The Tupelo journal., 1918-02-08

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 $1.30 per hundred
pounds. The pre-war differential had
averaged about IS cents and increased
costs were found to have been impos-
ed by the war In increased cost Of re-
filming, losses, cost of bags, labor, insur-
ance, interest and other things, rather
more than cover the difference. After
prolonged negotiations the r~einers
were placed under agreement estab-
fishing these limits on October /, and
anything over this amount to be agreed
extortionate under the law.
SIN the course Of these investiga-
lions 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
$4.24 per hundred t. o. b. Cuba, to
which duty and freight added to the
~refiners' cost amount to about $3.50
per hundred. The average sale price
of g~ranulated by various refneries, ac-
cording to our Investigation, was about
| $3.50 per hundred, or a differential of
$1.S4.
"In reducing the differential to S1.3O
there was a saving to the public Of "a
cents per hundred. Had such a diff
ferential beer in use from the LIST OF
January, 1917. the public would have
saved in the first nine months Of the
year about $24. 100000"
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
l. A committee comprising repre-
sentatives Of all Of the elements OF
American cane refining groups. h
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
r%esentatives of the English, French
and Italian governments; two repre-
sentatives of the American r%efiners,
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-
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, I'M 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 q lower
price, and their persistence he's re-
duced Cuban demands by Is cents per
hundred. The price agreed upon is
about $4.6O per hundred pounds, I, 9. b.
Cuba, or equal to about So duty paid
New York.
"This price should eventuate,"
Mr.. Hoover said, "to about $7.3O
per hundred for refined sugar from
the 'refiners at seaboard points or
should place sugar in the hands OF
the consume at from 8H to 9
cents per pound, depending upon
locality and conditions of trade, or
at from I to 2 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, 100000 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 "a cents
| above that of 1917. 1t Is said in effect
that the Cubans are at u 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 it averages $3.50. 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 stif1e some producers.
1.-The price ultimately agreed was %
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-
<3op IN rofpars' nrofitS If we wish TO |