The Snowflake herald., 1918-02-01

Hoover said, IAN examination was
made of the costs and profits or reTlh-
ing and it was finally determined Ilial
the spread between the cost or raw
and the sale of refined cane sugar
should he limited to $1.20 per hundred
pounds. The pre-war differentlal hau
averaged about 50 cents and Increased
costs were found to have been lmpoS-
ed bv the war in increased cost OF re-
fining. losses, cost of bags, labor, lnsur-
ance. interest and other things, rather
more than cover the difference. After
prolonged negotiations the refners
were placed under agreement estaD-
fishing these limits on October l, ana
anything over this amount to be agreed
extortionate under the law.
'In the course of these invest1ga-
tions 1t was found by canvass OF the
Cuban producers that their sugar had.
during the first nine months or the
past year, sold for an average or aDout
S4.24 per hundred t. o. b. CuDa' 10
which duty and freight added TO the
refners' cost amount to about 5000
per hundred. The average sale price
of granulated by various retinerles- ac-
cording to our investigation. was about
st 20 per hundred, or differential or
$184.
t'Tn reducing the differential TO $l.3O
there was a saving to the public OF ~
cents per hundred. Had such CIT
ferential been in use from the lst OF
January. 1917. the public would nave
saved in the first nine months or the
year about s24 800 90"
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:
/. A committee comprising repre-
sentatives of all of the elements OF
American cane refining groups. Ihe
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-
sentatiyes of the American reflners,
with 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
| 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 Amerl-
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 a lower
price, and their persistence has re-
duced Cuban demands by 10 cents pei
hundred. The price agreed upon is
about $3.50 per hundred pounds, f. o. b
Cuba, or equal to about Sc duty paid
New York.
"This price should eVentuate,"
Mr.. Hoover said, "to about $3.50
| e
the refiners at seaboard points or
should place sugar in the hands OF
the consumer at from 8I2 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, anC
in the refining alone the American
people will save over $25OOO,O00 Of
4 the refining charges last year. A par
of these savings goes to the Cuban
Hawaiian, Porto Rican and LOusianiaT
producer and part to the consumer.
appeals to prejudice against the
food administration have been made
because the Cuban price is "a cent:
above that of 1917 1t is said in effec
that the Cubans are at our mercy
that we could get sugar a cent lower
We made exhaustive study of the cos
of producing sugar in Cuba last veal
through our own agents in Cuba, anC
we find it averages $3.50, while man!
producers are at higher level. W.
found that an average profit of a
least a cent per pound was necessar!
in order to maintain and stimulate
production or that a minimum price o.
$4.37 was necessary, and even thi:
would stifle some producers.
tsThn nrica ultimately agreed was 2: