The daily Nome industrial worker., 1918-04-26

differentfal for the sugar refiners. no steps had been taken to safeguard the beet grower or to stimulate sugar beet production until the Senate ordered this investigation. Tn pre-war times, the refincrs had a differential of S5 cents per hundred. That was the diff and the refiner's selling price. At the time the Food Administration was es- tablished this had risen to $1.S5. MT Hoover said the President directed that pre-war normal profits be main- tained and to do this the refiners dig ferential was cut to $1.3O. This he said because of increased cost, at the time it was fixed, would protect the pre-war profits of the refiners.
 FIX PRICE OF SUGAR.
 The Food Administration had fix ed the price of beat sugar at 7.25 per pound and Mir Hoover put in the re- cord a list of ~beet sugar factories which could hardly exist at that price. This includes some of the California and all the Wisconsin factories and one in Utah.
 Mir Hoover testified that it was the view of the administration that a diff ferent price could be maintained for bet sugar west of the Allegheny Mountain, than was permitted for cane sugar east of the Alleghenies.
 In replying to a question of Chair man Reed, MT Hoover stated the reas- on for permitting a higher price for sugar on the Atlantic Seaboard than in the interior to be.
 For the simple reason that the Gu ban sugar had been bought at a higher level and was in possession of the re- liners and others at a higher level. The whole of the suga, stocks had been accumulated at a higher level. We had no right to impose a loss on the total sugar industry just to level it down with beets Furthermore, in or der to give the Louisiana purchaser as good a position as could be gotten, we gave him the seaboard price that was necessary in order to protect his production
 Chairman Reed then gave some at tention to the Louisiana purchaser, Mir Babst, president of the American Sugar Refining Co.,, and a member of the Sugar committee of the Food Ad- ministration.
 The Chairman Louisiana produces about 225,OOO tons?
 MT Hoover Yes, sir.
 The Chairman MT Babst got con tract for 100000 tons?
 Mir Hoover. Yes.
 The Chairman And that is the sug- air, now, the price of which you wanted to maintain by shutting off the beet sugar and keeping it from coming east of the Allegheny Mountains?
 MT Hoover. We wanted to maintain, amongst other things,a righteous price "a proper price Tor ,sne Louisiana pro- ducer."
 The Chairman Of course you may say righteous price" and proper price" but the Louisiana producer sold his sugar to MT Babst, did he not contracted it?
 MT Hoover He sod actually, l be- lieve, 29, ,OOO tons.
 The Chairman All right, He eX- pected to get the 100000 tons. did he not?
 Mir Hoover Yes
 The Chairman, You expected him to get it, did you doe?
 MT Hover We hoped he would get it.
 The Chairman Yes, sir; and so you maintained a price?
 Mir. Hoover, To the producer. MT. Babst's profit was fixed,
 The Chairman. Yes, you maintained Q price over on the Atlantic seaboard for the benefit of that Louisiana sug- ar?
 MT Hoover For the Louisiana pro ducer.
 The Chairman. Yes-oh. yes Now, the Louisiana producer mas stipulated price in his contract with Mir Babst, had he not?
 Mir, Hoover. He had.
 The Chairman Ana if he delivered that sugua. to MT Babst, MT Babst