Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-09-08

W SShlNlT w. aug. 10 ne pro
pc sal in the war rcyenac bin now beinG
discussed in the senate to repeal the
drawback provision OF the present
tariff law as affecting sugar is cor
tinuing to meet strong opposition. The
first open discussion on the proposal
took place in the senate on Tuesday
during a debate on tnI bill when Sena.
tor Smoot of Utah in no uncertain
terms, scored il as unfortunate con-
templated action. Several other sena-
tors joined with Senator Smoot in
pointing out the i'll effects that might
follow the enactment OF this provision
into law.
Viewed from Two Angles
In this debate the provision was at
tackled from TWO viewpoints, the first
being that 1t would be a reversal of a
feature of every modern tariff bill,
whether formed for revenue or pro-
lection, that would set a dangerous
precedent, and the second, that such
step would be adding over three cents
to the cost OF refined Cuban sugar to
our allies in this market if the excise
tax is also imposed, happening which
was elassed in the present crisis as an
unjust burden.
In opening his remarks Senator
Smoot in reply to the direct question
from Senator Hollis of New Hamp-
shire, Does the senator believe that
the drawback on sugar should not be
further permitted" replied:
81 believe, Mr.. President, that it
h. fad hoc
policy of this government for over
hundred years, and the effect OF the
repeal of the drawback provision Of
the present law will be that large
part OF the sugar now refined in this
country, may say in transit-because
that is exactly what It is-will be re-
tined in other countries, and every
ounce Of il would be refined by them
4 If they had the refining plants with
which to do the work. England and
Canada and France, since the action
of the senate committee, are providing
as fast as is possible to prepare for
the refining of sugar which during the
last year and the year before has been
>cfined by the refineries in our own
country; and the refining of 100000
IONS OF sugar for export has cheapenec
ne refining cost of sugar to the
United States, and whatever result
has come from that has gone directly
10 the benefit OF the consumers OF
sugar in the United ST
Protected American Manufacturers.
%@The idea Of the dfswhaclE not only
as to sugar but as 20 an other articles
was this: Under the tariff laws of our
country we were compelled to pay du-
ties upon the articles which 60 into
the manufacture Of goods in the
United States. Il was impossible for
us to compete with foreign countries
IL we were compelled to pay that
tariff. So the drawback provision was
adopted, providing that the articles
which were required for manufacture,
ing purposes in the United States
should have the privilege Of coming
3 in, the duty being paid, and when they |
were exported all of the duty should |
be refunded to the manufacturer less
per cent.
Later, In answer to point raised |
by Senator Pomerene as to what effect
the repeal of the drawback would
have, Senator Smoot said:
"Mr. President. the world requires
all the sugar which s now produced.
II is quite a problems to produce en-
ough sugar in the world to furnish the
demands of the world. might as well
say to the senator here that in the last
year there were refined in the United
States for England and France and
other foreign countries 100000 tons OF
sugar. This year it was expected we
would refine million tons OF sugar.
England and France 90 not ultimately
pay the American duty upon the, su.
gar, because 1t is first paid and then
refunded; but with the drawback re-
pealed, every pound o. sugar that
comes into he United States will have
TO pay the present duty Of cent a
pound. II England and our other al
lies are forced to have their sugar re-
fined In the United States on account
OF the lack of facilities on their part
for refining sugar-and in the pass
thoy have been buying beet sugar from
Germany, Russia, Austria and France,
and now all the sugar that they get
l1ey udNS " SOls IIOAH Java duu otiLCl
sources. all Of which is cane sugar
and, therefore, must be refined If this
bill becomes a law, and the drawback
provision Of the present law is repeal. I
ed, every pound of sugar refined in
America and exported will not only K
rost our allies the cent tax which is
paid to the government of the United
States upon its entry, but it will also
cost them half-cent consumption tax
provided for in the bill"
Reason for Changes Explained
interrupted again by Senator Hollis, ,
who asked: "Now, has any one sug- :
gested any reason why sugar should !
be treated differently from anything
else, for instance, say, silk brought ,
into this country, or anything of that
sort? Is there any real reason whyl
there should be any difference" the
sneaker responded with: |