The Washington times., 1894-08-01

posSlDllty OF German Rranuiatou soAAooSiy
competing with our ''reaned" granulated,
that it is practically impossible to market
here in competition with our standard granu-
lated the corresponding off sugars produced
as by product, although prices are Pitilessly
scaled to get rid of them. The importation
of German granulated would, therefore,
rather compete with the by-products OF our
refineries than take the place to eny consid-
cradle extent of their main product, standard
granulated, and the assumption by the trust
that this is competing grade is fraud in
itself.
Again, the sugar trusts whole argument
is hopelessly vitiated by the assumption that
the relations between the prices Of beet raw
sugars and those OF beet refined sugars at any
particular time or place have any bearing
whatever on the extent Of the protection to
the American refner involved in the 40 per
cent ad valorem rate. While 1t is an error to
assume that the natural and average relations
of raw and refined beet sugar prices are as
stated by the Sugar Trade Journal, 1t would
be no matter of consequence to American re-
flners even if this were SO. Our natural
sources Of supply for raw sugars are Cuba,
the United States, and Hawaii, the prices Of
which are strictly graded at or below Cuban
parity, and which together constitute above
three-fourths of our total supply. Cuban
sugars are delivered at American ports at
from Is cent to Il cent per pound more
cheaply than could any considerable quantity
of them be delivered at British or other
European export refining points. On tho
other hand, the German refineries are de-
pendent, wholly as to the great ma
jority and mainly as to those
at the ports, upon German beet
sugar-any attempt to secure additional sup
plies of cane involving them in such dispro-
portionate expense as to make it impractic-
able. The German refiner, therefore, must
pay for his raw sugars the average price dur
ing the year Of European beet sugars. Our
refners, secure in their practical monopoly OF
the best and cheapest cane sugars OF the
world, pick up the remaining one-fourth OF
their supplies in Europe. in Java, the Philip
pines, Brazil. Demerara. and elsewhere by
making special purchases only at such times
as the price may be temporarily below Cuban
parity-that is, SO low as to permit the sugars
purchased to be delivered at New York for
less than similar ones would cost delivered
there from Cuba. The result is that as to
European beet sugars and Javan and other
cane sugars Uhan Cuban. Hawaiian, and the
United States) our purch ases are made only
in exceptional cases when low prices are rul-
ing-hence the average price or the price at
any particular time OF raw beet sugars has no
bearing whatever on the price our refiners
are paying for their supplies OF raw sugars.
The facts cited by the trust, therefore, are not
even important, If true"
In conditions such as control sugar distri-
button, far-fetched analogies such as those
suggested by the sugar trust are immaterial
and misleading. The actual net protection
on all sugars is obviously determined, not by
actual or pretended conditions elsewhere, but
by actual conditions here-that is, first, he is
the loser to the extent of just 40 per cent. Of
the customs-house valuation of the raw
sugars actually imported by him, sufficient to
the duty be actually pays); next, he is the
gamer by 40 per cent. of the customs-house
valuation of the refined sugars Of equal
quality with his own. which can be i'm
ported from any quarter Cfor the duty
enables him to charge just so much more for his
reflned). For example. if his Cuban and
other raw sugars sufficient to make 100
pounds of refined are apprised at s275, and
Dutch or English granulated (not quite equal
to American, but the nearest attainable) can
be imported at an apprisal of $40, the
American refiner will be out s1.10 for extra
tariff cost of each 100 pounds Of his refined,
and will be in S1S6, the extra price he can
charge therefor, or 4 of 1 cent per pound net
protection to the refiner in the 40 per cent ad
valorem alone.
Any one familiar with customs-house vaIu-
alton (foreign cost, transportation, handling.
brokerage charges, ETC., being deducted)
will admit that S2.75 is fair customs house
valuation for Sc degrees Cuban centrifugals
sufficient to make 100 pounds of refined.
Similar sugars imported from Java, the Phil
ippines, Hawaii, etc.. though of tie same
value at New York, would be subject to larger
deductions and appraised by the customs
house authorities at a much lower rate-so
the estimate of s2.75 is a liberal one, while
that of S3.40 as the price of Dutch and Brit
ish granulated is fair average OF recent
quotations.
There is moro milk in the 40 per cent.
T.
Commercial conditions are such that British
and Dutch exporting refners OBTAIN the raw
sugars they use at but little if any above the
cost of raw materials to our own refiners.
the main drawback to their competing with
ms being, first, the cost of transport hither.
with incidcntals from Is cent
to 4 cent, in itself ample protection to our
that there is no refinery in existence abroad
which is large or economically working COM
pared with our own. Our refiners. therefore,
not merely enjoy substantial protection of
at least Z cent per pound without the tariff,
and at least an additional 4 cent under the
40 per cent ad yalorem item alone. but can
double or treble this latter figure for years
without involving serious competitor or
building up a rivaly which, by reducing
their profits, but leaving them still exorbitant,
they cannot at any moment crush. The
price figures above given are the result OF
conditions involving imports Of refined sugar