The Hawaiian gazette., 1916-03-03
Senate Adopts Resolution Stop
pinb Rebates on Foreign Sl-
CARS Sent Out As Refined
INoRDlNATE PROFITS BY ~
MANUFACTURERS CONDEMNED
Senator BrOussard Wants. Relief
From Taxes Which Should Be
Borne By Corporations


-
Senator Robert r. Broussard of Louis.
lana recently e, presented a resolution,
which was adopted in the senate, to
repeal that section of the Underwood
Tariff Act which allows rebates Of
duty to manufacturers and refhers on
spear of foreign origin when re.export.
ed to foreign countries, Following this
the senator from Louisiana wrote an
open letter to J. B. Chaffe, secretary Of
the American Cane. Growers kssocia-
ton, with headquarters in New Orleans,
fully explaining the reasons why he adj.
vocates the adoption Of this resolu-
ton. This letter in part is as follows:
g At the present time, when the PEG
pie of the United States are being tax
ed in extraordinary ways, and when
congress is about to add to these un.
usual taxes, it is proper, before these
additional taxes are placed upon the
people that any laTgesses extended by
our governments to its manufacturing
class should cease. ..~.
In other words, believe that those
who are benefited out of the treasury
from a motive of pure bounty on the
part of our government, should be re-
quired to forego such advantages at
least during the period of.tthese extra
ordinary taxes Many senators who
have spoken to NE on, the subject are
also of the opinion that this should be
done. ..,
To Save Eight Millions
What saving would result is not
known, because the information sought,
through the medium, of my resolution,
has not yet b0en given to the senate
We know, however, that. the drawbacks
on sugar which were small before the
European war, scarcely exceeding at
any time a million of dollars, grew last
year in exGesseof FIVE million, and this
year,, l am informed, have already
reached the sum OF about eight million
dollars, ~ iKhat it's on other -manufac4
turcd articles, exported under similar
CONDITIONS as is sugar, l am not pre-
pared to say, but, the. resolution will
brig out all of these facts
The reason that so much sugar is
beng exported upon which a drawback
is paid out of the, treasury is the high
pri G prevailing in Europe due to tho
war. Ample profit is being made out
OF, these, sales during these extraordin-
AIRY times. to yield a handsome profit
with the drawback eliminated. Should
rot the government, therefore, before
imposing additional and extraordinary
ta;rs upon the people withhold for the
time being at least these bOunties that
are making such heavy inroads into the
Iuhlic fundsf
"Why should not these manufactur-
crs be made to- contribute their just
STARE of these taxes by foregoing kind
ness or bounties which the government
has shown them in times of peace, but
cannot afford nowt
ri can see no good reason for any
ether than an affirmative reply to these
questions, Il p" D..
Tho question rs to whether or not
IT, is proper to make. these allowances
IL LINES of peace is not involved in this
question and that was the basis of the
II ,icle written by Mr.. WOoten. But
even if we consider it from that view
p lint, there can, be no question that
thiS same provision of the law has been
nHed in the past by the American Sugar
Refining Company and its allies as a
wl8pOn to . create a condition about
which the sugar planters in Louisiana
and our island possessions have long
complained.
Rebate Nipty,nne Per Cent -.
This, is apparent, If one will recall
the interview given in New Orleans by
the president of, the American Sugar
Refining Company, while on a recent
isit in Louisiana. He said, as I recall
it, that Louisiana sugar was the least
desirable, as, a marketable article, of
any sugar refined in this country. Now
the. reason for that statement 10 OBJ
NiUus. Sugars imported from foreign
countries, pay q, given, rate of duty, and
when refined and shipped. abroad a re
fund is. given to the Tefners by the
treasury of ninety nine per cent Of the
duty paid on that sugar., 1"
J when Cuban sugar is refined and
exported the refund is the same, less
the twenty per cegt allowed Cuba uR-
der our treaty. So, Cuban sugar re-
inqd In the United States is not as val
nable from the refners standpoint, as
other foreign sugars when placed on the
world 5 market. And inasmuch as no
refund is allowed at all ON, Louisiana
and Texas sugars or our insulaT sugars
from Porto Rico and Hawaii since these
sugars pay no duty, they are the least
valuable from the refners' viewpoint
of any, sugars on the worlds market.
$50 much for the, merits of p, thai
ropOsitiOn which, as ] say, is not at
all in contemplation as being involved
in my resolution recently passed by tho
senate. ,. ra.,.@.r go 3d..
90 IT. isiqpita apparent, however, that
for the first ime the Spgat. trust, who
with its friends everywhere has in the
past, charged Louisiana, Texas, Porto
Rican and Hawaiian cane sugar men
with seeking to get an advantage
Through legislation, now finds itself on
the d, fehsiye. '.
at is now caIled upOn to defend itself