Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-12-15

: THE natural channels of trade were
suddenly disrupted when the war
broke out. A large part Of the worlds
available sugar supply was bottled up
in the Central Powers. France, Bel
gium and Russia produced less. The
law of supply and demand began to
operate and prices went soaring. A
violent speculation in sugar was
started and the consumer last sum
mer found himself paying as high as
twelve cents pound for sugar with
danger, Of still higher prices All the
world came to the West Indies to bid
for the crop; Panie and uncertainty
ran all through the industry.
I ut was into this condition of chaos
that the, international. sugar commit:
tee was thrust, The beet sugar pro-
ducers of the United States were a
group that could be most readily got
, hold Of. i These men we're called to-
gether, and agreed to fix a price at
which they would sell their output for
the coming year. That price was seven
and a quarter cents pound The cane
sugar people of Hawaii and@the cane
sugar people of Louisiana soon came
into this group and agreed TO seff at
this price. These people might have
been reached by the Government and
were consequently easier than what
/ was to follow. Cuba and other outside
sugar had to be reached through
diplomacy. The fact that a price was
set on a considerable bulk of sugar
= was. however. important The Cuban
/ PRODUCERS we're inclined to do the
fair thing and finally an ARRANGEMENT
was reached which meant that 1875
cents pound would be the basic price
at which the refiner would sell sugar.
This covered the price of the raw su-
gar, the cost of refining and reason.
able profit - -. ( -
The refiner sells his product to the
wholesale grocery iobber through a
broker, and the jobber in turn sells
it to thereafter. The margin of profit
for the jobber and the broker, like that
of the refiner, is: limited BY the food
administration to an amount that Will
represent a reasonable charge for the
service performed: By these regula.
tons and agreements the food ad.
ADMINISTRATION hopes to eliminate specu-
lation and to deliver sugar into the
hands of the retail trade at, a fair
price, based upon the present cost Of
production, manufacturing and distri-
button.
."The~control of the food administra-
ton stops when the sugar reaches the
retailer, Mr.. Rolph explained; and the
consuming public will have to take
| care Of itself in its purchases. The
consumer should remember, regard.
less of the shortage of sugar, that the
! groceryman is not paying more than
seven and quarter cents a pound for
his sugar, plus the freight from tide
water to the point of consumption. In
the seaboard cities he pays just seven,
and quarter cents. He can sell at
eight cents and make 10 per cent on
his mohey. There is no place where
the price of sugar should go above
nine cents. and there is little excuse
for that price.
The food administration is carefully
! watching the retailers to see whether
they try to gouge the public on. sugar
If they do there are indirect methods
of reaching them: Wholesalers. may
be induced not to let them have~a any
more sugar. Wholesalers are very in
, dependent in this matter, because they
cannot supply. their customers as it il:
The sugar retailer has got to tote fair.
! This is almost the first and only
great staple. to be thus thoroughly or.
gained from the producer to the con-
sumer.- History was made in its or
ganizatien, in the control. Of the fees
taken at every stage of the operation.
1t is figured that what can be. done
with sugar, can be done with other
staples 1t is being shown to be pos
sible for the Government to measure
the cost of every step in process of
production, assess its: cost, total up the
column and tell the consumer what he
should pay
This means that the consumer will