Norwich bulletin., 1917-12-26
HOOVER EXPLAINS
 SUGAR SHORTAGE.
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 sugar from the western hemisphere to Europe, and asserts that without the fixing of prices by agreement sugar | would have been selling for 25 to 30 cents a, pound and more than 200, OOU,- 900 dollars probably would have been profiteered from the American people | by this time.
 Reply to SpreckeIs.
 The statement contains the food ad- miniStrator'S reply to charges made before the committee by Claus Spreckels, president of the Federal Re- l fining Company, that the sugar s1tua- ton was misnanaged and sets forth in detail the administrat tion's efforts to keep sugar prices down while sup plying large quantities to the allies: The committee, of which Senator ed to make the statement 8 part of the congressional record, but has declined thus far 10 permit Hoover to take the stand to answer SpreckePs charges. l however, it is understood MT. Hoov- CT will be permitted to tell his story. Cause of Sugar Shortage. At the outset the statement presents the world sugar situation as it existed prior to the European war. The all lies then purchased much of their own supplies and purchased the remainder
 
 took only Zoo. 900 tons annually from the western hemisphere This year they have taken 1 1,400,0o tons.
 That" says the food administrator ffs the cause of the sugar shortage; and nothing else"
 The statement says the food admin istration has handled the situation with a view to sustaining the morale of France and England, where the sugar ration has been extremely low for he at "a a- venting a jump price to 20 or 25 cents here.
 Since the food administration was created in August the United States lras exported to the allies f10,S56 tons of refined sugar and in the same pe- riod Cuba has shipped to Europe 246,- 133 tons of raw product This. 1t Is declared is just the amount of the shortage in the United States
 Even, with these shipments, it is pointed\out, the supply in England and France has been inadequate. Con- sumption in England has been reduc- and in France to IA pounds. against consumption in America of 55 pounds.
 Will Continue Next Year.
 The shortage, the food administrator declares will continue during next year as it is the duty of the United States to feed the allies.
 Next year, he says, four supplies will be short 250,0O0 to 300,00 tons unless the allies go to Java for sup plies. This amounts to an economy of about ten Der cent. on our part. If will require an extra amount of ship troops will move 15o.ooo or 200, 900 American soldiers to France.
 +1f statements that there will be an abundance of sugar next year are believed by the American public it will do this country's war efforts incalcul- able harm. The number of troops we can send across is limited. If we in our greed and g1uttony force the al- lies either to reduce their ration or go to remote markets after sugar we will have done tremendous damage to our abilities to win the war"
 No Sugar Stocks in This Country.
 Charges that the food administration has permitted sugar stocks to remain in parts of the country unmoved are denied, as are stater2ents that sugar was left in Cuba while an effort was made to beat down Cuban prices.
 There are no sugar stocks in this country" it is declared, which are not in course of distribution. Some 30.0O0 tons held up by the embargo have been released for American con- sumption. All but a trivial amount of Cuban sugar has been exported either to the allies or to the United d from the American consul-general in Cuba
 Why Prices Were Fixed.
 As to the fixing of sugar prices, the food administrator has this to say:
 '1n order to prevent profiteering out of the situation the food administration considered strong action was necessary and imposed maximum profit on re- liners and wholesalers. The refiners' margin was s1.S4 per hundred the nine months before the food administration came into existence; it was reduced to S1.3o and a saving of more than $25,- 100000 per annum was affected.
 Precautions Against Profteering.
 "As a further precaution against prodteering the administration obtain ed voluntary agreement with the beet sugar factories that they would not sell sugar at more than SIPS hun dred pounds Seaboard. Some who all ready contracted at $9 rescinded their contracts. This was followed by sim liar agreements as to Louisiana, Gu ban and Hawaiian arrivals
 'NThe net result of these voluntary agreements was to reduce the ruling l price of sugar one and three quarters cents west of the Mississippi and north | of the Ohio, and one cent on the Allan | tic- Had these arrangements not been | made sugar would have risen to 25 | or 30 cents a pound.
 Numerous prosecutions have been started against firms which have sold | sugar at prices of 15 and 20 cents
 No Other Way.
 "The consumers sugar bill from the | time restraints were imposed until | January 1 will be about $1s0, ,0oo 900. ! Every cent pound rise means about | SIS, ,000 900. Twenty cent sugar would | have meant about $1s0, ,000 prof. | teered from the American consumer There was no other way under the law to prevent profiteering except by vol l untary agreement, as the food bill car ried no power to fix prices. These agreements have of necessity been made with the odd manufacturers, in cluding the sugar trust.
 Independent Refiners Represented.
 Independent refiners are represent ed by majority on committee whose duty it is to divide the imported sugar | between all equitably. This com mittee has no price fixing power; it l has solely to do with distribution. The