Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-10-20
TO PREVENT
UNDUE SUGAR PRICE
Attorney General Informs
Beet Product Refiners of
Fair Wholesale Rate.

Steps to prevent an abnormal in
crease in the price of sugar because
of the existing shortage were taken
today by the Department Of Justice.
Attorney General Palmer notified
beet sugar refiners. who have been
withholding their products from the
market until the price situation be-
came more stabilized, that the United
States Sugar Equalization Board had
determined that 10 cents was a fair
price to be charged the wholesaler and
that any charge in excess OF this
amount by the reAners would be re-
garded Be in violation of the food
control act. He asked the refiners to
telegraph him. their concurrence in
this price, which would mean that
they would put their supply on the
market imm ediate1y. thereby reliev-
ing the present stringency.
New Price Means Increase.
The price to the wholesaler hereto
fore has been 9 cents, so that the
new price means an increase of 1
cent pound. Retailers have been
allowed to charge II cents a pound
for controlled sugar under the old
prices. While the Department Of
Justice and the sugar board did not
state what the new retail price would
be, it was assumed that the increase
there would be not greater than the
wholesale advance.
Telegram to Refiners.
Attorney General Palmer made pub
lie the following telegram sent to
beet sugar refiners:
after thorough Investigation by
the recognized authorities on sugar.
the United States Sugar Equalization
Board have notified the Department
Of Justice of the following facts:
''As a considerable part of the coun-
try generally supplied at this time Of
raised because of the beet sugar fac
tories failure to sell beet sugar as
produced and this condition in turn is
due to the uncertainty regarding price,
our judgment is that no higher price
than 10 cents cash less 2 per cent sea-
that you will decide at once to begin
marketing your sugar on this basis and
relieve the very serious situation.
1.-The price of 10h cents net cash
I. o. D. pant WHICH HAS DeeH OHeTeu
by the sugar equalization board for
sugars in excess of requirements in
your territory as shown by your 1917.
deliveries as a minimum up to SO. 900
tons for November and December
shipments to relieve an acute shortage
among the manufacturers east is not
to be considered a precedent or basis
for local prices.
Asked to Announc Acceptance.
II ask you to make your announce
ment of prices based on the above.
The Department of Justice will treat
as an unjust charge any price in ex-
cess of this and consider such q
charge in violation of section four of
the Lever food contract act. as amend
ed. Please wire today your concur
renee in the above"
Agree to Withdraw Opposition.
Senators Ransdell and Gay of
Louisiana. together with representa-
tives of Louisiana cane sugar pro-
ducers. at a conference today with
Chairman McNary Of the Senate agri-
culture subcommittee, which is in
veStigating the sugar situation, to-
day agreed to withdraw their opposi-
ton to proposals to continue the
licensing powers of the Sugar Eoualiza-
ton Board if the board will agree to
fix fair price for the 1920 Louisiana
sugar crop. Senator McNary at once
arranged for conference here tomor-
row between George A. Zabriskie and
the Louisiana senator's, at which an
off xr,;If L.