The circle banner. [volume] (Circle, Mont.) 1914-1939, 1918-02-01

Hoover said, ian examination was
made Of the costs and profits Of ref1n-
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 reiners
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
S4.24 per hundred +. o. b. Cuba, to
which duty and freight added to the
refiners' cost amount to about $3.50
per hundred. The average sale price
of granulated by various ref1neries, &C
cording to our investigation, was about
$3.50 per hundred, or a differential Of
$184.
"In reducing the differential to $1.S0
there was a saving to the public Of "a
cents per hundred. Had such diff
ferential been in use from the LIST OF
January, 1917, the public would have
saved in the first nine months OF the |
year about $24,S00000."
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. 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
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- 6
sent the allied governments. The du- 7
les of this committee are to determine
he most economical sources from
transport point of view of all the al
les to arrange transport at uniform
'ates, to distribute the foreign sugar v
between the United States and allies, i
subject to the approval of the AmerI- Q
an, English, French and Italian gov n
c
This committee, while holding strong
Jews as to the price to be paid for
Julian sugar, has not had the final I,
dice. This voice has rested In the - =
concerned, together with u
he Cuban government, and l wish to
tate emphatically that all of the gen.
Lemen concerned as good commercial
len have endeavored with the utmost
atience and skill to secure a lower (
rice, and their persistence has re-
uced Cuban demands by Is cents per
undred. The price agreed upon is
bout $46O per hundred pounds, f. o. b.
uba, or equal to about Sc duty paid
ew York.
"This price should eventuate," ~
Mr.. Hoover said, "to about $3.50 VI
per hundred for refined sugar from tn
the refiners at seaboard points or
should place sugar in the hands of ,
the consumer at from 8E to 9 dt
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
eculation, extortionate profits, and m,
the refining alone the American
ople will save over $25,0O0,000 of
e refining charges last year. A part
these savings goes to the Cuban, : I
lwaiian, Porto Rican and Lousianian
oducer and part to the consumer.
Appeals to prejudice against the
ID administration have been made
cause the Cuban price is "a cents
owe that of 1917. 1t is said in effect In
1T the Cubans are at our mercy;
1T we could get sugar cent lower. oil
E made exhaustive study of the cost
producing sugar in Cuba last year
'ough our own agents In Cuba, and
find it averages $3.50, while many
oducers are at higher level We vic
Ind that an average profit Of at
st cent per pound was necessary
order to maintain and stimulate
)duction or that minimum price of
81 was necessary, and even this
uld stifle some producers
The price ultimately agreed was %
It's above these figures, or about one
h of cent per pound to the Ameri-
consumer, and more than this
cunt has been saved by our reduc-
0 in refiners' profits. If we wish to
lie production in Cuba we could
e that course just at the time of all
es In our history when we want
duction for ourselves and the al