The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-02-14
MB. CAGES SUGAR ORDER
4 Victory Of Ore Trust at the Ex-
pense Of Another.
The Iron ana steel Combination TO
Aid an the Fight for the Reversal
casury-FiuaI Decision May Not
Be Heuched for Two Years

tervaiIng tax Of 81 cents on each pood
tthirty-siX pOUndsl Of Russian sugar i'm
ported into this country ends, for a time
at least. long and bitter struggle be |
tween certain rival commercial interests
BY the terms of the Dingley law Of 1897 !
the Secretary Of the Treasury is required
to lay an additional special duty on foreign
sugars equal to the advantage they may
receive under the bounty systems of the
countries in which they are produced I
French and German beet sugars have long
had to bear this cOuntervailing tax. and
shortly after the passage Of the DingIey
law an additional duty was also laid on
Russian sugar similar 70 the one Just i'm
posed by Secretary Gage. The Russian
Government contended. however, that it
paid no bounty. direct or indirect. on su-
gar production and afFer prolonged nego-
tiations this Government consented 20 sus-
pend the tax while Count Cassfni. the Rus
sian Ambassador here. ard John 4 Kas-
son. the Special Commissioner Of The State
Department. eRdeayo=.d to frame a com
merciaI treaty which should define more
clearly the commercial relations between
Russia and the United States. The coIIec-
tion Of the extra duty ceased in May. I9G9.
but the negotiations y Aieh were to estab-
lish 4 new scheme Of mutual concessions
lore no fruit and no treaty was ever act
ually drawn or signed
For zen months, therefore, Russian SUI
gar enjoyed an exemption not accorded to
the sugar of Germany, Austria. Belgium,
and France, and vigorous complaints
poured in upon this Government that an
unfair and unjust discrimination vas be-
ing made in Russia favor At 2 confer
enCe held at Brussels last June. in which
most of the best sugar producing cOun-
I tries OF Europe took part. il was unani-
mously held that The Russian system OF
controlling the supply. as well as the DO
nestle price. OF sugar operated rs q bcun-
T. TO Russian manufacturers, and that
Russian sugar should pay IN equity the
cOunterValling duties imposed on the So
gar or other countries whose methods of
substituting the domestic industry We're
simpler and more direct In Russia the
sugar product is, by the direction of the
Government, divided into three separate
parts. One fraction is set aside for home
! consumption another goes into bond in SUI
gar warehouses. and a third is destined
for expectation On the sugar TO be con-
Sumed at home an internal revenue tax is
levied, and the Government, by limiting
the amount to be sold in the domestic
l. n
fixed and steady price. On the other hand
by holding q reserve in the bonded ware
houses, to be released when the demand
increases, the Government can protect
{ domestic purchasers from sudden or eX-
oTbjJant rise IN prices
The bonded sugar can be taken out OF
bond emily with the Governments consent
( and approval and pays the usual internal
/ tax when going into consumption. II put
. he l-a4
( twice the ordinary impost. On the third
portion OF the sugar product-that which
/ is sold abroad-nO internal TAX is levied.
The French ami German Governments
I have cOntended vigorously that the high
domestic price insured TO the domestic
( manufacturer in Russia was in effect 4.
{ Government grant or subventiOn and Co
J many has threatened repeatedly 20 indulge
/ IN tariff discriminatiOnS against American
products unless her sugar was allowed TO
enter the United States On the same terms
as the Russian Russia on the contrary
+ has declined to admit that her sugars were
bounty paid in any legitimate sense, and
/ has threatened 10 impose maximum duties
! on American steel and iron products if
. the counteryailiag sugar duty shcr'd be
/ relnpcsed By the United States The Al
+ miuiStraJion has, therefore. had 70 f. e
/ the prospect OF tariff war with either
. Germany or Russia, and the probable con
/ sequences Of commercial war with the
/ one Power or the other have drawn two
/ great Industrial interests ia this country
+ into open and bitter conflict
/ Inc American sugar refining industry is
anxious to have the couutervaiIing dug
/ suspended last Nay. revived and continted
/ It draws each year IN increasing share OF
/ lis raw sugars from Russia, and fears 70
/ have lis business relations injuriously dis
( turDeJ BIZ such Development Of the Rus
/ 5IEu sugar industry as is promised BIZ an
/ open and favored market in the United
/ States 81 FAR as tie importation Of the
| raEer grades IS concerned, American man
! ufacturers would have little uneasiness.
! But Russian sugars are beginning to come
! in IN form fit for consumption and are
! going into the American market without
| further refinement With further encour-
| ageneEt, Sugar Trust officials hold the
| Russian product would soon swell IN vol
/ ume sufficiently to break prices and force
4 REIMBURSEMENT Of the conditions ION gov
4 eruing the sugar industry.
! The iron and steel manufacturers. on the
/ other hand, have been clamoring for the
! continued Suspension OF the countervailing
/ duty on Russian sugars They have be-
| gun. they say 10 build up a market in
! Russia for American steel products aud
! that market viii be lost to them II Russia
! in retaliation imposes maximum instead
/ Of minimum duties on steel and iron man
I
The steel industry all over the world Is
| threatened with a glut in production, and
/ the American manufacturers especially are
/ keenly looking about for every possible
/ opportunity to dispose Of an increasing
/ surplus They deplOre. therefore, the re
! imposition OF The sugar 5uty- aad viii help
/ 10 fight for the reversal OF Secretary Cages
/ action By the Board Of General Appraisers
{ or by the courts The Secretary contends
{ thai the Russian scheme Of encouraging
/ The sugar interest should be submitted for
/ judgment 20 some legal tribunal and that
/ in such an evident case of doubt it Is his
/ duly 10 favor the Government to the eE-
/ tent Of reimpOsIug the disputed duty. The
/ case VIII go to the Board OF General APP
! praisers in New York and then TO the
/ Federal courts, and final decision IS per
{ haps two years on
/ Meanwhile the German, French, and 9th
/ er Continental Governments have been
/ somewhat aDPeased and the Sugar Trust
/ has Won a substantial victory at the ex-
/ peuse Of the iron and steel consolidation.
/ Russia is disposed to resort to retaliatory
/ DEGREES and the whole hOrizC-4 n more or
/ less CIouded with threats Of commercial