The Colorado statesman., 1918-01-19

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 $1.30 per hundred
pounds. The pre-war dlfferential had
averaged about S5 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 refiners
were placed under agreement estab-
fishing these limits on October i, ana
anything over this amount to be agreed
extortionate under the law.
"In the course of these investiga-
tions It 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
'S4.24 per hundred (. o. b. Cuba, to
which duty and freight added to the
refiners' cost amount to about So.oo
per hundred. The average sale price
of granulated by various refneries, ac-
cording to our investigation, was about
81 80 per hundred, or a differential OF
S1.S4.
an reducing the dlfferential to S1.s0
there was a saving to the public or "a
cents per hundred. Had such a diff
ferential been in use from the 1st OF
January, 1917. the public would nave
saved in the first nine months OF the
year about s24,soo,o0o."
Next Year.
with n 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-
sentatiyes of all of the elements OF
American cane refining groups. The
principal duty of this committee Is 10
divide the sugar imports pro rata 10
their various capacities and see that
absolute justice is done to every re-
finer.
Q. A committee comprising three rep
resentatiyes of the English, French
and Italian governments; two repre-
sentatives of the American refiners,
with n member of the food administra-
tion. 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
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 aliies'
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 Tor
Cuban sugar, has not had the hnal
voice. This voice has rested In the
governments concerned, together with
the Cuban government, and l 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 10 cents per
hundred. The price agreed upon is
about $4.60 per hundred pounds. I. o. o:
Cuba, or equal to about Sc 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 consumer at from 8R 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 pronts, anu
in the refining alone the American
people will save over $25,OOO.OOo OF
the refining charges last year. A part
of these savings goes to the Cuban,
Hawaiian. Porto Rlcan 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 erect
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, ana
we find 1t averages $3.50, while many
producers are at higher level. we
found that an average profit OF at
least cent per pound was necessary
In order to maintain and stimulate
production or that n minimum price OF
S4.37 was necessary, and even this
would stifie some producers.
"Tbe price ultimately agreed was 20
cents above these figures. or about one
fifth of cent per pound to the Ameri-
can consumer, and more than this
amount has been saved by our reuuc-
tion in refiners' profits. If we wish TO
stife production In Cuba we couiu
take that course just at the time OF all
times in cur history when we want
| ..ad.atIor Cor ourselves and the al