Omaha daily bee., 1921-12-20
Cuban Interests
Oppose Fordney
+ Tariff on Sugar
Spokesman for Industry in
United States Tell of Bene.
fits From Protecting
Producers.

Washington, Dec. l9.-EStended
arguments for and against retention
OF the present temporary duty OF 10
cents a pound on Cuban raw sugar
were presented today to senate tariff
trainers.
Spokesman for American sugar
companies operating in Cuba declared
that the rate would prevent rehabi-
tation OF the industry there, while rep
resentatiyes Of the beet sugar in
dustry in this country asserted re-
turn TO the Underwood rate OF ]
cent a pound would prevent develop
ment OF that industry. II II did not
destroy it.
Those representing American CONF
panes in Cuba declared that more
than a mere tariff question was in
volved; that the rehabilitation OF
Cuba depended upon the sugar in;
dustry and that the United States
was morally bound 10 aid that coun.
try. They also argued that there was
$l,000,0000O0 OF American capital
invested in the Cuban industry as
against $200,00O,0O0 in the industry
in this country. ~
Highest In 30 Years.
1t was argued that the duty pro
posed to be made permanent by
the Fordney bill was the highest in
80 years and that it represented a
tax Of $l62000,000 annually on the
American people, $8l 100000 of which
would go to American sugar pro-
ducers. Attention was also called by
witnesses that Cuba imported last
year Ssl5 100000 worth OF American
products and that since the economic
life of the island depended on its
sugar crop, much of this trade would
be lost unless the United States help
ed rehabilitate the Cuban sugar in
dustry.S
Finally it was argued that the
clause in the Fordney bill permitting
American refineries to import at
three -fourths OF the normal duty two
pounds Of sugar for each pound of
domestic sugar refined from beets or
cane was violation OF the spirit, if
not the letter of the reciprocity treaty
with Cuba giving preferential rate
of 20 per cent below the full rate on
imports from that country.
1t also was contended that this was
a discrimination in favor of certain
American interests and injurious to
others. ~ te
Smoot Defends Plan. s.
Senator Smoot, republican, Utah,
took exception to many OF the state-
ments of the witnesses presenting the
case for the American companies, He
declared conditions in Cuba were no
worse than those in this country and
announced that he favored the protec-
ton of American capital invested in
this country as against American cap
ital invested in other countries.
Spokesman for the industry in the
United States testified that the beet
sugar industry has been developed in
II states; that there was invested in
it $200,000,000, with o5 factories. 1t
is now producing annually 100000
tons of sugar, or nearly one-fourth
OF the domestic consumption, and IS
reclaiming waste land because the
beets will grow where other produce
will not. The acreage now is $780,
600 and the farmers raising the crop
number 100000, who give employ
ment to an additional $4,000.
Given proper protection, the wit
nesses argued. the industry would
expand where it would supply most
of the domestic demand and in case
OF war make the country independent
OF foreign countries. 1t also was
contended that the raising of beets
improved farm lands
As to the tax on the people repre-
sentcd in the duty, it was contended
that this amounted to only $l.44 for
each inhabitant each year and that
the industry was worth such an ex-
penditure.