Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-07
SUGAR TARIFF PLAN
| REQUEST IS Barred
Document Says White House
and Smoot Told Expert to
Evolve Sliding Scale.
BY the Associated Press.

White House and Senator Smoot- of
Utah to work out a sliding scale for
sugar duties.
The document was contained in a
letter from w. H. Baldwin, publicity
man employed to work for lower sugar
rates in the tariff bill, to Junior Owens.
secretary of the American Bottlers of
Carbonated Beverages.
The letter said:
II am inclosing highly confidential
memorandum on the sliding scale which
you may be interested in seeing"
The memorandum said Purdon had
been asked by the White House and
Senator Smoot to work out practical
sliding scale.
His name must not be mentioned in
connection with the following informa-
ton which he has given" the memo
randum added.
Baldwin had previously testified that
he had been paid 81 500 monthly for his
work by Owens and that H. H. Pike,
New York sugar broker, had added a
bonus of $1,000 monthly.
Asked Withholding of Name.
The memorandum read:
"R. L. Purdon, chief of the sugar sec
ton, foodstuff division, Department of
Commerce, has been asked by the White
House and Senator Smoot to work out
practical sliding scale. His name
must not be mentioned in connection
with the following information which
he has given.
There are various basis that might
be used in working out sliding scale.
The sliding-scale idea just transfers
the argument over the tariff rate from
what will be the tariff rate to what
will be the base line for measuring the
tariff on the sliding scale.
"The sliding scale would be price
fixing II the changes in duty were ex-
actly corresponding with the change in
correspond to the change in price, it
would not be price fixing, but merely
tendency to stabilize prices.
Believes Plan Workable.
HE personally believes that a sliding
scale would be practicable, and that it
represents scientific effort to protect
the consumer and at the same time the
domestic industry. However, he says
it must be administered by somebody
who knows the sugar business.
THE Garner plan will not work. The
first thing to do in attempting to work
out sliding scale is to get an honest
price on sugar. It can be done, 1t is
just matter of administration by some
one who knows the sugar business.
1.-THE important factors are the price
where the sliding scale begins; also the
price at whatever date line may be de-
termined upon and the method of adj
ministration. All plans mentioned pub
licly today, so far as he knows, would
give the edge to some factor or other in
the industry"
Baldwin gave the committee no en-
lightenment about the memorandum.
Senator Walsh, Democrat, of Mon
tana produced a letter from Morris
Merney, connected with Baldwin's firm,
addressed to Pike, which said highly
confidential memorandum regarding
sliding scales" was inclosed.
Senator Walsh's Comment.
The letter added that the informa-
ton came from Mr.. Thompson, sugar
expert of the tariff commission, but it
was not brought out whether 1t was the
same memorandum sent by Baldwin to
Owens. orr -. 500 II"
Senator Walsh commented that the
letter placed both Baldwin and Thomp-
son Gin an embarrassing light"
Baldwin also said he had visited
Mrs. Henry Moskowitz of New York
in an effort to get former Gov Smith
of New York interested in the sugar
tariff. He said she told him to keep
her advised and added he did not
think he had succeeded in interesting
her.
"Mr. Smith has made no speeches
yet on tht subject" he said.
A memorandum entitled, wild Sug-
gestions." sent from Merney to Bald
win, follows:
Here are some wild suggestions, the
successful development of any one of
which might mean much in our pub
licity program on the sugar tariff.
Lining up one of the woman Con-
gressmen. preferably Mrs. Ruth Pratt,
and having her take up the cudgels
of the housewife, the ultimate con-
sumner Of sugar, who Is also the ulti-
mate payer.
your suggestion of Senator Cope
land, splendid handle for publicity.
Arrange to have President Machado
visit President Hoover.
"The Will Rogers trip to Mexico.
Rogers may be free to go to
Cuba and do for them what he did for
Mexico"
Baldwin said he did not think these
plans developed.
Another Letter Revealed.
Another letter from Merney to Bald
win said:
dig into the military-Pike situa-
ton at the Navy all day today (Sep-
TENDER 100
1.-TWO things:
"One-There is no point in trying
to find out how much Navy would be
required to maintain line of COM
munication with the Philippines.
"Two-No point in ascertaining sugar
tonnage sunk by u boats during the
war.
Because: All naval experts agree
that in case of war in the Pacific Japan
would take the Philippines and Guam
without a struggle. I am told conf
dentially that we would make no at
tempt to save the Philippines in time of
war with Japan. Books on the subject
of Pacific war have been written of
course; all show the utenability Of the
American position.
Here's my thought: think can
write out Burkian speech against
sugar increase, pointing out the pos
sibility of breaking of the Washington
Arms Conference provisions and also
the possibility of seeing situation de-
velop which would be inimicable to the
cause of naval reduction, all because
the hot-housing of sugar in the Philip
pines at the expense of the United
States and Cuba may force us to de-
fend those islands by greatly increasing
the size of our Navy adequate to police
the Pacific and by transforming Guam
into Pacific Heligoland.
I'll write the speech (which will be
buttressed with strong quotes). send it
co New York for criticism and If it's
o. K. try to sell 1t to Senator for use
on the floor.
"It isn't a question of maintaining a
line to Philippine Islands. It's ques-
ton of holding the Philippines. The
a;y d. he
DONE
Baldwin said he did not think that
any of the suggestions developed and
he did not clear up ambiguous refer
ences in the memorandum and letters.