Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-02
FIGHT 0VERSUGAR
DAzE S CONGRESS
Continued from First Page.)


1. 1891, to August 1. 1894. when it was
free The statement then goes on to
say:
Thus it is demonstrated to q mathe-
NAUTICAL certainty that while the reduc-
ton In the duty on raw sugars was only
"a cents per pound. the consumer bene-
hted to the extent of 2.512 cents per
pound. This Is all the more remarkable
since the duty of one-half cent per pound
was retained upon refined sugar, which
the American Sugar Refining Company
or trust was then In position to take
full advantage of, as it had virtual
monopoly Of the entire sugar business Of
the United States. AS the present bill
does not contemplate the retention Of any
duty upon refined. and as this trust now
has number OF aggressive competitors
IL is certain that the consumer will bene-
fit even to a greater extent, by reason Of
the removal of the duties upon both raw
and refined. than 1t did under free raw
sugar between 1891 and 1894. owing to
the effects both OF the decreased cost of
refining and wider competition"
Claim Is Protested.
Controverting the claim that free sugar
means cheaper sugar, a statement pre-
pared by Sidney Ballou, a recognized
sugar statistician. and issued by the
domestic sugar producers, says:
The removal Of the duty would not Of
itself reduce the price of sugar, but it
would put it In the power of the refiners
to lower 1t. distinction with a differ
ence. At the outset. the refiners. now
complaining so bitterly Of the beet inva-
sion. would undoubtedly lower the price
by the entire Cuban duty. They could
then sell sugar below the cost Of any
domestic producer and could hold it at
that point until every acre Of beet or cane
w ha nd r,la 10 ofh
with the extinction of the domestic
industry. however, an entirely new set Of
forces would come into play. The tariff,
as has been seen, Is only one and by no
means the most important item in the
price. The very Cuban price to which
| 1t is added has itself been lowered to it's
present point by the competition which
would then no longer exist. Every other
item ton the list would feel the reaction.
and the price to the consumer would be
regulated as follows:
"First-The worlds price of sugar at
Hamburg would go up on account Of the
deficit in the worlds production. A pros
pective shortage of million tons. which
| is less than our domestic supply. sent
that price up 2 cents per pound In 1911.
Besides the operation Of the law OF sup
| ply and demand. this price Is subject to
the most extensive speculation. manipLla-
ton and control Of any staple article in
the world.
"Second-The Cuban price would no
longer remain below the parity Of the
Hamburg price. a difference at present
over one-half cent per pound.
'Third-The refiners would be relieved
| of the competition of beet sugar in the
interior, and could undoubtedly increase
| their refiners margin. In time past this
margin has varied from half a cent a
pound in times of fierce competition to
1.15 cents when sugar was on the free
| list.
| .Fourth-The wholesalers are complain
| ing bitterly of their lack of profit in
handling sugar. and would certainly be
tempted TO absorb another fraction of a
/ a cent.
| .Fifth-F'ull freight from New York to
all interior points would be added, where
as now there are several months in the
year when that freight is wholly or partly
absorbed in the competition between the
beet sugar companies.
Under these circumstances the INFER
| ests of the American consumer are GER
| tainly safer in the long run under the
present competitive system than under a
system where our entire supply OF sugar
is imported and refined by less than half
| a dozen concerns.