The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-12-26
HOOVER ANSWERS
CHARGES MADE
BY SUGAR REF|NER
Statement of Food Admins
traitor Given Public From
the White House
WITH NO REGULATION
PRICES WOULD SOAR
Shortage Is Said to Be Due
to Big Shipments to Eu-
rope-Committee Will
Hear Witnesses


ministrator Hoover's statement on the
sugar situation, which he tried unsuc-
cessfully to get before the Senate COM
mittee inyestigationg the sugar short
age, was made public tonight by the
White House. 1t attributes the short
age here to the heavy movement of
sugar from the western hemisphere to
Europe, and asserts that without the
fixing of prices by agreement sugar
would have been selling for 20 or 80
cents a pound, and more than $20$0,-
100000 probably would have been prof
iteered from the American people by
this time.
The statement contains the food adj
ministrator's reply to charges made be-
fore the committee by Claud Spreckels,
president of the Federal Refining COM
pany, that the sugar situation was mis-
managed, and sets forth in detail the
administration efforts to keep sugar
prices down, while supplying large guam
titles to the allies.
The committee, of which Senator Reed
is chairman, not only had refused to
make the statement a part of the con-
gressional record, but has declined thus
far to permit Hoover to take the stand
to answer Spreckels' charges
WILL TELL THE STORY
When the hearing is resumed Friday
however, it is understood Mr.. Hoover
will be permitted to tell his story
At the outset. the statement presents
the world situation as it was prior to
the European war. The allies then pro-
duced much of their own supplies and
purchased the remainder from Germany.
Before the war they took only 100000 tons
annually from the western hemisphere
This year they have taken 100000 tons.
That" says the food administrator
SIS the cause of the sugar shortage, and
nothing else
The statement says the food admins
rtratioI has handled the situation with
a view to sustaining the morale of France
and England where the sugar ration has
been extremely low for months, and at
the same time preventing a jump in price
to 20 or % cents here.
AMOUNT OF EXPORTS
Since the food administration was Gre
ated in August, the United States has
exported to the allies ITO, $50 tons of re-
fined sugar and in the same period Cuba
has shipped to Europe S46,133 tons of
raw product. This, it is declared, is
just the amount of the shortage in the
United States.
Even with these shipments, it is
pointed out, the supply in England and
France has been inadequate. Consump-
ton in England has been reduced to "a
pounds year for each person and in
France to IA pounds, against a consump-
ton in America of So pounds.
The shortage, the food administrator.
declares, will continue during next year,
as it is the duty of the United States to
continue to feed the allies.
NEXT YEARS OUTLOOK
Next year." he says, "our supplies will
be short $4,000 to 100000 tons unless the
allies go to Java for supplies This
amounts to an economy of 10 per cent on
our part. If the allies are forced to
Java it will require an extra amount Of
shipping, which if used to transport
troops will move 10000 or 100000 Amer
lean soldiers to France"
If statements that there will he an
abundance of sugar next year are be-
lieved by the American public, it win do
this country's war efforts incalchlable
harm. The number of troops we can
send across is limited. If we, in our
greed and gluttony force the allies either
to reduce their ration or to 60 to remote
markets after sugar, we will have done
tremendous damage to our abilities to
win the war.
Charges that the food administration
has permitted sugar stocks to remain
in parts of the country until moved are
denied, as are statements that sugar was
left in Cuba while an effort was made to
beat down Cuban prices.
NO SUGAR STOCKS
There are no sugar stocks in this
country" it is declared. which are not in
course of distribution. Some 30 900 tons
leased for American consumption. All
but trivial amount OF Cuban sugar has
been exported either to the allies or to
the United States. This is shown in a
report from the American consul gem
eral in Cuba"
AS to the fixing of sugar prices, tho
food administration has this to say
In order to prevent profiteering out
of the situation, the food administration
considered strong action was necessary
and imposed a maximum profit on refin-
ers and wholesalers. The refiners' mar
gin was $lS4 per hundred the nine
months before the food administration
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