The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-26
measure that does not provide adequate in
come for this purpose.
THE STTGAR SCHEDULE


THE SUGAR SCHEDULE.
I'm the sugar schedule we have suggested
a change in rates and in the manner of
assessing the duties AS the schedule is a
very important one it seems proper that
should explain definitely the effect of the
provisions we recommend. The annual con-
sumption of sugar in the United States is
about two million gross tons of 2,240 pounds
each, with a value, based on foreign prices
approximating 100000 coo. If the high duties
proposed in either the House or Senate bill
should be adopted the annual cost of sugar
to consumers will be more than $3.50 600. 900
or the consumption of 1890 forty thousand
tons, or per cent, We're beet sugars pro-
duced in the United States, and "a. 600 tons
or II per cent, were domestic cane sugars
and $4,000 tons, or per cent, were sugars
admitted from the Hawaiian islands free of
duty under our treaty with the Hawaiian
government. The two million tons OF SUI
gar consumed in the United States consti-
tute nearly 80 per cent of the total con-
sumption of the world, the total sugar con-
sumption approximating seven million tons,
OF which 100000 tons about Ga per
cent: of the whole world, is beet sugar.
The pressing necessity for securing
greatly increased revenues seems to render
return to the Republican policy of free
sugar adopted in 1890 an impossbility. The
demand for revenue purposes and the belief
that every reasonable effort should be made
70 encourage the production OF beet sugar
IN the United States led a majority of the
hnance committee to recommend the high
rates on sugar which are contained in the
bill now before the Senate. 1t is believed
by the friends OF the beet-sugar industry
that we can successfully initiate the eX-
ample of Germany in the rapid development
or beet-sugar production. The bill, as it
came to US from the House of Representa-
tlVes, contains provisions which levy
SPECIFIC duty, based on pOlariScopic test, on
Imported sugar varying from l cent per
pound at 70 degrees to 178 cents per pound
on all sugars above No. 16 Dutch standard
n
these rates, as applied to the total importa-
tons at the port of New York for the
which l submit to the Senate, which has
been prepared by the customs officers in
New York. The rates suggested show
range of ad valorem equivalent from 1872
to l44.3 per cent "A careful examination
of the tables will show that the scale of
rates adopted bears very uneQually On all
IoW-grade sugars The character and eX
tent of this discrimination led your COM
mittee to believe that the schedule should
be modified
1.-THE committee determined, after a care
full examination 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 a manner
that would make the ad ValOrem equiVa-
Tents more uniform. We believe that the
imposition of the high specific rates on low
grade sugars testing IS degrees or below
would have the effect to exclude them from
the markets of the United States. The to-
tai amount of these low grades produced
is, as / have already stated, unimportant,
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 commerce
with other countries. TO exclude from the
American market all the loW-Grade cane
sugars from the nearby countries and su-
gars of all grades from distant countries
would confine American purchasers to beet
sugar and to centrifugals from points near
est the United States, and send all other
sugars to free markets like Canada and
England. This policy would undoubtedly
increase the price of the sugars from near
by countries and necessarily add TO the
cost of sugar to consumers In the United
States. These are the reasons which led
your committee to suggest an al Valorem
rate of rs per cent on all sugars testing
not above 81 degrees. But this rate can
never apply to but very small portion of
the sugars of the world, as from obvious
causes the proportionate amount of such
sugars is constantly decreasing.
"Of the cane sugars testing above, 81 de-
grees, very much the larger portions, as
have already stated, are centrifugals, test
ing about So degrees. The committee, III
considering the question whether they
should adopt the specific scale contained in
the House Schedule for sugars testing
above 81 degrees, were confronted with the
favor of the sugars of certain localities
and values against those of others
COMPOUND RATES.
The committee after full consideration
reached the conclusion that the essential
elements of a certainty of revenue and an
adjustment of rates that would lessen dis
examinations could best be secured by the
adoption of compound rates. The commit
tee therefore adopted the suggestion which
is contained in the bill we have reported to
the Senate of imposing a specific duty,
which is equivalent to about 40 per cent.
ad valorem, with an additional duty of 80
per cent. ad valorem on all sugars
from 81 degrees to 100 degrees, with
thirteen hundredths of a cent per pound
additional on all sugars above No. 10 Dutch
standard in color and on reflned sugars.
More than 50 per cent. of the sugar which
is imported into the United States mas
heretofore been imported in a raw condi-
ton and has been refined mere, ana II IS
therefore of Importance That we should
consider carefully the effect which the
schedule proposed by the Senate commit
tee would have on the refining industry L
assume that it will be admitted in all quar-
tiers that this industry is entitled to talr
treatment. The fact that the business as
conducted to-day is IN comparatively lew
hands and that large portion OF II IS car
ried on by one company, While II furnishes
a reason for unusual care i'll the ADJUST
ment of the rates in order that no undue
unfair advantage shall be given to sugar
refiners, should not be allowed to furnish
pretext in the preparation OF a tariff bill
constructed on protective lines for the de-
struction of great industry. In other
words it is important from every economic
standpoint that we make 1t possible thdt
the refining of sugar can be successfully
carried on here and that the business
should not be turned over by legislative
determinations to German refiners.
1T is therefore incumbent on us to show
that no protection is given the refining I'M
tereStS by the proposed schedule beyond
that which is adequate for the continued
existence of the business in the United
States. For this purpose | have prepared
series of statements which L submit Tor
your consideration SLOWING 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 l will call your attention
shows the rates imposed upon each grade
of sugar testing above 81 degrees
by the House bill and the Senate bin. 1t
shows further the actual dlfIerentlal on
each grade in both the House and Senate
bills This table shows that the differentlal
between raw and refined sugars by the
Senate proposition varies from y.U TO 10. Az
cents per one hundred pounds, While the
differential in the House bill varies from
II 20 to 1876 cents per one hundred pounds.
1t will be seen from an examination OF TINS
table that the differeEtial between granu-
lated sugar and SO degrees centrn-
ugal-this being by far the most important
class of raw sugars and in amount two
thirds of the total imports Of raw cane-ls
9S7 cents per one hundred POUNDS; on -
degrees centrifugal the differential is 10S
cents on 50 degrees MuscoVadoeS the
differential is 146 cents.
NO UNDUE ADVANTAGE.
I'm order to show that the committee
proposition does not give undue advantage
to beet sugars as compared with cane sug-
ars the following statement has been pre-
pared by me to show the differential be-
tween raw and refined beet sugars in COM
harrison with the differential of the same
sugars based on the rates imposed by the
existing law. Differential rates on raw