Evening star., 1932-02-07
American Sugar Trade
Asks Protective Action
BY HARDEN COLFAX.

A report on the investigation into the
costs Of sugar production all over the
world conducted by the Tariff Commits
sion now is promised by the middle OF
next month, as result Of requests by
the American sugar trade for quick
action In an effort to prevent the closing
down Of ref1neries.
The new turn to the situation is
believed to have been caused by an
inconsistency in the present tariff law
There is a duty on imported raw sugar
as we'll as the refined product, slightly
less on that from Cuba than on that
from other producing countries. Because
of "joker" in the law, it is now found
to be cheaper to import refined sugar
from Cuba than to import the raw and
refine 1t in the United States With
the difference in wages paid to labor
here and in Cuba, a serious situation
seems to have arisen for American
refinerS.
Whether or not there will be an
increase in duty on the raw product.
the American sugar industry maintains
that there should be "differential" on
the refined product sufficient to cover
this difference in the labor refining cost
in Cuba and that in the United States.
The Tariff Commission has announc-
ed that it will act with all possible
haste in investigating general costs and
TIE necessity for change in the rela-
sion between duties on raw sugar and
the refined product which will protect
the American producer from cheap
labor abroad. The investigation will
include consideration of the duties on
all forms of sugar products from the
refined to molasses. 1t has been under
taken in response to requests by
domestic producers and refners, par
ticularly beet sugar growers of the
Western States.
The situation has become aggravated
owing to the delay in carrying out the
terms of the world plan made last year
under the so-called ChadbOurne plan,
to stabilize prices largely through a
binding agreement by the principal
producing countries to reduce exporta-
ton. A couple of weeks ago the
international Sugar Conference, meet
ing in Paris, allotted expectation quotas.
This week Java and Cuba, the largest
single world producers of sugar, agreed
on crop production during the present
year. Pending this decision, the Cuban
holders had been ridding themselves OF
sugar at very low prices. This has
affected labor costs and still further
increased the difference between refin-
ing costs In the United States and in
our island neighbor.
The American sugar refiners have
urged upon the Tariff Commission the
necessity for action. pointing out their
inability under present conditions to
meet competition from Cuban and other
foreign sugars. They report that recently
English, German and Czech merchants
have been shipping sugar to this coun-
try at prices with which Americans
cannot compete. According to leaders
in the sugar industry, imports of re-
fined sugar from Cuba alone during
1881 equaled more than the total pro-
duction of II out of the 16 beet sugar
States of the Union. With an equaliza- :
ton of duty on the raw and refined
this competition, they say, would not
be so burdensome.
Sugar is very important item in
American general business, the revenue
from importations representing one
quarter of the total revenue realized by
this country on all its imported goods
1t is true that with our possessions, the
Philippines, Porto Rico and Hawaii, we
produce, roughly speaking, about halt
the sugar we need. The rest, most OF
which comes from Cuba, is suficiently
large to be Of general popular concern IN