The sun., 1919-11-01
UNHARYESTED CANE
USED IN SUGAR DEAL
Food Administrator Traces
Moves Of 1000 Tons Of
Prospective Sweets.
SEVEN IN TRANSACTIONS
Evidence of Profiteering Is
Sought as Several Con-
Germs Explain.
SEVEN IN TRANSACTIONS

1000 ton batch of sugar. whose
trade movements had been traced by
Arthur williams. Federal Food Admin
istrator, through seven handlers, was
Identified yesterday as sugar which
hasn't been refined yet In fact, as far
as anybody knows, the sugar may still
be standing in the cane fields OF Cuba,
among the first 1000 ton lots of the
1920 sugar crop.
The discovery was made yesterday
at a hearing before MIR. Williams to
determine the whereabouts of the sugar
and TO ind out II anybody had been
guilty of prohteering anywhere along
the line OF the sugars travels in trade
channels.
More than one person, who believed
he actually had purchased the sugar
thought it was real sugar of the present
and not sugar of the future. and 1t was
because of the vigorous efforts to get
possession of it--these are sugar short
age times-that Mr.. Williams got on
the sugar scent.
Three Situations shown.
The hearing developed at least three
situations in which the Attorney-General
OF the United States and his cam
paigners are Interested: (1) Somebody
did some active profteering. as the 1000
tons of sugar started at ~ cents
pound and was being offered at ISM
cents when Mr.. Williams got wind OF II.
(2) At least two persons who contracted
to sell the sugar admitted they didn't
have Food Administration licenses to
deal in sugar. (S) One admitted con-
tracing to buy the sugar for export,
although 1t was intended for manufac-
ture into candy for domestic distr!bu-
ton and some export. Mr.. Williams
called this "camoufiaging.
Samuel A. Berger of volunteer coun-
sci to the Fair Price Committee, ex-
aminer at the hearing. will prepare
statement of the law and facts for Mr..
williams's consideration. If Mr.. Will
Jams SO decides the interesting and In
tricate case will be turned over to Col.
Francis G. Caffey, United States At
torney.
At one stage of the chain Of trans
actions q. d. Harrington of e. d. Har-
rington q Co, bankers, 10 Wall street,
made Hecht & Heoht an offer of the
sugar at S1240 per hundred weight for
the thousand tons, but Hecht & Hecht.
WHO WeTo dCllHB as pTohtES, uctldIcu
the deal of. Later the Beinhauer Bros
Candy Company, 220 West Forty-second
street, for whom Hecht & Hecht
originally wanted to buy the sugar.
made a contract for 1t directly with
Mr.. Harrington. paying $4,000 on ac-
count. .
Phases OF Deal barred.
Mr.. Harrington told Mr.. williams that
Mr.. Beinhauer said he was willing to
buy the sugar for export because he
understood others were getting permits
sion from the Sugar Equalization Board
to use domestic sugar for export pur-
poses and as his concern never had been
on the blacklist he was willing to take
a chance on the sugar being diverted
from export to domestic use.
Mr.. Harrington admitted he demanded
three months before the time OF deliv-
cry payment of the entire contract price.
He contracted to pay Delsizian Bros
s11.40 per 100 pounds for the sugar he
was going to sell Beinhauer, and In his
contract with the former set forth he
was going to establish irrevocable cred
its. but the Beinhauer deal fell through
and the Dilsizian Bros. sold the sugar
to some one else.
There was testimony by William r.
Hauptman, general manager OF the Bein-
hauer Brothers Candy Company, that
deliveries OF the sugar were to be made
at the rate of twenty-five tons a day
statement which Harrington said
wasn't so.
GeorgeH. Doyle of Dilsizian Bros
importers and exporters said his con
Germ contracted to buy the sugar for
delivery not before January 20 from
Czanikow Rhondea for Milan house,
but the order was recalled and on Octo-
Der II a contract was drawn for the sale
of the sugar for export to Harrington
Co. Harrington didn't establish his
credits he said. and the same sugar was
sold to one Sherbourne of Boston.