The Miller press. [volume] (Miller, S.D.) 190?-current, 1918-01-24

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 s1.30 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-
inning, losses, cost Of begs, labor, insur-
ance, interest and other things, rather
more than cover the difference. After
prolonged negotiations the refners
were placed under agreement estab-
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
past year. sold for an average Of about
$4.24 per hundred Z. o.. b.. Cuba, to
which duty and freight added to the
~refiners' cost amount to about $685.
per hundred. The average sale price
of graduated by various ~refneries, ac-
NOfuIuk " VI lnNtStikutiOh, was ~
$3.50 per hundred, or a differential or
S1.S4.
I'm reducing the differential to $1.3O
there was a saving to the public OF "a
cents per hundred. Had such a diff
~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.s00,o0O."
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-
s~entatives of the American %re1ners,
with a member Of the food admiDistra-
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 Anal
voice. This voice has rested In the
governments concerned. together with
the Cuban government, and | wish to
state emphaticaIly 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 70 cents pei
hundred. The price agreed upon Is
about $3.50 per hundred pounds, (. 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 sesboard points or
should place sugar In the hands OF
the consumer at from 8H to 9
cents per pound, depending upon
locality and conditions Of trade, or
at from I to 2 cents below the
prices OF August last and from one
half to a cen per pound cheaper
than today.
There Is now an elimination o.
speculation, extortionate profits, ant
In the refining alone the American
people will save over $25,000,O00 o.
the refining charges last year. A par
Of these savings goes to the Cuban
Hawaiian, Porto Rican and Lousianiar
producer and part to the consumer.
Appeals to prejudice against thu
food administration have been made
because the Cuban price Is "a cent,
above that of 1911. II is said In effec
that the Cubans are at our mercy
that we could get sugar a cent lower
We made exhaustive study of the cos
of producing sugar In Cuba last yea
through our own agents In Cuba, am
we find II averages $3.50, while man,
producers are at a higher level. W.
found that an average profit of a
least a cent per pound was necessar,
in order to maintain and stimulate
production or that a minimum price o
$4.37 was necessary, and even thi
would stifie some producers.
"The price ultimately agreed was 2
cents above these figures, or about one
fifth Of a cent per pound to the Amerl
a consumer, and more than TIL
amount has been saved by our reduc
ton In refners' profits. II w wish t
stiie production In Cuba we coul,
take that course just at the time Of a
times In our history when we wan
production for ourselves and the al
lies. Further than that. the state dc