Democratic Sentinel, Volume 16, Number 26, Rensselaer, Jasper County, 15 July 1892 — Sugar Trust Profits. [ARTICLE]

Sugar Trust Profits.

■ If there is one duty more than any other that is at present utterly without any reasonable excuse for existence it is the duly of one-half cent per pound on refined sugar. Th's duty is producing no revenue to the Government hnd serves only the one purpose of increasing the profits of the sugar trust, which even without it would be enormous. Nowhere can sugar 'be refined more cheaply than in the United States. The cost of refining sugar is about onehalf cent per pound. Keeping these facts in view it is easy to see that the sugar trust is making as great profits now as it did before the duty on refined sugar was reduced and the duty on raw j sugar abolished. The following from ] the New York Daily Commercial Bulle- i tin of June 21, 1892, explains the situa- I tion: “The capitalized sugar trust is Dot engaged in the production of raw sugar; it is a refiner only. Its profits, therefore, must be made out of the difference between the price at which it sells refined sugar and the price which it pays for the raw material. When this differtao<» increases the profits of the trust

increase. There are three ways of increasing this difference: by depressing the price of raw sugar, or advancing the price of refined, or by both depressing the price of raw sugar and advancing the price of refined. What plan has been pursued? “In 1886 and 1887 there was active competition between the refiners of the United States. In the latter part of 1887, however, the trust began operations. A comparison of the situation in those years with that prevailing now will show how the trust operates. Excluding the amount of, the duties paid upon raw sugar from both the price of raw and refined, we find the following results: The prices for 1886 and 1887 are the yearly averages. * Present 1886. 1887 prices. Cents. Cents. Cents. 96 centrifugal, per lb 3.948 3.120 3.125 Granulated 8.856 8.715 4.37 S Difference 608 .596 1.250 “These figures show that'in 1886 and in 1887, when competition was free, consumers paid less for refined sugar, after deducting the tax paid to the government on account of the duty than they do now under the domination of the sugar trust. ” Supposing that the cost of refining sugar wai average 6-10 cent per pjund, after allowing a fair profit, it is seen that the trust is now making sixty-five hundredths cents on every pound of sugar refined. As the per capita consumption of sugar in the United States is between sixty and seventy pounds, the trust’s extra profits exceed $20,000,000 per year—more than $15,000,000 of which is directly due to this absurd tariff on refined sugar. It is said that in this case it is political cowardice in both the House and Senate that prevents the removal of this unjust duty. Whether true or not the charge is being made that the Republican Senate would not pass a free sugar bill because it would then lose the heavy contributions which the sugar trust is expected to make for the coming campaign; and that the Democratic House dare not pass such a bill because it would only be pigeonholed in the Senate, and give the Republicans an excuse for demanding an extra large campaign fund from the sugar trust, and also that it might cost them the loss of Louisiana's Presidential electors. The people will accept no such flimsy excuses, but will hold both parties to a strict accountability of the trust which rests upon them.