New-York tribune., 1917-11-25
Sugar Shortage
Put Up to Hoover
By Producers
Controller Is Accused of
Favoring Trust" in
Babst Appointment
Bad Faith Charged
Rivals of American Company
Allege Corporation Was
Permitted a Monopoly
Bad Faith Charged

George ". Rolph. head Of the sugar
division Of the national food admins
;ration, declined yesterday 20 give the
administration side of the contro-
yersy precipitated by the Federal Sugar
Refining Company, which charged that
in dealing with Louisiana producers Mr..
Hoover and his appontees had so IA
vorcd the American Sugar Refining
Company as to enable it to get control
Of a major part of the Louisiana raw
sugar crop. All he would say was that
the Federal Sugar Refining Company
ana its president, Claus Spreckels'
we're "misinformed."
The Federal Sugar Refining Company
stood by its guns, and while it did not
issue any additional statements, 1t was
said there was nothing to retract to the
allegations made on Friday, which were
in brief, that all refners other than
the American had been practically
frozen out Of the Louisiana field on the
understanding that sugars purchased
there at the instance OF the food ad-
ministration were TO be equitabiy
divided. When talk of division arose,
however. so the charges ran. 1t was
found that 10000 tons out Of a yield OF
G0,O0O had gone exclusively to the
American Sugar Refining Company,
Refiners Against Hoover
Inquiry in sugar trade circles here
yesterday disclosed that, unknown to
the general public, bitter fight against
Mr. Hoover and his handling of the
sugar situation has been brewing for
weeks. Not only are the rivals Of the
American Sugar Refining Company up
in arms. but producers and dealers are
charging that he has allowed the
sugar trust to dominate and serve
its own ends to the disadvantage Of
competitors and the general public.
"The Louisiana Planter and Sugar
Manufacturer, a weekly trade journal,
current issues of which just reached
New York, goes so far as to say that
the appointment by Mr.. Hoover of Earl
ID. Babst, president OF the American
Sugar Refining Company as member
OF the international sugar committee,
was the indirect cause of the sugar
famine in this country. II essails Mr..
Babst as Kaiser Babst,' says he de-
ceived the consuming public, and ADDS
- IL. rF ha MT 70 q
committee is such that instead OF fair
lv serving the public and the needs
Of this county and its allies it is con
tinually securing every possible ad-
vantage for the American Sugar REIN
ing Company" Says the editorial IN
part:
More Bad Appointments
-"There has recently occurred the
practical transferrence Of control of the
sugar industry of the United States 70
Mr.. Babst in his appointment by Mr..
Hoover and by the appoint
ment Of Mr.. jameson, one of Mr.
Babst's coadjutors in sugar work, and
the further appointment Of Mr.. Rolph,
of San Francisco, a comparatively OBJ
ssure suear refner." The latter ap-
pointment, the paper goes on TO say,
was made "in order TO lessen the glar-
ing error" of the selection Of My.
Babst.
."The action Of Mr.. Hoover" (in NAM
ing Mr.. Babst), the article goes on 70
say. "would shock any sane man IA
r,iliar with the facts. There would
have been no sugar famine in this
country but for the work Of this man
Babst. Mr.. Babst had his eyes on Eu-
rome. and while deceiving the consum-
ers Of the United States by the state
ment that sugar supplies were ample
he was selling export sugar
buying refined sugars at as low price
as possible and selling at as high as
possible
All Of what happened in Louisiana
when the food administration, through
Mr. Babst, Mr.. Rolph and others, tried
20 consummate the purchase OF what
was estimated at first as q hundred
thousand tons OF raw sugar is not
quite clear. According to the Fedora
Sugar Refining Company's charge. the
American succeeded in getting some
thing like the 10000 tons mentioned
above; then the Federal, learning thai
the purchases were not for genera
distribution among reiiners. jumped
into the market and oTeHed 6.35 cent?
A. pound. against the SO offered b.
the Hoover representatives.
One underlying cause for the bitter
ness of the Louisiana producers may b.
traced 10 the fact that in their pre-
liminary negotiations for selling tn
raw sugar in question they say the!
were led to believe that they were Il
be allowed TO sell wash sugars at th
standard granulated price. This agree
ynent. they charge, was abroRated b.
the food administration after produc
ers had tentatively agreed 10 sell thei
raw product at the price stipulated b.