South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-26
HOOVER SAYS
SUGAR FAMINE
DUE TO EXPORT
Food Administrator Shows
Over Million Tons Sent to
France and England
Last Year.

/ lie Tuesday night 10y the white
/ house. Ii attributed the shortage
/ here 20 the heavy movement OF SUI
gar from the western hemisphere
\ 10 Europe, and asserts that without
| the fixing Of prices by agreement
/ sugar would have been selling for
I25 or 50 cents a pound and more
1 than two hundred million dollars
probably would have been prof.
; teered from the American people
/ by this time.
The statement contains the food
administrators reply to charges
made before the committee by Claus
/ SprecKIes, president OF the Federal
I Refining Co, that the sugar situa-
ton was mismanaged, and sets forth
/ in detail the Administrations effort
| 10 keep sugar prices down while
supplying large quantities to the al
! lies.
The committee, Of which Sen.
Reed is chairman, not only had re-
fused to make the statement a part
/ of the congressional record, but has
declined thus far 70 permit Mr..
| Hoover TO take the stand 10 answer
]
/ ing is resumed Friday however, it
/ is understood Mr. Hoover will be
permitted TO tell his story.
Export 100000 Tons,
/ At the outset the statement pre-
sents the world sugar situation as
it existed prior TO the European war.
The allies then produced much Of
their own supplies and purchased
/ the remainder from Germany. Be
fore the war they took only 100000
\ tons annually from the western
| hemisphere. This year they have
taken 100000 tons.
That" says the food administra-
tor, "is the cause Of the sugar short
| age and nothing else"
The statement says the food ad-
ministration has handled the situa-
ton 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 jump in
price to 20 or % cents here.
Since the food administration was
created in August the United States
| has exported to the allies 110,35s
| tons of refined sugar and in the
same period cuba has shipped TO
Europe 246.133 tons Of raw product.
This. it is declared, is just the
amount of the shortage in the Unit
ed States.
Even with these shipments, il is
pointed out. the supply in England
and France has been inadequate.
i L.
reduced to "a pounds a year for
each person and in France to IA
pounds, against a consumption in
America of So pounds.
Shortage to Continue.
/ The shortage. the food admins
/ traitor declares, will continue during
next year as it is the duty of the
United States TO feed the allies.
Next year" he said. our sup
plies will be short 100000 to 30O,
600 tons unless the allies go to Java
for supplies.
This amounts to an economy OF
about 10 per cent of our part. If
the allies were forced to go to Java
it will require an extra amount Of
shipping which, if used to trans
port troops, will move 10000 or
200. 600 American soldiers 10
France.
IF statements that there will be
an abundance of sugar next year
are believed by the American pub
lie. it will do this country's war
efforts incalcuable harm. The num-
Der Of troops We can send across is |
limited. If we in our greed and
gluttony force the allies either to
reduce their ration or 10 so to re-
mote markets after sugar We viii
have done tremendous damage TO
our abilities TO win the war
Charges that the food admins
tration has permitted sugar stocks
TO remain in parts Of the country
unmoved are denied, as are state
ments that sugar was left in Cuba |
while an effort was made TO beat
down Cuban prices.
Price Fixing Blow to PrOfteers.
As 70 the fixing of sugar prices, |
the food administrator has this 10
say:
"Ir order to prevent profteering !
out Of the situation the food ad- !
ministration considered strong &C
ton was necessary and imposed a /
maximum profit on the refners and /
wholesalers. The refiners' margin /
was S1.S4 per hundred the nine /
months before the food administra-
ton came into existence; it was re-
duced to $3.50 and a saving OF more |
than S25,O00.OOO per annum was eff
feCted.
LAS q further precaution against |
profteering the administration OBJ |
tanned a voluntary agreement with |
the beet sugar factories that they |
would not sell sugar at more than /
.S7.25 a hundred pounds seaboard |
some who already had contracted 4
at 50, rescinded their contracts
This was followed by similar agree |
merits as 10 Louisiana. cuba and |
Hawaii arrivals.
The net result of these volun- |
tary agreements was 10 reduce the |
ruling price of sugar one and three
quarters cents west OF the AIissis- |
sippi and north of the Ohio and one !
cent on the Atlantic. Had these
arrangements not been made sugar
would have risen TO IS or 60 cents