The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-10-25
OUTLAWED SUGAR IS
HIDDEN IN WALL,ST..
Certain Banker Knows of 1000
Tons Sought by Federal
Food Agents.
SWEETENED MANY HANDS
Once Offered at PrOfiteer Price
It Has Added Many Com
missions,

1 thet EOO0 <A0-
ministrator. will give a Will Street
banker a chance to-day to answer the
riddle: Sugar. sugar, sugar; who's got
the sugar." This particular bunch OF
| sugar, 1000 tons, originally was pur-
chased for export ana subsequently Of
fered for domestic sale. MI. Williams
traced 1t back through five concerns to
the Wall Street banker, and although
all thought they had the sugar, having
seriously contracted to buy it, they dis
| covered that they didn't have II. The
| sugar was offered for sale at an un-
! lawful price4-Mr. Williams calls IL a
| ''profteering pi,ce"-and on each sue
ceeding transaction commissions were
| added.
| Documentary evidence in the form of
a letter obtained by Mr.. Williams blunt
| ly set forth that the sugar didn't mate
rialize because the principal, who. 1t is
believed. ought to know where 1t Is, had
been scared by the publicity over the
| hunt for boarded sugar >stores held at
| profiteering prices and didn't dare TO
| let 1t out at the unlawful price de-
| manded.
| Mr.. Williams declined last evening TO
| announce the name of the Wall street
banker for publication at this time.
| The Food Administration said 1t is
! understood the sugar is in warehouse
1 south of Fifteenth street He will ask
the United States District Attorney to
A1ake search OF all warehouses. II Is
al ;pected that when the Department of
Jt'stice agents start on the scent some
| thing is going to happen.
Prosecution by Lever Act.
Ban A. Matthews, Assistant United
Statt District Attorney, declared his Of
fee INTENDS to proceed against sugar
proflta ers under the amendment TO the
Lever act, which provides penalties for
profitee ring in food and clothing.
The Sugar Equalization Board has
come to the aid of holders of sugar pur-
chased ti,r export, which canont be sent
abroad because credits have fallen fiat"
or for SOM other reason.
THE Fair Price Committee is naturally
anxious to have any sugar now in New
York made a valuable for immediate dis
tribution for home and industrial uses"
Mr.. Williams said last night. "The
Sugar Equalisa ton Board therefore will
join with the oommittee in authorizing
that any holder OF export sugar may
distribute 1t in tins city at the refinery
cost plus all the ather proper costs 'Of
handling. includinA storage pending
shipment with the Government allowed
percentage of profit IN addition.
Careful record mMlt be kept OF all
such sugar from the holder through
to the retailer or the n1anufat 6urer. re-
serving evidence in each instarce that 1t
is export and not domestic sue ut. which
Is being sold under these Conditions.
Thus any holder OF export sug ar il this
city at the present time is pl ssed In
position legitimately to disppsHi OF this
commodity under conditions Which In
sure him the return OF all legitimate
costs and a fair margin OF profit"
Mr.. Williams admits the possibility
that the thousand ton lot which the Wall
Street banker will be asked 10 tell about
possibly may be the same mysterious
thousand tons of sugar VIII bch Leo w.
H"mmel. of 95 Liberty str yet. tried so
hard to sell over the telep hone to the
Food Administrator on Tu esday. Ad-
missions thus far have be en- received
from ten individuals and FRI MS that they
thought they had the so-cal'ed Hammel
sugar to sell and couldn't 10 cate Il after
they had agreed to sell It.
Mr.. Williams got a line on yesterdays
much sold 1000 ton lot through a man
who thought he lad the sugar and
didn't.
Record of L pst Sugar.
According to the re cord MT Williams
asked the Bush Tern final Company to
tell him about lot of sugar (s25 tons).
the purchase OF which, had been con-
tracted for In the ma me of the firm
from the Marks Chemical Works, lit
Produce Exchange Building. 1t was
Canadian sugar in 6ono New York at
1iE cents a pound. spot. delivery Irv-
ing T. Bush. president of the Bush Ter
minai Company. and Ju iius Henry CO.
hen. III Broadway. coun vel, went to Mr..
Williams's offics yesterda y and gave the
details OF the supposed purchase, fol- |
lowing the receipt of letter from Nc |
Bush by the Food Administrator show.
ing that an employee of the company
was at fault for the transaction. This
employee suffered for his bad Judgment
by losing his position. He was f. f. |
Middleton. in charge of die company's
foreign department, which was organ !
ICED about six months ago. Mr. Will |
liams says The dismissal OF Middleton |
ante-dated his request for information |
from the company concerning the deal |
Mr.. Bush So i'd his attention was called |
to the transac uion on Friday forenoon |
October ~. He Immediately inquired |
as TO the detail,' and learned that while |
the profit to US ,Sn the transaction would |
have been less THAN per cent. had 1t |
been consummat,td. both the purchase |
and the sale wer,s at prices above that |
fixed by the Food Administration"
The course OF tue sugar was traced |
by Mr.. williams in this fashion: Hecnt l
& Hecht, importers, 200 Fifth avenue,
contracted to buy 1000 tons from the |
Wall street banker. and passed II along
to Kruger & Dickson, manufacturers OF |
CONNECTIONS. 1877 Wpd ster street. who
held out 175 tons an d passed along S25
tons 10 Young 4 Wil,t importers, 366 10 !
$40 West Fifteenth ~ rect The Marks !
Chemical Works, actin e as broker for
Voting q VILE, sold &c, the Bush Termj-
nal Company. And when the transac-
tons came up for MI Williamss wise
nobody knew where ttH, sugar was. and
the answer Of the riddle apparently is