Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-22
Active Control of Sugar Prices
Resumed by Government
Through Agreement Reached
With Food Administration.
Department
OTHER PARTY TO PACT
Sugar Should Reach Con-
sumner Approximately II
Cents a Pound, According to
Washington Announcement.

Washington, Aug. 21.-(By The
Associated Press. s.)-Active control
of sugar prices was resumed today
by the government through an
agreement reached between the De-
partment of Justice and the food ad-
ministration that licenses will be re-
voked by the latter when it is shown
dealers have been profiteering.
Sugar should reach the consumer
at approximately II cents a pound,
it was announced, based on the
ownership of the entire domestic
and Cuban crop by the United
States Sugar Equalization board,
which is selling to refiners at 7.28
cents a pound. Refiners are under
contract with the board to sell at 9
cents, less 2 per cent discount for
cash, wholesalers and jobbers are
allowed maximum of 6S cents per
100 pounds for handling and retail
ers are permitted a profit of to ~
cents per pound, making fair price
of II cents, except in cases where
dealers have purchased at an "un-
reasonable" price due to misunder-
standing in the trade. When this is
a fact, a reasonable advance over
the actual cost will be permitted.
Take Action Friday.
With the house agriculture COM
mittee's amendment for extension
of the powers of the food control
act before it, the house tonight was
pepared to take action tomorrow on
the amendment and thereby make its
first extensive step toward
beating down living costs. The
amendment which was reported to
the house today by unanimous
vote, includes retailers among, those
liable under the food control act,
and its enactment along with the
control exercised over sugar, Of
ficials believe, will do mitch to cur-
tail profiteering by retailers.
Our desire is to secure a fair
price for the consumer" said At
torney General Palmer in announc-
ing resumption of sugar control,
"and we do not wish to pursue a
wholesale policy of recommending
the cancellation of licenses. Where
trade adjusts itself to fair price
for the future, past transactions, un-
less fragrant, will not ordlnarlally
be made the basis of recommended
ton by this department for the cam
collation. of the license"
Will Cover Surplus.
Sale of army subsistence supplies
now in progress will cover virtually
the entire surplus, the War depart
ment announced, including enough
to give pounds of meat and IA
pounds of canned vegetables to
every person in the United States.
The amendment to the food con-
troll act as reported today would
extend the acts provisions to in
clude wearing apparel, containers OF
food, feed and fertilizing or fuel oil.
Penalty of $4,000 and two years i'm
prisonment for profiteering.
"The absence of evidence of any
profiteering by the farmers" the
agriculture committees report said,
and the provision of the so-called
Sherman antitrust law recognizing
collective bargaining by labor makes
it wise to not subject the farmer to
inconvenience and expenses under
the federal law"
Numerous bills and resolutions
dealing with living cost questions
were presented today in both houses
of congress. Representative Hutch
inson. republican, New Jersey, in
troduced a bill which would enable
the secretary of agriculture to pre-
vent deception with respect to cold
storage foods; to regulate the stor-
age and shipment of cold storage
foods in interstate commerce. and
Limit such storage to 10 months"