Williams news., 1918-01-24

and the sale of refined cane sugar should be limited to $1.30 per hundred 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- fning, 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 l, ak-d 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 $4.24 per hundred f. O. b. Cuba, to which duty and freight added to the refiners cost amount to about $5.66 per hundred. The average sale price of granulated by various ref1neries, ac- cording to our investigation, was about $7.5O per hundred, or a differential of $1S4.
 "In reducing the differential to $1.30 there was a saving to the public of 54
  ferential been in use from the 1st of saved in the first nine months of the year about $24.sOo,OOO."
 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. 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.
 9 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- 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 8 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 I 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 a lower price, and their persistence has re- duced Cuban demands by 15 cents per hundred. The price agreed upon is about $4.6O per hundred pounds, f. o. b. Cuba, or equal to about $6 duty paid New York.
 "This price should eventuate,"
 Mir. 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 consumer at from sH to
 cents per pound, depending upon
 locality and conditions of trade, or
 at from 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 1I,. Toe A of these savings goes to the Cuban, 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 l of producing sugar in Cuba last year our own agents in Cuba, and | we find 1t averages $3.39, while many producers are at higher level. We | found that an average profit of at | least a cent per pound was necessary | n order to maintain and stimulate l production or that minimum price of | 4.37 was necessary, and even this 1 would stifle some producers.
 ''The price ultimately agreed was 3 | cents above these figures, or about one fifth of cent per pound to the Ameri- 1 .an consumer, and more than this | amount has been saved by our reduc- ion fin refinefs' profits. If we wish to ,tifle production in Cuba we could .ake that course just at the time of all lines in our history when we want for ourselves and the al- ies Further than that, the state de ,artment will assure you that such . ,ourse would produce disturbances in Cuba and destroy even our present