The Morgan City daily review. (Morgan City, La.) 1916-1920, 1916-10-14

f, the sugars staying in New Orleans to
be melted should bear part Of the
burden Of this cost.
Failing to find a purchaser at
better terms, and considering the
fact that sugar for delivery in Feb
ruary and March was being offered
at prices about (3-4c) thrce-fourth
cent per pound below the prices rul.
ing for November and Decembe.
delivery, the committee decided to
accept this differental In doing this
it had in mind that in previous years
when freight rates to New York
were only IL cents, a differential of
eighteen points had been demanded
and obtained on contracts made by
the American Sugar Refining Com
pany. In other words, the different
ial at that time was 80 per cent
more than the freight charges
while on the present contract the
differential was nearly 50 per cent
under the freight rate. Also for the
reason that other domestic raws
such az Porto Ricans and Hawaii
ans are selling in New York at
prices ten or more points below the
Cuban sugar.
Into this contract was incorpora-
ted the following agreements, which
tons as rlue, that the minimum
by sugar producers with the sugar
refiners in previous years, such as:
Correct tare on sacks of 2.7O
pounds per sack; an absolutely fair
method of polarization Of sugars,
both buyer and seller being repre-
sented and differences, if any, being
submitted to neutral third party
for adjustment 1t also was agreed
that fort-eight hours after the ar
rival of sugars in the New Orleans
switching district should be consi-
dered the delivery which effects the
basis Of prices. In arriving at the
price of sugar IS was further agreed
that instead Of minimum Of 200
ton as sale, that the minimum
quantity should be 400 tons. That
no sugar on which differential al
ready existed, such as Hawaiian
sugars or other Louisiana sugars
sold in New York, should be consi-
dered in forming a basis Of price,
and that the price should be based
on an average of sales made in ten
days-five days prior to the arrival
of the sugars, and four days after.
"a most important feature also
was the cutting down Of what is
known as the twenty-eight day
clause to fourteen days, it being the
custom that sugars shipped and
reasonably due to arrive in New
York within twenty-eight ways from
the date of sale, to be classed as spot
sugar. Such an arrangement fire.
quently permitted sugar which had
not been ground out of the cane to
be classed as spot SALE The cutting
down of this clause to fourteen days
instead of twenty-eight days was of
great value, as in previous years and
previous contracts it had cost many
thousands Of dollars Of losses to the
Louisiana sugar producers.
"And all this was strengthened by
an understanding that in case Of any
disagreement arising from any cause
that the sellers should appoint one
and the buyer another,
who together should choose q third,
to arbitrate any differences arising
through misinterpretation OK
misunderstanding of the contract.
"As q further indication Of the
fairness Of the contract, it was in
sisted upon by the American Sugar
Refining Company that while no
sugar producer Of the state was obli-
ged to enter this contract, it was op-
en- to all to participate and to share
equally.
"The above are features which no
seller had ever been able before to
obtain from the American Sugar Re-
CONTINUED on last page7