Omaha daily bee., 1919-12-06
High Prices Of Sugar
Blamed on Local Firms
Continued From Page One.)

buary, 1919, and that the notice was
sent out by the Missouri River Job
bers association. Asked for his
opinion as to what had prompted
this action on the part of the asso-
citation. the witness declared it was
ito drive us off of the market"
What is your opinion as to the
cause OF the local situation?" the
witness was asked.
Jobbers Are Blamed.
Directly to the influence Of he
jobbers," was the response. 1--WE
do not do business in accordance
with the ideas of these jobbers,
Mr.. Cullen continued, land for this
reason it is my opinion we have
been unable to obtain a fair supply
of sugar. We are price cutters, and
the jobbers do not want us to do
business on this basis"
Both Mr.. Williams and Mr.. Cullen
testified to the fact that their vol
Tune of business was being seriously
affected because of the fact that
they could not procure sugar for
their customers, who were forced
to buy their groceries from other
wholesale houses. which had in
CURED the pleasure of local jobhers
and the sanction of the Missouri
River Jobbers' association.
Appealed to Hoover.
Mr.. Cullen declared that two years
ago the local sugar market was in
about the same condition as it is
now, particularly with reference to
the control and influence of the job
bers. 1--WE could not get sugar
then" he said, 'but the favored ones
were getting the best of it as they
are now. We sent an attorney to
Washington and the matter was put
UP to Herbert Hoover personally.
Immediately I'VE found relief"
The hearing is being held in the
Office of United States Attorney
Allen, on the third floor of the fed
eral building.
Cannot Buy Sugar.
At the conclusion of the hearing
yesterday afternoon, Mr.. Allen an
rounced he would forward trans
cript of the evidence to Attorney
General Palmer at Washington, at
whose instance the investigation was
taken up here.
c. w. Southwell, manager for the
Nebraska-Iowa Mercantile company,
was the first witness called at the
afternoon session. Mr.. Southwell
declared he was unable to obtain
sugar from local jobbers because, in
his opinion, his prices and methods
did not meet with the approval of
the influences which control the
Missouri River Jobbers' association.
The witness asserted it required be-
tween $50 to 200 bags Of sugar
day to meet the demands of his
trade. He asserted that formerly
he purchased sugar from various re-
timing companies, but under the
present arrangement he was not per-
mitted to do this.
R. F. Smith, secretary of the
Bradley Merriam Smith company,
said he was able to get only a linn
tied supply of sugar and submitted
correspondence to show that he had
every possible endeavor
to obtain supply sufficient to meet
the demands of his company's Gus
TONER'S.
Not Association Members.
Both Mr., Southwell and Mr..
Smith asserted their firms were not
identified with the Missouri River
Jobbers' association.
William Chapell, manager of the
grocery department. for the Farm
ers' union, also declared he had been
unable to procure any sugar since
the last zone regulations became eff
fective October Is, which marked
the beginning of the assumption of
power by a handful of Omaha job
bers in this territory.
Harry B. Patrick, manager of the
Brokerage company, was the
first witness called to testify for the
accused brokers.
why has your company refused
a fair share of sugar to these vari-
Gus complaining hrmsI?" the witness
was asked by Mr.. Allen.
Questions Are Evaded.
{ Mr.. Patrick's explanation was to
the effect that his company did not
recognize the firms referred to as
Legitimate wholesale concerns"
The witness declared that these
firms could buy from Chicago and
southern markets. He made no ex-
planation to the point advanced that
sugar from far distant sections
would not enable the dealers to
handle the product in competition
with the beet sugar, which the job
bers were handling exclusively here.
What is your reason for the pol
icy of designating some of these
dealers as legitimate wholesalers
and others you refuse-to recognized"
Mr.. Allen wanted to know.
Il do not know who is responsible
for the policy" was the answer. ct
was adopted before my connection
with the firm
Mr.. Patrick admitted that he was
chairman of the Omaha district for
the distribution of sugar for one
year during the war. He declared
he was working as a government
employe while thus engaged. Mr.. |
Patrick did not attempt an explana-
ton of why his firm should not sell
n wholesale quantities to all con-
Germs which measured up to the re-
luirements and offered to purchase
n wholesale quantities.
Bar to Competition.
P. D. Baum OF the Meinrath
Brokerage company declared his |
lrm would not sell to any but quail
led" wholesalers, and for this rea-
son had reserved the right to turn
Town the orders of certain Omaha