New-York tribune., 1917-12-26
Sugar Bill Cut
S2OO,OOO,OOO,
Hoover Asserts
Continued from page ]

will be short 100000 TO 100000 tons,
unless the Allies go 70 Java for sup
plies. This amounts to an economy
of about 10 per cent on our part. II
it will require an extra amount OF
shipping. which if used to transport
troops will move 100000 or 100000
American soldiers to France.
IF statements that there will be an
abundance of sugar next year are be-
lieved by the American public it will
do this country's war efforts incalcu-
liable harm. The number of troops we
can send across is limited. II VIC in
our greed and gluttony force the AL
lies either to reduce their ration or
TO 20 to remote markets after sugar
we will have done tremendous damage
TO our ability to win the war"
Charges Denied.
Charges that the food administrs-
tion has permitted sugar stocks 10 re-
main in parts of the country unmoved
are denied, as are statements that su-
gar was left in Cuba while an effort
was made 10 beat down Cuban prices.
There are no sugar stocks in the
country" il is declared, (which are not
in course of distribution. Some 80 900
tons held up by the embargo have been
released for American consumption.
All but a trivial amount of Cuban su-
gar has been exported either TO the
Allies or TO the United States. This is
shown in a report from the American
Consul General in Cuba.
AS to the fixing Of sugar prices, the
Food Administrator has this to say:
"In order TO prevent profteering the
food administration considered strong
action was necessary and imposed q
maximum profit on refneYs and whole
salers. The refners margin was $l.84
per hundred the nine months before
the food administration came into ex-
istence; il was reduced 20 sl.30 and a
saving of more than S25,000,000 per an
mum was effected.
"As a further prdcaution against
proiteering, the Administration OBJ
tanned a voluntary agreement with the
beet sugar factories that they would
not sell sugar at more than S7.25 a
hundred pounds seaboard. Some who
already had contracted at 50 rescinded
their contracts. This was followed by
similar agreements as to Louisiana,
Cuban and Hawaiian arrivals.
"The net result of these voluntary
agreements was to reduce the ruling
price of sugar ! q cents west of the
Mississippi and north of the Ohio and
1 cent on the Atlantic. Had these ar
rangements not been made sugar would
have risen to 25 or 30 cents a pound.
Many Firms Prosecuted
Numerous prosecutions have been
started against firms which have sold
sugar at prices of 10 and 20 cents.
Every one-cent raise in sugar from
September l 10 January | means $751;
100000 to the American consumer.
Twenty-cent sugar would have meant
about S1S0,000,000 profteered from the
American consumer. There was no
other way under the law 10 prevent
profiteering except by voluntary agree
ment, as the food bill carried no power
to fix prices. These agreements have
of necessity been made with the old
manufacturers, including the sugar
trust.
Independent refners are represented
by majority on a committee whose duty
it is to divide the imported sugar be-
tween all eduitably. This committee
has no price-hxing power. IL has sole
ly 10 do with distribution. The inde-
pendent retiners, who have been fight
ing the trust for years, could be de-
pended on to watch any unfair action.
"An appeal 10 prejudice has been
made against the food administration
because the Cuban price is 80 cents
above that which prevailed in 1917
prior to September /. 1t has been
A - h r..t. A
our mercy; that we could get sugar
one cent lower. We made an exhaustive
study OF the cost Of producing sugar
in Cuba last year through our own
agents in Cuba"
I've found that an average profit of
at least one cent per pound was neces-
sary in order TO maintain and stimu-
late production, or that a minimum
price of S4.37 was necessary, and even
this would stihe some producers. The
price ultimately agreed upon was %
cents above these figures. or about one
fifth Of cent per pound 10 the Amer
lean consumers, and more than this
amount has been saved by our reduc-
tion in reiners' profits. and in net re-
suit sugar would be one cent cheaper
10 the Atlantic consumer next year
than now.
No Right TO Strangle Cuba
"If we wish to stife production in
Cuba We could take that course Just
at the time of all times in our history,
when we want production for ourselves
and the Allies. Further than that, such
course would produce disturbances
in Cuba and destroy even our present
supplies. But beyond all these mate
rial reasons is one Of justice. This
great country has no right by the
might Of its position 10 strangle Cuba"
The statement then recounts the
food administration efforts 10 reduce
consumption 20 avert the shortage.
The food administration has con-
Quoted a systematic campaign FOR the
reduction OF individual sugar con-
SUMPTION" says the statement. "The
reduction has shown IN the decrease
in candy sales, etc, but on the other
hand, a similar campaign for the pres
cryation of fruit has increased con-
sumption in that direction, but will re-
duce consumption later on.
Taking into consideration all factors il
is not certain that there has been any
increase in actual consumption, and
considering the increased canning use
there r,=y have been decrease"
Mr.. Hoover emphatically denies
charges that George N. Rolph. head OF
the food administration sugar divi-
sion, endeayored 20 benefit the Cali.
fornia refinery, OF which he is head.
through the arrangement OF the Cuba
price.