The Washington times., 1894-05-06
Robinson, Chery & Co.
Twelfth and F SITS. N. w.

conceded by the Democratic caucus Of the
Senate, are as follows:
(s)-An ad valorem duty Of 40 per cent on
all sugars, raw and refined.
b)-An additional specific duty OF one
ighth cent per pound upon all sugars above
No. 16, Dutch standard.
(c)-A discrimination Of one-tenth cent per
pound against countries giving export boun-
ties on refined sugars.
The effect Of (a) is. not merely to reduce the
revenue duty on the trusts raw material and
transfer 1t, in the shape Of protection. to the
bonus secured it, but to give to the trust
special protection Of 40 per cent. on the diff
ference between the net purchase price in
foreign countries OF its own supplies as
invoiced for custom house appraisal and the
export invoice price Of foreign refined sugar.
This difference is composed Of two factors,
u The actual margin between the price Of
raw and refined sugar at the foreign export
ing refneries necessary to cover expenses and
waste and give living profit, and (2) the
amount by which the transport Of refined
sugar hither Is less than that Of raw material
trust, the original net foreign price being in
each case the basis for assessment Of
duties. Refined sugars start hither mainly
from Dutch, German and British ports,
whence freights westward are uniformly
low, as the main trade Is eastward; and war
sugars, either from interior points In Ger
many, or from Cuba, Java, ETC., whence the
freight hither must pay for part Of the return
voyage rs well. This factor is, therefore, say
five to ten cents per 100 pounds on the aver
age. As to the margin for refining, Mr.. Have
meyer states it to be here IS cents per 100
pounds, without including any profit what
ever This is not true; but with their smaller
cluding living profit. cannot well be less than
55 or GO cents per 100 pounds, making the
total margin on which the reflners receive the
40 per cent. net protection 60 to 20 cents per
100 pounds, or a bonus OF above one-quarter
cent per pound on the average.
By the second item alone (b) above the
trust secures in addition all the advantages
proposed in the bill reported to the Senate, or
a prohibi.ive monopoly. and one-eighth cent
per pound on the average. BY the third pro-
vision (c) above, it practically receives 10
cents per 100 pounds more upon all its sugar,
as its only considerable irival would be the
German ref1ner, against whom this retaliatory
reciprocity is aimed.
By (a), (b), and (c) combined, therefore,
the trust secures an extra bonus OF, say, 80
cents per 100 pounds. or somewhat over S16,-
O00, 900 per year pure gratuity from the
American people, in addition to the enormous
profit secured in any case by its great capital,
organization, and advantages noted first
above. while the independent refners are
proportionately subsidized.
The above calculations are made upon the
basis OF the current use Of sugar in this
country. 1t is probable, however, that such
an increase in the cost OF sugar to con-
sumers, as is involved in either Of the later
schedules, will substantially reduce the con-
sumption below what it otherwise would be,
!. e., that our consumption will remain at
practically the same figure for several years
instead of steadily increasing, as of late.
While, therefore, the amount OF advantage in
dollars and cents to the sugar trust from the
several schedules proposed will remain about
as calculated above, it would lose from 10 to
Is per cent. of what would be its prospective
additional sales under present tariff condi-
tions, free raw sugar and 60 cents per 100
pounds protection; SO that, even If all conces-
sions are made as suggested. the trust will
still be interested to the extent of many mil
lions of dollars in favor OF leaving the Nc
Kinley law in force. and, therefore, having
COTTON all concessions possible, it will now
try to defeat the Wilson bill.
The prices at which sugar trust stock has
lately been sold, and its fluctuations in strict
sympathy with the success of its friends in
the Senate, are but slight indication Of the
real amount of profits involved. This stock
is owned exclusively by a few insiders and
many outside gamblers, and no one invests
except to secure returns out OF all proportion
to his expenditures. To protect its position
the trust is also obliged to pay simply enor-
NOUS amounts in sincecure salaries in the
purchase and subsidy of blackmailing rivals,
and in the propaganda by which it attempts
to deceive the public and does succeed in in
fuencing legislation. Could it be assured of
subject to none other than legitimate de-
mands, on the basis OF the Senate's complete
surrender. its stock would be as cheap at
$3.50, 900, 900, as would be exofbitant the es-
innate of its actual property at s25, 900. 900.
JOHN DEWITT WARNER.