Maryland independent. [volume] (Port Tobacco, Md.) 1874-current, 1897-07-30
The Sugar Tax.

nv EhsoA AaAs
The attacks of the Democratic press
and orators upon the sugar schedules of
the tariff bill as finally passed are such
as to require attention. That they are
founded upon falsehoOd will be entirely
apparent to everybody who may take
the trouble to examine the facts in the
case, and it is that everybody may I'M
derstand the fac.s that this brief state
ment is presented. The Dingley bill as
1t passed the House placed duty Of
l23 cents per pound on refined sugar in
excess of the average rates on raw sugar.
This l29 cents per hundred pounds, or
( of cent a pound, is what is known
as the "differential" 1t is the amount
of difference between the rates on refined
sugar and the rates at which the refnees
are permitted to bring in raw sugar
Those who have studied the question
express the belief that the actual cost of
refining sugar is about / of a cent per
pound, and that it is proper that the re-
liners should be allowed to bring in raw
sugars at ! of cent per pound less than
refined sugars, for if they were not so
permitted, of course they could not car
ry on the business of refining in com
petition with the sugars refined abroad
The House bill was changed by the
Senate Finance Committee so that the
ditferential was about 225 cents per hun
dred pounds, which was practically the
same as the "differential" allowed to the
refners under the Wilson law. The
Senate reduced this materially, putting
1t back to nearly the House rates,
When the bill went to the conference
committee, composed of members of the
House and Senate, the House coHferees
insisted upon an absolute restoration of
l21 cents per hundred pounds differ
entail" The Senate conferees urged a
general increase of the protective rates
of the bill in order to furtfssr protect the
beet-sugar growers of the country, and
the House conferees agreed to this, but
still demanded that the the "diferen-
tiaf' between the rate of duty on un-
rifned aud refined sugars should be 12J
cents per hundred pounds and no more
This WAS acceGed to by the Senate con-
ferees, and the bill, when reported from
the committee, made the rate on refined
sugar only l21 cents per hundred pounds
more than the rate on raw sugar.
"differential" of I of cent per pound
barely the cost of refining This took
away from the sugar refners much
of the profits which they had under the
Wilson law, but why, then, did sugar
trust stock advance when this action
became known? That is a question
which is frequently asked and easily
answered. The sugar trust had import
ed more than 700, 900 tons of raw sugar
so that, when the advanced rates of tie
the new law went into effect, they
would be able to advance the price upon
all the sugars which they had in stock,
and thus make profit of many millions
dollars. In view of this prospective
profit, sugar stock had advanced from
time to time, but recently Secretary
Gage recommended to Congress that in
ternal revenue tax of one cent per pound
be placed on all raw sugar in the coun-
try at the time of the enactment of the new
law, which if adopted would have de-
stroyed all the prospective profit Of the
trust on these importations The con-
ferees, however, did not follow Secretary
Cages advice and simply reported the
bill with diferential of OF a tent
pound. The moment it became known
that the proposed internal revenue tax
upon this enormous stock Of goods in
the hands Of the trust was not to be 50
taxed under the internal revenue, it was
realized that the profits of the trust upon
the 700, 600 tons, or billion and half
pound would be very large, proba-
bly, 10 or II million dollars, and !
i was this fact which caused the large
advance in sugar stock which imediately |
the announcement of the agree
ment of the conferecs upon the bill 1t
was not because the general rates inn
posed by the bill gives to the trusts any
advantage, for on the contrary it is adj
nit!ed By all who are willing to be frank
N the subject that the bill reduces very
materially the profit which the trust
ealizes on refining sugar and brings
he "diferential" down to the mere
ost ofrefning. When the facts become
generally known this bill, both as to its
ugar features and others especially
hose which effect the farmers will prove {
he most satisfactory which this genera |
ion has seen.
The Democrats of princa Gaoroa's