The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1918-02-07

ana tne safe Oh renned cane sugar
should be limited to 81 80 per hupdraa
pounds. The pre-war dlfferential haS
averaged about IS cents and increases
costs were found TO have been imnos.
ed by the war I'm increased cost az ~.
fining, Losses, cost Of bags, labor, insur.
ance, interest and ether things, rather
more than cov.'r the difference. Afto,
prolonged negotiations the refiner,
were placed under agreement estah.
fishing these limits on October /. ana
anything over this amount TO be agreed
extortionatc under the lava
"In the course OF these inyest,va.
lions IL was found by canvass of tho
Cuban producers that their sugar had
during the first nine months OF thu
past year, sold for an average OF about
S4.24 per hundred Z. o. b. Cuba, 10
which duty and freight added to the
refiners' cost amount TO about sbee
per hundred. The average sale price
of graduated by various reflnerles, &C.
cording to our Investigation, was about
$3.50 per hundred, or a dlfferential OF
$1S4.
"In reducing the differential to SlsO
there was a saving to the public OF 81
cents Der hundred. Had such az.
ferential been I'm use from the LIST Of
January, 1917, the public would have
saved in the first nine months Of the
year about S24.S00000."
Next Year.
With q view to more efficient organ.
ization OF the trade In imported sugars
next year two committees have been
formed by the food administration:
/. A committee comprising repre-
sentatives OF all OF the elements OF
American cane refining groups. The
principal duty OF this committee IL 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.
resentatiyes OF the English, French
and Italian governments; two repre-
sentatives of the American refiners,
with q 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 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 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 S460 per hundred pounds, E. o. b.
Cuba, or equal to about SO duty paid
New York.
"Thls price should eventuate,"
Mr.. Hoover said, "to about S7.So
per hundred for refined sugar from
the refiners at seaboard points or
should place sugar In the hands OF
the consumer at from eN to y
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 cent per pound cheaper
than today.
"There is now an elimination OF
speculation, extortionate profits, ana
In the refiSing alone the American
people will save over $25OOO,OOO Oh
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 tne
food administration have been mace
because the Cuban price is "a Genus
above that Of 1917. It is said In efect
that the Cubans are at our mercy
that we could get sugar cent lower.
We made exhaustive study OF the cost
of producing sugar In Cuba last yea.
through our own agents In Cuba, anu
we find 1T averages $3.50, while many
producers are at higher level. we
found that an average proht OF ~
least a cent per pound was necessary
In order to maintain and stimuia'e
production or that a minimum price u
S4.37 was necessary, and even tni'
would stifle some producers.
"The price ultimately agreed was %
cents above these figures, or about one
fifth Of cent per pound to the Amer.
can consumer, and more than ill'
amount has been saved by our reuuo.
ton in refiners' profits. IL we wish 70
stifie production in Cuba we couiu
take that course just at the time Oh ~.
times in our history when we wan
nroducfion for ourselves and the III