The Carlisle independent., 1918-07-11


 ing and it was finally determined that
 the spread between the cost of raw
 and the sale of refined cane sugar
 should be limited to $1.3O per hundred pounds. The pre-war differential had averaged about 85 cents and increased costs were found to have been imp0S- 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 refiners' were placed under agreement estab- fishing these limits on October l, and anything over this amount to be agreed extortionate under the law.
 "In the course of these inyestiga- lions 1t was found by canvass of tho Cuban producers that their sugar had. during the first nine months of the past year, sold for an average of about S4.24 per hundred f. o. b. Cuba, to which duty and freight added to the rehners' cost amount to about $5.66 per hundred. The average sale price of granulated by various renneries, ac- cording to our investigation. was about $7.50 per hundred, or a difrerential of S184.
 'In reducing the differential to $1 30 there was a saving to the public of 54 cents per hundred Had such a diff ferential been in use from the 1st of January, 1917. the public would have saved in the first nine months of the year about s24S00.O00.'
 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 l their various capacities and see thnt l absolute justice is done to every re-, | finer
 ?. A committee comprising three rep l resentatives of the English, French | and Italian governments; two repre- sentatives of the American refiners, | with a member of the food administra- | ton. Only two of the committee have. | arrived from Europe, but they repre- sent the allied governments. The du- i ties of this committee are to determine the most economical sources from a transport point of view of all the nl- | 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 price. and their persistence has re- duced Cuban demands by 15 cents per hundred. The price agreed upon is- about $46O per hundred pounds, f. o. b. Cuba, or equal to about $6 duty paid New York.
 "This price should eventuate," Mir. Hoover sald, "to about $7.30 per hundred for refined sugar from
 the refiners at seaboard points or
 should place sugar in the hands of
 the consumer at from 6H to 2
 cents per pound, depending upon locality and conditions of trade, or at from 1 to 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 in the refining alone the American people will save over $25O0O,OOO 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 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 $3.39 while many producers are at a higher level. W8 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 $4.37 was necessary, and even this would stif1e some producers
 "The price ultimately agreed was g 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- ton in refiners' profits. If we wish to stiie production in Cuba we could take that course just at the time of ali times in our history when we want production for ourselves and the all