The Topeka state journal., 1901-07-05
CAGES MISTAKE.
Importers ia Russia Seem 20 Think
That he Missed It.

St. Petersburg. July 5.--When seere-
tary Cages action in imposing counter
vailing duties on Russian sugar ex-
ported to the United States was fol-
lowed by so disproportionate a reprisal
as the imposition of 80 per cent. in
creased duties on the most important
American importations here. the i'm
porters of American tools and ma
chinery seemed stunned They We're
disposed to support Russia on the legal
aspects, but some Of them re-exan1ned
the matter and concluded that the Rus
sian sugar regulations amount to prac-
tical compulsion to manufacture for
export. They still doubt the expedtency
of Secretary Cages action, but latterly
they have concluded that while the
policy was mistaken, of which, after
all, Washington knowing the cOmQlete
facts for fostering American Interests
through the world was the best judge,
it does not follow that a backdOWn is
now expedient- They claim that such
precedent would weaken American
commercial and political prestige. 1t
is of course inconvenient for importers
whose incomes depend on Russian
trade, but it is realized that the Rus
sian market compares unfavorably
with others, and that it always will
The actual effects of the discriminat-
ing duties have not been as disastrous
as expected The decrease in Asiatic
imports is chiefly due to the abolition
of the open port at Vladivostok-
Attention is directed to the increas-
ing disinclination of the Russian au-
thorities to permit the Importation of
goods which the Russians can pro-
duce, no matter what they cost This
policy, more than the tariff rates, OBJ
StructS foreign trade 1t IS recalled
that the government recently narrowly
restricted the use OF foreign goods IN
the Russian army and navy factories.
and that the same policy is pursued
whenever the government influence ex-
tends. InaSmuch as this influence IS
limited merely by viii somewhat pes
simistic view of the future of foreign
trade is held here. Lawyers represent
ing the largest financial interests in
America who were recently here OF
fered $40 100000 to build the Viatka rail-
road, provided a certain proportion OF
American materials would De used
The categorical reply from the finance
ministery was that not one pound OF
such material could be used The syn
dicate then refused to accept the con-
cession. az it did not want bond invest
ments, but was chiefly desirous of Sc
curing another outlet for American
goods.
The CORRESPONDENT of the Associated
Press was inform ed in this connection
that under the present circumstance
the use of foreign material is 1mpos-
sible. The same syndicate declined ex-
tensive fishing privileges in eastern
Siberia because Russian engineers were
required and the Russians retained fun
control of the enterprise
A resident representative of an Amer
lean house whose business has been al
most annihilated by the prohibitions,
recently signed a letter to a newspaper,
declaring that Russia was wrong on
the sugar question
Press talked with the representative or
an American house whose tremendous
business is suffering to an unusual de-
gree from the discriminating duties ana
also from the prohibitions. He said
Undoubtedly the Russian sugar reg
ulations contain a cunningly devised
bounty. The cardinal point is that a
company capable of producing over Co.
600 pools annually must sell part Of the
excess whether the enthusiasm or a
million pools abroad since the share of
each company in the domestic market
excepting the 60, 600 pools allowed each
concern is prorated according to the to-
tai of the previous years production
and exported sugar is not taxed. Pro-
ducers therefore calculated the point
where the losses on foreign over bal |
ance the profits on protected and Fegu- |
lated domestic sales. NJ. DeWitte, the /
finance minister, shrewdly pitted steel |
against sugar. He is quoted as repeat |
ing the charge that Secretary Gage is |
taking an interest in the American SUI !
gar and oil trusts. This is somewhat |
unguarded on his part, considering the |
close relations between the Russian SUI
gar and steel interests and the govern |
feeling that the intrisic value of the |
sugar trade with the United States ne
cessitated. Perhaps this is due par |
tally to the fact that the imperial |
family and other influential people are |
largely interested in the sugar industry.
Whether Mr.. Gage acted advisedly in |
the first instance is one question. !
Whether trucking is now polite ex-
pedient is another question. The Uni |
ted States must meet Russia half way. /
But II Russia desires a commercial war /
we should fight. Russia does not intend |
to allow the United States, Germany or /
anybody to have permanently a profit |
able trade here. Russia wants foreign /
money, not foreign goods. Whether |
Russia is trying to bluff or bully the /
Americans who support NJ DeWitte l
against Mr. Gage are playing her game. /
1t is declared here that Russia will new i
er allow Washington to construe her 4
sugar laws but neither can the United |
States recognize the Russian interpre-
tation of our tariff"
It is known here that the United |
States ambassador. c. Tower who has
tened back to St. Petersburg from his
leave of absence, has been during the /
last few days in personal communica-
ton with the minister OF foreign af-
fairs, Count Lamsdorff and NJ DeWitte
upon the subject of the present tariff
disagreement and it can be said in the
best authority that the negotiations are
being carried on in the most friendly
manner and that the Russian authori-
ties hope for and expect a speedy and
amica-ble adjustment OF the questions
in dispute