Connecticut western news., 1918-01-17

Hoover said, "an examination was niade of the Costs and profits of refin- in. and it was finally determined that the spread between the cost of raw and the sale of refined cane sugar should be limited to SEQ per hundred rounds. The prc-war differential had averaged about S1 cents and in trcaScd C0s,s were found to have been impos- ed ny the war in increased cost of re- tining, losses, cost of bags, labor, insur- ance, interest and other things, rather more than cover the difference. After prolonged negotiations inc rC""crS were placed under agrrcm2n, cs."o- liSiiNE tl2rC liw'tS or October l. ""@ anything over this amount to be agreed eXtortionate under the law.
 ''In the course of these invcstiga- tionS it was found by canyaas of 'hr Cuban produces tl"t their sugar had, during ihC first nine months of tEa FISt year. sold fer an average uf about S424 por hundred f. O. D. Cuba, to which duty and freight added to the rctinerS' cost amount to about S5.G6 per huUAred. Tho average sale price of "ranulutcd hv various rCfineries. ac- cnrling to our investigation. was about $7.5O PCT hundred, or a diftercntial of S1.St.
 "Tn reducing the di~crcntial to S1.30 th"ra was sHvinG to the pubic of 5t cents nor hup'rod. Had snch diff farential hccn in usc from the 1st of Januarv. 7o17. the public would have saved in tho first nine months of the year about S24 500 COO"
 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.
 2. A committee comprising three rep resentatives of the English, French uDu wv ANPAS- sentatives of the American reflners, with q member of the food administra- tion. 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 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 10 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 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 S460 per hundred pounds, f. O. b. Cuba, or equal to about $6 duty paid New York.
 "This price should eventuate,"
 Mir. Hoover said, "to about $7.30
 per hundred for refined sugar from
 the refiners at seaboard points or
 should place sugar In the hands of
 4A
 cents per pound, depending upon
 locality and conditions of trade, or
 at from to 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 $25,000,000 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 because the Cuban price Is 34 cents above that of 1917. It 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 1t averages s3.39, 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 a minimum price of $4.37 was necessary, and even this would stifie some producers.
 "The price ultimately agreed was 8 cents above these figures, or about one fifth of a cent per pound to the Ameri- can consumer, and more than this amount has been saved by our reduc-