Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1897-05-15
TALK ABOUT SUGAR.
The Gossip About the Tariff
Rate and the Trust.
Many Ways Of Making Profits Sena-
toriaI Speculation in Sugar.
German Competition GreatlStake for Amer-
can Farmers 10 Strive for.

is now the chief topic of conversation at
the national capital. Will the Sugar trust
be able to hold tho advantage which 1t
gained in the finance committees revision
of tho tariff bill, or can it be compelled to
let go? This is the question. That the
trust has powerful friends in the senate IS
not to he denied, but the men who wish TO
rcducctle profits Of that great corporation
appear to be in the majority, and the out
look is that they viii carry the day. me
advantage which the trust gets in the sugar
schedule is not in the amount of direct
duty levied. 1t lies in what Is called the
differcntial-that is, the difference bctweeh
the rate of duty on raw sugar and refined
sugar.
Under the present law this difference Is
one-eighth of Il cent u pound, ana Win
that slight advantage tho trust has been
able to continue paying IL per cent dlvl-
dends upon its watered stock. Besides the
nc-cighth of a cent nominal advantage, III
the practical operation of the law there Is
another source of trust profits, for 1t Is
we'll known that with an ad valorem rate
OF duty the shrcwd operators OF the trust
are able to import vast quantities OF raw
sugar at undervalnations. If n consIgn-
ment of sugar is not valued properly, OF
course the importer gains just SO much IN
the amount of duty paid and the govern
ment loses the revenue. For this reason
the house in its bill made the duty specific.
That was the only way to cut off the I'M
dervaluations. Tho senate committee how
ever, increases the ai.ount of differential
and also makes the duty both specific and
ad valorem.
Just what the differential will figure
out in practice, if the senate revision be
made law, no one appears to know. The
experts do not agree. But the difference
between the duties on raw and refined SUI
Uars cannot be less than three-eighths of a
cent q pound, and some estimate 1t as high
as fiye-cighths. Whatever 1t is, evidence
accumulates that the figures made by the
finance committee are practically what thu
REPRESENTATIVES of the trust asked for. The
best guide to the value of the proposed
rates of duty to the trust is found in this
fact and also in the effect which the pub
LEGATION of the new schedule had upon the
price Of sugar shares in Wall street.
Senatorial Speculation.
There has been a great deal of gossip
about senatorial speculation in sugar
Without doubt some senators did buy SUI
gar shares in Wall street and sold them
out at profit But it is not crime for
senators to speculate in sugar. There is
no law against it except the law OF pro-
priety. l doubt if there has been much
speculation this year, perhaps not tenth
part of what there was when the Wilson
bill was revised in the senate three years
ago The scandal created by that orgie OF
speculation inculcated in senator's minds
a wholesome fear of public opinion. There
is talk of senatorial investigation con-
corning the charges of speculation, but 1t
Is generally doubted if the senate Will
notice the matter in any official way.
In addition to the favorable rates of duty
I'M the sugar schedule the trust was able to
wofi. into the finance committee revision
Of the bill clause abrogating certain
parts OF the treaty between this country
and Hawaii. Under the treaty sugar grown
In the Hawaiian islands is admitted to the
United States free of duty. 1nasmuch as
about all the product of the islands Is TAX
EN- by the Spreckels and other Pacific coast
reflneries rivals of the New York concern,
the latter wanted to compel Hawaiian
sugars to pay duty on importation to this
country If they could succeed in push
ing this abrogation of the vital Part OF
the treaty through congress, the eastern
trust would consider that it had made II
big stroke. But tho sentiment in congress
Is decidedly against this proceeding.
Sugar From Germany.
One argument used by the Sugar trust
peo\,le is that while they may have been
largely in control of the market for some
years past the price of sugar to consumers
has gore steadily downward. In support
of this they quote the following prices of
refined sugars for the years named: In
1879, SIS cents; in 1885, $50; in 1896,
4.53, and now, 4. TO- While these figures
ure no doubt substantially correct sugar
experts tell me the reduction in price is
due wholly to the competition of German
sugar growers and not to any desire ON the
part of the trust to make this article OF
household necessity cheaper for the people.
In recent years the production of beet sugar
IN Europe has increased more than 5000,
600 tons, and this vast output has had to
find a market. Germany, France and
Il ustria now pay an export bounty on sug-
mr.. and the price of sugar in this country
is really regulated in Europe, not by the
Sugar trust in New York. If 1t were not
for the trust, no one doubts that sugar
would be cheaper than it is in our markets.
Beet Sugar.
Just at this time sugar appears to 30 n
leading topic of consideration in all branch
es of the government. Congress has wal
over the schedules on its hands, and the
agricultural department is trying to intro
Guce the growing of beet sugar among our
farmers ON a large scale. Secretary Wilson
has sent out beet sugar seeds to about 20,
900 farmers, and he is now following this
up by putting in the field expert1 whose
duty it is to gather facts which may guide
capitalists in locating beet sugar factories.
Practically all of the farming region in the
great middle part of the country, from
Alabama northward, is believed to be avail
able for growing beet sugar. Secretary
Wilson, who Is u hard headed, practical
Scotchman, predicts that in five years this
country will produce half the sugar it con
sumes.
What great stake this is for the farm
ers Of America to strive for may be judged
by the figures. Our average importation
Of sugar Is about 100000 tons, and tn,
cost Of this in the foreign country wher,
purchased averages very nearly $50 ton
This gives grand total of something lik,
e13O.O00, 900 year which goes out fo
nnuar p,,rchuspd abroad To say nnthinu n