Middletown transcript., 1897-07-31

tinuous train over fifty miles in length.
On every pound of this sugar which it
had in stock It was perfectly apparent
that it would make whatever profit
there was between the tariff rates of
the Wilson law and the increase tariff
rates named by the Dingley law, or an
aggregate profit calculated at IL mill
lion dollars.
Is it surprising that sugar stock went
up in view of the fact that this organ
ization would make upon the sugar
which it had brought into the country
II million dollars by the mere advance
which the trainers of this bill have
found it necessary to make in tariff
rates in order to protect the sugar pro-
ducers of the United States and bring
revenue to the Government
But, the obiector will say, everybody
familiar with this subject knew
that The sugar trust had all this
sugar in stock, and since this fact was
well known this does not account for
the sudden rise in sugar-trust stock
which followed the announcement of
the conference committee.
This is true, but the explanation Of
the sudden advance, which was caused
by the profit thus assured to the sugar
trust through the enormous stock on
hand, is found in thu fact that Secre-
tary Gage had recommended to Con-
gress the placing of an internal revenue
tax of one cent per pound on all unre-
fined sugar in the United States when
| the new tariff law should go into effect
the object being to compel the trust to
pay to the Government tax of one
cent per pound on al this 1900, ,000. 600
pounds of sugar which it had accuma-
lated waiting the advance which it
could make by the new tariff. Had
Secretary Cages recommendation been
accepted by the conferees and by Con-
gress it would have compelled the trust
to pay in internal revenue taxes pro-
bably Is millions dollars upon hesugar
which it had piled up in its warehouses.
The conferees and Congress, however,
did not adopt Secretary Cages recon-
mendation, for reasons which they
looked upon as entirely sufficient, and
the moment this fact became known
FIRST, that the sugar trust would make
this large profit by reason Of the in
creased duty on sugar, aud, secon1,
that it would not be compelled to pay
out any of that profit in the proposed
internal revenue tax upon its sugar in
stock-those who calculated the profits
which it would make during the COM
ing year on this enormous mass of sugar
which it holds saw readily that the
profits would be great and the divi-
dends large. The result was the ad-
vance in sugar-trust stock about which
there was 80 much talk and denuncia-
tion. This advance was not due to
any permanent advantage which the
new tariff bill gives the trust over the
old law, but, on the contrary, the diff
erence between raw and refined sugars
under the new bill is, as already indi-
Gated, 124 cents per hundred while un-
der the Wilson law it is 224 cents per
hundreds pounds, thus making it appa-
rent at once that the permanent diff
erential" or difference in tariff rates
which the sugar refners get under the
new law is far less than that under the
Wilson law.
The sudden jump in sugar stock was
due entirely to the knowledge Of the
rejection of the proposition Of Secre'
tary Gage to tax the raw sugar in the
country, and if his recommendation
had been accepted by Congress thi;
sudden rise would never have occurred