The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-12-20
8ABST TELLS WHY
SUGAR IS SCARCE
Increased Consumption, Inadequate
supply and Delayed Distribu-
ton Gfvei az Reasons
RELIEF EARLY IN NEW YEAR
New Cuban Crop WIN Begin to Arrive
by That Timc--Canning and PrC-
serving Campaign Added TO Com
sumption.

Washington. Dec. l9.--Eari ID.
Babst. president OF the American
Sugar Refining company, made pub
lie today a, report on the sugar short
age. which has just been sent to stock
holders OF the company.
The report shows that with one
third OF the worlds sugar production
within the 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 increased consumption,
too inadequate supply and delayed
distribution.
Early in 1917 there were serious
strikes in nearly all the Eastern re-
fineries. This caused public appre-
hension. Sensational sugar famine
stories began to appear in the papers
later, and the public fears were still
further excited by stories OF the de-
struction of cane in the Cuba insur-
reetion. A desire by the trade to
avoid excise taxes proposed In con-
gress added to the call This demand
among dealers, manufacturers and
sugar consumers continued all the
year and was accompanied by hoard
ing.
"A great midsummer canning and
preserving campaign urged by the
government. furthered by the trade
by the canning clubs. and women s
ma gaines. 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 before. 1t amounted
to nearly nine hundred million pounds
more than for the same period in
1915 So much for the demand.
Now as To the supply and distribu-
ton. Java had plenty OF sugar, bit
II 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 inn
portant, car shortages and traffic con"
gestlon prevented the free movement
OF these crops to the Atlantic sea
board,
Very important In it's effect on the
supply for America from Cuba was
the proposal In June OF the senate
finance committee to repeal the draw
back of over one, cent a pound on
refined sugar sold abroad, and the
pla cling Of an excise tax of one-half
cent u pound When raw sugar Ia
i'm ported from Cuba or elsewhere, the
retiner pays a duty on it, When the
sugar is refined and exported the duty
Is paid back TO the refiner. 1t Is
called 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 pound on all re-
| fined sugar sold abroad, Neither this
| nor any other great commercial coun-
TRY imposes export taxes, because they
itend to discourage foreign trade
| When the senate finance commit
tee made these propositions the sugar
! industry urged that the higher prices
Ito foreign cust omers would so dis
turo the worlds sugar market as e
create a troublesome situation for th'
United States. Seemingly to fore
stall the expected high prices, foreign
buyers went into the Cuba marke
and bought heavily, thus reducing th'
supply available for, America Oul
/ imports from Cuba were about th'
same as ia previous years, but NJ
great was cur cofrsuta ptfo1r tsfsSr siisAs
Imports were not nearly enough TIL
proposition to repeal the drawback
failed IN the senate three month
later by 60 to II, but the damage hat
already been done. Cuha's extraor
binary shipments to Europe had re
Il duced our available supply for IN
fall months by nearly $50. 900, 90
pounds.
The sugar shortage in the Easter
states will be relieved when the new
iCuban crop begins to arrive in larg
volume. early In the new year. TIL
report also explains the operation o
1.-The United States food administrator
as 1t affects sugar