The Hawaiian gazette., 1908-12-04
CAMPAIGN FOR
CHEAP SUGAR
By Ernest @. walker.

| WASHlNGION, November line
hearings on the sugar schedules before
the Ways and Means Committee are the
most interesting feature of Hawaiian
concern here this week. Judge Hatch
has been watching those hearings close
ly and noting the arguments advanced
both for lowering and for retaining the
present duties. 1t was deemed wisest
that the Hawaiian situation should not
be made prominent in the hearings, but
that the Hawaiian raisers of sugar
should rest their case on the arguments
that the beet sugar manufacturers and
the cane-growers of Louisiana might ad-
vance.
Thus far there has been little men
tion of the Hawaiian product at the
hearings. Representatives of the Cuban
sugar estates have asked for reduc-
tion of duty There have been already
a number of lively tilts over the ques-
tion. Judge Hatch does not expect to
be heard by the committee.
The following circular of the Fed
eral Sugar Refining Co. (Smith &
schipper) is being distributed here:
New York, November IL, 1908.
I Now that the Ways and Means Com
mittee of the House of Representa-.
| tives is considering tariff revision, it
is the general impression that some
thing will be done in the near future
towards reducing the present duty on
sugar. There really seems to be no
good reason why such heavy tax as
16S5c. per pound (Which is the present
full duty on 96degree test raw sugar)
should be levied on an article that is
as universally used as sugar. The
United States consumes nearly 3,000,-
900 tons of sugar annually, or about
an average consumption of rs pounds
per capita. OF this, the domestic pro-
duction of beet sugar last year was
: 100000 tons, and cane sugar in Louisi-
ana, 335,000 tons, total of 775,O00
tons. As most of the domestic beet
sugar plants are located in the West
ern States, they, in addition to the
tariff, have the advantage of freights,
to most distributing points, of from
thirty to fifty cents per hundred
pounds, giving them practically two
cents per pound protection. In order
that they may reap large profits, the
government taxes every man, woman
and child, practically l 5-sc. per
pound, on every pound of sugar which
they use.
The domestic sugar industry is con-
trolled by the so-called "Sugar
, Trust" The Louisiana producers
claim that they can not raise 335,000
tons of sugar without a large protec.
. tive tariff, but last December, when
. the advantage which Cuba received
e from the preferential tariff of about
t Soc. per hundred was entirely lost tt
the Cubans by the fact that prices OF
4 their product had, in New York, beer
! forced down about forty points under
the parity of the markets of the
: world, the domestic producers in
Louisiana were selling their sugars to
the "Sugar Trust' (and refused to
treat with independent refners) al
9 SOC. per hundred under the New York
quotation, or 9Oc. per hundred under
9 the markets of the world, so that OF
r the protective tariff of 1.6s5, they
g were receiving a benefit to the extent
i of only 1850. per pound.
}. BY this it will be seen that while
they had a protective tariff of ovel
@ 5.sc. per pound, they were only be
ing benefited to the extent of trih
n over 34c. per pound, the difference
e practically going into the pockets o.
e the "Sugar Trust Notwithstanding
k these facts which show how the Louisi
y ana planter has failed to benefit by
!, protection, the present crop, which il
Just coming to Market is reported t.
be fully as large as the last one, will
prospects that the ultimate outturl
u will be even larger. The price pre-
!. vailing for these sugars in New Or
u leans is now 5-16c. under the New
u York quotation, and so points unde
a the parity of the markets of the world
ID or the European quotation, and tn
u pressure to force prices down has onl
y just begun.
q The Wholesale and retail grocer
"a generally are clamoring for a redut
't ton in the tariff. Their profits on 81
Up gar are very small. Were they wit
Is free sugar able to buy car of suga
for, say, $1,000 where they now hay
ne to invest $l700, they would be maxim
the same margin of profit on the
I. sales, and the percentage of prof
~ would be much greater.
,n Furthermore, we must not overloo
er the 1act that the Philippine Islant
SO are part of the United States, an
~ that the islands are physically locate
os os so that they are natural sugarpr
'h ducing country. Notwithstanding Il
fact that the Philippine Islands al
as much part of the United State
"a a as any State. the United States M
er er only refuses to permit Philippine s.
81 gars to come in free Of duty, but Civ,
e,i ea them a concession of only % per cen
IN on the regular tariff rates, whi'
>. makes the importation of Philippil
~ sugars almost prohibitive. We n
ne only prevent our wards from parti'
'h' pating with the other domestic pr
ducers in the benefit derived from
no ~. protective tariff, but actually t
io es them on shipments to this country,
Vi such an extent that any increase
t.s the sugar production of the Phil
W. pines is effectively stihed