New-York tribune., 1919-10-23
Ruse
Exposes 5000
Tons of Sugar
Broker for Profiteer Offers
Food Controller 10000.
600 Lbs. at Double Rate
Set by U. S. Authorities
Warehouses Still Secret
Administrators Starts Search
for Places Where Vast
Supplies Are Hoarded

Ten million pounds Of sugar-enough
to relieve the sugar situation here until
the rcfineries can operate at their nor
NAL capacities-were offered to Arthur
Williams. Federal Food Administrator,
by sugar broker for 1874 cents a
pound yesterday.
The governments fixed wholesale
price for sugar is 91a cents. and any
dealer receiving more might have his
license revoked and might possibly be
prosecuted. When the broker made the
offer to Mr.. Williams he did it by tele-
phone, on the belief that he was talking
to one of the many candy and soda
water manufacturers in this city whose
plants are in danger Of being closed
because Of the lack of sugar
Mr.. Williams last hight, after re-
ceiving several complaints against
specu ators, asked all persons ap-
preached with offers of sugar at ex-
orbltant prices to communicate with
him. The fragrant cases will be placed
before the United States District At
torney, he declared,
Telephone Used Again
The Food Administrator learned of
the offer of 5000 tons of sugar at 1871
cents from firm of manufacturers.
The actual holders Of the sugar and
it's location were shrouded in the mys-
terry which, he said, cloaks most Of
these transactions. He was told to
call Bowling Green G272.
MIR. Williams proceeded as he did on
Tuesday when a broker named Ham
mel offered him 1000 tons of sugar at
1874 cents: Mr.. Hammel, after visit
ing Mr. Williams, said he would aid
in unearthing the boarded sugar, and
gave the food administrator valuable
information which enabled him to
trace the sugar through six brokers
thus far.
At the Bowling Green number a
voice said that it knew of the sugar.
but arrangements for its purchase
would have to be made through Mr..
Dempsey, who occupied an office
nearby.
"Mr. Dempsey" Answers
In few minutes new voice in
troduced itself as Mr.. Dempsey and
the following conversation ensued:
Mr.. Williams. 81 understand that
you have 5000 tons of sugar for sale"
Voice. "Yes, | have, at 1874 cents
a pound"
Mr.; Williams: "when could you be-
gin deliveries? %
Voice. ~ understand that they
could be started tomorrow. But /
would like certified check for ten
per cent of the amount involved be-
fore we 60 further"
Mr.. Williams. Suppose we get TO-
gether and talk this over. Come up
to see me-"
Where shall come %
Mr.. Willams-"Oh, make it the Food
Administrators office, 1870 East Fiji
teenth Street. Ask for me. I'm the
Food Administrator"
In Mr.. Williams office Dempsey, still
somewhat surprised, said that he was
member of the firm of Ager & Demp-
sey, food and coal exporters and brok-
ers. He said that Mr.. Ager usually
handled the sugar end of the business
and that he had just happened to be in
when Mr.. Williams telephoned.
Hoarding Places Concealed
He declared emphatically he did not
know where the sugar was being held,
nor was he certain as to the identity
OF the man actually holding the sugar.
HIS firm was to receive the regular
commission of three cents hundred
pounds on the transaction, he said. He
said he thought that man named
"Hemi" or "Hymes" was the owner of
the sugar.
Mr.. Williams finally was able to
reach Ager, who said that Mr.. Haines.
recommended by Mr.. Dunn, of the
credit department of the Irving Ma
.ional Bank, had empowered him to
dispose of the sugar. He did not know
where Mr.. Haines could be reached or
where the sugar was being held.
Mr.. Dunn was reached by the Food
Administrator. He said that acting
n an unofficial capacity, he had rec
'mmended man in search Of broker
q. firm to handle some sugar, to Ager
nd Dempsey.
Dempsey then said he was not sure
if the sugar could be delivered.
when you spoke to me over the
telephone" Mr.. Williams told Demp-
sey, your tone was positive. | can
not understand your change Of man.
ner. | want lou to understand that it
is your patriotic duty to help us in
this matter. Suppose you did not
have any sugar to offer-it is just as
disturbing at present to even suggest
that there is sugar being held for
speculation, because it contributed to
the general spirit of unrest"
The cost of the sugar would have
been s1,875,000. If sold under the Food
Administrations regulations, it would
have brought S950,O0O. The commits
sion Of Ager and Dempsey would have
been $4,000. Mr.. Williams said he
hoped to trace the sugar until the man
responsible for the excessive price is
reached and punished. He also will at
tempt to secure the release Of the
sugar at the governments price.
Federal Raid Feared
He said that two firms requested in