The daily star-mirror. (Moscow, Idaho) 1911-1939, 1918-02-04

| AhooC VI TIC OOSlS anu JULIUS Va ICAh-
ing and 1t 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 IS cents and increased
costs were found to have been impos-
| ed by the war in increased cost OF re-
| fining, losses, cost of bags, labor, insur-
| ance, interest and other things, rather
more than cover the difference. After
| prolonged negotiations the refners
were placed under agreement estab-
fishing these limits on October 1, and
| anything over this amount to be agreed
extortionate under the law.
"In 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
$424 per hundred t. o. b. Cuba, to
which duty and freight added to the
reflners' cost amount to about $566
per hundred. The average sale price
Of granulated by various reflneries, &C
cording to our investigation, was about
81. so per hundred, or a differential Of
$184.
"In reducing the differential to $1.3O
there was saving to the public OF %
cents per hundred. Had such diff
ferential been in use from the LIST OF
January, 1917, the public would have
saved in the f1rst nine months Of the
year about $24,SOO,OOO."
Next Year.
With 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 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 reflners,
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, 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 $46O per hundred pounds, f. o. b.
Cuba, or equal to about Sc duty paid |
New York.
"This price should eventuate,"
Mr. Hoover said, ITO about $3.50
per hundred for refined sugar from
tho refiners at seaboard points or
should place sugar In the hands Of
the consumer at from 8La to
cents per pound, depending upon
locality and conditions of trade, or
at from to cents below the
prices of August last and from one
halt to cent per pound cheaper
than today.
"There, is now an elimination Of
speculation, extortionate profits, and
n the refining alone the American
people will save over $25,000,00O of
he refining charges last year. A part
# these savings goes to the Cuban,
hawaiian, Porto Rican and Lousianian
producer and part to the consumer.
appeals to prejudice against the
God administration have been made
because the Cuban price Is "a cents
hove that OF 1917. 1t is said in effect
hat the Cubans are at our mercy;
hat we could get sugar a cent lower
We made exhaustive study Of the cost
# producing sugar in Cuba last year
through our own agents III Cuba, and
We find it averages $3.50, while many
PRODUCERS are at a higher level. We
ound that an average profit Of at
east cent per pound was necessary
4 order to maintain and stimulate
reduction or that minimum price of
437 was necessary, and even. this
yould stif1e some producers.
1.-The price ultimately agreed was %
ents above these figures, or about one
fth of cent per pound to the Ameri-
an consumer and more than this
mount has been saved by our reduc-
on in refiners' profits. If we wish to
tifle production in Cuba we could
Ike that course just at the time Of all
mes in our history when we want
for ourselves and the al
es. Further than that, the state de-
artment will assure you that such a