The Washington herald., 1917-12-06
SUGAR DRAWBACKS
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the crop of 5000, 900 tons that is
just beginning to be harvested on
that island would be expected to
relieve the existing famine in the
United States. But 1t by no means
follows that this will be the case.
1t Is more likely that the Cuban
sugar Will be sent to Europe and
the American deficit be made up
later from our insular sugar.
BEFORE the outbreak of the war,
the export sugar trade of the world
was shared between the American
rehherles and those of Europe,
Since the opening of hostilities and
the elimination of the beet sugar
crops of Europe from consideration
the output of the refineries in the
seaboard cities for export to Europe
has increased enormously.
Figures availa BILE on November 1
showed that the exports for 1917 as
compared with 1918, the year before
hostilities began, had increased
900 per cent. In 1913 some IA
994,761 pounds, valued at 1851, 302,
was shipped abroad by American
refiners. The statistics SO far avail
able for 1917 show that these same
interests have exported 1,24S,S40, 900
pounds valued at $77.O91, 900.
War Revenue Bill.
While the war revenue bill was
before Congress last year an agita-
tion was started to place an excise
tax of half cent a pound on all
domestic and imported sugar. The
ways and Means Committee reject
ed the proposition on the ground
that it would be unjust to single
out one crop for this class of taxa
uon. and held that IL the American
sugar farmers were to be taxed on
the yield of their fields a similar
tax should be paid upon wheat.
corn, cotton and the other staples
When the bill emerged from the Sem
ate Committee on Finance, however
II carried this excise provision and
the sugar farmers at once raised the
cry that 1t had been inserted by their
enemies. the seaboard sugar refiners.
The struggle that followed was a
battle royal. The cause of the farm
ers was led by Senator Broussard- Of
Louisiana, who created a stir in Com
Sressional circles when he submitted
document prepared by the Treasury
Department which went into details
regarding the payment OF drawbacks
for the last three years on shipments
10 foreign countries. Every article
entering into the foreign trade of the
United States was entered in alpha
bltical order ranging from automobile
engines on which $31S71 was paid to
yarn amounting to SIS. During a part
OF the fiscal year 1916, covered by the
treasury report, the exports of mer-
chandise from the United States
amounted to 1893. 49,. .SS5. On this
there was total of $l1. 437, ,42S. Is paid
in drawbacks of which the sugar re-
finers received s1O,1O6, ,O25.67.
AS shown above the amount of
these sugar drawbacks has enor-
mously increased and as practically
all OF this is paid on Cuban sugar
1t seems but natural that the re-
hners would continue to strive for
this big refund from the public
treasury by shipping as much of
the Cuban crop TO Europe as possible. |
They will enable the more slowly |
arriving sugars from Hawaii, Porto
Rico and the Philippines to make up |
The domestic deficit
This explains the movement in Con-
gress to repeal the drawbacks on
sugar
Not only are the people deprived of |
sugar, but millions of dollars are
presented to the refiners at a time |
when all other industries are being
taxed as much as the traffic will