Newport daily independent., 1918-01-24
Hoover said, "an examination was


 made of the costs and profits of refin- ing and 1t was finally determined that the spread between the cost of raw and the sale of refined cane sugar should be limited to $130 per hundred pounds. The pre-war dfferential had averaged about S5 cents and increased costs were found to have been impos- ed by the war in increased cost of re- lining, losses, cost of 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 eXtortionate under the law.
 "In the course of these investiga- tions 1t was found by canvass of the Cuban producers that their sugar had, during the first nine months of the past year, sold for an average of about $4.24 per hundred f. O. b. Cuba, to which duty and freight added to the refiners' cost amount to about S5.66 per hundred. The average sale .price of granulated by various refineries, ac- cording to our investigation. was about $750 per hundred, or a differential Of $1.S4
 'In reducing the differential to $1.30 there was a saving to the public of 54 cents per hundred Had such diff ferential been in use from the lst or January, 1917. the rCblic would have saved in the first nine months of the year about $24.S00000."
 Next Year.
 With a view to more efficient organ ization of the trade in imported sugars next year two committees have been formed by the food administration:
 1. committee comprising repre- sentatives of all of the elements of American cane refining groups. The principal duty of this committee is to divide the sugar imports pro rata to their various capacities and see that absolute justice is done to every re- finer.
 ?. committee comprising three rep resentatives of the English, French and Italian governments; two repre- sentatives of the American refiners, with a member of the food administra- ton. Only two of the committee have arrived from Europe, but they repre- sent the allied governments. The du- ties of this committee are to determine the most economical sources from transport point of view of all the all lies to arrange transport at uniform rates, to distribute the foreign sugar between the United States and allies, subject to the approval of the Ameri- can, English, French and Italian gov ernmentS.
 This committee, while holding strong views as to the price to be paid Tor Cuban sugar, has not had the hnal 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 10 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,"
 MT. Hoover said, Ito about $7.30
 per hundred for refined sugar from
 the refiners at seaboard points or
 should place sugar in the hands of
 the consumer at from 8Ia to
 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 is now an elimination of speculation, eXtOrtionate profits, and in the refining alone the American people will save over $25,000,00O 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 because the Cuban price is 34 cents above that of 1917. It is said in effect that the Cubans are at our mercy 1; that we could get sugar cent lower We made exhaustive study of the cost of producing sugar in Cuba last year through our own agents in Cuba, and we find it averages $3.39, while many producers are at a higher level We found that an average profit of at least a cent per pound was necessary in order to maintain and stimulate production or that minimum price of S4.37 was necessary, and even this would stifle some producers.
 "The price ultimately agreed was 23 cents above these figures, or about one fifth of a cent per pound to the Amerl- can consumer, and more than this amount has been saved by our reduc- tion in refiners' profits If we wish to stife production in Cuba we could take that course just at the time of all