Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-12-22
SPREcKELS LAYS SUGAR
SHORTAGE TO HOOVER
Continued from page u


ed Food Administrator Hoover that
he be allowed to pay more than so-9V
for Cuban sugar. He put in evidence
a letter in which Hoover declined
saving spectators were holding the
sugar in Cuba for higher prices ana
that the American standard price
would be maintained.
Under Questioning by Senator Jones
of New Mexico, the witness said ne
understood that about half OF the
70 600 tons available in Cuba when he
wrote the letter had been shipped TO
other countries and that the remain
der either had arrived in the United
States or was en- route. When asked
by Senator Jones IT. he did not consid.
er IL good business to allow the $4,000
tons to go elsewhere If the Cuban
dealers could be convinced that this
country would maintain its position.
Spreckels replied that the sugar
would have TO serve the public when
the shortage was acute.
SpreekeIs Astonished.
Spreckels told Of protesting to
Hoover against the. contract whereby
the American Sugar Refining Com.
pany was to obtain 100000 tons Of
the Louisiana crop He said his COM
pany had not considered getting any
Of the crop because the food admin
istration had fixed no price, and that
he was astonished to learn Of the
American company making the con-
tract after a price OF $685. for the
Louisiana product had been agreed
upon at conference participated IN
by Rolph and Babst.
When the shortage came into sight
in the East, the witness asserted
more than 100000 tons Of raw sugar
was held in the West, of which the
California Hawaiian Company held
10000 tons. He said he appealed to
Rolph. to allow some of this to come
East to keep Eastern refineries 60
ing, but was informed II was neces-
sary to keep the supply in the West
until t.ue new Hawaiian crop came in.
In support of his charge that Rolph
and Babst favored the American COM
pany, Spreckels related an incident
that brought out how two companies
operating chain retail stores recently
had sugar when none was to be pro-
cured at many stores. He said A. II.
Lamborn & Co. of New York. sugar
brokers, contracted for two cargoes
Of Cuban sugar for delivery at New
York and offered II to the Interna-
tionai Sugar Committee - October at
$3.50 q hundred pounds. but the COM
mittee declined to buy without giving
q reason q. .:.~. - 49,,
Lamborn came to him soon after.
ward, Spreckels said, for means to
further finance the deal. and told him
that within fifteen minutes after the
committee had declined the sugar a
buyer for the American had offered
him $685. for it. Buyers for the chain
store companies heard OF the situa-
ton, purchased the sugar for $7.15.
and, with the permission Of the food
administrator, had 1t refined by the
Federal and the Warner Refining
Company for $3.50 hundred.
During the inquiry, Senator Reed
asked:
Then what would you say az to a
worlds shortage OF sugar suppiies?"
There is no shortage, said Spree
kels. ssssss ~
"Haye you; or any other refiners,
had anything to do with fixing
prices4' p
NO" Spreckels replied. Cana
dams, not bound by our price agree.
ment, paid more for this Cuban sugar
than we could pay"