The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1918-02-08

made Of the costs anu prontS OF Tenn-
ing and 1t was finally determined that
the spread between the cost OF raw
and the sale of refined cane sugar
ahould be limited to $1.30 per hundred
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-
fining, losses, cost Of bags, labor, insur-
ance, interest and other things, rather
more than cover the difference. After
prolonged negotia tions the refiners
were placed under agreement estaD-
fishing these limits on October l, ana
anything over this amount to be agreed
eXtortionate under the law.
"In the course Of these investiga-I
tions it 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 $5.66
per hundred The average sale price
of granulated by various refneries. ac-
cording to our investigation, was about
$3.50 per hundred, or differential OF
$1S4.
"In reducing the differential to $1.3O
there was saving to the public OF "a
cents per hundred. Had such dl1.
ferential been in use from the lst OF
January, 1917. the public would have
saved in the first nine months OF the
year about S24,s00,OO0." ....
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. A 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. - 49,. -. .-... ....r..H
2. A committee comprising three rep
resentatives Of the English, French
and Italian governments; two repre-
sentstives of the American refiners,
with a member of the food administra-
ton. Only two Of the committee nave
arrived from Europe, but they repre-
sent the allied governments. The du'
ties of this committee are to determine
the most economical sources from a
transport point Of view Of all the al
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 for
Cuban sugar, has not had the final
voice. This voice has rested In the
governments concerned, together with
the Cuban government and I 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 a lower
price, and their persistence has re-
duced Cuban demands by 10 cents per
hundred. The price agreed upon is
about S4.6O per hundred pounds, t. o. b.
Cuba, or equal to about So duty paid
New York.
"This price should eventuate,"
Mr.. Hoover said, "to about $7.3o
per hundred for refined sugar from
the refiners at seaboard points or
should place sugar in the hands OF
the consumer at from aR to 9
! cents per pound, depending upon
locality and conditions of trade, or
at from l 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 S25,0OO,OOO OF
the refining charges last year. A part
of these savings goes to the Cuban,
Hawaiian, Porto Rican and Lousanian
producer and part to the consumer.
Appeals to prejudice against the
food administration have been made
because the Cuban price is "a cents
above that of 1917. 1t is said in effect
that the Cubans are at our mercy |;
that we could get sugar a 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 $3.50, while many
producers are at 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 stif1e some producers.