The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-09-17
LATE GRIND MAY
= BRING new PRICE
FOR raw SUGARS
Government Gets Profits On All
Sugar. Made Before New
,, : u Price Is Operative
FOOD ADMINISTRATION
GIVES DETAILS OF PLAN
Cubas Purchased BY interna-
tionaI Committee For About
Five and a Halt Cents

affects all sugar now in transit or on
Of raws or in storage awaiting ship
ments. Apparently it will not affect
the sugar of this crop that is ground
after the date when the new raw price
Of 1888 cents is made effective. In
this way it is not unlikely that a part
Of the 1918 crop of Hawaiian sugar,
the late grind, will come in for the
higher price, how much depending on
the date fixed for the payment of 1888
cents a pound for raw sugars.
In the Official Bulletin Of Monday,
August 26 appeared an announcement
by the food administration which an
swers a number Of questions in which
Hawaiian sugar producers are vitality
interested. The announcement follows:
As n consequence Of the higher price
for the domestic beet and cane sugars
which will be soon coming into the mar
ket, and in order to minimize the in
equalities that would result from hav-
ing this new domestic crop at the new
price and the old foreign crop at the
old price in the market at the same
time, the food administration announces
ton board will on date to be an
nOunced later purchase all sugars in
the country or in transit at the old
price and Immediately resell them back
to the holders at the new price. The
exact date at which the new price
will become effective has not yet been
determined, nor has it been settled
yet what the new price will be.
Absorbs Excess Profit
By this device the extra profit which
would otherwise accrue to the refiners,
who purchased at the old price and
would sell on the basis of the new,
will be absorbed by the sugar equaliza
ton board, which is the government
agency charged with the equalization
of sugar prices, and which is handling
the machinery of sugar distribution in
the country.
The food administration is notifying
all distributors or manufacturers using
sugar and all refiners Of the impending
change and warning the distributors
and manufacturers that all their con,
tracts should be made subject to any
change in price that is authorized. It
is reminding the distributors also Of
the rule that requires them to sell on
the basis of invoice cost without re-
gard to market or replacement value.
The price difficulty which this action
is designed to meet comes about through
the fact that the sugar from Cuba sent
to the United States refinerics and the
sugar from the domestic beet and cane
fields overlap in the market. The food
OI Tni Dtu fro
with the domestic producers that an
increase of price was justified on the
new crop.
Text Of the Notice
The notice being sent to thc cane
refiners of the country announcing this
action is as follows:
"In the near future the domestic
beet and cane sugar crops will be com
ing on the market The increased cost
Of producing these crops requires an in.
crease in the price which can be charged
| for refined sugar The foou admins.
| tratiOn feels that it will be moro salts
factory if a uniform price for sugar
prevails throughout the United States
after allowing for freight dffrrrntials
! than two price system such as de-
| veloprd last fall. Tn anv event it is
| not proper to allow rcfincrs to sell
refined sugar manufactured from raws
purchased at the price of the 1917 l9
| Cuban crop at the higher price to be
arranged for new crop domestic sugars
Equalization Of Price
zone Of the purposes for which the
United states sugar equalization board
has been incorporated is for eOualiZing
the price Of refined sugar in cases of
this kind. The food administration re.
quests you to transfer to the cOualiZa.
ton board all of the sugar owned hv
you on the date when the price is
raised, and all sugar which is still due
you under the contract of December
"a between the international sugar
committee the others at cost plus Ger.
tain allowance hereafter referred TO-
The sugar equalization board will i'm.
mediately resell to you the same sugar
at price to be based on the increased
price for domestic refined sugar The
entire stock of the sugar equalization
board Is held by the United States, and
anv profit made on this transaction
will he used bv the boar I'd in paving its
EXPENSES and for eOualizing sugar con
ditiOns throughout the United States
Old Crop Sugars
"Tho old crop Of domestic SUGAR,
will be purchased from the producer,
on the present basis and will he rcsold
to the same parties on the basis of the
advanced price
"ThP proposed change in price will
become effective at O'Clock a m or
a dav to be Indicated later and viii
apply TO all sugars then held by re
! hners, beet or cane sugar pr"durer'
wherever located. and also to all ship
ments then in transit and undrlivrrcC
hv railroad or other carriers to- purrhas
! rrS of SUGAR. excepting only thnt tn,
proposed change in price will not npnlN
on any shipments or deliveries made he
fore a. m. on the dat" OF its taking
effect to the United States government
or it's allies. or Tor export or oversee.
shinments -
The food administration also annOun
ces that at the same time that the new
bugar price becomes effective refineri