San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-04-01
New Law Does Not Give
the President Neces-
sary Authority.
NO RELIEF In SIGHT
Cost Of Production Has In
creased, So Harding
Is Powerless.
BY ROBERT T. SMALL.

time in the near future.
IL sugar users are 10 be freed from
the extortions of the interest in con-
troll OF the sugar market today, relief
will have to come from some other
agency than the tariff commission.
Furthermore. President Harding's
hands 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 reduc-
tion in duties under the new tariff
law.
Hariing's Hands Tied.
The President cannot act merely
because high prices are prevailing.
The law gives the President the power
to investigate and ascertain whether
there has been a change in the cost of
production at home and abroad and
adjust the tariff solely on the basis of
this changed cost of production.
The cost of producing sugar in the
United States has not gone down since
the FOrdney-AIcf lumber tariff bill be-
came effective last September. On
the contrary it has gone up to some ex-
tent. under the specific orders of the
President. is certain TO result in n re-
port which will leave the President
powerless to do anything in the way of
reducing the present duty of 1.7G cents
pound.
Already the investigations Of the
tariff commission have shown a state
of affairs which will be disappointing
to the people who have counted upon
sugar relief through a tariff reduc-
| ton.
Hope of relief through this source
has been fostered by big Eastern refin-
ers of Cuba raw sugar, who have sent
! notices to all their customers, the
wholesale and retail grocers, saying
| that IL the duty on sugar were removed
the cost in the country would go down
| two or three cents pound.
Preliminary inquiries by members OF
the tariff commission have shown that
since September 10, last. when the
new law became effective. the price Of
sugar has increased by S2.61 a hun
dred pounds at New York.
Against this S267 increase in price
there was an increase of 16 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.
President Gets Wrong Dope.
Even President Harding himself ap-
pears to have been misinformed as to /!
his powers under the tariff law, for in
ordering the investigation he said:
IF there is any ground for believ-
ing the duty to be even partially re-
spOnSibe." flor prevailing abnormal
sugar prices). 81 shall be ready to
proclaim a reduction in duty as pro-
vidcd by the law"
But it was pointed out here today |
by the government authorities that the
law says nothing as to prices, abnor-
nal or otherwise. 1t deals wholly |
with the cost of production. Here is
the text of the paragraph from the
tariff act:
when the President. upon investi-
CATION in costs of production of ar
ticles. 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
netting 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 investigation of certain
said differences, proclaim the changes
in cassfcations or increases or de-
creaSes in any rate of duty provided
in this act shown by said ascertained
differences in such costs of production
necessary to equalize the same; pro-
yided that the total increase or de-
crease of such rates of duty shall not
exceed 20 per cent of the rates speci-
fled in this act"
Executive Is Powerless.
The President under the act is re-
stricted to "equalizirg' the costs
of foreign and domestic production. lie
can do no more despite the demands
that have been made upon him from
many sources to declare forthwith re-
duction of 20 per cent in the tariff.
Among those who have demanded
this reduction is Cordell Hull. chair
man of the Democratic national COM
mittee.
The governments hopes OF doing
something to control the price OF sugar
lie chiefly ut this time in the force OF
public sentiment and the publicity Ii
which has been stirred up. The entire
nation today is watching the sugar
market and will want to know the rea'
son for any further advances.
The old claim that the tariff alone
is responsible will hardly do. The
price Of duty paid on Cuban sugar at
New York December 10. last. was f.6l
cents a pound. The new tariff bill in
creased the duty .06 cents a pound.
Therefore n price of 4.7G cents a po-nd
would have been sufficient 10 absorb
the added tariff burden. Yet. by
March 81, Of this year, the price has
gone up TO 7.2S cents pound.
Secretary of Commerce Hoover has
received a letter from A. f. Carlton,
representing extensive beet sugar in
tercsts in the West. charging that the
New York refiners and finnnciers now
own properties representing more than
10 per cent of the Cuban output. This
Is one Of the phases of the sugar situa-
ton which the government is inyesti-
eating.
Combine Is Charged.
aust now" says Mr.. Carlton, these
interests are opeating under the guise
of the United States Sugar Associa-
tion. A few years ago the operated
under the name of the Wholesale Gro
GERS Association and admitted in con-
gressional investigation that not a
wholesale grocer in the United States
belonged TO the organization. Theirl