Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1892-05-12
WHY SUGAR ISTAXED
ATHE INVOLUNTARY TRIBUTE WHICH
VICE PAYS TO VIRTUE"

What Free Sugar SIeans-It Costs the
People SIS. $50. 900 Year. All Of which
Goes Into the capAeious Pockets Of the
Sugar Trust-An Expensive Luxury.
The proudest boast of the advocates Of
the Mckinley bill is of its free trade
features. This is the involuntary trib-
ute which vice pays TO virtue.
Republicans boast that they have given
the country free sugar. If this were not
false it would be an anomaly in Repub-
ican pretense. But it is false.
The Republicans have given the sugar
trust free raw material, and the country
taxed sugar. In other words sugar up
TO No. 16, Dutch standard, which is free,
does not enter into consumption to any
considerable extent, but goes to the re-
fineries. The sugar which comes out of
the refneries is taxed half a cent per
pound, and the people pay the tax. For
whose benefit? For the benefit of the
sugar trust.
Every home in the United States pays
tribute to the sugar trust. The aver
age exaction is S1.25 q year from each
householder.
We do not propose to discuss here the
morality or the expediency of taxing all
the people of the country for the benefit
of few. That branch of the subject
has already received attention. We will
put the discussion on lower plane, and
consider it from the standpoint of the
protectionists themselves.
What claim has the sugar trust to pro-
lection? What need is there of protec-
ton to refined sugar in order to preserve
the refining industry from ruinous COM
petition from abroad?
The New York Commercial Bulletin
undertakes to supply data by the use of
which these questions may be answered.
As it has excellent facilities for learning
the truth, and is noted for its accuracy
in commercial matters, we feel safe in
using the data which it supplies.
The sugar trust property few years
ago was worth $15 100000. Later addi.
tions have raised it, as estimated, to
$35, 100000. This may be excessive, but
for the purposes of this inquiry let it &c
at that. The capital is now $85, ,000, 600
consisting of $35, 600, 900 property and
$50, ,000, 900 water. There are $4,000.
coo in bonds, $37 100000 in per cent
preferred stock and $37, 100000 com
mon stock.
The trust has tariff protection, says
The Bulletin, of 15 cent pound by the
duty on refined sugar and a cent {
pound in natural advantages. The price
of raw sugar so degs. centrifugaD is 3
cents pound; of granulated, 43s cents
difference, II cents. The cost of rein
ing is not over 5s cents per pound, an(
the net profit q cents pound, or s.. .03lt
barrel. On the minimum yearly pro
duction of 12,GO0,000 barrels this prof
amounts to $25, $780, 600.
What do the owners of the sugar trus
properties get out of this? Their proper
ties are said to be worth $35, 900, 900. Th
profits amount to 73.0S per cent. Thi
is an average on the real value. As t.
the hominal value of $S5, 900, 900 the &C
count stands thus: After paying pc
cent. on the preferred stock and 6 pc
cent. ON the bonds there is dividend O
59.65 per cent. on the common stock 0
$37 500, GOO, all of which except $2,500
Geo is water. These are the highes
| water rates in the annals of the world.
Is the half cent tax necessary for tn
preservation of the refining industry
Let us see. Without going into full dt
tails, it is evident from the statemer
already made, that without the tax th
profit on refined sugar, even at four cent
pound, which would he low enough t
compete successfully with sugar impor
ed free, would be one-fonrth of cent
pound, or81 4 cents barrel. On 12, 500
600 barrels this would be equal to $40
237 500 year, which, after paying til
interest ON bonds and dividend of pc
cent. on preferred stock, would leave
dividendof 1871 per cent. on the commc
> stock, fourteen-ffteenths of which is fl,
titious.
In other words, the tax on refine
sugar extorts from thepeople SIS, ,356, OF
year for the benefit of trust, tt
profits of which would be immense witt
out any protection. This is the pra
]; teal working of the fine theory of ''pr
tecting home industries. Louisvil
/ Courier7Journal.
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