New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-11

business and economic developments, lcl-
tors were recently sent 10 banking insti-
tutions 10 learn what effect the proposed
tariff bill is having or may have on bust
ness in the different sections OF the United
states. Some of the letters received ar"
here published.
The first letter is a very comprehensive
summary Of the sugar and rice Industry.
written 10y a gentleman whose position in
the South and whose study Of the eco
monte problems affecting the South Ell
titles him 10 marked consideration.
WHITNGY-CENTRAL NATIONAL
BANK, OF NEW ORLEANS.
The effect Of q reduction of . per cent
in the tariff on SUGAR would deprive the
grower OF sugar cane and of sugar boets
Of practically all Of tho profits arising
from his industry and would ncceSsitat'
2 change Of method and create economy
in the future This reimbursement. how
ever. is possible. and on productive soil
the grover of cane and beets can sun
earn a Hviug DIS the result of his labor.
The reduction of p per cent in the
tariff. however. coupled with free sugar
al .he end of three years will be the d
retrcnchmcnt and liquidation must imme-
djately commence. The credit tn sugar
farmers will. Of course. be withdrawn as
every banker and commission merchant
will want 10 collect his money before the
free sugar clause takes effect knOWihS
that after that time his credits VIII be 'n
jeopardy and collections will BE- !mp0ssi-
hle. Tho progress Of the industry would
therefore he Immediately arrested: sugar
houses win commence To he dismantlcd
and lands will lie cultivated ia other
crop9. Tho final effect Of free sugar VIII
be the destruction Of the cultivation Of
sugar bcets and sugar cane IN the United
States. Lands now cultivated in Susdr
cane are worked under probably the
most scientific methods Of any farming
carried on i'm the United States. The
mules used in the industry are of the
finest quality. costing from 500 t. 500 Il
head the implements are Of the charac-
ter adapted only 10 the cultivation OF
sugar. all OF which would necessarily
suffer a tremendous shrinkagc in value
The sugar houses cost from 10000 10
$4,000 each. the machinery in which IS
absolutely useless Tor other purposes and
represents in the state of louisiana alone
An investment of approximately S@1"Vc
tho greater portion of which would have
10 nc sold for junk
The people who are engaged in this
industry are the descendants of the tGca-
Tiians who settled in Louisiana during the
beginning of the last century and know
nothing except the raising of sugar cane,
and the distress which will follow free
sugar can scarcely be described in words.
The sugar planters purchase annually
hundreds of thousands Of dollars worth
of mules and implements, expensive ma
chinery. fertilizer and cowpeaS' all Oi
which trade will he lost 10 the mdnuiact-
urers and producers Of these articles ~
other portions of the United States.
Il am not in a position to give details
with regard 10 the effect upon the beet
industry. except TO know with absolute
certainty that beets cannot be sold to I'll"
manufacturers unless the finished product
commands a price which viii enable the
manufacturer TO pay the producer Iair
return for his labor, and that sucn return
cannot he paid If sugar is admitted free
OF duty.
Under these conditions the producers
of bocts Simply revert TO other crops
while the manufacturing plant VIII re-
main idle and useless. 10 be either disman-
.+lod and sold for junk or left as unproduc-
five capital for an indefinite period. The
,per capita consumption Of sugar in the
limited States is second 10 England only
The largest in the world-beinG ABOUT
rightly pounds per capita. If the entire
duty now paid of 1915 would 20 to the
consumer and each consumer used ms
exact per capita proportion, the saving
would be approximately 81 for each IN
,habitant. but fully One-third of the con-
sumption of sugar goes into the manu-
facture of confectionery, cakes. canned
fruits and other manufactured products,
a Iarge percentage of which is not used
nv the poor and middle classes, 80 that
the saving TO the class Of people when
the government feels the necessity oi as
sistinS can scarcely be estimated at more
than - cents per capita.
II is hardly conceivable that the price
or sugar will decline TO a point equal to
the tariff. as the entire industry Will then
he in control of few seaboard reinerics'
which will have IL within their power TO
name whatever price on sugar they may
see fit. having only the competition OF
Continental Europe 10 contend with. the
expectation of which is under present con-
ditions limited. Past experience has
shown that In no instance has the con-
sumner received the full benefit of the re-
duction in the tariff. When sugar was re-
moved from the dutiable list there was an
Utmost tax Of $50 cents a pound imposed
on raw sugar. which was compensated TO
the planters by bounty OF cents a
Mound. Sugar should therefore have IA
1ionally declined 800 cents pound, but as
q matter Of fact. according to tho statis-
tical Abstract of the United States for
1911. the ayerage price in 1890, before the
duty was taken off. Was Ga cents
pound. and in 1871. after the duty was
taken off, was 465 cents pound making
a difference Of l.62 cents a pound against
the reduction in tariff OF 1853 cents a
pound.
During the year 1895 the average price
va. 81 csnts a pound Snd IN 14ai tn" sv-