Arizona republican., 1902-03-24
THE CUBAN COST
 0F MAKING SUGAR Actual Situation Described by
 an Expert
The Ccst of Production and the Effect of a Twenty Per Cent Reduction in Duty on Raw Sugar.

New York March 23.-A we'll known authority Cn the cost of refining sugar. the cost of producing raw or centri- fUgai sugars in Cuba, and all the var iOus questions involved in the present dispute concerning if any reduction should be made in the duty on raw sugars imported from Cuba and, if so. how much, speaking today concerning the report that congress would probably grant a reduction of 20 per cent and that in the opinion of many persons that would be a sufficient and just re- ducton, said:
 "The persons who hold that opinion surely can not have read the testimony before the ways and means committee, CT. if they have, they do not attach full weight to it, and by testimony 1 mean the uncOntroverted facts as shown by that testimony.
 To-day it costs g Cuban planter $Z per 100 pounds t. put his raw sugar free cn board ship in any port in Cuba. All that that sugar will sell for in this city today Gf the planter is forced to sell it) is $1.G0. That leaves him forty cents to the bad. Assuming that he receives the benefit Of reduction of 20 per cent in the tariff Cor 9 cents) he would still be cents to the bad.
 The evidence before the ways and means committee shows conclusiveiy i that it costs at least cents per pound to produce centrifugal sugars and place ! them free on board in Cuba with the necessary charges which attach to a free on board saje of sugars. Any es- innate of q cost below cents per pound in Cuba does not take these charges in consideration, but the plan ters have to pay them. Now add 9 | cents per 10t pounds for frieght and Insurance from Cuba to New York. 6215 cents per 1G0 bounds which it costs to refine the sugars into granulated. an.I $l.CN12 per lO3 pounds for duty. or make the duty what it would be with the pro- posed 20 per cent off say $l,3415, and We have the net cost of granulated sugar in N2W York city $4.05 per hundred pounds. To this add freight of 2f cents per hundred pounds to Chicago. which makes tha cost S4.29 per hundred pounds laid down in that city without any profit to tha reiinar.
 The testimony before the ways and inaans committee shows that it costs ! .ii Niici;igan beet sugar producers not more than $i per 100 pounds on the T. while some cf them make it for S3.Go ! pe1 loo pounds. The freight from Michigan 10 Chicago is Is cents per 100 rounds. so that tEe cost to Michigan 1 occt sugar manufacturers Cf laying laying down granulated sugar in Chi l cago is $4.13 per 100 pounds, or only S3.lS Fer 100 pounds. if the lower esti- mate C. cost tc some manufacturers is taken. That 1t without any profit to the marufacturers.
 On these figures il is plain that the beet sugar manufacturers have an ad- Vantage oyer the Cuban planter and the reiiners Of Cuban sugars equal to the difference between the net cost of beet suears in Chicago and t7'eir cost in New York. say from 16 to 56 cents per iy0 pounds. If to that difference be added the three-Cighths of d cent pre- fit which the New York refiner aver ages each year. it will be seen that the beet sugar manufacturer of Michiga n has q very large margin for profit over and above the a per cent which it is proposed to take off the duty on raw sugars from Cuba. CT even if that re- ductlon should ba increased to 9 or 1 o5 per cent But as the net cost of making beet sugar in Utah is even less than fn Michigan. CT, say. as shown by the testimony. $3.+2 per leo pounds. and the freight from New York city to Kansas City is 59 cents per 100 pounds. the Utah beet sugar manufacturer has still greater advantage over the Cuban planter"