The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1918-01-25


should be limited to $1.3O per hundred
pounds. The pre-war differential had
averaged about 85 cents and increased
costs were found to have been impos-
ed by the war in increased cost Of re-
fning, losses cost of bags, labor, insur-
ance, 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 1, and
anything over this amount to be agreed
extortionate under the law.
an the course of these investfga-
lions it 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 f. o. b. Cuba, to
which duty and freight added to the
refners' cost amount to about 5000
per hundred. The average sale price
of granulated by various refiner1es, ac-
cording to our investigation. was about
$3.50 per hundred, or a diferentlal OF
$1S4
.'In reducing the dlfferential to S1.3O
there was a saving to the public OF "a
cents per hundred. Had such a d1r-
ferential been in use from the LIST OF
January, 1917, the public would have
saved in the first nine months Of the
year about S24,SOO.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
l.. A committee comprising repre-
sentatives of all Of the elements CT
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.
g. committee comprising three rep
resentatives of the English, French
and Italian governments two repre-
sentatives of the American reflnerS,
with a member of the food udministra-
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 Alneri-
can, English, French and Italian gov
ernments.
This committee. while holding strong
Cuban sugar, has not had the final
voice. This voice has rested in the
governments concerned, together with
the Cuban government and l 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 per
hundred. The price agreed upon is
about $4.GO 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
per hundred for refined sugar from
the refiners at seaboard points or
! should place sugar in the hands of
| the consumer at from 8H to 9
J cents per pound, depending upon
locality and conditions Of trade, or
at from I 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, eXtortionate profits, and
in the refining alone the American
! people will save over $25,OOO,OOO of
the refining charges last year. A part
of these savings goes to the Cuban.
Hawaiian, Porto Rican and Lousianian
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 CuhGns are at our mercy
that we could get suga: q cent lower
We made exhaustive study of the cost
OF producing sugar II C,.oa last year
through our own agents in Cuba, and
we find it averages $3.50 while many
producers are at q higher level. We
found that an average profit of al
least a cent per pound was necessary
in order to maintain and stimulate
production or that minimum price OF
$4.37 was necessary, and even this
would stifle some producers
1.-The price ultimately agreed was 2:
cents above these figures. or about one
fifth of cent per pound to the Ameri
can consumer, and more than thi:
amount has been saved by our reduc
ton in refiners' profits. If we wish t.
stifle production in Cuba we coult
take that course just at the time of al
times in our history when we wan
production for ourselves and the al
lies. Further than that, the state de
partment will assure you that such
course would produce disturbances il
Cuba and destroy even our presen