The times., 1897-06-10
The Trust Happy Over the Sched-
ule in the Tariff Bill.
SOME SENATOR'S ALSO HAPPY
Said to Have Dailied With the
Market, aud Having Advance In
formation Dame Fortune Did Not
Flout Them-An Apparently Jn-
nocent Provision Worth Millions.

approved by the rRepublcan caucus of
Tuesday, an analysis of the stock quota
tions will give a sufficient answer 10
tnat question. 1t Is. quite evident from
the movements of that sensitive stock
that the insiders knew all about what
was to be agreed upon at that cangus
and had laid their plans accordingly.
The market closed Monday uIgnt with
sugar. at lis 3-4. 1t opened Wednesday
morning at 11s IL, and, fifteen minutes
later touched 11s SO, 1the lowest mark
OF that very sensational day. At noon
there was a brief period of expectancy,
pending the arrival OF news that should
verify the tip that had been previously
given out to the select on the inside uf
that deal. Then came the news OF the
action of the caucus. The stock at once
bounded up is OF point at a time until,
at O'Clock in the afternoon, it had
reached f22 7-S. A falling off took place
FOR moment, and the ticker stopped its
noise, with sugar quoted at 122 I-2 The
action OF the Republican caucus had caused
an increase in the valuation of sugar GER
tificatcs Of exactly four points, or $4 a
share.
sufficient time TO analyze the schedule and
had been compelled to take the statements
OF others on trust. Over night, no wever,
the text OF the schedule was obtained and
the situation figured out to the fractional
part of cent. This resulted in a still
further boom yesterday morning, Sugar
opening at the figure at which it closed.
The boom was stifled momentarily by the
cff lars ln Iah
down to 12i 1-2, but they could not
keep II there 1t bounded up again and
reached the high water at which i { closed.
] % "A. That is a sufficient response TO
any query as to whether the trust is salts
fled or not.
The wires of the New York houses hav-
ing special wires and Washington core
spondenls were kept busy throughout the
day, and the man who believes there was
no spcculating in sugar by men who knew
the inside and who are part and parcel
OF the body that enacts legislation is the
vcriest innocent But, OF course, Sena-
tors do not speculate, for they have said
so. In this onneciion, 70 may he sa d
with much positiveness that there is an
utter disregard for consoien tiousness in
some Senatorial quarters. One of the
has stated that he never bought or sold a
single share Cf stock this sess'o on, d d not
come to the Senate Tuesday until long
after the caucus was over, and Mr.. Al
lisun has made his statement on the floor
showing what the rates were that had
been agreed upon. Those who ought 70
know say that this Senator was down
town in touch with I've wie and firing
INT Nn, 70, g7a ,,f
sugar at n rate that astonished the broker
who was doing the business for him. And
yet there is no speculation going on among
United States SeIsatorsi
The trust gained big point when the
caucus agreed TO the apparently innocent
proyiso that all sugars testing under 81
degrees should pay oDe-teuth ui cert
per pound less than the rates provided |
for in the preceding section This is
an instance OF the confusion OF verbiage. |
The preceding section referred to assesses |
q duty of cent q pound ON all sugar |
under IS degrees, and three-one hun.
dredths of l cent for edch additional &c |
gree above that.
II would have been easier TO have re-
duced the rate at the outset, but this would |
have set somebody to thinking, and would
law ttuSth "a IOHl rtlt1b NOitu Z til-
dangered the schedule. 1t was better to
befuddle the public. The advantage to the
trust is very easily figured out One-tenth |
off of sugar at 75 degrees places the duty |
on sugar at nine-tenths of a cent, ia
stead OF one cent, as required by section |
200 Of the bill. Running this discount On
up to 81 degrees, the limit stipulated in
the bill, it is seen that sugar that other
a , q
pound comes in for Lee cents pound
The moment you strike sugar at IS degrees /
the discount ceases
Very naturally the trust VIII keep close |
to the line and bring in raw sugars test
ing not more than, but as close as possible
to ST degrees This discount is granted
in order ito encourage American shipping
1t is supposed that unless this is done
American ships Will not carry cargoes to
the East India islands and return with |
their cargoes of sugar. and the reason is
assigned thatit is fer tie great, high pur-
pose of fostering an American shipping in
dustry. The apparent fact is overlooked
that the Sugar Trjst owns and operates
its own vessels and sends after this raw
sugar regardless of anything else, and
brings 1t to the Eort of New York or Phil
adeipha at the lowest possible cost, after
having purchased it in a market that has
been beaten down TO the lowest possible
notch.
Now, little plain figuring viii show
wherein the trust has the best of 1t in this
deal. 1t is taken for granted that it will
bring in sugars at 81 degrees, for the trust
is not in the business for the health OF its |
employees. The Government computes that
{ requires 12427 pounds OF sugar of Sc
degrees to make loo pounds of refined
sugar The duty on 100 pounds of this kind
Of sugar, with the one-tenth OF a cent 4
pound off, as provided in the caucus amend
meGt, amounts TO 81 1858. The duty ON
100 pounds OF refined sugar amounts to.
under the caucus schedule, 81 $500. The
difference between the two is .3S42, or a
small fraction less than 39-fo0 of cent
)n every pound OF sugar refined.
1t was stated in the caucus and will re
maintained in the Senate that the differ
entail 10 the trust is one-fiftb of cent q
pound. These figures prove conclusiyely
that it amounts, on this class of sugars, TO
almost four tentts instead of two-tenths
,f cent a pound of course, to be per-
ectly fair &c the refiners, it should be said
hat out Of this differentiai the sugar must
je refined, but no one pretends that it will
'e6Gce the profit to an ything like the two
enths which is given ostensibly to the
irusa. To refine cugar costs money, but
he resduuru is valuable The waste in the
shape of syrup and other things is market
tble, and reduces to a still lower figure the
lctual cost Of converting raw into refined
ugar SO that, after the schedule is