The Washington times., 1894-08-02

Is, first to buy them subject to such analysis
discounts as shall FIX their commercial grade
far below that indicated by tho actual suorose
contained, and then, by mixing them with
other sugars or subjecting them TO special
treatment, to make available as much more
sucrose than has been paid for ss the refiner
finds possible. Inquiry has discovered a
number of people who think they have tho
secret Each of them, however, keeps it to
himself, and Is perfectly confident that his
brother reflner, If he gets at an equally profit
able result. does it in different way.
II.
SPECIAL ADVANTAGES OF AD vALoREM scHED-
ULE TO THE REFINERs.
An ad valorem tariff Of 40 per cent, or
otherwise, has special advantages for Ameri-
can reflners, and special disadvantages to the
United States Treasury and American con-
sumers, not generally understood, and not IN
volved in a specific rate. graded according to
the polariscopic test. These in especial are
two:
/. differentiation. Ad valorem and specific
duties have each their special disadvantages
an ad valorem duty is at its worse when it
affects an article, the production or purchase
of which is in the hands OF comparatively
few people. In the case OF sugar this disad-
vantage is ideally great-the purchasing
combine of our refiners being practically
managed by single head, covering the whole
of the world, and handling one-half OF the
total amount of all sugars produced in the
world that are exported from the place OF
their growth-and the opportunities for un-
LIBERALIZATION by over-deduction Of transport,
packing, ETC., charges between original pur-
chase point and the United States, taken into
consideration with the fact that the Hawaiian
and Cuban plantations are largely owned and
more largely controlled by the magnates of
the sugar trust, are simply boundless and
utterly beyond control or limit by the Treas
ury. The result therefore, in revenue, from
an ad valorem duty will be to encourage such
fraud as will decrease receipts far below those
which would result from properly arranged
specific schedule.
2. Again, the trust perfectly understands
other people apparently do not-tne peculiar
opportunity afforded by an I'D valorem duty
as distinguished from specific one of addi-
without corresponding inducement to impor-
tation. For example, II we had specific
duty of l cent pound on 100 degree sugar,
graded downward according to polariscopic
test, the trust would be obliged to pay extra
for its raw sugars so nearly the extra amount
that it could extort for its refined that it would
practically derive no special advantage or dis
advantage therefrom. And even If special
protection was given it Qf an extra 4 cent per
pound on refined sugars, the trust, having
special protection of 4 cent per pound, would
offer inducement to imports Of foreign sugars
by precisely the amount by which it put the
price Of refined sugars here more than { cent
above the free trade importing price. II it
kept the price of sugars II cent above the free
trade import price, then there would be pre-
cisely 4 cent inducement offered to the for,
eign refiner. II it raised prices by a full 4
cent above this, the inducement to the foreign
refiner would be increased precisely y cent.
But under an ad yalorem duty the American
rehner's opportunity is greatly increased. By
any given increase which he makes in the
price of refined sugar here under an ad
valorem duty he affords the foreign reflner
an inducement equal only to q portion Of the
amount represented by such increase. For
example, if under 40 per cent. ad valorem
system he raises prices 70 cents here it per-
mits the foreign reflner to charge only so
cents more for his sugar-our 40 per cent.
tariff making 80 cent addition to the foreign
price equal to 20 cent addition to the price
at which foreign sugars can be sold here.
The effect of an ad yalorem duty therefore is
to enable the American reflner to increase his
price to American consumers without offering
corresponding inducements to foreign re-
flnerS