be about 5000. All exports have
been stopped for the present.
To-day the Collector will appoint three ex
prrts to decide ON the questions raised by tn,
Government and the eApprtcts.