Evening star., 1909-05-19
FLAYS SUGAR TRUST
Senator Clay Denounces the
Refining Company.
GROWERS ARE HELPLESS
He. Would Destroy Combination by
Admitting Competition.
BIG SUMS PAID BY CONSUMERS
Reviews the Various Cases and
Claims of the Government and
Quotes Official Accusation.

Declaring that Joseph F. Smith, the
head of the Mormon Church, fixes the
price of beets in the interest of the beet
sugar factories of Utah. rather than in
favor of the producers of beets. Senator
CLAY in the Senate today called forth
a characterization of his statement as
"absolutely untrue by Senator Smoot,
himself an official of the Mormon Church.
Mr.. Smoot. ihterrupting the Georgia
senator during his speech on the sugar
trust, was asked who was the president
of the beet sugar factories in Utah. and
getting the reply that Joseph F. Smith
occupied that position, Mr.. Clay de-
clared that the head of the Mormon
Church received a salary in that place
of 10000 year, and that every year
| .'he fixes the price Of beets.'
"He is always In favor of the FAC
tories, and against the growers" said
| Mr.. Clay.
Upon Mr. smoot's denying this state
ment. Mr.. Clay declined TO be inter-
| rupted further.
| Mr. Clay declared that votes that had
| been taken in the Senate on the schedules
| of the tariff bill demonstrated. that the
| finance committee had full power to OBJ
/ tain agreement on its bill as reported,
| and he said he favored an early vote on
all amendments and on the bill, be-
cause he regarded delay as useless in
| affecting the rates carried by that meas
ure.
| Instead of knocking at the door OF
| Congress. seeking to increase its fortunes
| at the expense of the masses of the peo-
| pie by reason of favorable legislation. it's
| officers and those directing and control
| ling its formation and operation ought to
| be at the bar of the criminal courts on
| trial for most serious criminal offenses.
and instead Of enjoying their ill-gotten
wealth they deserve to be serving long
| terms in our federal prisons declared
Senator Clay of Georgia In speech to
the Senate today severely arraigning the
so-called sugar trust and urging a ma
terial reduction In the duty on refined
sugar.
"If the sugar trust can find defender
on the floor of the Senate' he continued,
then we have reached a condition of af-
fairs most deplorable. If we are to con-
tinue to legislate millions of profits into
the pockets of this class OF men at the
| expense of the American people. then let
us adopt the sugar schedule provided by
| the finance committee of the Senate"
Mr.. Clay discussed at great length the
various phases of the beet and cane sugar
industries He argued that the consumer
is Disseminated against in favor OF the
American Sugar Refining Company, and
that the sugar grower gets no benefit of
the differential between the duties on raw
and refined sugar. He criticised most Sc
yerely the manner in which the sugar
schedule Of the Payne bill was framed.
Almost Prohibitive Duty.
Contending that the American Sugar
| Refining Company owns the principal re-
| fineries in the United States and is almost
without competition in refining sugar, Mr..
| Clay declared that the duty on refined su
gar almost prohibits the importation of
| foreign sugar into this country. He said
| that the beet grower and the cane grower
| OF sugar both are compelled to sell to the
sugar trust at the price which it fixes.
Comparing the wholesale price of granu
lated sugar in Hamburg and in New York.
which he said was 9.31 cents per pound
| cheaper in Hamburg. Mr.. Clay figured
| that the American consumer pays a diff
! ference of $136. .OSO.OOO for It's refined SUI
| gar. or this, he said. the government gets
500, 100000 in customs duties, while. he
! said. the sugar trust gets the other
| $4,000. 600.
Payment to Sugar Trust.
'The American consumers of sugar
have paid to the American Sugar Rein
| ing Company, commonly called the sugar
| trust at least fifty-five millions per year
in profit" said Mr.. Clay, amounting in
twelve years to s86O.OOO.OO0. The Amer
lean people are not aware Of the fact
| that II the sugar we import came into
this country free OF any duty, both raw
and refined, the cost of sugar to the
American consumer would be reduced
| nearly one-half. I am not insisting that
both refined and raw. or either. should
| come to this country free of duty, but
there ought to be a substantial reduction
over the rates fixed In the Dingley law"
| Replying to the argument that sugar is
| a great revenue producer. Mr.. Clay de-
| sired to know why one of the necessities
Of life used by the entire American peo-
pie should be taken and its cost increased
to the consumer one-haf when. he con-
| tended the amount of the revenue now
produced by sugar could easily be sup
piled by an income tax.
Let us give to the American people
cheap sugar." continued Mr.. Clay; 'let
us grasp the sugar truct by the throat
and strangle 1t to death. and keep In
view the interest, the happiness and well
fare Of the plain people of America. We
| must remember that sugar Is an impor-
tant article of food daily consumed by
every man, woman and child In the coun-
try
Saying that the American working man
during the last few years has had hard
time to earn living, Mr.. Clay depre-
Gated the fact that the duty on refined
sugar remains In the Payne bill sub
stantially the same as 1t is IN the Dingley
law. He said that the sugar trust had no
representative before the tariff-framing
| committees of either the House or the
Senate and added: Judging from the
treatment which the sugar trust has re-
cciVed, this corporation neeCed no repre-
sentative before either committee
The Reciprocity Duty.
Taking into account the reciprocity duty
on raw sugar from Cuba, the reduced
duty on Philippine sugar and the free
sugar from the Hawaiian Islands and
Porto Rico under the Dingley law, Mr..
Clay declared that the average tariff duty
paid on sugar by the sugar trust amounts
to l.O4 cents per pound, instead of being
16S1, cents per pound. He said that
the differential of .alJ per hundred pounds
on refined sugar should he added to the
average duty of 1.04 cents per hundred.
instead of to 1855 cents. as is done in
the Payne bill.
He said the ugar-sroWers of Cuba,
Porto Rico, the Philippines the Ha-
waiian Islands or the consumers in the
United States received no benefit from
the concessions made In the duty OIL raw
sugar from those islands. Mr.. Clay de-
cIared that the price OF refined sugar
was not reduced because of the reduc-
tions in the rates on raw sugar.
Reiterating that the American Sugar
Refining Company is commonly called the
| sugar trust, Mr.. Clay declared. ''This
trust has constantly violated both the
criminal and civil laws Of our country.
| 1t Is unconsc!onable and. has continually
| robbed the American people since its or
ganization."
Formation of So-Called Trust.