Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-05-30
EXCISE TAX upon
SUGAR PROPOSED
BY i. 5. SENATE
Price Of Raw Sugar Will Not
Be Affected, is Belief
EXPRESSED Here

WASHINGTON, May 30.-An excise
tax Of one-hah a cent a pound will be
placed on sugar. ii the recommends.
are followed.
The finance committee yesterday
eliminated the ten per cent ad valorem
duty on all substitutes which was
written into the big Sl,80Q, 100000 rev.
enue bill by the house, and substituted
excise taxes on sugar coffee, tea and
cocoa
The sugar men of the country
thought last week that they were safe
from an excise tax on their product
when the southern representatives in
congress succeeded in defeating an at
tempt to place tax on cotton. 1t was
felt that this precedent would be fol-
lowed in the case of sugar, and 1t was,
80 far as the house was concerned,
Overturns House Program
The senate finance committee, how
ever, has overturned the program Of
the house and substituted excise taxes
ia place OF general ad valorem duties,
to raise a large share Of the $780,,
100000 that is needed by the govern
ment.
AS originally introduced in the
house, the war revenue bill not only
imposed ten per cent ad valorem hori-
Zontal additions to all dutiable SEIZED.
ules, but 1t placed also specific tax
on sugar. This was felt by the sugar
men to be the result of an error OF
hasty drafting, and in fact, the spe-
cific duty on sugar was eliminated be-
fore the bill passed the house.
1t is not probable that the house will
agree to the changes in the bill pro-
posed by the finance committee Of the
senate, and II the latter body adopts
the recomm endations of the commit
tee, the differences will have to be
fought out in conference.
No Cause for Alarm
When it was told in Washington
dispatches some weeks since that ar
excise tax on sugar was favored the
Star-Bulletin took occasion to see
some of the prominent sugar men Of
Honolulu and inquire as to their opin-
ion Of the probable effect of such
tax On the island sugar industry.
George Rodiek as president of the
Planters Association was seen as was
4. n. NOVEL;, secretary and manager
Of the Sugar Factors Company.
Until we know more about the pro-
posed excise tax I do not care to ex-
press an opinion on the proposed eX
else tax" said Rodiek at that time.
A. NJ. NOVEL; talked willingly. He
said: Such tax would fall upon the
consumer though paid in the first in
stance by the refiners. 1t would not
be borne by raw. but refined sugar.
The only way it would tend in any
way, that ! can see, to affect our in
dustry, would be if it were put high
enough to seriously check the use of
sugar in necessitated economy. l do
not look for it to be placed so high
and besides that the worlds sugar
crop is 80 short that | think that
would counteract such an effect"
John L. Fleming, president of the
stock exchange, said: There is no
good reason that can see why an
excise tax on sugar should affect
either our raw sugar prices or the
prices Of our sugar socks. II
would be added to the price of refined
sugar by the reftner who would have
to pay it Cuba is short Of sugar,
Porto Rico is behind and other places
also have not the crops needed to meet
demand. Even with economy being
practised there will not be the avail
able stock Of sugar 20 meet such re-
duced demand Thus there is not the
production that would enable foreign.
sugar to reduce to prewar figures the
price of sugar Besides the excise tax
affects foreign sugar equally with the
Hawaiian and the New Orleans