Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1918-01-31

more than cover the difference. After
prolonged negotiations the refiners
were placed under agreement estab-
fishing these limits on October /, and
anything over this amount to be agreed
extortfonate under the law.
I'm the course of these investiga-
tons 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 f. O. b. Cuba, TO
which duty and freight added to the
refners' cost amount to about $3.50
per hundred. The average sale price
Of graduated by various refneries, &C.
c0rding to our investigation was about
$3.50 per hundred, or a differential Of
S1.S4.
"In reducing the differentiaI to $50
there was a saving to the public of ~
cents per hundred Had such diff
ferential been in use from the 1st of
January, 1917, the public would have
saved in the first nine months Of the
year about 100000"
ANCNl 7 car.
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.
2. A committee comprising three rep
resentatives Of the English, French
and Italian governments; two repre-
sentatives Of the American refners,
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
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 Amerf-
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
fHt,JN oh IN
state emphatically that all of the gem
tlemen concerned as good commercial
men have endeavored with the utmost
patience and skill to secure q 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, +. o. b.
Cuba, or equal to about Sc duty paid
New York.
"This price should eVentuate,"
Mr.. Hoover said, ITO abodt $3.50
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 9
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 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 $25000,000 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
above that of 1917 1t is said in effect
that the Cubans are at our 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 minimum price of
$4.37 was necessary, and even this
would Stifle some producers.
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-
ton in refners' profits. If we wish to
stifie production in Cuba we could
take that course just at the time of all
times in our history when we want
production for ourselves and the al
lies. Further than that, the state de-
partment viii assure you that such
course would produce disturbances in
Cuba and destroy even our present
supplies, but beyond all these material
great country has no right by the
might of its position TO strangle Cuba
Therefore there is no imposition
upon the American public Charges
have been made before this commit
tee that Mr.. ROlph endeavored to ben
eft the California refinery of which he
was manager by this 81 cent increase
In Cuban price. Mr. RoIph did not fix
the price. It does raise the price TO
the Hawaiian farmer about that
amount. It does not raise the profit OF
the California refinery. because thei.
charge for refining is. like all other re
fners, limited to s1.30 per hundred