The Washington times., 1929-06-26
DAY WRESTLES WITH CANNED GOODS WHILE SIT
SM00T DRAFTS
new SUGAR
TARIFF
By WIN. K. HUTCHINSON
International News Service


Taking cognizance of the
housewife rebellion" against
high sugar tariffs, the Hoover
Administration now has under
consideration a new sliding
scale" on sugar, which is de-
scribed as fair to the con-
sumer and yet gives adequate
protection to the domestic in
dustry.
With President Hoover reported
favoring a revision OF the high flat
rate Of So per 100 pounds adopted
by the House, Senator Reed smoot
(R.) of Utah has prepared tenta'
tive schedule of adjustable" rates,
which he will submit to the Senate
Finance Committee later in the
week. While declining to give de-
tails of his new scale, Smoot an.
nounced its lowest rate would be 81
per 100 and its highest. SO.
Seeks HOover's Approval
The President probably will be
asked to approve the new schedule
before Smoot submits it to the
committee, of which he is chair.
man. Its adoption by the Senate
will be a foregone conclusion il
the President and Smoot agree. The
adoption Of a dollar-rate, under any
circumstances, would be the lowest
tariff on sugar within the memory
of tariff experts.
Smoot also announced that his
tentative scale would lessen athe
differential between Philippine and
| Cuban sugar Under the House II,
Philippine sugar would be admitted
free while Cuban sugar would be
given a Dat rate OF 81. 40 a hundred,
6O-cSat differential against all
other sugar importations except
Philippine.
Ignored By Coolidge
The new sliding scale would even
outdo the old tariff commission's 8
sugar report. In 1924, that fact.
finding body recommended to Presi.
dent Coolidge that the tariff on
Cuban sugar should be fixed at
$1.23 per hundred. Mr.. Coolidge,
while empowered to raise or lower
| the sugar tariff, never took any
action on the commission's recon.
mendation.
In the Smoot schedule, the dollar.
rate would pply only when sugar
t. nAIl 1ARr ~
| market while the 50 rate would be
invoked when sugar prices here
were in a slump.
In discussing his plan. Smoot
said:
plan to be considered by the Fl
nance Committee which will involve
a sliding scale of rates on sugar.
| 1t will be fair, to the consuming
public as well as to the producers
in this country 1t will lessen the
differential between Philippine sugar
entering this country and that from
| Cuba in case the price of sugar
advances from its present low levels.
1.-The scale runs down as low as
81 per hundred for refined sugar.
The rate in no case win BE- higher
than that provided in the House
| bill ($3 a hundred pounds.
"If in the future, we had a run
away market tremendously high
pricesl from whatever cause imag-
Unable, the tariff could not be held
responsible The only reason that
] do not suggest elimina ton OF the
duty entirely when the sugar mar
ket reaches low levels is that we
need the revenue. The Government
cannot get along without duty of
at least 81 per hundred pounds on
imported sugar"
Although Smoot would not con-
firm it, the new scale probably will
fix the dollar-rate when sugar is
selling. in New York at 81 hun
dred. The high rate of So per hun.
dred probably would apply when
sugar prices had declined to 81. The
entire scale, however. will be given
out later in the week, when Smoot
has presented it to the Finance Com.
mittee.
The. sugar hearings started this
morning before a Finance subcom'
mittee, of which Smoot is chair.