Show Eighty Per Cent of Cost of Producing Sugar Goes for Labo Lab 1 CANNOT REDUCE l 2 COST UNLESS YOU I REDUCE WAGES WAGES' 5 Senator Smoot Shows vs Absurdity Absurd Absurd- 71 t d ity ty of Arguments Advanced by Democrats i a ItI WHY THREE YEARS HENCE I t Matchless Degree Degre of Political 1 Cunning Seen in Date of oft t Free Listing Sugar I I b Continued Prom Fm Preceding Pa Page e. e nixed that three big companies rule rue the it Industry and of or these throe ono one Is so 80 much larger larger than thon the tho others other that It i completely overshadows them The Tho 61 situation was wn aptly expressed b by one of ot the before the tho I w committee when ho testified that the th I Independents Independents meaning the tho so called I Independent refiners go hgo go along so under the umbrella of 0 the the- trust trust It I Is LAfO to say sPy that that umbrella Is not notI I I going to bo be extended to accommodate any newcomers and that thosa who J I 1 are now under It will wil act together to exclude any who ma may seek eck Its Is protection pro pro- I m I do not riot sa say that Oot there Is an any Illegal megal J LI combination among tho varIous x-arlous sugar 4 refiners today I 1 do not know whether i there thore Is 1 or r not not But nut I do sa J that there Is i no real rel effective competition between them thom That Is self evident evident sel-evident i ti from the fact tact that the tho big refiners the larger of ot the tho called so-called eo-caled eo Independents as aswell well WAIL as the trust at nt no time Ume i i H to to tho tho tuff full melting i capacity of of their I 0 tho shown b by tho the plants average as a I J brief brier of ot the tho te United States district at- at r torney Is I 60 per cent The Tho manu- manu In an any line lino of ot business who Is 2 1 engaged In real aggressive 4 ton runs his factory to Its Us capacity 4 I 1 whenever trade trado conditions make mako such suchS S I t t n. n I course possible He makes a n. fight t for tor all al the business s he can handle r 1 fad and Is I not content as os aro these thee alleged I i Independent refiners to follow one big bis I concern not only onh In prices but oven 7 7 to the extent of ot reducing output I wi IY They're Tero In 1 Li 1 If u I tho the refiners who have havo been filling r the ears of ot the public with wih tho the promises of ot what the they will wUl do for tor tho the relief of ot otI I tho the downtrodden sugar consumer I poor pOOl trodden do Jugar u j who ho is getting his sugar today cheaper J 1 than at ot a any time since the general rise t In la the cost of or food products be began an f were earnest In their protestations J thc they had ha a a wonderful opportunity to tor their faith by works InI in r I 1911 With raw sugar on ott hand hana bought I f at a low ow price they thoy could have stayed t tho to rise that took place during tho the summer Bummer of ot that year ear before the tho 00 beet q su sugar or of ot the tho to west arrived to stop and ad adI to reverse the te movement movement- movement Did they I do it I On the contrary these alleged independents outstripped the tho trust It Itself itself It- It self in their race roe to extort the tho last poso pos- pos eel e penny from tho pockets of the tho J I v o consumers consumers And when te the Moses of ot free i sugar lugar Frank C. C Lowry Lowr was confronted I with these facts tats bolero before a committee of ot bi this very Senate enato Sento he dropped for tor a moment moment moni mo mo- ni ment mont Cr his pose poso of or philanthropic friend ri of ot tho the masses mases and ond brazenly admitted s that he was wae in business to got all 01 ho he hoa a could out of or It it ir As I have said saM I do not know that tat there exists today an any actual agreement agree agree- aSee- aSee ii ment meat anion among the sugar refiners but I cit certainly believe beHove that before the ink is ci dry upon the signature to this bill bi If ft t f tI t it becomes a law there thee will wil be bo an nn ef effective et- et 31 I understanding amon among them Ife if It e It t does not already exist by which they rt 1 will act together to drive out an any at attempt attic at- at tic tempt at outside competition and to preserve the tho the American sugar fugar market marl et for their Joint exploitation ye Cnn nn nii Protect Their Market k Short Shortly after this pending bill bi was brought forward at tho the present session 2 of ot Congress Claus Glaus A A. Spreckels was was interview making makIng mak mak- quoted in a published as ing the boast bOPst that the refiners had hadI I nothing to fear tear from free freo sugar because bei be be- i I cause causo sugar could be bo refined here more cheaply than anywhere else in the ther r world That claim is probably well wel 1 Jr founded I am ani a willing to give th the re- re 1 full ful credit for having the most ow complete and perfect equipment for maintaining a most effective organization tion In their Industry and for paying i Rho Iton the lowest possible wages to their employees em em- with tho advantages which IY they thoy now from their control of W tho domestic trade modified only onh by bythe h ii I Ithe the thc competition of ot home grown Sown home beet u BUgar sugar with t the tho o a additional advantages r which the they enjoy through n VI of or the thc chief sources or ot their raw-ma- raw with untried unified and amI I supply in Cuba harmonious action octon among themselves jai they will wil bo be able to repel all aU attempts dr eiT at invasion and n nto to preserve tho sugar I id idall market of or people for tor them them- selves Should a forel foreign n refiner at attempt at- at n 01 all foothold here it wIlle will willbe tempt to gain a gai 5 up be oas easy for tor them to depress prices Ie e temporarily until he IB is driven out out outU H III Should any an body of ot men attempt to toa U up independent and andor operate a genuinely st a competing refinery here bore it will be easy or for tor them to ruin such an enterprise enterprise as ns nd others have havo been heen ruined and that by bythe bythe t. t 11 the mere manipulation of prices without without with with- out exposing themselves to any danger Co ot t the law Wo We e would simply have rf ref over oer again on a lar larger or scale tho the condi- condi tIl ti in tho time early carly days tU lions that prevailed to 19 of tons of tho tat of ot the tho te sugar trust when brief periods of or throat cut competition com coin M petition wore by y long periods ie Ie or of f monopoly and ana high higi ricos Wo wo o will willI wi r I tl have havo again tho the In itt n described by b rl ri Henry O. O yer 4 lien ien len he ho declared to that there never ne was Wa a a lar ar In the sugar Buga I trade for which tho the p pi l lIe lo 10 did not pay the tho bill throe tho or four tour hies over oVer l Proper rop r Title rifle 1 I It Hill Bill e Therefore I say tY t lyou ou senators that the tho hope or ot com corn I on arising J from outside to replace lie 10 laboriously Li t rom secured competition Uon nc l afforded by C tho the domestic sugar indu Iry ry which you youa yourl iF to strike down a 3 vain aln dein delusion de- de propose rl rI lusion and a snare i I Is' Is s that if I this in bill honestly label I it would be beA 11 I described honesty as to Schedule A A voul bill bil for fort 5 t the destruction d or ot the d peste sugar Ae Industry and for tor tho the cnn onri mont of or tho the lOt I de Refiners beyond the tho drean I of or avarice avarie That would bo hu a Just tl t jt b. b because I Int 1 defy anybody to point tc 16 single in- in nt Ion In the terest or to a single lo pe po 1 whole United a States wh wh- darlo any permanent and lasting benefit from 1 10 f A its enactment save eave and except only ther the is r great gr at seaboard sugar refiners 1 that the Ugar claim h has been made mado rado LS I t i I 1 by I 1 kno know Democratic members of ot Congress taking their inspiration and ond their facts 1 from tho the disingenuous Mr air Lowry in his role of or friend of ot tho the consumer that 1 C tho the removal of ot tho the tariff duty on sugar e vast sums to the consumers save eave Burt lof ot t the tho country ost The amounts named ar at a Different times arid and by bp different speake speak speak- e r tru havo have varied widely Ideh I have seen it I iCY e t Placed a year and I havo have at for F. F euf leen een lcd it placed at A re tow low less lesa In these claims millions more moro or teto doe Cloe for tor they are all so ox- ox does not matter mator 01 o- o and aud so BO ridiculous as scarcely arely and to deserve attention Tho greatest t poll poll- Bible reduction in the co cost to tho the conI con- con most I sumer under conditions of the Ule II for Ott our 0 genuine genuino and nl active C I markets bv by all the thc world would not amount to to al thing l o this a Democratic 1 Figures Jurel I 11 am glad to say that no such figures e been gad seriously contended for tor on the tho floor noor of or tho the Senate Whatever may maYL mayI L I av n g been boen said In lu tho the heat r f the thc cam cam- cPm cPm- when hen tho D Democratic national committee guilelessly circulated Mr tr Sprockets Sprocket's statements on this subject b by tho million any Democratic senator challenges chal chal- who sho repeats them in this chamber hinges lenges s the tho Judgment of ot the mo most t distinguished die dis of ot his colleagues the tho 00 very men inca composing the te committee in charge of or this bill biu In their report of ot bl July 2 1912 the Democratic members 2 11 JUl of or tho the finance committee then ten the minority ml- ml members members state ette emphatically tat that very vary vay touch the t major maor part of ot the tax levied upon the consumer of ot sugars tx te and ad sweetS goe roes Into Int the United States into treasury an and ad only a 0 Q minor part tho the pockets of ot ony the producers I am sure sure pocket therefore that to any assertion that the of revenue is only anI the minor fraction of or the cost to the American Amer Amer- ican consumer will wil he be repudiated as quickly Quick on that side of tho the chamber as ason ason ason on this his It Is easy to demonstrate the falsity of ot tho figures I have referred re referred re- re to and ond the correctness of or the tho conclusion reached tle b by the tho Democratic members of the finance committee In their report last year Maximum Possible Sin Sin-Ing Se n a Year To bosin boin with the tho maximum possible saving sovin to the consumer under the conditions con con- which I have havo suggested conditions con con- which never ne will 11 bo be realized Is not to bo be reckoned b by taking some omo arbitrary figure like 1 90 or 1685 1686 or 1 4 and multiplying the total sugar consumption b by this amount The true tue th theoretical figure is to be obtained by taking the tho difference between the world price of sugar of ot a certain grade gado of ot and the tho American price for sugar nc the tho th same te grade This measures the maximum amount of ot difference changeable changeable changeable change change- able under any ony conceivable conditions to tho the tariff That difference now never ne er amounts to cents a n pound practically never or ne to 1685 cents seldom I even en to 1348 cents In other words under tinder existing conditions in the su sugar nr industry of ot tho the United States sugar soils sells at most times Umes below parity tho the term els parity meaning in this connection the world price of 0 sugar re registered b by quotations at Hamburg Germany German wit with th the duty added I have havo o ha compiled from the tho weekly Journal of 0 Gray the official organ of the sugar trade a te statement of Now ew York and Hamburg Hamburg Hamburg Ham Ham- burg quotations 01 for tor the period from Je January 1 1913 to Jul July 1 1 1913 This shows that during this entire entro period tho the Now York during price averaged sixty points point below parity In other words ho tho portion of price paid h by American Ameri Amen porton can consumers t of ot sugar that could under any an 1 course of ot reasoning be charged to to the tho tariff during this period was cents cents If I all al tho the sU sugar ar consumed by tho the American people were subject to this reduction the maximum possible saving would be not 00 nor but in round figures figures fig fig- gures g- g ures or about SS cents a a year for tor each consumer Third One-Third In Products As to a 3 great proportion of ot the sugar used b by the American people no savIns saying sav- sav ing Ins ng of an any sort sot would be ce possible under an any circumstances so far as tho the consumer consumer con- con sumer umer is concerned Near Nearly third one one of f the average annual consumption of ot sugar ugar reaches the consumer indirectly In manufactured articles through An Investigation of ot the cost of ot living of ot American families In n a large number c conducted In lit 1901 by the tho department of f labor disclosed d the fact that of 0 the average per capita capia consumption of 0 sugar ugar in this country but 70 per cent reached cached the consumer directly as su sugar ar th he time other 30 per cent being used In various arlous manufactured articles such as 05 candy andy bread biscuits and so forth forth Nobody will serious seriously contend that a reduction in wi the price of ot sugar amountIng amounting amount- amount Ing ng oven to a cent and a half hal or two cents enta a a. pound would affect the retail price rice of ot these articles It I would mount amount at ot the utmost only to a frac- frac fraction tracton lon tion of or a a. cent on the quantity of ot these tese commodities ton ordinarily purchased and this his slight difference would be promptly prompt- prompt ly iy y absorbed before it had a a chance cance to reach each tho the ultimate purchaser It is not seriously contended that we o would get geta a larger can con of condensed milk for 10 cents more sticks of or chewing gum for tor fora torn gm cent a n nickel or that a 60 50 cent box of ot candy andy would sell sel for tor 49 cents if It sugar were put on the tho tree free tee list Deduction ot of f this portion of our natural consumption lon tion reduces the tho total possible saving from ton rom free tree sugar to or about 6 62 12 cents a jear ear for each consumer Revenue 0 Now I Is I. I 0 00 But it I must be remembered that tho the tariff on sugar is the greatest revenue producer on the tho entire entro list of ot dutiable articles Sugar turns Into tho treasury treasur of f the United States roundly 00 a n year ear That sum is paid now b by bythe the he people of tho the country about in proportion pro- pro portion to their means The Tho rich consume consume con- con porton sume ume more sugar than titan the merely well well- wel- wel to o and the family of moderate moderato means uses more than tho the very vcr poor pooran fan an lly ily This always has been one of the tho lio great advantages of sugar as an object of ot ta taxation tho tax Is paid more moro nearly early In proportion to ability to pa pay than han Is IB almost an any other If I we cut cutoff off ff from the treasury treasur this a of year it is obvious that the money must mut en be bo raised b by some other form of taxation This leaves but or about bout 10 cents per capita capia per year as ho tho amount that could be bo actually sav saved d db b by y the tho removal of ot the tariff on Imported imported Im- Im ported oried sugar assuming assuming that the time con- con got Jot the tho full ful benefit of 0 it I Industry of f T ATI re T tin rint for or nn one nna m moment rt admit th that tc en even rn this p a paltry ir savIng amounting to about 10 cents a acar year car per capita will wil be e realized b by bythe ho tho consumers rs of 01 this country as the result of the removal remo of or the tariff |