Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1918-02-09

Hoover said, ian examination WaS
made OF the costs and profits Of refin-
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 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 retiners
were placed under agreement estab-
fishing these limits on October /, and
anything over this amount to be agreed
extortionate under the law.
ain the course OF these ipvestiga-
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
$4.24 per hundred T. o. b. Cuba, to
which duty and freight added to the
refiners' cost amount to about S5.66
per hundred The average sale price
of granuicted by various refinerles, ac-
cording to our investigation, was about
$3.50 per hundred, or dlfferential OF
$184.
'Tn reducing the dIfrerential TO $1.30
there was saving to the public OF "a
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 s24.SO0,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
/. 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
np 4yinT ~ oil ha 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 | 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 Is cents per
hundred. The price agreed upon Is
about $4.60 per hundred pounds, [. o. b.
Cuba, or equal to about So duty paid
New York.
"ThIs price should eVentuate,"
Mr.. Hoover said, ito about $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 ga to Q
cents per pound, depending upon
locality and conditions Of trade, or
at from to 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, extortlonate profits. and
in the refining alone the American
people will save over $25.000,000 OF
the refining charges last year. A part
OF these savings goes to the Cuban,
Hawaiian, Porto Rlcan and Louslanian
producer and part to the consumer.
AppGHlS 10 pIeJuulCe hEuIHSt tHb
food administration have been made
because the Cuban price is "a cents
above that of 1917. 1t is said in effect
that the Cubans are ut 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 1t 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 10 maintain and stimulate
production or that a minimum price OF
$4.37 was necessary, and even this
would stlhe some producers.
The price ultimately agreed was %
cents above these figures. or about one
hfth OF cent per pound to the Ameri-
can consumer. and more than this
amount has been saved by our reduc-
tion In refiners' profits. II We wish TO
stitie production In Cuba we could
take that course just at the time OF AZ
times In our history when We want