Evening star., 1925-06-15
COOLIDGE DECLINES
TO CUT SUGAR DUTY
Finds Present Cost Doesn't
Warrant Reduction of
Tariff Half Cent.
By the Associated Press.

By the Associa ated Press
President Coolidge will take no ac-
ton for the present on the recon-
mendation of a majority of the Tariff
Commission for a reduction Of u cent
| a pound in sugar duties.
The President, in a statement made
public yesterday on the findings Of
the commissions report, said he did
not find that differences in cost Of
production were sufficiently estab-
lished under present conditions to war
rant any change in the duty
However, should decreased produc-
ton or other conditions compel the
consumer to pay the abnormally high
price complained of in 1928" Mr.. Cool
idge said, the change might warrant
reconsideration OF his decision
The average New York wholesale
price Of granulated sugar was S.4
cents a pound in 1923 when the com.
mission began its investigation. and on
May last. the President pointed QUO,
the price had dropped to 5.4s cents.
The pre-war average for 1909 to 1913
was 4.9 cents a pound.
Submitted Year Ago.
The commission report was sub
| mitted to the White House nearly 4
year ago and after the investigation
| had caused a bitter controversy with
| in the commission. Chairman Marvin
and Commissioner Burgess comprised
the minority, while reduction of the
rate was favored by Vice Chairman
Culbertson and Commissioners Costi-
! gan and Lewis. Commissioner Classic
| took no part in the hearings because
of financial interest in the subject.
Discussing the issue at length. the
| President points out that the commits
| sion failed to agree on the difference
| in cost of producing domestic and i'm
| ported sugar, and divided three to
| TWO on the question. He asserts that
| fuctuating prices in the last few years
| have made II next to impossible to
| arrive at accurate calculations, and
emphasizes the necessity of protect.
ing the beet sugar industry, Of en-
| couraging farmers 10 diversity their
crops. and of providing an adequate
sugar supply for the American con-
| sumner.
AT the conclusion of his findings,
| the President. however. makes this
! statement:
| IF. through decreased production
| or other conditions, the world market
| should be relieved of the weight Of
sugar now pressing upon 1t, and the
| NOiiSbiiici cilOOiu again De COmpelieQ
/ TO pay the abnormally high price COM
planned of in 1928. the change in con.
| ditions might warrant reconsidera-
| ton of the present decision to post
| pone action upon the recommendation
! offered in the ma jority report of the
Tariff Commission.
Difference insufficient.
After full consideration of all facts
IN, "a
of the Tariff Commission" says the
Presidents statement, "I do not find
that differences in cost of production
are suff1ciently established under
present conditions to warrant any
change from the present duty"
The commissions sugar investiga.
ton was initiated in 1928, under the
flexible provisions of the tariff law,
| which empowers the President TO
make increases or reductions in
duties to the extent Of so per cent.
At that time. II is pointed out by Mr..
| Coolidge, the average New York
wholesale price of granulated sugar
was s.4 cents a pound. as compared
to pre-war average for 1909 through
1913 Of 40 cents a pound.
The abnormally high price Of sugar
in 1928" the President adds, fur.
nished reasonable grounds for com.
|
through reduction of the tariff on
| raw sugar"
Controversy Bitter.
A bitter controversy developed in
the commission over the question,
Vice Chairman Culbertson and Com.
missioners Costigan and Lewis com.
prising the majority in favor Of a
reduction in the rate, while the
minority was made up of Chairman
Marvin and Commissioner Burgess
Commissioner Classic did not partici.
pate in the inquiry on account of a
congressional stipulation that no
member was to take part in hearings
on a subject in which he or members
of his family were financially IN
terested.
BY the time a majority submitted
its report to the President on July
81. 1924, the wholesale price Of re.
fined sugar was quoted in New York
at 6.37 cents pound, dropping still
further to 5.4s cents on May last,
it is stated in the findings. while the
current price of raw sugar. 81
cents-compares with 5.7S cents a
year ago and a f1ve-year postwar
average Of 73s cents.
The current price Of 21 cents per