The record., 1918-03-14

SnOulu De llmlteQ TO Sl.oO per NuluTeu
pounds. The pre-war differential had
averaged about IS cents and increased
costs were found to have been impoS-
ed by the war in increased cost of re-
filming, losses, costcof bags, labor, insur-
ance, interest and other things rather
more than cover the difference. After
prolonged negotiations the refiners
were placed under agreement estab-
fishing these limits on October 1, and
anything over this amount to be agreed
cXtOrtiOnate under the law.
''In the course of these investiga-
tons it was found by canvass of the
Cuban producers that their sugar had,
turing the first nine months Of the
:lH@t year. sold for an average of about
- per hundred f. o. b. Cuba, TO
-..lach duty and freight added to the
:a;;ners' cost amount to about $500
-: hundred The average sale price
=; :-:"anulated by various rcfineries. ac-
ing to our investigation. was about
. ner hundred, or a diffcrential of
to-.
"In reducing the diforcntial to S1.30
,h"re was q saving TO the public OF d
'~c nor hundred. Had such diff
~~ntia, boon in use from tho ls' NJ
-rr". 1o17. the public '''o"'' ''V"
r. "'e frst nine mcn'hs of the
,L,,-4 eat cnn Nnn"
i3c;lt year.
ia a view to more efficient o." al.
o., OF the trade in imported sG,'tis
=. year two committees have 0eeii
.4c-l by the food administration
i committee comprising r",re-
.o.,l res of all Of the cIi!.!en nj
r..tu cane refining Si"lHS' g..
=, -: uuty of this cOElmi,!v"
{ the sugar imports pro RI ~
= curious capacities and see .hat
,lute Justice is done TO every re-
.-rr.
\ committee comprising three ,'|.>-
scntatives of the English. FL. Il
I'd Italian governments tT.. res'Ec'-
:;cntativcs of the American refiEels,
with q member of the food udiniE::$tr:,
ion. Only two of the COMMITTEES ia 4
iIved from Europe, but th>y : ~
~&'Il lnS llilSu SoN iilllCHto. ''N N''i
:.cs of this committee are to determine
the most economical sources from Il
tranSpcrt point of view of all the al
lies to arrange transport at uniform
rates, to distribute the foreign sugar
- the approval OF me 1Afi.eTI-
| can, English, French and italian gov
crnments
This committee, while holding strong
views as to the price to be paid for
Cuban sugar, has not had the final
voice. This voice has rested in the
governments concerned, together with
the Cuban government, and l wish to
state emphatically that all Of the gen.
tlemen concerned as good commercial
men have endeavOred with the utmost
patience and skill to secure lower
price, and their persistence has re-
duced Cuban demands by 15 cents per
hundred. The price agreed upon is
about $4.6O per hundred pounds, f. o. b.
Cuba, or equal to about Sc duty paid
New York.
"This price should eventuate,"
Mr.. Hoover said, "to about $3.50
per hundred for refined sugar from
the refiners at seaboard points or
should place sugar In the hands OF
the consumer at from sH to 9
cents per pound, depending upon
locality and conditions of trade, or
at from to 2 cents below the
prices OF August last and from one
half to a cent per pound cheaper
than today.
"There iG now an elimination of
speculation, extortionate profits, and
in the refining alone the American
people will save over $25,00O,000 of
the refining charges last year. A part
Of these savings goes to the Cuban,
Hawaiian, Porto Rican and Lousianian
producer and part to the consumer.
Appeals to prejudice against the
food administration have been made
,'ecause the Cuban price is "a cents
.bove that of 1917. It is said in effect
:hat the Cubans are at our mercy /;
ut we could get sugar cent lower.
Ne made exhaustive study of the cost
If producing sugar in Cuba last year
through our own agents in Cuba, and
we find it averages $3.50, while many
producers are at higher level. We
found that an average profit of at
least cent per pound was necessary
in order to maintain and stimulate
production or that minimum price of
$4.37 was necessary, and even this
would stif1e some producers.
1.-The price ultimately agreed was %
cents above these figures, or about one
fifth of cent per pound to the Ameri-
can consumer, and more than this
amount has been saved by our reduc-
ton IN refiners' profits. If we wish to
stifie production in Cuba we could
take that course just at the time of all
times in our history when we want
production for ourselves and the al
lies. Further than that, the state de-
rartment will assure you that such Il
course would produce disturbances in
Cuba and destroy even cur present
supplies, but beyond ALI these material
reasons is one Of human justice. This
great country has no right by the
might of its position to strangle Cuba.
Therefore there is no imposition
upon the American public. Charges
have been made before this commit
tee that Mr.. Rolph endeavored to ben
eft the California refinery of which he
was manager by this "a cent increase
in Cuban price. Mr.. ROlph did not fix
the price. 1t does raise the price to
the Hawaiian farmer about that
amount II does not raise the profit of
the California refinery, because their
charge for refining is, like all other re-
finers, limited to $3.50 per hundred
pounds, plus the freight differential on
the established custom of the trade