128 SUGAR 



of fighting the French. The industry in each country 

 formed what is called a " Cartel." They were so similar, 

 and their results so identical that it will be sufficient to 

 describe, very briefly, the German Cartel. The consump- 

 tion duty, that is, the duty actually paid by the con- 

 sumer, was 10s. per cwt. ; but the import duty, that is, 

 the duty which anyone outside would have to pay in 

 order to enter into the competition, was 20s. per cwt. 

 just double. The surtax on imports was, therefore, 10s. 

 per cwt. and, within the limit of that large amount, the 

 home producer could raise his price to the consumer 

 without fear of outside competition. But to effect this 

 it was necessary that the whole industry should com- 

 bine. They did so, and bound themselves down under 

 severe penalties to adhere to the arrangement. The 

 refiners were to raise the price to the consumer and to 

 pay the raw sugar producers a fixed share of the resulting 

 profit. The practical outcome was that the raw sugar 

 producer received 3s. 6d. per cwt. more than the outside 

 value of his sugar, while the refiner enjoyed the balance 

 of the profit 4s. 6d. per cwt. These were, indeed, 

 glorious profits. The great glut of sugar was rapidly 

 increased, but the profit in the home market was so 

 large that they could afford to sell their surplus for what 

 it would fetch and yet make an abnormal profit on their 

 total out-turn. The value of sugar in the world's 

 markets fell 3s. per cwt. below the cost of production, 

 but the German producers were delighted, declaring that 

 the right policy was to keep prices down so as to crush 

 all outside competition. They very nearly succeeded. 

 This was regarded with dismay not only by the ordinary 

 unaided producer but also by the rest of the beetroot 

 industry itself, which had long enjoyed and still retained 

 the smaller benefits so generously bestowed upon them 

 by their paternal Governments. 



