New-York tribune., 1901-02-14
PRICE THREE CENTS.
THREATS OF A TARIFF WAR
RETALIATORY DUTY IMPOSED ON RUS
SIAN SUGAR.
SECRETARY CAGES ORDER TEMPORARILY
ENDS A BITTER FIGHT BETWEEN TWO
GREAT AMERICAN INDUSTRIES
IBY rE-EaRAPH TO THE TRIBUNE.I

IBY TE-EGRAPu TO THE TRIBUNEI
Washington Feb. 13.-Secretary Cages order
imposing a countervaning tax of 80 cents on
each pood (thfrty-sx pounds) of Russian sugar
imported into this country ends. for time at
least. long and bitter struggle between GER
tain rival commercial interests. BY the terms
of the Dingley law of 1897. the Secretary OF the
Treasury is required to lay additional special
duty foreign sugars equal to the advantage
they may receive under the bounty systems OF
the countries in which they produced French
and German beet sugars have long had TO bear
this countervaling tax and shortly after the
passage of the Dingley law additional duty
also laid Russian sugar. similar to the
one just imposed by Secretary Gage The Rus
sian Government contended. however. that IL
paid no bounty, direct or indirect. on sugar pro-
duction. and after prolonged negotiations this
Government consented TO suspend the tax. whie
Count Cassini. the Russian Ambassador here.
and John A. Kasson. the Special Commissioners
of the State Department. endeavored TO frame
commercial treaty which should define more
clearly the commercial relations between Russia
and the United States. The collection of thu
extra duty ceased in May. 1900. but the negotia-
tions which We're to establish new scheme Of
mutual concessions bore no fruit and no treaty
ever actually drawn or signed.
BOUNTY PAID ON RUSSIAN SUGAR q
For ten months. therefore, Russian sugar en-
ioyed exemption not accorded to the sugar or
Germany Austria Belgium and France. and vig-
orous complaints poured in upon this Govern
ment that an unfair and unjust discrimination
was being made in Russia's favor. At a con-
ference held at Brussels last June, in which
most of the beet sugar producing countries OF
Europe took part it unanimously held that
the Russian system of controlling the supply as
we'll the domestic price, of sugar operated as a
bounty to Russian manufacturers and that Rus
sian sugar should pay in equity the countervail-
ing duties imposed on the sugar Of other ooun-
tries whose methods of subsidizing the domestlo
industry were simpler and more direct. In Rus
STA the sugar product is. by the direction OF ths
Government divided into three separate parts,
One fraction is set aside for home consumption,
another goes into bond in sugar warehouses. and
a third is destined for expectation. On the
sugar TO be consumed at home an internal reve-i
nue. tax is levied, and the Government. by limit
ing the amount 10 he sold in the domestic mar
ket guarantees to the manufacturer a fixed and
steady price On the other hand. by holding a
reserve in the bonded warehouses. TO be released
when the demand increases. the Government
can protect domestic purchasers from a sud-
den or exorbitant rise in prices. The bonded
sugar can be taken out of bond only with the
Governments consent and approval, and pays
the usual Internal tax when going into consulnp-
ton II put on the market irregUlarly II must
pay twice the ordinary impost. On the third
portion of the sugar product-that which is sold
abroad-uo internal tax is levied. The French
and German governments have contended Wig
orousIy that the high domestic price insured 10
the domestic manufacturer in Russia was in
effect Government grant or subvention, and
Germany has threatened repeatedly 70 indulge IN
tariff determinations against American prod
oil Tn
United States the same terms as the Rus
sian. Russia, on the contrary, has declined 10
admit that her sugars were bounty paid in any
legitimate sense and has threatened TO impose
maximum duties American steel and iron
products If the countervailing sugar duty should
be reimposed by the United states The Ad-
miniStratiOn has therefore had to face the pros
pect of a tariff with either Germany o.
Russia, and the probable consequences or a COM
n1erciaI war with the one Power or the other
have drawn two great industrial interests in
this country into open and bitter conflict
VICTORY FOR THE SUGAR TRUST.
The American sugar refining industry is anx--
ious to have the countervailing duty. suspended
last MAY revived and continued. IL draws each
year an increasing share of it's raw sugars from
Russia. and fears to have its business relations
niuriously disturbed by such development of
the Russian sugar industry is promised by
ar open and favored market in the United
States So far as the importation OF the rawer'
grades is concerned American manufacturers
would have little uneasiness. But Russian
sugars are beginning to come in in a form it
for consumption, and are going into the Ameri-.
can market without further refinement. With,
further encouragement. Sugar Trust officials
hold. the Russian product would soon swell IN
volume sufficiently to break prices and force a
readtustrnent of the conditions now governing.
the sugar industry.
The iron and steel manufacturers. on the other
hand, have been ClamOring for the continued
suspension of the cOuntervailing duty Rus
sian sugars. They have begun. they say to build
uu a market in Russia for American steel prod
ucts and that market will be lost TO them IL
Russia in retaliation imposes maximum instead
OF minimum duties on steel and iron manufact-i
ures The steel industry all over the world Is
threatened with gut in production. and the,
American manufacturers especially keenlyi
locking about for every possible opportunity to,
dispose Of increasing surplus. They deplOre.i
therefore the reimposition of the sugar duty
tary Cages action by the Board OF General Ap-
praisers or by the courts The Secretary con-
tends that the Russian scheme Of encouraging
the sugar interest should be submitted for iudg-s
ment TO some legal tribunal and that in such
evident of doubt IL is his duty TO favor
disputed duty The will go TO the Board
Of General Appraisers in New-Yorlx. and then to-
the Federal courts and final decision Is, per-.
haps two years off
Meanwhile the German. French and othe..
Continental governments have been sonneWhat
appeased, and the Sugar Trust has won a sub
stantial victory the expense OF the iron and
steel consolidation. Russia is disposed to resort
70 retaliatOry DEGREES. and the whole horizon ia
more or less clOuded with threats Of commercial
warfare
THE RUSSIAN SUGAR QUESTION To BE SET.