Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-12-15
Prohibition Against Paying
More Than $500 Results in
Planters Sending Product
Elsewhere,
NEW MEXICO SENATOR
QUIZZES WITNESS
Western Company Declared to
Have Held 100000 Tons
When Situation Was Ap-
preaching Acute Stage,

fsf MORNING JOURNAL SPECIAL LEASED w,srl
washington, Dec. 14.-Blame' for
the sugar shortage in the east was
charged to the food administration 8
fixed import price by Claus A, Spreck-
els, president of the Federal Sugar
teflning company, testifying TODAY
before the senate investigation com
mittee He asserted that raw sugar
from Cuba was passing through York
Tor Canada, where refiners are per.
mitted to pay higher prices.
Mr.. Spreckels, who said his refinery
was closed because of lack OF supplies
also charged that Earl A. Babst, pres-
ident of the American Sugar Refining
company and George M. Rolph, gem
eral manager of the California -Ha-
waiian Sugar Refining company. in
their positions as agents of the food
administration had been unduly ac-
tive in getting raw supplies for the
American company Mr.. Rabst is
chairman of the international sugar
committee, created by the admins
tration, which fixed the price to be
raid for raw sugar coming from out
side the United States or Its territories
at $500 hundred pounds. Mr.. Rolph
is head of the food Administrations
sugar division and n member OF ths
international committee
Hoover Refuses Request.
When his sugar was getting low IN
October Mr.. Spreckels testified he
asked Food Administrator Hoover
| that he be allowed to pay more than
$500 for Cuban sugar. He nut N evi :
dence a letter which Mr.. Hoover de-
elined, saying SPECTATORS were hold
ing the sugar In Cuba for higher prices
and that the American standard price
would be maintained.
Under questioning by Senator Jones
of New Mexico the witness said he
understood that about half of the
10000 tons available in Cuba when he
'rrote the letter had been shipped TO
other countries and that the remain
der either had arrived In tho United
states or was en- route. When asked
by Senator Jones II he did not con-
sider 1t good business to allow the
$4,000 tons to go elsewhero II the.
Cuban dealers could be convinced that
this country could maintain it's posi-
ton, Mr.. Spreckels replied that tho
sugar would have served the public
when the shortage was acute.
Opposed to Contract
Mr.. Spreckels told Of protesting 10
Mr.. Hoover against the contract
whereby the American Sugar Refin-
ing company was to obtain 100. 900
tons of the Louisiana crop. He s9iN
his company had not considered get
ting any OF that crop because the food
administration had fixed no price. and
that he was astounded to learn of the
American company making the con-
tract after a price Of 1886 for the
Louisiana product had been agreed
upon at conference participated In
by Mr.. Rolph and Mr. Babst.
When the shortage came into sight
in the east, the witness asserted. moro
than 100000 tons OF raw sugar was
held In the west, OF which the Cali
fornia- Hawaiian company held 10000
tons. He said he appealed to. Mr..
Rolph to allow some Of this to come
east to keep the eastern refineries .goS
ing, but was informed II was neces-
sary to keen the supply in the west
until the new Hawaiian crop came in.
Hints mt Favoritism.
In support Of his charge that
Messrs. Rolph and Babst favored the
American company, Mr.. Spreckels re.
lated an incident that brought out
how two companies operating chain
retail stores recently had sugar when
none was to be procured at many
stores. He said A. IT. Lamborn & Co.
of New York sugar brokers, con-
tracted for two cargoes of Cuban
sugar for delivery at New York and
offered to the international sugar
committee in october at $500 hun.
dred pounds, but the committee de-
clined to buy without giving a reason,
Isamborn came to him soon after
ward, Mr.. Spreckels said. for means TO
further finance the deal and told him
that within fifteen minutes after ths
committee had declined the sugar n
buyer for the American had offered
him s6.65 for it. Buyers for the chain
stores companies heard of the situa-
ton, purchased the sugar for s7.15
and with the permission of the food
administrator had II refined by the
Federal and the Warner Refining
company for 30c hundred.
The witness said the retail price Of
s725 for granulated sugar at seaports
works hardship because his company
manufactures practically nothing but
granulated and brown whereas the
American company specializes IN
shapes for which prices are not fixed.
Several witnesses have been sum-
moned by the committee including A.
f. I.amborn. who is expected to tcs-
tify after Mr.. Spreckels concludes to.
morrow.