New-York tribune., 1919-10-28
Federal Food Controller
to Discontinue Practice
of Accepting Overcharge
From Crasping Dealers
B'klyn Candy Maker Held
Authorities Trying to Find
2 Million Pounds Trailed
~ Wall Street Broker

Al cases OF alleged profiteering in
sugar which come to the attention of
inc Fair Price Committee here will be
turned over to the United States Dis
met Attorneys office for prosecution,
Arthur Williams, Federal Food Admin
istrator and chairman of the commit
zee, announced yesterday.
Mr.. Williams declared it had been
decided to discontinue the policy Of
permitting 4 dealer to escape punish
ment by making refund OF his excess
profits. Hereafter, he declared, in
instances where investigators reDort
that the overcharging actually occurred
the suspected dealer will be arrested.
The amendment TO the Lever act,
signed by the President on Tuesday,
makes this prosecution oossible. The
amendment makes profiteerng in food
stuffs punishable by $4,000 fine. or q
year Imprisonment or both. The price
Of sugar is fixed by the government at
9.35 cents a pound wholesale and II
cents retail. making it easy to define
profiteering in that commodity, Fedora
attorneys declared yesterday.
Candy Maker Held
Samuel Shapiro, manufacturing
confectioner OF II Emerson Place, was
arrested yesterday in accordance with
the Fair Price Committees policy.
Shapiro received a notice to visit the
Office OF Ben A. Matthews, Assistant
United States Attorney. Hc was
accompanied by his lawyer He was
obviously puzzled when he came into
Mr.. Matthews's Office, but he was Al
most speechIess with surprise when
he was told that he was under arrest.
He was held in $500 bail by United
States Commissioner Hitchcock for
hearing next Monday.
The complaint against Shapiro was
made by Carl Larson, of 1908 New
Utrecht Avenue, Brooklyn, vice-presi-
dent of the Sterling Pure Food Com
pany. Larson said that on August IL
his firm paid Shapiro 13.1 cents a
pound for SOC pounds Of sugar. On
August 20, he complained. he was
forced to pav 13 cents FOR 5,73c
pounds. An additional assessment OF
ID cents hundred pounds FOR carriage
was made by Shapiro, Larson charged.
Three checks were turned over by
1ir. Larson to Mr. Matthews, ono dated
August y and amounting to S459.o7,
bearing the indorsement samuel Sha-
pro No. ~; another dated August 20
5or S4SS.G3, indorsed by shapiro Candy
Aanufacturlng Company, Samuel Sha-
pro, No. 4 Prop and third dated
August % for $l348S, indorsed by
samuel Shapiro No. l."
Samuel /. Berger, State Deputy At
forney General and counsel. with Alan
Fox OF the Fair Price Committee. viii
assist Mr.. Matthews in prosecuting the
case. Mr.. Berger VIII be called upon
to prepare other cases recommended by
the FAR Price Committee for prosecu-
ton by the United States Attorneys
Office
Dealers Getting Sugar
Nr. Williams also turned over to the
Federal authorities yesterday the task
OF locating the 2240 900 pounds of ST.
gar which had been trailed through
thirteen dealers to q Wall Street bro
Ser Information as TO the proffering Of
this sugar at excessive prices came 70
sources. He first heard Of it when an
exporter named Leon W. Hammell Of
fered it to him at 1884 cents q pound.
Later knowledge OF it same to him
through the Bush Terminal Company,
winch was attempting to sell il TO 5.
eancy manufacturer az price higher
than that fixed by the government.
According to the Food Administrator,
the prime pal-the man actually able TO
produce the sugar-has been located
It is matter for the District Attorney
TO decide whether or nor there shall be
prosecution, said Mr. Williams.
Mr. Williams said taat the whole
saiers are now getting sugar. BY No
vember 7, according TO Henry F. Cos
tello, Of the Sugar Equalization Board,
The city Will be able to obtain its "ra-
lion" Of fifty rillion pounds. Both
Dir. Williams and Mr. Costello said
that a serious situation could be
sver.ed e consumers did not use more
taan one pound of sugar q week un-
II receipt Of the new crop increases
the supply.
Wholesale dealers yesterday at
tempted % obtain some Of the sugar
held Tor export, which can be released
At prices higher than those fixed By
the Sugar Equalization Board to in
sure the owner against loss. 1t is ex-
pected that much Of this sugar will
be available within short time.