of July 26, 1893, has put refineries under excise supervision. It was argued that the coefficients of the rebates were too high, and that on this score the refinery obtained important premiums. It is in order to get at these premiums, and to make them pay the 60 fr. home consumption duty, that refineries were subjected to permanent excise supervision, and yet for the last ten years, during which that supervision has been rigorously enforced, no profit has accrued from it. It has been only a vexatious drag on the industry, whilst the Treasury has not benefited by it.

The law of 1897, which granted export bounties was exclusively made for the benefit of the manufacturers ; only a very limited part of this benefit went to the refiners-not more than 25 centimes per cwt. For the premium on refined sugar represents only the reimbursement on exportation of the money which went to swell the price of native raw sugar. Whether raw sugar is sold to be exported or to be refined the manufacturer gets an export bounty either from the State or from the refiner. Therefore the export bounty on refined sugar represents only the reimbursement of the money paid to the seller.

At the present time export bounties are as follows:

The sale price at the French ports to-day is 9/1 per

cwt., or per 100 kilog. 18/3, i.e.

...

22.30 for 88°

2.22 premium for 100° i.e. for 88°

...

1,95

24.25

In Paris sugar of the same quality (sucre roux) is worth 24 fr. 25 for 88° which proves abundantly that the premium is included in the price paid by the refiner. It

also explains why exports of refined sugar have not been as important as exports of raw sugar. We give here the comparative figures for the year:

In spite of the partiality of the law, the increase on refined sugar was nevertheless, 70 per cent., as its quality is very much appreciated abroad.

In Germany and Austria a contrary movement is noticeable, as will be seen in the following table.

In these two countries refiners are favoured instead of being hindered, as it is considered to be more advantageous to transform raw into refined sugar at home rather than leave it to the importing countries to do the work and get the profit.

Yet the protectionists who passed the laws of 1890 and 1897 thought it their moral duty to make these laws operate against refiners in order to give satisfaction to the claims of the majority, as represented by sugar manufacturers and beetroot growers who always complained of being robbed, and also in order not to be suspected of favouring the powerful industrial body of refiners.

XIII.

Legislation in Austria and Germany.*

As regards sugar, all countries have lately, more or less, imitated the laws and regulations which hold good in Austria.

Austria.

In Austria production premiums have superseded export bounties since the law of August 21st, 1888. The latter vary from 1 fl. 50 to 2 fl 30.† At the outset the total amount of money devoted to premiums was not allowed to exceed 5 million florins; this amount has been increased to 9 million florins by the law of July 7th, 1896. By royal decree, dated 17th July, 1899, premiums have been raised to 1 fl. 60 and 2 fl. 30, but the limit of 9 millions is maintained. The duty on sugar for home consumption, which in 1888 amounted to 11 florins, was increased to 13 florins in 1896, and to 19 florins in 1899. Products containing sugar get the benefit of the bounty according to the quantity of sugar they possess. The decree of 1899 fixed a customs tariff of 22 kronen (23 fr. 10) on raw sugar over No. 10, Dutch standard, and on refined sugar.

Germany.

In Germany the law of July 11th, 1883, maintained the duty on beetroot for manufacture of 80 pf. (9 d.)‡ per 50 kilog. of roots. The Government required only the weight of the beet going into the factory. When exported,

*

"La Liste des fabricants de sucre" gives an analysis of the legislations of various countries. The "Bulletin de Statistique et de Législation," issued by the Ministry of Finance, has also published all the laws abroad dealing with sugar.

† One Austrian florin = 2 kronen = 1/8.

100 pfennige=1 mark=1 shilling.

the duty thus paid was refunded according to the three classes to which the sugar belonged. By the law of July 1st, 1886, the duty on beetroot was raised to 1 mark 70 pf., and the drawback increased. The law of July 9th, 1887, imposed a mixed duty of 0.80 mark per 100 kilog. beetroot for manufacturing purposes, i.e., 10 fr. for a yield of 10 per cent., and a duty of 12 marks (15 fr.) per 100 kilog. of native sugar for home consumption. Drawbacks were decreased to 10 fr. 62-12 fr. 50, and 13 fr. 31, according to class.

The law of May 31st, 1891, inspired by the Austrian law of 1888, which came into force on the 17th of April, 1892, fixed the direct export bounties at 1 fr. 56-2 fr. 06 and 2 fr. 50 for 100 kilog., according to class. The law of May 27th, 1896, which operates to-day, is distinguished by three important points: a manufacturing tax, a limitation of the total output of all the mills, and export bounties, called war bounties, whose object was to give to German sugar preponderance in the markets of

the world.

The manufacturing tax is as follows:-for a production per season of 40,000 bags and under, 0.10 mark per bag (100 kilog.); from 40,000 bags up to 50,000, 0.125 mark per bag; from 50,000 bags up to 60,000, 0.15 mark per bag, and so upward for every 10,000 bags, the increased taxation being 0.25 mark (0 fr. 0314) per bag. The tax is payable as soon as the sugar leaves the mill.

Every year a contingent of the production is limited for every factory. For quantities exceeding the officially fixed production the manufacturing tax is brought to the scale of the export premium on raw sugar, as explained further. The calculation of the contingent of production for each factory is made according to special conditions and arrangements, i.e., the age of the factory, etc. general rule this apportionment is fixed in accordance with the average output of the three last seasons, the smallest of the three outputs being left out. The total of the several mill contingents, that is, the general output, was,

for the first season under the new law of 1896-7, not allowed to exceed 1,700,000 tons, with a margin of 2 per cent. in view of the erection of factories for the treatment of molasses.

Every year the Federal Council fixes the general output for the ensuing season, by adding to the previous output double the amount of the excess of the consumption of the year before, over the average consumption of the two preceding years. The contingents of the factories are increased or reduced in proportion with the general output, if necessary.

The scale of export premiums is as follows:-(a) 2 marks 50 (3 fr. 12) on raw sugar containing not less than 90 per cent. of saccharine matter, and on refined sugar, under 98 per cent. and over 90 per cent. (b) 3 marks 55 (4 fr. 433) on white loaf sugar of not less than 99 per cent.; 3 marks (3 fr. 75) on all other sugar of not less than 98 per cent. The consumption duty was raised from 18 marks (22 fr. 50), to 20 marks (25 frs.).

XIV.

The Austrian Ring.*

THE sugar industry in Austria and Germany is characterised by the organization of a Ring, of which the following gives the mechanism.

The Austrian Ring, like all other combinations of that kind, rest on the existence of a high custom duty. Without this indispensable condition, the Trust in Austria would be doomed as sure as the Trusts in the United States. In that respect Austria enjoys an exceptionally favourable position, for she surtaxes foreign sugar to the extent of 11 florins per 100 kilog., and she has no colonies which might send her cane sugar.

There was consequently a very good opportunity for

* On the continent the combination is generally spoken of as "Cartel."