Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1918-01-23

Hoover said, an examination ws.
made of the costs and profits OF refn.
ing and IL was finally determined tha,
the spread between the cost OF raw
and the sale Of refined cane sugar
should be limited to $1.So per hundred
pounds. The pre-war differential had
averaged about SIS cents and increased
costs were found to have been impos.
eddy the war In increased cost OF re.
finlng. losses. cost of bags, labor, insur.
snee. 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 /, and
anything over this amount to be agreed
extortionate under the law.
SIN the course of these investiga.
tions IL 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 I. o. b. Cuba. to
witch drtv and freight added to the
Tefnprs cost nmoun; to about $3.50
per hundred. The average sale price
of -renwlaied nv varionS refinerses. ac-
corsIng to orr investigation. was about
$50 per hundred. or dIfferentiaI Of
sls4.
an reducing the difrerentiai 10 $3.50
there was a saving to the public OF 81
cents per hundred. Had such dif-
ferentlai been in use from the 1st Of
January. 1917. the public would have
saved In the first nine months Of the
year about s24,so0ooo."
Next Year.
with view TO more efficient organ
izatlon of the trade In imported sugars
next year two committees have been
formed by the food administration.
/. A committee comprising repre-
sentatives OF all or 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
resentatiyes of the English, French
and Italian governments; two repre-
sentatiyes of the American refiners,
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
the most economical sources from a
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 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 skin TO secure lower
price, and their persistence has re-
duced Cuban demands by Is cents per
hundred. The price agreed upon Is
about S4e0 per hundred pounds, T. o. b.
Cuba, or equal to about So duty paid
New York.
This price should esentuate,"
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 sIa to
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 cent per pound cheaper
than today.
There is now an elimination OF
speculation, extortionate prohts, ana
In the refining alone the American
people will save over S25.0o0.00O OF
the refining charges last year. A part
OF these savings goes to the Cuban
Hawaiian, Porto Rican and Louslanian
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 effect
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, and
we End It 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 a minimum price of
S4,37 was necessary. and even this
would stifie some producers.
The price ultimately agreed was %
cents above these figures, or about one
fifth OF cent per pound 70 the Ameri-
can consumer, and more than this
amour. has been saved by our reduc-
ton In reflners' profits If we wish to
ns4NIh