New-York tribune., 1902-08-01
CARS NOTE ON TRUSTS
FILL TEXT FOR THE FIRST
TIME MADE PUBLIC.

RUSSIAN PLAN FOR REGULATING THE
SUGAR INDUSTRY DEFENDED.
Washington. July 81 (speciaD.-The Treasury
Department has received copy of the famous
Russian Identical note which was delivered 10
the representatives of all the great powers III
ST Petersburg two weeks ago The original, IN
French was printed and marked "conndenIlai'
The following is the official translatlon'
NOTE.
After examining in the conference held az
Brussels, the international conultiot co coraditsd
sugar Industry, the representatives aCcleutee"
by the governments of Germany AuslI ItI, T.
gary Belgium, Spain, France A Ens siaiiu. iSti1e 70
The Netherlands and Sweden, ana Wlshins "
abolish the export bounties granted 10 tne eusai SO
Industry as well the additional outles tli.-
posed on sugar concluded on CnT btcb bA has been
communicated to the Russian Government. Inc
imperial government holding thaL tne pu. - 20
of the conference was foreign to RUSSIAN iHte a
ests in view of the fact that the eXportatlon oi
sugar is not protected in Russia py pouItAe
either direct or disguised. did not take part IN
he said conference The Russian Government
only regulates the distribution OF sugar oiI "a
home market its purpose being on the one nan
the other gradually to bring about lower prices
and greater consumption for that product IN
the country.
THE BRUSSELS CONVENTION.
The convention concluded by the representa-,
tives of the above named powers communicated
bv the Belgian Ciovernment) provides that the
contracting parties undertake TO impose sPeCIdI
duties on sugar imported from countries paying
bounties for the production or exportatlon OF
sugar (ArticIe IV) and to apply a reduced tariff
10 sugar from countries that partlclpaIe IN lne
convention. The Russian Government deems II
necessary with a view Of avoiding any compi-
cation with friendly powers, to announce IN a
perfectly clear manner its position in the mat
ter before the going into effect or the PROVISIONS
of the above named conference
Russia has contracted with all the powers,
parties to the conference of Brussels, CONNER
ciaI treaties by virtue of which Russian prod
ucts cannot be subjected to other or hlgher
taxes than products Of the most favored coun-
tries This principle OF the most favored ma
ton is subjected in the treaties To no restriction
or condition. hence the Russian Government
should consider the application OF higher taTlt
TO Russian sugar as violation or the Ireaties' e
even though the expectation OF sugar were "a
vored in Russia by bounties which, as mat
ter of fact is not the case.
The enforcement of the provisions of the Brus-
sells conference, as applied to Russia, would be
a violation of the treaties, even although these
treaties should contain the clause providing
for the creation of export bounties, for not only
does the Russian Government not grant bounties
of this character, but it has. on the contrary,
suppressed a private syndicate which compelled
sugar producers to export their output abroad,
and substituted therefor system by which the
home production is regulated. This measure
has for its object not the bringing about or a
rise in the prices home, but. on the con-
trary, the increasing of home consumption or
sugar by means of greater reduction or the
cost. II, for instance, any one syndicate resricts
the sale Of a product at home by sending ITS
surplus abroad and thus obtains in Its own
market artificial rise in the prices, which
cornpensates the producers for the loss they
suffer on their sales abroad. TINS rnethoo @ couLa
still be interpreted as covert II not direct
encouragement TO expectation. But when such
q syndicate is abolished. and the government
applies itself 10 make production keep pace
with the requirements OF consumption. by de-
termIning the prices OF the market and con-
hning itself TO preventing sudden fuctue tons
IF NriH av7H in rnTIrr tEr
the syndicate. preparing the way for gradual
reduction and not increase OF prices, 1t is OBJ
vious that losses arising from exports, should
they occur, are not compensated from any
source OF income, and that this very fact dis
abroad. and constrains them 70 improve their
production that the home rates for sugar.
while always tending toward lower rates. af-
ford them complete compensation in conse-
quence OF increased consumption Under these
conditions expectation OF sugar abroad Is but
an accidental consequence Of the variations in
the crops and, as 10 quantity bears but an In
significant proportion to the total production.
This is precisely the regime that prevails in
rises IN the prices. and production against sud
den and considerable falls. By strengthening
TO certain extent the home trade. It can work
no injury either directly or indirectly to the
interests Of foreign sugar producers. There
fore the Russian Government cannot bring It
self to regard the provisions OF the Brussels
conference relative 10 the countries granting ex-
port bounties TO sugar as applicable TO itself.
PROPOSED INTERNATIONAL ACTION.
But If it were shown that even the interven-
ton Of this character by the government In tho
conditions Of industry is obnoxious to tie inter-
ests OF international trade commerce. that
even such protection of home prices proves
disturbance 70 the free action OF international
competition, the Russian Government would
readily enter Jointly with the other powers
into a discussion Of the various measures that
could be conducive IN checking the several
means of influencing International markets It
would not, however, be inclined TO consider an
agreement this point unless the question
should be put in such a way to cover the
whole of its scope: that is TO say. II there were
undertaken examination not only of the re-
suits of direct measures by the government
such the creation Of bounties or the control
Of the production, but also the essence of va
rious syndcates tolerated and protected by the
should have for its object not only sugar but
also other leading staples Of the international
trade OF the present day.
In taking the position above explained the
imperial government hopes that the foreign
governments viii make no difficulty in taking
ticipate In any joint action of the powers which
would aim to protect international prices against
artificial falls in regard to sugar well as
other merchandise.
APPENDIX.
The measures applied by the Russian Govern
nent with a. view of regulating the sugar in
dustry not only do not tend to encourage sugar
exports abroad through direct disguised boun-
ties, but, on the contrary, have brought about
among other results, the abolition of such en-
couragements 10 exports as existed prior to the
law OF November 90 1895.
The notable development of the sugar in
dustry IN Russia began in 1885. and il was pre-
cisey at that time that it was observed that
the production exceeded the