The Dawson news. (Dawson, Ga.) 1889-current, 1917-12-25
CHARGES The SUGAR
SITUATION TO HOOVER
CHAIRMAN SENATE COMMITTEE
SAYS FOOD ADMINISTRATION
LET REFINERS FIX PRICES.

tons plan of handling the sugar sit
uation gave the refners chance to
combine to fix purchasing and refin-
ing prices were made by Chairman
Reed, of the senate investigating
committee, today and emphatically
denied by George M. Rolph, director
OF the sugar division of the food adj
mlnistration and president of a sugar
refining company.
These refners met and agreed
they would buy only through one
committee which would control the
supply and fixed a good fat price
for their refining work." declared
! Senator Reed. "Why didn't you ar
range to buy the Cuban sugar and
then go to the refners and say that
the one that bids the lowest for re-
fining gets the work."
I'VE didn't have the power but
approve of fixed refining price, as
without it some refneries would have
all the supplies and some nothing"
replied Rolph.
SPreckles Interesting Witness.
That food administration has been
working hand in glove with the sugar
| trust was openly charged by Claus
A. Spreckles, president of the Fed
eral Sugar Refining company, in
letter read into the sugar investiga-
ton record by Senator Reed. chair
man of the investigating committee.
The letter which was addressed to
Herbert Hoover, food administrator,
charged the sugar division of the
food administration had become "a
mere adjunct to the American Sugar
Refining company"
"All the employees" Spreckles
wrote, were employees of the social
ed trust"
He also charged that a private tele-
phone wire connected the Office of
the sugar division of the food admin
| istration and the sugar trust. Mr..
Spreckles accused the food admins
tratlon of bad faith and accused the
trust OF making use of the situation
to put him out of business. The let
ter stated that Mr. Rolph, director of
the food administrations sugar di-
vision and president of the California
Hawaiian Sugar Refining company,
asked Mr.. Spreckles to stay out of
the Louisiana raw sugar market. Mr..
Spreckles complied.
He charged that the company of
which ROlph is president would gain
$9,OOO,O00 additional revenue this
year indirectly through the price fix
ed for the Cuban crop, which, he
declared, was entirely too high. The
Hawaiian price, he said, was based
on the Cuban price.
Meanwhile Earl Babst, head of the
sugar trust, went into the Louisiana
market and bought 100000 tons of
raw sugar, enabling his refneries to
run while those of Spreckles were
forced to close down.
The food administration was charg-
ed with direct responsibility for the
sugar scarcity. Spreckles insisted the
sugar supply as a whole was larger
than ever and that the shortage ex-
listed only in spots.
Enormous Exports of Sugar.
Mr.. Babst told the committee that
soon after Herbert Hoover returned
from Belgium he warned him that
stories that a sugar famine was in
sight threatened a dangerous situa-
ton, and pointed to the fact that
his company advertised that there
was plenty of sugar and admonished
people to purchase only usual
amounts. He said that in June he
saw Hoover again and told him the
large shipments abroad threatened
the shortage now being suffered in
the east. The total shipped abroad
this year, he said, was 423,O0O tons.
Efforts of the food administrator
to keep down the price of Cuban
sugar were shown in a letter to the
American company on September II,
in which he said he understood there
were only 10000 tons left in Cuba
and suggested that the American not
bid for it and close its refneries
when its supply was exhausted. Hoo
yer wrote that a public announce
ment that the American would refuse
to pay eXorbitant prices "would help
9 lot"
Mr.. Babst stated that he heard
other refners received the same let
ter, and that in October all but four
plants depending on Cuban sugar
closed.
/ Half of the worlds sugar crop out
side Of the central powers, Mr.. Babst
said, is produced in the United States.
its territories and Cuba, and if prop
erly distributed this production is
more than enough to meet domestic
demands, as well as supply all that
can be shipped to the allies.
Sugar Makers Reaping Harvest.
While eastern states suffer a sugar
famine, western sugar refners are
reaping enormous profits. This charge
was made today before the senate
subcommittee Investigating the sugar
shortage by sugar beet growers from
the western states.
Americas sugar famine will be-
come more acute unless the food adj
mlnistration acts Immediately. the
beet producers told the senate COM
mittee. They declared that unless the
food administration takes immediate
steps to get fair price for the sugar
beet, grower the producers will fail
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