The sun., 1919-09-09
DOMINION'S RATES
ON SUGAR FOUGHT
Big Losses Feared in Limited
Profits Allowed by Board
of Commerce.
Special Correspondence to the Canada,

] Special Correspondence to the Canadian
Section of THE SUN
! MONTREAL, Sept. S.-The first order
made by the newly constituted Board
of Commerce of Canada established a
policy to which very strong exception
is taken by Canadian business men
generally. 1t is the policy of limiting
the profits on the domestic trade Of an
Industry which has both domestic and
export business. in such way as to
| leave the industry without enough to
| live op from its domestic trade, and
thus require it to divert some of the
prohts of its export trade to the sup
port of its domestic business.
This is much, the same principle as
already has been established in the case
OF the newsprint manufacturers, whose
domestic price was regulated by the
controller and the paper tribunal, and
was not sufficient in the case of most
companies to allow them a reasonable
| remuneration on their capital II It were
not that they are able to make a much
more substantial profit on export bust
ness.
The first victim Of the Board of Com
merce is the sugar industry, which has
been provided with a maximum price
for its domestic trade not to exceed II
cents pound wholesale, and further
restricted by the provision that the
Proht must not exceed two-fifths of a cent
on the pound. The refiners were also
notihed that their export trade might
be limited or stopped If they failed to
provide sufficient quantity OF sugar
Tor domestic requirements at the prIee
thus fixed
The refiners admit that they can live
comfortably under these regulations so
long as the export trade remains as
strong as 1t is at present, but say that
any weakening of the foreign market
VIII compel them to apply for a re-
consideration of the domestic price.
The plea was advanced before the
board that It had not the authority
necessary to enable 1t to impose these
very drastic regulations; but w. f.
OConnor. one of the members Of the
board, who has been studying the DOW
ers of thu United States Food Board
Tor the last two weeks, stated the Boar
OF Commerce possesses every. power en-
joyed by any United States authority
and pany other powers for which the
United Seates authorities are now ask
ing t-
The board evidently does not propose
that Canadian consumers should have 10
compete with foreign consumers for
products raised or manufactured in Can
ada.
BY the same order the retailers pro1t
is limited to ~ cents or cent a pound
over the price paid to the refinery nv
The wholesaler, which latter price in
cludes the wholesale commission of E
per cent. The retailer is allowed to add
the actual freight paid on the sugar from
the factory to the point OF retail sale
An effort has also been made to pre-
vent the sale OF Canadian sugar 10
United States spectators, who have
been dealing extensively in Canadian
sugar for future delivery. This Is To
be effected by permitting the export of
! sugar only under bona fide binding
contract for sale to persons abroad.
The decision caused no perceptible dis
turbance in the market for sugar securi.
ties, owing to the fact those interested
in the industry are confident that N
the export trade declines they will he
able to obtain relaxation of the reR1,la-
| lions regarding domestic trade.
Local refners claim that the II cent
price. which includes the per cent com
mission which they must paw to the
wholesalers, will not allow them any,
thing like two-fifths Of a cent profit ner
pound. The president of the ST, Law.
renee Sugar Company estimates thar
the cost of producing graduated sugar
in Canada Is $1093h per 100 bounds
| and that the whole benefit from present
high prices goes TO the Cuban grower
1t is expected, moreover, that the nrIca
to the Cuban grower on the next crDp
will be even higher than the present.