Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-02-15
BLOW 1.-THE "KARTH'
new SCHEME TO SOLVE
CUBAN SUGAR QUESTION
Raise COunterVailing Duty on German
and Austrian Sugar Now Be-
ing Considered by SeCre-
tary Of Treasury.

interest will doubtless be manifested in
the discussion of the subject of Cuban
reciprocity between the advocates of a
reduction of duty on Cuban sugar and
tobacco on the one hand and those
who prefer to relieve any distress
which may exist in the island on the
other, for, aside from the fact that
stimulation of sugar production in Gu
ba would be a blow at domestic sugar
beet and cane growers, 1t would mater
| tally affect German and Austrian SUI
gar exporters, who now supply our
markets to a considerable extent.
A new proposition has been present
ed to the President, which he promis-
ed should have careful consideration,
namely, to advance the countervailing
| duty on sugar from Austria and Ger
many forty points. 1t Is argued that
through the cartel system in vogue in
both countries the producers in Aus
tria and Germany derive an indirect
bounty Of 40 of a cent per pound in
addition to the Government bounty Of
.27 per pound. The proposition is that
the President. through the Secretary
of the Treasury. shall advance the
| Countervailing duty now in force
against these sugars from 81 Of cent
per pound to 81 per pound. In sup
port of this proposal II is argued that
this action would afford additional
protection to Cuban planters and give
them all the relief they need, and have
the additional advantage of stimulat-
ing the domestic production Of cane
and beet sugar. A careful presenta-
tion was made to the President OF the
subject by representative OF both the
beet and cane interests, and he prom
ised 1t should be referred to Secretary
Shaw for his consideration. This has
been done and Secretary Shaw will
doubtless communicate his findings to
the President.
No action along this line will be TAX
en- until after exhaustive research, for
It would involve the commercial rela-
tions existing between this country
and Germany and Austria. which coun-
tries would be more than likely to re-
sent any further imposition of coun-
tervailing duty. Nor Is the proposition
favorably considered by rehners in the
United States who are advocating free
Cuban sugar. for 1t would increase the
duty on raw sugar without affecting
that on refined sugar to any extent, a
state OF affairs the sugar rCfiners wish
to avoid, for, as the president of the
National Refining Company admitted
in advocating a reduction before the
Ways and Means Committee. 1t is their
desire to depress the price of raw
sugar as much as possible and keep the
price of refined where II is now. thus
increasing their profits by pocketing
the difference. II Is. therefore, ex-
pected that the advocates of reduc-
tion In the tariff will be as strenuous
in their opposition to the countervail-
ing duty proposition as they have been
in support of their contention that
Cuban sugar should come in free.
Should Austrian and German inter-
ests be drawn into the dispute further
than they are now It would additional
ly CompliCate the situation. On paper
the imposition of a Countervailing duty
of forty points additional against Ger
man and Austrian sugars amounts to
the same as % per cent reduction on
the duty of 1,67 on Cuban sugar, thus
meeting the Presidents wishes as to
the percentage of benefit necessary.
Whether 1t would be the same In prac-