Speech #750097922

Texas. which formerly produced both sugar beets and sugarcane. not now allowed under the quota to reenter that field of produce. Massachusetts and New York once grew beets to make sugar. and they are likewise barred to reenter that Industry. The quota system merely pegs the industry with a few minor readjustments to its status of 1934. This is done on the equitable plan which permits no area or factor in the industry to use the profits and benefits under the quota system to destroy or injure the business of any other area or group. The question does not resolve itself. Mr. Chairman. as to whether all areas or groups under the bill are treated by identical formulas but rather taking into consideration the objective of obtaining for each area an equitable and economical result after consideration of all of the circumstances in the composite picture. If the restrictions are removed on Hawaii and Puerto Rico as to direct consumption sugar. the underlying and essential principle of the entire quota system will be disrupted and violated. If that is done these two islands will be given a tremendously preferential right over the continental refining industry. which. in my opinion. will finally destroy it. and with it the market to which continental producers must go with their product. This because the quota system denies continental refiners from obtaining their material elsewhere. The quota plan permits these insular American citizens to ship to the continental market the maximum amount they have ever shipped prior to 1934. but. on the other hand. it restricts the volume of continental refining to a figure tantamount to 60 percent of their capacity and far below their performance over a long period of years. The applied principle is Identical.