The times., 1897-06-05

The sugar trust is making the fight
OF It's lue for the retention CT the All
vaiorem duties In she Senate bail, bat
tie indications are that those duties
win have 10 be taken out before the
measure can become a law. From tins
irnrnenloriaI the Republican leaders have
ant.gonixed 0d yaloren. rates, and have
asserted IN debate that such rates were
the channels through W hieh fraud rs
committed and tie revenues OF the Coy
efnnlr...C ,'i.eated. 1h, statements made
by Senators on the floor, i'll debate, when
they discussed the Wilson bill, are be
-ug used 70 their present discontinue.
eApvcted a4iles have been won over
to the side of specific rates of duty. 1t
is said that al the large sugar in,-
porters OF New York are willing that
the trust shoald be given a large differ
Intial. provided the duues are assessed
OH u specific rate basis. These I'M
porters go So far as to say that they
are willing the trust should get a dif-
ferentia! OF 50 much as BALI cent a
pound, provided the rates are specific
Instead of ad valoreIn. 1t is claimed
that under the Senate bill the differ
eutial in favor of the trust is considsf-
ably more than half cent, and that
under the House bin, including the
couutervaili ng export bounties, it ap
proaches that amount very nearly.
The trust. for very obvious reasons, is
fightsng To retain the provision that is
60 advantageous 10 them. If the duty is
assessed on ad yalorem values, the trust
has il IN its power 10 fix the price OF
law scsars. With q great deal Of in
genuousness, this corporation argues that
the specific rate discnminates in favor OF
Cuban sugars, for the reason that the
duty IS the same against all sugars and
levied at so much per pound. regardless
of its value. They reason that it costs
more to transport sugar from Java, for
an instance, than it does from Cuba anG
that for this reason the Cuban sugars,
costing less than those from the islands
OF the Far East, on account OF the re-
duced COST OF transportation, viii run the
other out aad stifle competition.
On the other hand it is pointed oat that
with ad vaIorem rates the trust has tll.
whole situation in its own hands. II is
able 10 corner the market and depresSs
prices whenever it sees fit. Qnce having
a large steek OF raw sugars on hand ii re-
fuses to buy and tie Iaw sugars OF Java
and othee sugar producing countries cry
out foC a market. With no sales in sight
the prices fail. and when they have shrunk
TO the6iguresdeamed proper by the trustthe
sugar is purchased and upon the invoices
OF this depressed market the duty is PAID.
50 long as the duty is assessed by the ad
valorem plan. Having purchased ell the
sugar IN sight the trust then puts up the
price and the cost Of sugar TO the consumer
is increased. It only advances the price,.
however. when there is no more sugar 10
buY. Tsis process of working the grower
OF sugars Is carried ont every year and by
this method the trust is enabled to beat
down the price and defraud the Govern
ment out OF millions OF dollars in duties
annually.
If the duty was specific there would he
no induceSne;t for this scientific method Of
stealing. The duty would be levied
against the actual weight of the sugar,
ct SO much pound. whether it came from
nearby Cuba or faroff Java. The Govern
meOt would get all the revenue, and the
profits of the trust would be reduced a
trifle, TO the hetternent of the country
and the people.
The temper of both branches of Con-
EreSs is such that it will not tesnporize
with this subject The ad vaiorem rates
are bound to go The representatives of
the trust are making all Sorts of specious
arguments and advancing theories that
Will not wUkin practice. Concessions have
been Offered, but the opponents of the
schedule have not yet agreed to anything
that has been Offered. It is thought that
finally this schedule viii be fixed up SO
as TO eliminate the concealed advantage
given the trust ia ad va!oren rates, but
still afford that concern fair and reason
able profit upon the immense capitai it
has invested in the sugar refining busi-
ness in this country.