The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1897-08-12
A GREAT ADVANCE
THE RISE IN SUGAR TRUST
STOCK EXPLAINED.

Il
Had Imported 100000 Tons of Raw
Sugar Under the Low Tariff and VIII
Make an Immense Profit on 1t.
Eff. PARSONS Special Correspondent.
Washington, D. C.-Why has the
sugar trust stock advanced so enormous
" during the past fortnight, and espec-
iallv since the action Of the tariff con-
ference on this subject became known!
Does the tariff bill give to the sugar
trust any undue advantages and II not
is there any other cause for the advance
in the stocks of the trust?
These are inquiries which every citi-
zen is making, and properly. They
are pertinent to the occasion. 1t is
right that he should make them, and
it is right that they should be ans
wered, and answered frankly.
Now what is the cause? Does the
bill give the trust any secret and mys-
terious advantages of which the public
does not know in detail? Are Chair
man Dingley, Representative Payne,
Senator Allison and others mistaken
when they say 1T does not? The people
will not believe that these men In
whose long public career there has been
no suspicion of dishonesty, are wllfnlly
and knowingly misstating the facts or
making assertions that are not based
upon facts, or at least what they be-
lieve to be facts.
These men assert that the tariff rates
of the bill give the refners no more
protection than the actual cost of rein.
ing, viz: One-eighth of cent per
pound. Nobody who knows the men
making this assertion will believe that
they are stating other than what they
believe to be the truth The question
then is as to whether they are mis-
taken, whether, to use the term of the
day, they have been "b1S"oed" by the
sugar trust or by experts upon whom
they have to rely for their information.
If not, is there any other cause which
would legitimately result in the adj
vance in sugar trust stock as has been
the case?
1t was generally conceded when the
bill passed the house that it was not in
any way advantageous to the trust, but
that on the contrary it took away from
it the advantages which it had under
the Wilson law. AS the bill left the
house the rates on refined sugar were
1917 cents per hundred pounds higher
than the rates On raw sugar. OF
course the rates on different grades
of raw sugar are different, but taking
the number of pounds of any grade
which were required to make hundred
pounds of refined sugar it was found
that the rates were on an average OF
1917 cents per hundred pounds less than
those on refined sugar. This means
that the refiners of the country, whether
in the trust or out of it, were allowed
difference of 1917 cents per hundred
pounds, or one-eighth Of a cent per
pound difference between raw sugar
when imported, thus giving them an
opportunity to import raw sugar at one
eighth Of a cent a pound less than the
rates at which refined sugar can be
imported. Since it is generally conced-
ed that the cost of refining sugar is not
less than about one-eight of cent a
pound, it is apparent that the rates
really given to the sugar refiners are
simply the bare difference between re-
fined and unrefned sugars or the cost
of refining.
While the rates adopted by the SEN
ate undoubtedly were more advantage
Gus to the sugar refiners, those finally
agreed upon by the conferees made pre-
cisely the same difference between raw
and refined sugars that the house made
when it was passed by that body. The
conference report did increase rates On
refined sugar slightly, but it also in
creased the rates on raw sugar, thus
making the difference in the rate of
duty between raw and refined, or the
"differential," as it is called, precisely
what the house bill made it originally.
If, however, the conference report
really gave the sugar trust no advant-
age, why was it that sugar trust stock
advanced during the time that the bill
was in consideration by the conferees
and after it was made public? This is
q pertinent and proper question
The answer to this is simple enough.
The sugar trust, knowing that the new
bill would certainly advance the rate
Of duty on sugar as protection to
American producers, has been bringing
into the country as rapidly as possible
sugar in enormous quantities, gett ng
it in of course. under the comparatively
low rates of the Wilson law. 1t has
secured the world for sugar and had
in stock by the time the conference
report was presented to the public over
100000 tons of raw sugar, Or in
round numbers. 800, 900, 900 pounds.
Enough sugar with which to load TO-
900 cars, or 3, 800 freight trains of 20
cars each.
1t was thus perfectly apparent that
the trust would make whatever profit
there was between the tariff rates of
the Wilson law and the increased tariff
rates named by the Dingley law, or an
aggregate profit calculatedat about $12,-
100000. Is it surprising that sugar
trust stock went up in view of the fact
that this organization would make
upon the sugar which it had brought
into the country $12,O0O.O0O by the
mere advance which it could make on
its stock of sugar after the final passage
of the bill?
Currency reform is to be the next
undertaking of the Republican admins
tration now that the tariff reform is an
accomplished fact.
Advices from abroad confirms the re-
ports that the great grain-producing