The Donaldsonville chief., 1918-04-20

pounds. The pre-war differential had
averaged about S5 cents and increased
costs were found to have been impos-
ed by the war in increased cost Of re
f1ning, losses, cost of bags, labor, insur-
ance, interest and other things, rather
more than cover the difference. After
prolonged negotiations the ref1ners
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-
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
$424 per hundred t. o. b. Cuba, to
which duty and freight added to the
refiners' cost amount to about 50 20
per hundred. The average sale price
of granulated by various refineries, ac-
cording to our invehtigation, was about
$3.50 per httdredhpr differential OF
$184.
'Tn reducing the differential to $1.3o
there was saving TO the public OF 81
cents per hundred. Had such diff
ferential been In use from the LIST OF
January, 1917, the public would nave
saved in the first nine months OF the
year about s24,sOO,0O0
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:
l. A committee comprising repre-
sentatives Of all Of the elements OF
American cane refining groups. Ihe
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
and Italian governments; two repre-
sentatives Of the American refiners,
with a 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 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 lower
price, and their persistence has re-
duced Cuban demands by Is cents per
hundred. The price agreed upon is
about $3.50 per hundred pounds, t. o. b.
Cuba. or equal TO about Sc duty paid
New York.
ss'This price should eyentuate, z
Mr. Hoover aid, ITO about 81 so
per hundred for refined sugar from
the refinera 1t seaboard points or
should place sugar in the hands OF
the consumer at from 8h to 8
cents per pound, depending upon
locality and conditions Of trade, or
| at from 10 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, and
I In the refining alone the American
. people will save over $25,00O,000 Of
!. the refining charges last year. A part
: Of these savings goes to the Cuban
! Hawaiian, Porto Rican and Lousianiar
producer and part to the consumer.
/; appeals to prejudice against tht
food administration have been made
because the Cuban price is 81 cents
above that Of 1917. 1t is said in effect
| that the Cubans are at our mercy
| that we could get sugar cent lower
We made exhaustive study of the cos
of producing sugar in Cuba last veal
through our own agents In Cuba, ant
we find it averages $3.50, while many
producers are at higher level. W.
| found that an average profit of a
least cent per pound was necessar,
In order to maintain and stimulate
production or that minimum price O.
| $4.37 was necessary, and even thi:
| would stifle some producers
1.-THE price ultimately agreed was 2;
cents above these figures, or about one
| fifth Of cent per pound to the Ameri
| can consumer, and more than thi!
amount has been saved by our redue
tion in reflners' profits. Il we wish Il
stifle production in Cuba we coult
take that course just at the time of al
times in our history when we wan
production for ourselves and the al
lies. Further than that, the state de
| partment will assure you that such 1
course would produce disturbances IL
| Cuba and destroy even our presen
| supplies, but beyond all these materia
reasons is one OF human justice. Thi
| great country has no right by th'
might of its position to strangle Cuba.
Therefore there is NO imposition
upon the American public. Charge
have been Psade fsefore this commit
tee that Mr!aRolpR Iendeavored to ben
| eft the California refinery Of which h,