The Meeker herald., 1918-06-15
Hoover said, AN examination was

made of the costs and profits of redn-
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 $130 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-
hning, losses, cost of bags, labor, insur-
ance. interest and other things, rather
more than cover the difference. After
prolonged negotiations the ref'ners
We're placed under agreement estnb-
fishing these limits on October ], 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
pnst year, sold for an average OF about
x42i per hundred Z. o. b. Cuba, to
which duty and freight added to the
refners' cost amount to about SoW
per hundred The average sale price
Of grnnulatcd by various rehneries, nc-
cOrhlng to our investigation, was about
$3.50 per hundred. or diherential OF
$1Si.
"In reducing the difrerential to $1.3O
there was n saving to the public OF ~
cents per hundred. Hnd such dit-
fercntIal been In use from the LIST OF
January. 1917. the public would hnve
snvcd in the first nine months OF the
year about s24sO0 600"
Next Year.
With 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-
senintives OF all OF the elements OF
American cane refining groups. The
principal duty of this committee IL to
divide the sugar imports pro rata to
their various capacities and see that
absolute justice Ii done to every re-
nner.
.. A committee comprising three rep
rescntntives Of the English, French
and Italian governments; two repre-
sentatives OF the American refnerS,
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 .
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
ernmcnts.
This committee. while holding strong
views as to the price to be paid for
Cuban sugar. hns not had the maj
voice This voice hns rested In the
governments concerned, together with
the Cuban government. and ] wish to
state enphatically that all OF the gen
| tlencn concerned as good commercial
men have en,icnvOred with the utmost
pnticncc and skill to secure lower
price, and their persistence Inns re-
| dnccd Cuban demands by 10 cents per
hundred. The price agreed upon Ia
about $4.GO per hundred pounds. I. 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 refners at seaboard points or
should place sugar In the hands OF
the consumer At from ga 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 . cent per pound cheaper
than today.
There IL now an elimination Of
speculation. extOrtionnte profits, ana
In the refining alone the American
people will save over S2j.OOO,OOO of
the refining chnrges last year. a part
Of these savings goes to the Cuban.
Hawaiian, Porto Rican and iousinninn
producer and part to the consumer.
Appeals to prejudice against the
food administration have been made
because the Cuban price In "a cents
nbove that Of 1917. II In said In effect
that the Cubnns 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. ana
we find 1t 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 md stimulate
production or that minimum price OF
N37 was necessary, and even this
would stine some producers.
The price ultimately agreed was ~
cents above these figures. or about one
NTH Of cent per pound to the Ameri-
can consumer. and more than this
amount has been saved by our reduc-
ton In refiners' profits. II We wish to
stife production in Cubn we could
Jake that course just at the time OF all
times In our history when VIC want