H.—2.

46

Lire. Refined ... ... ... ... ... ... 25 per 100 kilog. Unrefined ... ... ... ... ... ... 18 „ By adding these sums the so-called accessory duties, viz., 5 per cent. " expedition " and the " war decirae," the following figures representing the duties really levied are obtained : — Lire. c. Refined ... ... ... ... ... ... 28 87 per 100 kilog. Unrefined ... ... ... ... ... ... 20 79 „ These duties, stated in round numbers as 28-S5 and 2080, were confirmed by the Franco-Italian Treaty of 1863, and Austro-Italian Treaty of 1867. Previous to the adoption of the law of 1572 on " financial measures," the duties on sugar were levied according to the legal net weight, i.e. according to the gross weight with deduction of a tare calculated according to the different quality of the covering or packing-case. This law having raised from 20 to 30 lire the limit below which the amount of duties could be assessed on the gross weight, a tare on sugar was no longer allowed, and a surplus of receipts of about 6 per cent, was expected. The Government, however, did not obtain the expected result, and sugar is almost invariably brought to the Custom-house packed in sacks. All sugars of lighter colour than that known as No. 20 Dutch are classed in Italy as refined. All other sugars without distinction are classed as unrefined, and taxed accordingly. In Italy the production of beet-root sugar is very restricted. There only exist three factories— one at Anagni, in the Province of Rome ; another at Rieti; in the Province of Perugia, and the third at Cesa, in the Province of Arezzo. The factory of Anagni, established in 1869, enjoyed great protection under the Papal Government, which granted it an exemption of duty ou machinery imported from abroad, and conceded a reduction of the octroi duty on sugar brought into walled cities. This factory works for about lour months in the year, during which period it consumes on the average 55 tons of beet-root per day, extracting about 3,000 quintals of sugar. The factory of Rieti, when completely finished, will be able to consume 10,000 tons of beet a year. In 1573 it only produced 281 quintals of sugar. In 1874 the production fell to 197 quintals, but for 1875 the Administration reckoned 2,000 quintals. The factory of Cesa, in tho Val di Chiana, was founded in 1872, and has a producing power of 5,000 or 6,000 quintals of sugar. The outcome of 1872 was 600 quintals ; of 1873, 1,000 ; and 2,000 in 1874, comprising in the last amount 500 quintals of unrefined sugar imported from abroad for refinement. In 1875 the Cesa factory reckoned on producing 3,000 quintals of native sugar. Owing to the difficulty of obtaining beet-root, which will not grow freely in Italy, the three above-named factories do not produce on an average more than 7,000 quintals of sugar a year. There is no special tax levied on this production. Sui/ar Refinery. —Previous to tho year 1872 there w yere no sugar refineries in Italy.* Indeed the possibility of the existence in Italy of this industry was doubted, when, in the above-named year, a sugar refinery on a large scale was established at Sanpierdarena, near Genoa, under the name of the " Raffineria Lombarda Company." This establishment, which, after three years of struggling existence, now begins to prosper, contains, besides the sugar refinery, an " animal charcoal " factory,f a molasses distillery, and a gas factory, and employs about 500 hands. Ten steam engines, with an aggregate of 350 horse-power, and a daily consumption of more than 30 tons of coal, supply motive power for the four workshops of the factory, in which are fourteen steam boilers of 1,120 horse-power. The distillery produced 12 hectolitres of alcohol daily, and could have yielded more, but at present it is not working on account of a difficulty which has arisen between the factory-owners and the Government with respect to the method of application of the duty. Tho owners affirm that by accepting this method they could not compete with factories which extract alcohol from corn. This factory is now (February) turning out 90 tons of sugar daily, and is also making for its own use about 200 tons of coke a year, 90 to 100 cubic metres of gas a day, and 15 to 20 tons of " nero animale " a day. The refinery of Sanpierdarena is the only one now working in Italy; another was established at Rivarolo, but the building is now for sale unfinished. The Italian Tariff grants no drawback on the exportation of sugar. Candied fruits and chocolate are the only exports for which drawbacks are allowed on account of the sugar used in their preparation. On candied fruits there is a drawback of 15 lire 50 c. per 100 kilog. On chocolate with cinnamon, 27 lire per 100 kilog; without cinnamon 24 lire. During 1874 the amount of exportation and drawback was, — Kilog. Lire. Chocolate ... ... ... ... ... 2,320 ") 0189 oR Candied fruits 1,393,820 j <"»>^b As stated above, the " Raffineria Lombarda," near Genoa, is the only refinery in Italy. It has affected the market very considerably, being able to undersell English, Trench, and Dutch refiners, not * The sugar industry existed in the Lombardo-Venetian Kingdom of Austria, but it was a State-supported industry, which was extinguished by the fiscal changes following the political eventa of 1859 and 1886. t " Nero am'male," stuff made from bones.