Evening star., 1923-04-01
Executive Is Authorized to
Cut Rates Only When
Costs Warrant.
MAY EQUALIzE THOSE
AT HOME AND ABROAD
Executive Barred From Acting in
Such Matters Merely Because
High Prices Are Prevailing.
BY ROBERT Il. SMALL.

ls
There Is absolutely no chance for q
reduction of the tariff on sugar at
any time in the near future. IL
sugar users are to be freed from the
extortions OF the interests in control
Of the sugar market today. relief Will
have to come from some other agency
than the tariff commission.
Furthermore. President Hardings
ehands are tied In the matter OF the
tariff
An entire misconception has swept
the country as to the powers
possessed by the President to declare
a reduction In duties under the new
tariff law.
The President cannot act merely
because high prices are prevailing.
The law gives the President power
to investigate and ascertain whether
there has been a. change in the cost Of
production at home and abroad and
to adjust the tariff solely on the
basis of this changed cost of produc-
ton.
The cost OF producing sugar in the
United States has not gone down
since the Fordney- McCumber tariff
law became effective last September.
On the contrary it has gone UP to
some extent. Therefore, the tariff
investigation which has been begun
under the specific orders of the Pres
ident is certain to result in a report
which will leave the President pow
erless to do anything in the way Of
reducing the present duty of 1.76
cents a pound.
Disappointment Predicted.
Already the investigations of the
Tariff Commission have shown a state
of affairs which will be disappoint-
ing to the people who have counted
upon sugar relief through tariff
reduction. Hope of relief through
this source has been fostered by
the big eastern refiners of Cuban
raw sugars. who have sent notices
to all of their customers-the whole
sale and retail grocers-saying that
if the duty on sugar were removed
the cost in this country would go
down 2 or cents pound.
Preliminary inquiries by members
Of the Tariff Commission have shown
that since September 19 last, when
the new law became effective. the
price of sugar has increased by $2.67
a hundred pounds at New York. Against
this S2.67 increase in price there
was an increase of IS cents a hundred
pounds in the tariff. The tariff
therefore, accounted for only per
cent Of the increased price fixed by
the men in control of the market
Even President Harding himself
appears to have been misinformed
as to his powers under the tariff
law, for in ordering the investiga-
tion he said:
IF there is any ground for be-
lieving the duty to be even partially
responsible" (for prevailing abnormal
sugar prices) "I shall be ready to
proclaim a reduction in duty as pro-
vided by the law"
Provision I'm Tariff Act,
But it was pointed out here by
the government authorities that the
law says nothing as to prices. alb
normal or otherwise. 1t deals wholly
with the cost OF production. Here
is the text of the paragraph from
the tariff act:
Whenever the President, upon In
vestigation in costs of production OF
articles wholly or in part the growth
or product of the United States. and
of like or similar articles wholly or
in part the growth or product of com
peting foreign countries, shall find
it thereby shown that the duties fixed
in this act do not equalize the said
differences in cost of production
he shall, by such investiga-
ton, ascertain said differences and
proclaim the changes in classifications
or increases or decreases in any rate
Of duty provided in this act shown
by said ascertained differences in such
costs of production necessary to
equalize the same. Provided
that the total increase or decrease oe
such rates of duty shall not exceed
80 per centum of the rates specified
in this act.'
The President, under the act, is
restricted to "equalizing'' the costs
of foreign and domestic production.
He can do no more despite the de-
mands that have been made upon
him from many sources to declare
forthwith a reduction of so per cent
in the tariff. Among those who have
demanded this reduction is Cordcll
,, Hull, chairman of tie democratic ma
tional committee.
Publicity Chief Weapon.
The governments hopes Of doing
something to control the price OF
sugar lie chiefly at this time IL the
force of public sentiment and the
publicity which has been. stirred up.
The entire nation today Is watching
the sugar market, and will want to
know the reason for any further ad
vances The old claim that the tariff
alone is responsible will hardly do.
The price of duty-paid Cuban sugar
| at New York September 19 last was
| 4.61 cents a pound. The new tariff
bill increased the duty 0.06 cents