New-York tribune., 1917-11-01
Sugar Shipments
To oN.Y.Delayedb by
Misunderstanding
Planters and Food Admin.
istration Disagree About
Freight Charges

NEW ORLEANS, Oct. 3l.-A misun-
dersfanding between sugar planters and
the food administration in Washington
resulted to-day in SUSPENSION Of opera
tions on the local sugar exchange pend
ing receipt of further instructions from
the capital. This means a hold-up Of
the 10000 tons of sugar that was 70
have been rushed to New York to re-
lieve the shortage there.
John NJ. Parker, Louisiana food ad-
ministrator, received kilograms from
George NJ. Rolph, in charge of the
sugar division of the food administra-
tion, to-day saying that complaints had
been received in Washington to the
effect that sales of direct consumption
sugar at New Orleans were being made
at such prices that the cost, after add
ing freight to New York and other
necessary charges, would be more than
the price stipulated by the government
-8.35 less per cent for cash.
As a result Of these dispatches q
telegram has been sent to all planters
calling for a meeting tomorrow to dis
cuss the instructions from Washington
and the methods Of filling recent con-
tracts.
Freeze Cuts Crop
Coupled with this confusion has
} come a freeze which the planters as
sert has cut the crop from 70 per
cent 20 a so per cent yield.
The upshot is that the agreement of
| the Louisiana interests 20 deliver to
! the refiners 10C 900 tons of raw at
6.22 is held up, temporarily at least,
/ the planters apparently being unable
( or unwilling to I'll it.
The planters thought the Washing
: ton agreement gave them these things
/ A contract for 100000 tons of raw at
/ C:22: removal Of the New York diff
/ ferential; the right to sell plantation
4 finished up 10 beet refined in beet ter.
/ ritory and refinery refined up to re-
/ fnery in refinery territory. The price
/ of y 3-5 cents a pound was fixed as
/ the maximum in Louisiana territory.
Mr.. ROlph's first telegrams. which
/ reached hece before the planters COM
/ mittee got back from Washington, ap.
parcntly contradicted the agreement
/ and there never has been a clear un-
4 derstanding since.
Observers think the difference lies
/ in that the sugar men expect to get
/ the maximum plus freight and hand
/ ling charges, and Mr.. Rolph regards
/ the maximum as the delivered price
/ in other words, the planters want the
/ maximum net; Rolph looks On the
maximum as the gross price.
Rolph's Message
Rolph's message follows:
/ washington, ID. c., October 30.
Situation in New York upsetting
government plans. Government price
s.35. Louisiana planters quoting 8.35
/ New Orleans, making selling price New
York about 9 cents. This cannot con-
/ tinue. Louisiana planters must not
| sell at over S.35 in any territory where
+ S.35 basis is maintained, otherwise
I will force arbitrary action by govern,
ment."
Washington, d. c., Oct. 80.
| Parker Food Administrator, New Or
leans,
Think il advisable for you 20 notify
/ buyers, dealers and wholesalers that
rules and regulations OF all licenses
provide that on resale Of any sugar
+ bought no profit should be charged in
excess Of refined list price on day OF
such sale greater than the advance GUS
/ tcmary charge. Any charges in excess
\ Of 10 20 20 cents maximum will be
considered unfair. The total profit OF
margin on all resale of the same sugar
/ = handled b. one. two or more per
sons, shall not exceed the profit fixed
for one sale that is, from 10 to 25
/ cents maximum. Caution dealers, dis
/ tributers on this point"