The Portland Daily Press

How The Sugar Frauds Injure Portland
MR. EDITOR: The great depredations on the revenue in the City of New York which recently came to light, committed mostly by inspectors of silks and sugar, prove conclusively the following facts:-

That many of the officials of the New York custom house were in collusion with the parties who were engaged in these transactions; that no honest man can with safety or profit, engage in the importation of sugar; that these frauds upon the revenue have been the primary cause of the failure of nearly all the sugar refiners and many mercantile houses engaged in the sugar trade in this country for the past five years, proof of which may be advanced in a subsequent letter; that the protection of the revenue and the interest of the mercantile community, demand a radical change in the administration of the New York custom house which Collector Merritt is making every possible effort to bring about; that a specific duty on raw sugars will in a great measure in addition to some legislative action, prevent adulteration of the manufactured articles, remove every opportunity to defraud the revenues and restore this business, the importation of sugar to its normal condition,

But it may be asked, What interest has Portland, or the State of Maine in this question?

Maine has an interest, in a national point of view, that the revenue laws should be rigidly enforced in every custom house in this country.

Maine has an important interest in this matter from the fact that these alleged depredations on the revenue take $46,000,000 annually from the United States treasury on the article of sugar alone. Consequently Maine suffers to the extent of $100,000 annually.

The people of Maine have an important interest in this matter in connection with a new industrial enterprise which is now being developed, the manufacture of beet sugar, and for which our State has contributed and which needs in its infancy some protection from the government, or at least, that foreign sugars pay full duties as required by the revenue laws.

Portland has an important interest in this matter as we have some merchants who have capital, and are interested in vessels, who would import sugars into this port, thus adding to the business of Portland, but how can they safely do so when it is alleged by many New York merchants that a ring of refiners in that city have the advantage of them—and all sugar importers in this country—by paying less duties; one quarter to half a cent per pound.

I venture the remark that no merchant in Portland would ever import a cargo of sugar into this port, if he did not anticipate, and often hold it for a rise in price, thus making the transaction a speculation rather than in strict conformity to business principles. It must and ever will be so, while one importer has the advantage over another—in paying less duties.

Every merchant, importer, or refiner who imports sugars for sale or consumption should stand upon the same level, no one having the advantage over the other, the Government protecting all alike.

Portland has an important interest in this matter, in connection with one of her industrial enterprises, the Forest City Sugar Refinery, which, although it has been managed with signal care and ability by the two gentlemen who have had it in charge since its inception, can never pay a dividend while in competition with New York refiners who do not pay full duties and deteriorate their products, to that extent that no honest refiner can compete with them in the market and the welfare of the people demand immediate Legislative intervention.

Without a change of tariff on foreign sugars or energetic enforcement of the revenue laws in New York, the Forest City Sugar Refinery can never be successful unless the managers adulterate their products to conform with the goods of other houses in quality or descend to other dishonorable means, which they would scorn to do.

Portland, October 22, 1878.
H.