The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-19
THE SUGAR DIFFERENTIAL.

What is referred 10 as the sugar differ
entail is the y cents on each 100 pounds
Of refined sugar over the raw article. That
is. the importer Of refined sugar must pay
the equivalent Of y cents on each 100
pounds in excess of the duty on the highest
grade OF sugars not refined. The duties on
other sugars are based upon scientific tests
of their sweetness. The y cents a 100 pounds
is a duty imposed upon the highest grade
Of sugars. and is in favor of the home re-
finer to that extent. The diferential duty
on refined sugar is 12-1OO Of a cent. or a lit
tie less than one-eighth of a cent a pound.
On the assumption that refined sugar is
worth 81 a hundred pounds. this 12-cent diff
ferential is equivalent to a duty Of S-10O per
cent. ad valorem. The bee sugar trust, it
may be said. is fighting to retain a duty on
raw sugars Shich nc one makes lower than
"a per cent. ad valOrem and others make 20
per cent. on Cuban sugar.
The American Sugar Refining Company
has rightly provoked the hostility of the
sugar. consumers of the country by using
its Importance in creating a monopoly in
the sugar trade. 1t owned all OF the re-
ineries at one time and held dealers to
such terms that they could not purchase
sugar of any competitor. IT must be said
to it's credit that the so-caIled sugar trust
has made a good quality of sugar, and to
its discredit that it has at times made
sugar higher than a reasonable profit would
warrant. At the present time, however,
the American Sugar Refining Company is
in no sense a monopoly, as it has at least
one very sharp competitor in the business,
the Arbuckle Company. They have fought
each other until refined sugar is so low
that there is said to be little or no profit
in refining sugar.
The repeal of the difference between the
duty on refined and crude sugars would
Enable Germany, France and other beet
sugar makers to sell their refined sugars
in our market as low as the best qualities
of soft sugar. Such competition would
hurt the refiners in this country and might
drive some of them out of the business.
When the best qualities of soft sugars are
imported at the same duty which refined
sugar carries, Cuban sugar raisers may be
injured. as they could not compete with
their unrefined sugars, when refined grades
are admitted with the same duty. There
fore this claim of striking a blow at the
sugar trust by repeating the differential is
really an unfounded one, since the so-called
trust is now hampered by a vigorous COM
petitor. and the repeating is as likely to
injure other sugar interests which should
be encouraged. So long as the A~rbuckles
and others are i'm the business of refining
sugar the trust, or American Sugar Rein
ing Company. cannot be a monopoly. Al
any rate, those who have voted against
the differential may be protecting home
refining to the extent of 03 per cent. but
they are in no position to defend a tax OF
from IS TO 30 per cent. on sugars to protect
the Oxnard trust. The action OF the House
however, in amending the reciprocity bill.
by repeating the diferential goes to SHOW
that many members were Influenced by the
popular hostility TO the sugar trust as il
was before it had powerful competitors.