Mexico Missouri message., 1918-02-14

/ iiik uhu IL was u0dlly ueIeTInlneQ Una
J the spread between the cost of raw
and the sale of refined cane sugai
should be limited to $1.3O per hundred
pounds. The pre-war dlfferential hat
averaged about 50 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
nnce, 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.
I'm the course Of these investiga-
| lions II 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
| 1924 per hundred f. o. b. Cuba, to
which duty and freight added to the
retiners' cost amount to about $3.50
per hundred. The average sale price
of granulated by various refinerles, ac-
cordlng to our investigation, wls about
$3.50 per hundred, or a differential of
$1S4.
an reducing the differentlal to S1.9O
there was Il saving TO the public Of "A
cents per hundred. Had such a 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 $24SO0OOO."
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
1. 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 reflners,
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 q
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 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 $4.60 per hundred pounds, t. 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 sIa to 9
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 is now an elimination of
speculation, eXtortionate 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,
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 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 find it 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 to maintain and stimulate
production or that minimum price of
S4.37 was necessary, aGd even this
would stifie some producers.
'HEhe price ultimately agreed was 29
cents above these figures, or about one.
fifth of cent per pound to the Ameri-
can consumer. and more than this
has been saved by our reduc-
tiOn in refners profits. II we wish to
stiie production in Cuba we could
take that course just at the time OF all
times in our history when we want
production for ourselves and the al
Ifac fhan Abo eknHn