The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1919-10-20
q. s. Department of Justice
Takes Action in Shortage.
Palmer Warns Wholesalers
Against Excess Charges.
HE THREATENS PROSECUTION
Present Stringency Will Be Re-
Iieved by Order.
Understood Retailer Must Sell
Sugar at IL Cents.

| Washington, Oct. 20.-Steps to pre-
vent an abnormal increase in the
price of sugar because of the exist
| ing shortage were taken today by
| the department of justice. Attorney
General Palmer notified beet sugar
refiners who have been Withholding
their products from the market until
the price situation became more sta
bilized that the United States sugar
equalization board had determined
that 10 cents was a fair price to be
charged the wholesalers and that the
charge in excess of that amount would
be regarded in violation of the food
control act. Refiners- were asked to
telegraph thier concurrence in this
price, which would mean that they
would put their supply on the market
Immediately. thereby relieving the
present stringency.
Threatens Prosecution.
The attorney general threatened
dealers who charged in excess of the
fair price with prosecution under the
Lever act as recently amended.
The price to the wholesaler hereto
fore has been cents, SO that the new
price means an increase of 1 cent a
pound. Retailers have been allowed
to charge II cents a pound for con-
trol1ed sugar under the old prices
While the department of justice and
the sugar board did not state what the
new retail price would be, it was as
Sumed that the increase would be not
greater than the wholesale advance.
Palmer's Telegram.
Palmer's telegram follows:
after thoro investigation by the
recognized authorities on sugar, the United
fled the department of justice of the fol-
lowing facts:
AS a considerable part of the country
generally supplied at this time of the
year with beet sugar may be embarrassed |
because of the beet sugar factories failure
condition in turn is due to uncertainty
regarding prices, our Judgment is that
no higher price than ten cents cash. less |
two per cent board basis, is justified |
and we hope you will decide at once to |
begin marketing your sugars on this basis !,
and relieve the very serious situation. The |
price of ten and one-half cents net cash |
f. o. b. plant which has been offered by |
the sugar equalization board for sugars in |
excess of requirements in your territory as |
shown by your 1917 deliveries as mini |
mum up to $4,000 tons for November and !
shortage among the manufacturers east |
is not to be considered precedent or basis |
for local prices
II ask you to make your announcement |
of prices based on the above. The de- |
partment of Justice will treat as an unjust /
charge any price in excess of this and /
consider such a charge a violation of sec
ton four of the Lever food control act |
as amended. Please wire today your con-
currence fin the above"
Retail Prices Affected.
Retail prices are also directly af-
fected by Palmer's warning. Fair price
now being formed thru
out the country will know exactly
what price retailers are paying for
sugar and at what price it should be
sold to allow a fair margin of profit.
Any charge above this will subject a |
retailer to prosecution as soon as the
food control bill amendments, recent
y passed by congress, becomes law.