Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1901-07-18
SUGAR BOUNTY QUARREL
Secretary Cages Assistant Pre-
sents a Detailed Explanation
of the Situation.
Russia Held to Have Acted Hastily-M.
de Whites Retaliatory Move Was
Matter OF Great Surprise" to
Secretary Gage.

Milton r.. Allies, assistant secretary OF the
treasury, contributes an article to Col
liers Weekly, from which we reprint the
following:
In Western city. not many years ago.
there was law firm, the head of which
was an able lawyer of long experience and
great learning. He was justly noted for
prudent conservatism. In this firm were
several younger members, whose youth
and exuberance frequently led them into
difficulty. Too often they assumed the
facts of their cases and depended upon
their memories for the law Before going
into court with their cases they made it
practice first to submit their points to the
head of the firm to obtain his maturcr adj
vice and direction.
These are the facts. and so and so is thu
law " said one of the younger members
one day In presenting an important case.
Have you examined the statute?' in
Quired the head of the firm.
No, but you know this is the law"
"Well, young man." said the Judge. "let
me give you little advice Of general ten
or. By consulting the statutes themselves
you will often save yourself lots of trou-
ble."
So, If those who are interested in the
Russian sugar bounty case will read the
law as it is written, ana examine the facts
as they are admitted to be by counsel for
the importers of Russian sugar, perhaps
there may not be so much room for the
misunderstanding which seems to exist in
the public mind as to the merits of this
controversy.
Section of the act of July "a, 1897 (he
Dingey aCO. reads:
That whenever any country. dependency
or colony shall pay or bestow. directly or
indirectly, any bounty or grant upon tho
expectation of any article or merchandise
from such country. dependency or colony,
and such article or merchandise is dutiable
under the provisions of this act, then upon
the importation of any such article or
merchandise into the United States, wheth
er the same shall be imported directly from
the country of production or otherwise,
anu whether such article or mercha ndis
Is imported in the same condition as when
exported from the country OF production,
or has been changed In condition by re
manufacture or otherwise, there shall be
levied and paid, In all such cases, In addi-
ton to the duties otherwise imposed by
this act, an additional duty equal to the
net amount OF such bounty or grant, how
ever the same may be paid or bestowed
Inc net amount of all such bounties or
grants shall be from time to time ascer-
tanned, determined and declared hy the
secretary of the treasury, who shall make
all needful regulations for tho identifica-
ton of such articles and merchandise and
Tor the assessment and collection of such
additional duties.
AT the time of the passage of the Ding
ley act II was a well recognized fact that
certain European countries encouraged The
production of sugar by the payment Of en-
port bounties. Sugar in Europe is pro-
duced from the sugar beet and this indus
Try mas grown to be an important one in
most of the continental countries.
Within the last decade the United Stat s
which are the worlds largest buyers ard
consumers Of sugar. had discovered that
nf la nd M -
cultivation of beets. Our imports of sugar
from abroad we're 30 enormous as nearly
10 onset the value of our wheat exports.
Unless countervailng duties were provided
any attempt to extend protection to the
new Industry of sugar beet raising in ac-
cordance with the established policy of
our government, would - defeated by for
eign beet producing countries through the
payment of export bountics Beside the
cane sugars of the South must not be for
gotten. Hence the law Is as il reads
above, although the countervailing duty
system is not confined to sugar but ex-
TENDS to any article or merchandise upon
which export bounties are paid. provil, d
such articles or merchandise are dutiable
upon importation here
. AS soon as the act became "A law the sec
rotary of the treasury, through the yari-
Gus agencies at his command. undertook to
ascertain what dutable articles were heinz
| 'HI'i''t uppii WHICH export DOunt1pS
grants were being paid II was not until
December y, 1905 that additional duties
on sugar imported from or the product of
the following named countries We're direct
ed to he collected: Argentine Republic
/ austria hungary, Denmark, France, Ger
many, the Netherlands and Russia.
As To Russia. the following bounties Were
declared for the purpose of assessing add.
tiohai duties; On sugar testing not less
IMAM W per cent per pood (3G.ll3 pounds
aNoirdupois). 80 rubles u ruble equals 81.
cents. On sugar testing not less than N
per cent per pood "A rube On sugar
testing not less than 75 per cent per pood
,9S rublc.
our beet sugar imports for the
iscal year ended June 3O,l@7, amounted
TO l.s65 600 pounds valued at $40, SIS coo OF
this enormous import Russia furnished a
comparatively insignificant quantity-onl,
M5,7e pounds. while for each of the years
from lS9l to 1896 no beet sugar of Russian
production had been brought to this coun.
try at all. The Dingley tariff became eff
1ectlVe about the beginning OF the nscaI
year 1898 tJuly "a, 1870 and during tina,
year the total beet sugar imports fell &c
900 pounds, Of the value OF S27l7 OoO
None OF TINS sugar came from Russia, not.
Withstanding the CounterYailing rates were
not imposed until December u of that year
No beet sugar came from Russia in the us
cal years 1899 or 1890
Russia did not resist the order Of Decem
Der IL 1898, declaring the bounty, and nc
protest from any quarter was entere
against IT, In the spring If 1870. however
In order to facilitate the negotia tons for =
reciprocity treaty with Russia the secre.
tary OF the treasury, at the request of tn,
department of state and upon the repro,
sentation by Russian authorities that me-
bounty was paid by that country, suspend
ed the order. So far a 1t related to Russia
for further investigation. The act of sus
pension was intended as a courtesy and II
was not believed that any harm could fol
low. especially In view Of the fact thai
Russian imports Of sugar had not mad,
:heir appearance except in the single yea
preceding the enactment OF the BiDple,
law and then only in INSIGNIFICANT uuati
tics The reciprocity treaty under negotia
ton with Russia. based upon lines be
licvod To he mutually advantageous to tina
country and this, was not concluded be
/ cause of the known Discrimination OF tn,
Senate to consider questions relating {,
= reciprocity treaties.
by and by several carEoos of RUSSIA
. sugar arrived In the Unit ed States, and thi
fact raised anew the question OF whetho
or not Russia paid a bounty upon exporto
sugar Russian authorities Contended will
, great carnestness that no bounty wa
, paid by that country. An agent of tn
|, treasury department was despatched T.
, Europe with instructions to supplement
the department. efforts In other direction
by a most searching investigation. As
!, esit Of his research and of many DAYS
|, earnest study on the part of the secretar
and other officials the following wac do