Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1917-12-28
THE SUGAR SHORTAGE
Washington, December %, 1917.

Washington, December %, 1917.
Earl D. Babst, President of
the American Sugar Refining
Company, made public today a
report on the sugar shortage,
which has just been sent to
stockholders of the company.
The report shows that with
one-third of the worlds sugar
production within the present
battle lines, England, France and
other foreign countries have
turned to Cuba and other sources
which ordinarily supply the
United States. 1t is also shown
that the immediate causes Of the
present shortage are ID increas-
ed consumption, % inadequate
a supply and delayed distribution.
Early in 1917 there were serious
strikes in nearly all the Eastern
refneries. This caused public
apprehension. Sensational sugar
famine" stories began to appear
in the papers later, and the public
fears were still further excited
by stories of the destruction of
cane in the Cuban insurrection.
A desire by the trade to avoid
excise taxes proposed in Congress
added to the call for sugar. The
demand among dealers, manu-
facturers and sugar consumers
continued all the year and was
accompanied by boarding.
A great midsummer canning
and preserving campaign urged
by the Government, furthered
by the trade, by the canning
clubs, and women's magazines,
and by the press generally
followed, so that by November
the consumption was shown to
be more than one thousand tons
a day greater than the year be-
fore. 1t amounted to nearly nine
hundred million pounds more
than for the same period in 1916,
So much for the demand.
Now as to the supply and dis
tribution. Java had plenty of
sugar, but it is so far that ships
took other trade channels. The
harvesting of both cane and beet
crops in the United States was
delayed, but, more important,
car shortages and traffic conges-
ton prevented the free move
ment of these crops to the
Atlantic seaboard.
Very important in its effect on
the supply for America from
Cuba was the proposal on June
first of the Senate Finance Com
mittee to repeal the drawback"
of over one cent a pound on re-
fined sugar sold abroad, and the
placing of an excise tax of one
half cent a pound. When raw
sugar is imported from Cuba or
elsewhere, the refner pays aduty
on it. When the sugar is refined
and exported the duty is paid
back to the refner. 1t is called a
drawback" If the duty were
not thus refunded the refner
would have to add the amount
of the duty to his price to the
foreign customer. This would
have the same effect as placing
an export duty of over one and
a half cents a pound on all refined
sugar sold abroad. Neither this
nor any other great commercial
country imposes export taxes,
because they tend to discourage
foreign trade.
When the Senate Finance
Committee made these PROPOSE
tons the sugar industry urged
that the higher prices to foreign
customers would so disturb the
worlds sugar market as to create
a troublesome situation for the
United States. Seemingly to
forestall the expected higher
prices, foreign buyers naturally
went into the Cuban market and
bought heavily, thus reducing
the supply available for America.
Our imports from Cuba were
about the same as in previous
years; but so great was our
consumption that these imports
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