The Saint Paul globe., 1897-05-26
THE ALDRIcH BILL
Continued From First Page.


beet sugar production in this country be-
lieve that we shall within ten years produce
all our sugar,
The legltlmate result Of the protective pol
icy is to give the American market to Amer
lean producers. When this becomes an ac-
complished fact. the revenue growing out OF
protective duties disappears. 1t must be evi-
dent, therefore, that we must look for other
sources of revenue. Whether It should be
along the line of an increase of internal rev.
enue taxes, such as we have suggested, or
whether some other sources OF revenue should
be sought 1t Is not necessary now to deter
mine.
It is safe to assume tina, numerous OBJ
jectors will always be found to any plan for
Increased taxation. In this particular case
the committee are only strenuous that q wise
public policy requires that our revenues
should at all times be equal to our expendi-
lures and that the people Of the United States
will not be satisfied with any revenue meas"
ure that does not provide adequate income
for this purpose.
SUGAR SCHEDULE.
In the sugar schedule E., we have sug-
gested change In rates and in the manner
of assessing the duties. AS the schedule is
should explain definitely the effect of the pro-
visions we recommend
The annual consumption Of sugar In the
United States is about 2, ,000, 900 gross TONS OF
q 24O pounds each, with value based on for
eign prices approximating $90000,000 If the
high duties proposed in either the house or
SSudlS Ulll SuOulu D0 duOptcu, Tie duuudl COSC
OF sugar to consumers would be more than
$160, 600. OF the consumption Of 1896, 49,,
600 tons, Or per cent, were beet sugars, pro-
duced in the United States, and 243, 900 tons,
or II per cent were domestic cane sugars, and
| 600 tons, or per cent, were sugars ad-
mitted from the Hawaiian islands free of
duty under our treaty with the Hawaiian
government. The 1000, 900 tons of sugar con-
sumed in the United States constitute nearly
I 80 per cent of the total consumption of the
world. the total sugar crop Of 1896 being ap-
proximately 100000 tons, Of which 4,30O, 600.
or about 61h per cent Of the whole were
beet sugars.
The pressing necessity for securing greatly
| increased revenues seems to render return
In 1880 an impossibility. The demand for
revenue purposes. and the belief that every
reasonable effort should be made to encourage
the production of beet sugar In the United
States. led a majority of the finance commit
tee to recommend the high rates upon sugar
| which contained In the bill now before
the senate.
1t is believed by the friends of the beet
sugar industry that we can successfully imi-
| tate the example Of Germany in the rapid de-
velopment OF beet sugar production.
The bill, as 1t came to us from the house
| of representatives, contains provisions which
levy a specific duty, based upon polariscopfc
test upon imported sugar varying from cent
pc. pound at Is degrees to * cents per
pound on all sugars above No. 16 Dutch
standard in color and refined sugars. The
effect OF the rates as applied to the total i'm
portations at the port of New York for the
month of January, 1897, is shown by table
which submit to the senate which has been
prepared by the customs officers in New York.
The rates suggested show a range of ad
valorem equivalents from 1872 to 144.3 per
cent. A careful examination of the tables
will show that the scale of rates adopted
bears very unequally upon all low grade
sugars. The character ana extent of this
discrimination led your committee 10 be-
leve that the schedule should be modified.
| The committee determined after careful ex-
animation of the whole subject to recommend
rates which would be in their effect as high
| at least as the house bill but which would
be levied in manner that would make the ad
valorem equivalents more uniform. We be-
l1eve that the imposition of the high specific
rates upon low grade sugars testing 81 de-
grees or below, would have the effect to ex-
clude them from the markets Of the United
States. The total amount Of these low grades
produced Is, as have already stated, un:m-
portant as compared with the total sugar
crop, but their continued importation into the
United States is very important when viewed
from the standpoint of our trade and COM
merce with other countries.
To exclude from the American market all
the low grade cane sugars from the nearby
countries and sugars of all grades from dis
| tant countries would confne American pur-
chasers to beet sugar and to centrifugals
from points nearest the United States and
send all other sugars to free markets like
Canada and England.
PRICES INCREASED. -
This policy would undoubtedly increase the
price OF the sugars from nearby countries and
sumers In the United States These are the
reasons which led your committee to sug-
gest an ad valorem rate of Is per cent on all
sugars testing not above 81 degrees. But this
rate can never apply to but very small por-
mon OF the sugars of the world, as from OBJ
vious causes, the proportiopate amount OF
such sugars is constantly DECREASING.
Of the cane sugars testing above 81 degrees
very much the larger nOrtfOnS / have a
ready stated, centrifugals, testing about
96 degrees. The committee, in considering the
fc scale contained in the house schedule for
sugars testing above 81 degrees, were con-
fronted with the fact that these rates would
discriminate In favor Of the sugars Of certain
The committee, after full consideration,
reached the conclusion that the essential ele-
ments of certainty of revenue and an ad-
! justment of rates that would lessen discrim-
| nations could best be secured by the adoption
OF compound rates. The committee, there
fore, adopted the suggestion which Is con-
tanned in the bill we have reported to the
senate, of imposing specific duty, which is
| equivalent to about 40 per centum ad valorem
with an additional duty of 35 per centum ad
| yalorem on all sugars from 81 degrees to 10C
degrees, with thirteen -hundredths of cent
per pound additional on all sugars above No
16 Dutch standard in color, and on refined
sugars.
More than 80 per cent of the sugar which is
fore been imported in raw condition, and
has been refined here, and it is therefore OF
Importance that We should consider care
fully the effect which the schedule proposed
by the senate committee would have upon
the refining Industry. I assume that it will
| be admitted in all quarters that this industry
| is entitled to fair treatment The fact tina,
! the business as conducted today is in COM
| paratively few hands, and that q large por-
| tion of 1t is carried on by one company while
1T furnishes reason for unusual care in the
II rCf fY10r NJ f11n ofari ~, kI-k
| due or unfair advantage shall be given to
| sugar reffners, should not be allowed to fur
n1sh pretext in the preparation of tariff
5i.l constructed upon protective lines for the
! destruction Of great Industry. In other
/ words, 1t is important from every economic
| standpoint that we make it possible that the
refLing of sugar can, be successfully carried
on here, and that the business should not be
! turned over by legislative determinations to
| German reinerS.
1t is, therefore, incumbent upon us to show
| that no protection is given the refining inter-
ests by the proposed schedule beyond tha,
which is adequate for the continued existence
of the business In the United States. For
this purpose have prepared series Of state
ments,. which L submit for your considera-
ton, showing the actual difference between
the rates imposed by the schedule upon raw
sugars OF different grades and refined. The
| first of these tables to which will call your
attention shows the rates imposed upon each
| grade of sugar testing above 81 degrees by the
house bin and the senate bill. It shows fur
ther the actual differential on each grade In
both the house and senate bills
This table shows that the differential be-
tween raw and refined sugars by the senate
proposition varies from 9.77 to 1910 cents PEI
100 pounds, while the differential in the house
{'::::.;,;s''s'.1NS &. $