Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-08-09
SENATE AGREES
| To COMP ROM|SE
\. ON SUGAR DUTY
Increase of Three-tenths OF
a Cent a Pound Is Ap-
proved; Proposed Potash
Bounty Is Rejected.
(By The Associated Press.)

ate approved today an increase
of three-tenths of a cent pound
{ in the tariff on sugar; rejected
Dlan for a government bounty OF
S9,500,OO0 for domestic potash
producers and rescinded its for
mer action in voting an impost
of two cents a pound on white
arsenic. Potash and white arsenic
were placed on the free list.
The sugar rate of 2.3 cents a
pound was a compromise between
the rs cents duty urged by Louis
Jana cane and western beet sugar
producers and the 2 cents pro-
posed by the house and approved
by the finance committee major
ity. 1t is three-tenths of q cent
above the tariff in the existing
emergency act and LOS cents
above that in the Underwood act.
Smoot Offers Compromise.
The compromise was offered by
Senator Smoot of Utah, ranking
republican on the finance COM
mittee, and was accepted by the
same vote that the senate rejected
the 2.5 cents duty, 81 to So.
The vote against the bounty on
potash was 32 to 80, with twelve
republicans opposing and three
democrats supporting.
Before considering the bounty,
the senate voted, sc to /, to strike
out the provision by which tar
iff duty would have been imposed
on potash for five years at the
same rates that it was proposed
to pay the bounty, 2 1-2 cents
a pound for the first two years,
. cents for the third year, l IL
cents for the fourth year, and 1
cent for the fifth year. Senator
Shortridge, republican, California,
alone voted against eliminating
the duty, explaining that he
thought the industry should be
fostered by tariff and not by
a federal bounty.
The vote to place white arsenic
on the free list was 20 to 25.
Because of the operation of the
20 per cent tariff differential al
lowed to Cuba, the 2.3 cents rate
on sugar would work out at 1.S4
cents a pound on sugar from that
country, which constitutes prac-
fically all of American imports.
This rate on Cuban sugar is "a
of 1 cent above the existing tariff
and .16 of ! cent lower than
proposed by Senator Broussard,
democrat, Louisiana, who led the
fight for the Us cent rate.
Five Roll Calls
The sugar fight led to five roll
calls, on several of which repub-
lican leaders and the finance
committee majority split. The re-
publican-agricultu tariff bloc
voted practically solidly, however.
ed and then for the Smoot COM
promise.
The committee sub-am endmcnt
proposing to pay potash produc-
ers a bounty over period of five
years led to sharp fight during
which Senator Lenroot, republi-
can, Wisconsin, denounced the
proposition as one which would
open the door Of the federal
treasury for steady drain of the
same sort in the future.
Sea of Bounties
adopt this amendment" he
kaid, "and we embark on the
sea of bounties from which we
may never return"
Senator Smoot replied that he
saw the situation, at was a ques-
ton whether the United States
was to give its industry an oppor-
1unity to develop or to permit the
German and French cartels to
have complete domination"
The senate was told by the
Utah senator that S. D. Crenshaw
of Richmond, Va, vice-president
of the Virginia-Carolina Chemical
company had made deal
whereby "a American manufac-
furers of fertilizer had signed
contracts with the German and
French concerns for their entire
supply of potash for this year
10 the exclusion of American pro-
ducers.
Senator Reed, democrat, Mis-
souri,, declared to him it was ut
terly intolerable" that American
manufacturers should be permit
led to sign contracts with foreign
concerns that would even have a
tendency to exclude American
products from the American mar
ket.
"That is trust practice in its
worst form" he said, land L
think that any American manu-
facturer who would do It ought
TO be sent to Jail for a good long
term because be not only is sup
messing competition, but doing 1t
3n the interest of foreign produce
ers as against American produc-
ers."