Connecticut western news., 1901-02-14
A COMMERCIAL WAR ON
Retaliatory Duty Put on Rus
sian Sugar.
RELATIONS AT BREAKING POINT.

Imperial Government Threaten. to
Put Maximum Tariff on American
Imports-susar Trust Wins Out.
Exporter. yainly Protest.
Washington. Feb. 13.-Russia and the
United States are on the verge of a seri-
ous commercial war. While politically
the relations between the two countries
are as friendly as ever commercially they
are on the point of breaking.
This condition has been brought about
by the instructions given by Secretary
Gage yesterday to collectors of customs
formally denying the Russian contention
that no bounty is paid upon Russian sug-
ar and directing the collection of a sum
equivalent to the bounty in addition to
the regular duty imposed by the Dingley
law.
Secretary Gage took this action in the
face OF a declaration made by the Rus
sian government that it would be follow
ed by the imposition of the maximum tar
la upon American machinery and other
American manufactures OF iron and steel
and perhaps upon other American i'm
ports and with the understanding that the
Russian government would decline to ne
gotiate q treaty of reciprocity with the
United States or to grant concessions to
American imports in the new Siberian
tariff now being prepared.
At the time this declaration was made
Ii was met by the threat that il the
maximum duty were applied the United
States would view 1t as an act of COM
mercial aggression. The Russian gov
eminent feels, however, that retaliatory
action is required by its own commercial
interests. The Russian imports of sugar
into the United States amount In all to
100000. American merchandise, most
ly machinery, tools, etc, imported into
Russia is valued at S11, 2S5 ,554, and the
total value of American exports to Rus
STA is about 30,000,0OO.
Fear Harm to Commerce.
The probability of disastrous results
upon American exporters, who have
strenuously urged the treasury depart
ment not to declare that bounty is paid
by the st. Petersburg government on
Russian sugar, pointing out the bad eff
feet upon American commerce, which has
been steadily increasing in volume.
Representatives of the sugar trust. on
the other hand, argued that the reports
of treasury agents showed that bounty
was paid and insisted that the secretary
of the treasury should carry out that
section of the Dingley law which spe-
officially directs that whenever any coun-
try "shall pay or bestow, directly or in
directly, any bounty or grant upon the
expectation a any article of merchandise
there shall be levied and paid in all such
cases, in addition to the duties imposed
by this act, an additional duty equal to
the net amount of such bounty or grant"
In his decision Secretary Gage fixes the
amount of the bounty paid by Russia on
the export of sugar at 64 copecks (32
cents) per pood of refined sugar. A pood
is a little more than 36 pounds.
"In the present case" the secretary
says, "the facts are involved, and the
conclusions to be drawn from them are
correspondingly difficult. At the confer
ence of delegates on the question of sugar
bounties held in Brussels in June, 1898,
the Belgian and Austrian delegates con-
tended that the Russian government reg
ulations resulted in an indirect bounty on
exported sugar equal to the difference be-
tween the price Exclusive Of excise taxi
of sugar sold in that country for home
consumption and the price Of sugar sold
| for export.
RUSSIA, on the other hand. protests
with great vigor that by no act of hers is
any bounty or grant paid or bestowed on
| the export of sugar. 1t is represented
| that Russian sugar is sold for export at
prices considerably below the cost of pro-
duction, and this phenomenon appears to
| be in some degree due to the regulation
of the sugar industry Of that country by
the Russian government.
"As an administrative officer 1t is my
duty to determine questions of doubt in
favor OF the government. In the present
case there seems to be no other proper
course than to bring it to the attention of
the board of general appraisers. 1t
ought to bring the whole question prompt
| ly before body constituted to hear and
determine disputed questions of fact and
| of law"