Evening star., 1927-04-18
u. S. HELD ITSOWN
BEST CUSTOMER
Auto C. of C. Decides Against
Drive for Lower Sugar
Tariff Rates.
BY j. C. ROYLE.

= al Itt ndlCos
BY j. C. ROYLE.
Special Dispatch TO The star.
NEW YORK. April IS-Thc Amer
ican Automobile Chamber of Com
merCe has definitely decided not to so
ahead with its proposed campaign for
a reduction in the tariff rates affect
ing Cuban sugar. It was reported
some time ago the chamber had agreed
to make this fight on the theory that
reduction in the American tariff would
bring greater prosperity to Cuba and
enable the people of the island TO puy
more American motor cars.
The briefest sort of investigation
showed, however. that markets Whlch
Amight be ruined by the reduced tarli
were far more profitable TO the auto
mobile industry than Cuba, with her
poor roads, could ever be.
Relative values Of shipments TO
sugar reproducing countries and sec
tion of the United States have been
made plain by statistics gathered by
the chaber from the Department Of
Commerce at Washington. And de-
cision evidently has been reached that
e. slight increase in Cuban trade would
not be worth the sacrifice of far
greater markets for American cars
in Porto Rico. Hawaii and the Philip
pines.
Compared With Other Lands.
The raw and refined sugar produc
ers of Cuba approached the Automo-
bile Chamber of Commerce with a
plea for support in the effort to de
+crease the tariff which Cuban sugar
now pays ON entry 20 the United
States, Cuban sugar company repre-
sentatives advanced the argument
that If Cuba could not sell her raw
and refined sugar at a distinct profit
in American markets neither could
she afford to buy American products,
especially automobiles.
The Automobile Chamber of Com
merce discovered that in 1925 Cuba
bought 1909 American automobiles
valued at $1,393,771. To balance this
Porto Rico. also q heavy producer of
sugar. which is enabled TO produce
that staple because of the tariff now
imposed, bought 2.293 cars, valued at
81 97To00. while Hawaii, in the same
position as Cuba, except that Hawaiian
sugar is sent to market in refined
rather than in crude shape, bought 4,257
cars valued at S3.292, ATS and also pur-
chased trucks valued at S4S1 ,292.
BY simple proposition in arith-
metic the Automobile Chamber OF
Commerce found that by supporting
She Cuban appeal for a lower tariff
they might continue to sell that nation
$l.393,7T1 in automobiles, or trifie
more each year, but would endanger
sales of at least $5,751,767, not to
speak of business. in the Philippines,
in Louisiana, with her extensive cane
fields, and in California, Utah, Idaho,
Nebraska, Iowa, Kansas, Wyoming,
Montana, Michigan, Wisconsin and
Ohio. where the beet sugar raisers
represent no small part of the buying.
Turned Down Proposal.
The decision of the chamber was
not long delayed. It turned down
the Cuban proposal and has officially
denied any arrangement with Cuba
The encroachments of the Cuban
producers into this market not only
affect the Porto Rico and Hawaiian
cane crops, but they affect refined
sugar prices. The Hawaiian sugar all
comes on the market in refined form.
Several Cuban producers of raws are
now making Il refined product and are
shooting this into American markets
in the Middle West and even in New
Orleans. the home of Louisiana sugar
in active competition with American
products.
Efforts to make this competition
more and more effective on the part of
the Cuban government representatives
have not been graciously received, but
a renewal of these efforts is anticipat-
ed when President Machado makes his
deferred visit to Washington this
month.
With normal weather conditions af-
fecting fruit canning and soft drink
demand, it is anticipated sugar con-
sumption will increase about 3 per
cent this year as compared with 1926.
But Cuba has restricted output TO
4 500 900 tons Off this year, and further
advantage for the island producers
probably would mean an advance in
price