New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-17
BRAZILIAN COFFEE SOLD
VaIOrizatiOn COMMITTEE Dis
poses of $4,000 Bags.

DOOSO VI w WV SoSS'
London. Jan l5-The yalorization COM
mite met here to-day and il was re-
ported that $4,000 bags Of coffee had
been sold in the United States. The com
mittee decided also that 3oo.OD0 bags
should be i'm reserve for sale in Europe
on February 3. For this European allot-
ment the committee already holds bid
Of 81 francs approximately $7 40 bag
which is considered the basis Of a good
average for the consignment No further
sales will take place this year
Washington. Jan. 1G--Government Of
nciais tonight declined to discuss the
report from London that the 93l.Ho bags
of coffee held i'm the United states under
the Brazilian valoriZation scheme had
been sold The holding of this coffee was
the basis Of Attorney General WICKER
sham's antitrust suit against the Valorl-
cation plan.
The United States and Brazil have prac-
tlcally reached diplomatic agreement Tor
the sale Of valOrizcd coffee held in Amer
lea II has been the understanding thal
it's sale within a limited reasonable tlnle
would be followed by the dismissal of the
governments suit because all the power
of the scheme attacked. so far as II was
within the control of the United states,
would then have disappeared The Valorl-
cation committee, which met in London
was expected to ratify the agreement
This was regarded as a formaliiy, and
the sale of all the coffee was the only sub
stantiaI condition of dismssing the suit
a court decision under the Sherman anti
trust law as TO the legality OF VaIoriza-
ton, il is believed here that II will nave
the moral effect of preventing such
schemes in the future.
Higher prices for coffee are predicted
as a result of Yesterdays announcement
that the g31,ooo bags of valorizaton conee
believed to have been stored In TINS CITY
have been sold. RumOrs have been clrcu-
lated within the last few months that
the syndicate controlling this coffee woulu
throw II on the market Deniais were re-
peatedly made, however, that such was
the syndicates intention, ii being sald
that the reports originated among brok-
ers DESTROYS Of artfcially forcing down
the price.
The action Of the valorizatlon commit
tee in quietly disposing Of its American
holdings was freely discussed yesterday
in the wholesale coffee district. 1t was
apparent that there was no KNOWLEDGE
that such sale had taken place, but
the wiseacfcs pointed to the fact that inc
frmucss which the market has dispialeu
showed that the syndicate had manage"
the sale well i'm distributing the cote'
to seventy-cight buyers In twenty Sta''S.
Sigmund Hirsch. OF Henry Nordlinser
CO.. said to a Tribune reporter:
The vaIorizatlon coffee i'm the New York
warehouses; has exercised AN arqh'ldl
effect on the market, due to IN" alWala
prevalent fear that this core" mIEIll q.
any time be sold. Now that "" liau'
knows that the sal" has actEallN Ith'h
place there seems TO hc no deterrent i''-
tor To higher prices
4 prominent member OF the Cohc" hN-
chance discussing the effect on the do
nestle trade. said it would have clear
ing effect by removing a factor which
has always had 20 be rcckoncd with 10
the last four years.
The average price Of Rio 80. coffee
i'm 1912 was 1873 cents a pound wholesale.
This coffee Icldllr l'i d'p"' ~ ''''.. '''
present worlds visible supply rs iai''oi'
bags. the lowest in three years These
6gures are also pointed 10 as evidence
that coffee drinkers will soon have to
pay more.
With the disposal 5y On" ydlorizatlon
committee Of It's American stock or coffee
In. LITIGATION brought by the United
States government against Herman
Sielckcu and his associates. who compose
TN. yaloriZation committee, automatically
ends. according to views expressed yes
to-day. and il also means the end OF
ysIorizatiou AZ far as this country Is con-
cerued out of the original 10000 bags
given as collateral for a loan Of fl5,"""N
70 the Brazilian state Of Sac Paulo, there
are now only $1,000 bags. excluding the
gob00D bags to be sold in European ports
this year
owing To tn" advance in the price oil
coffee since the loan was made four years
ago this debt has been retired, and the
sale Of the remaining coffee VIII be 50
much more clear profit 10 the syndicate
which 0oatcd the loan. The net proceeds
Of the sale i'm the United States OF the
qgl onp bags Of coffee held 10y the syndi-
cate will amount to approximately N"-
800 600