New-York tribune., 1903-06-22
DANGER FOR SUGAR.
There Is 40 Protection Against
Cartel System.
tFRoM THE TRIBUNE BUREAU.I

tFRoM TIE TRIBUNE BUREAU
Washington. June el.-The legislative friends
os the sugar industry in the United States have
trouble ahead. according TO the unanimous opin-
ion OF Treasury Depa officials and legisla-
tors who have been studying the full meaning
of the Brussels conference agreement of last
year 10 abolish Eur opean sugar bounties. AS
the Gate for putting this agreement into effect is
drawing near-Septeinber Its purport is being
regarded very 'losfly, and the prediction is
made thar there VIII be decided getting to-
gether" Of the same legislative forces which con-
stituted the opponents Of Cuban reciprocity in
the last Congress fbr the purpose OF securing
legislative protection against the entire sugar
producing capacity of Europe which is 10 be
brought into direct competition with the Ameri-
can producer throu gh the substitution of the
cartel system Of trade agreements for the
bounty system.
Just what Europe is doing in this regard and
also what viii have 10 be done by this country
10 meet the new NOV e have been outlined TO The
Tribune corresponds ent by an Official OF the gov
e-nnaent thoroughly conversant with the situa-
tion. Last year the sugar producing countries
of Europe each government represented by q
properly designated official. met at Brussels and
agreed that af-er September ] next the practice
Of payiag q bounty on sugar production should
be discontinued.
Though every European government has had
its own peculiar method of aiding its sugar
growers through q bounty, this government was
enabled 10 meet each case by q single regulation
that Of levying an collecting an additional or
cour-ervailing duty fixed in the case Of each
government in the exact sum OF the bounty.
TRANSFERRING MONEY TO THIS CoUN-
TRY.
As the United States is practically the single
market for the surplus sugar of Europe. the lit
lie transaction of the bounty and the counter
vzilinE duty amounted simply to transferring a
sum equal TO the amor Of the bounty from the
treasures Of the z nropean governments 10 the
Treasury Of the United States: hence the Brus-
sels agreement 10 abandon the practice. The
law bv which the United States protects its
sugar Industry aga inst this bounty system is
contained in Section 3 Of the act Of July p.
1897 The hountF which this government
ror,7-erz-ails under this law has always been
construed TO be on which was granted or be
slowed by z government per Sc. and under II no
protection 10 the American sugar producer can
H. Rad against a priv ate agreement trade
co-,hinarion on tha part Of the European pro-
ducers
7 is Al this poirIt that the joker appears IN
-be Brussels agre4rnent- Coincident with the
bo1,-rv systern. the re has grown up in Europe
zzha- is known at the cartel system. which
* no+rinr more or less than a trade agreement
s-7onr sugar prod GERS Of particular country,
-l-o7,eh which the price at which sugar shall
te so15 IN that coIin is agreed upon at such
-a-A ae n slloTv the export alton Of the surplus
- = lower rate in order that the product may
my The tariff and compete with domestic sugar
~ This country II He cartel system. If attempted
4r- -l7e control Of anv product in this country,
--o,,1d clearly fail within the purview Of the
sherman antitrust law as an agreement in
-se--.i-- n trade But this IS not the case il
r-,,rone where both by law and public senti-
-e,- -77ucb wider latitude is granted 10 trusts
- -ha nature of trade agreements. The cartel
s,s,er7 which fod drishes in Europe with ref
ere7cA n sugar Is so far as the United States
-~-a-s-,--- * ooaceI ned entirely independent Of
ro-er-7-r7a--sl co-ot,eration restriction. and,
tbs-e+CTz 57ae rot In any sense come within the
sro-e 7f section ; of the Act of July 24. 1897.
vrir5 is a T7reser1t the only legislation on the
s-z----a books for he protection Of the American
sugs~ grower against European competition,
aside from the reg ular tariff duties
MIST LEGIsLAT E FOR CARTEL SYSTEM
The cartel systd IN will have TO be met by
legislation If The Same amount Of protection TO
the home r,ro1,Jce- Of sugar is TO be maintained
s<.z- -7A ,arrtv paving ceases in Europe,
which Viii be the case after September next
with the exception Of Russia which government
6i5 NOT rsr-icinstk in the Brussels conference
and aaraer77er4 on the ground that she- did not
-sv her sugar rrbvyers a bounty. TheyUnited
States however. disputes this contention on the
part Of Russia and is ROW collecting a c~cQntet- ~
LafIng duty on Russian sugar imported into
The cniiecrion ot the countervailing duty on
s--pars from The Countries participating in the
Brussels conference VIII not cease OF oePu@4II
h4r as tbe system of bounty paying is so
--z~;a5 4-5 ~a7ouIHcared that the United States
T~ezs1,rr viii una bubtedly find that bounty has
teaD rsi5 on practically al of the present
years crop The instructions OF the oe
70 custom officers Xviii be 10 continue the cone
Tor Of ne CONTEMPLATING outy On an pouIils -
sugars and the ma nner OF ascertalflIg Ills 70
Wlli not be CHANGED ~ heIl 1t Is doSei loiIi[ =
that sugars from the countries agreeing 20 tLi- @
Brussels COuferenfe are not oou&iNS le-' -
VIII be allowed tb enter TINS country "i'ilOO'
having rhe Undertaking duty
L Is predicted that under these cohdlll @
49, Z,i-b ,ta cartel system in working order
as II undoubtedly VIII be- the american s susdI
,--.,=4,cs- -,il1 f,e brought into ruinous compe-
tiron with the fOr4ign producer ana tile uella-iI
Tor Z remedy VIII be loud Leglsla tlUII 20 ~ -
The cartel system you'd not necessarily oe CotIi
pficated. The sugs sestion is mace Inal u
be along the line of assessing d CoUiits o
duty sugar II the sum OF Ihe uiIIei .-
between the homd market price II lAe toCl- ~ - ; :
s.bere the sugar is produced. and the export
r-ice of rrar satne sugar In this way the
foreign producer kin be prevented from dump
ing MS surplus dn the american MAJ iheI a. a q
less price than he gets IN his nome rllaihet -
Is understood that steps VIII De taken 10
meet this new condition by appropriate leeiS
istion as soon as dongress conTenes.