Evening star., 1923-03-28

Acting under direction Of President
Harding. contained in a telegram 70
Chairman Thomas O. Marvin Of the
Tariff Commission. the commission to-
day began an investigation to deter
mine what effect. If any, the present
tariff on sugar has had on the recent
spectacular rise in the price Of suga"
to consumers in this country.
Chairman Marvin said that this in
quiry would be proceeded with as
rapidly as possible.
Presidents Telegram.
The Presidents telegram 10 NJ.
Marvin follows:
Have Tariff Commission make an
immediate inquiry into the relation
Of the sugar tariff to the current
prices on that commodity. 1t is diff
ficult to believe that the duty on
sugar can have any part in making
the abnormal prices which prevail,
but If the. commi ssion finds there Is
any ground for believing the duty
to be even partially responsible, !
shall be ready to proclaim reduc.
ton in duty. as provided by the law;
1t was pointed out that the Presl-
jects-the first calling for an inquiry
as to the effect the tariff may have
had on the increase in sugar prices
in recent months, and the other the
determination of the costs of produc-
tion of sugar in this country ana
abroad to ascertain whether the eA-
listing rates are equitable.
Executive Authority Under Law.
The President, under the flexible
tariff provisions Of the Fordney-Mc-
Cumber tariff act, is given power TO
reduce or increase tariff duties with
in a radius of 80 per cent il after
investigation of the costs Of pro-
duction here and abroad by the
Tariff Commission he deems it neces-
sary to reduce or increase the
duties
1t is under this provision Of the
law that the President is empowered to
proclaim a reduction or increase in
the tariff rate on given commodity.
The investigation into the costs of
production here and abroad necessa-
rily requires some time. Further pro-
vision is made for public hearings.
Sugar. the commodity now in cues-
ton, is produced in many countries.
After its inve stigation into the costs
of production the Tariff Commission
must make report to the Presiednt.
days after the proclamation of the
President changing tariff rate the
new rate goes into effect.
Paragraph S15 of the tariff act.
which is the flexible tariff provision,
does not permit, therefore, of very
speedy action. 1t may be six months
before the commission can make its
report. But on the other hand an
inquiry to determine the relation of
the duty on sugar TO the rapid in
crease in the prices of sugar in the
promptly by the commission, it was
said today.
Effect of the Order.
The Presidents telegram calling
for an immediate report by the tariff
commission on the relation of the
tariff to the increases in sugar prices
is expected to put an end to:
/. Any claims made by the sugar
gamblers that the tariff is responsible
for the increases in sugar prices
claims made to becloud the issue and
to cover their own tracks
2. Any claims made by the demo
Gratis that the new republican tariff
law has been responsible for increases
in the sugar bill of the American
people.
ATTENTION was called today to the
fact that the Tariff Commission, act
ing under the flexible provision Of the
tariff act, had already begun an in
yestigation of the sugar schedule.
Sugar was included in the list of
seventeen articles which the commits
sion announced more than. week
ago would be investigated The an
plication made for an investigation
of the sugar tariff, under which the
commission began this investigation.
was submitted by interests ownine
Cuban sugar.
Forecast of Report.
In well informed quarters the opin
ion was expressed today that the
Iarifs s Commissions report on the
relation Of the sugar duties to the
recent increases in price of sugar
hold that the tariff rate was NOT re-
sponsible; that it could not be re
sponsible 1t was pointed out that the
eTective duty on sugar under the
Underwood or democratic tariff law
which is the duty charged on Cuban
sugar. was one cent q pound. The
effective duty on sugar under the
republican emergency tariff law was
increased to 1.6 cents per pound. and
under the Fordney- -McCumber tariff
law the effective duty on sugar is
10 cents per pound. But sugar was
selhng for 6 cents d pound under the
emergency tariff act a month before
the Fordney- McCumber tariff act be-
came effective.
1t is incredible, it was said. that
an increase in the duty Of sixteen one
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