New-York tribune., 1919-10-25
Food Controller Williams
Trails Mysterious 1000
Tons Through Brokers,
but Cannot Find Supply
Export Rules Changed
Right to Exceed Government
Price Granted to Increase
Deliveries to LocalDeaiers

Wall Street banker Will ne called
upon to-day by Arthur Williams, Fed
eral Food Adm inistrator, TO explain his
part in the marketing Of 100000
, pounds of sugar. which has fitted on
and off the market, through a dozen
dealers hands. at exorbitant prices.
MIR. Williams and Department Of Jus
tico agents traced the hidden trail of
he sugar through twelve dealers, up
TO the door of the banker. It's actual
whereabouts still is mystery.
The sugar was offered to Mr. Will
ans Monday by Leo w. Hammel, an
esporter. 1t was found on nvestiga-
Ion that eight dealers had handled
he sugar deal None knew where
t was, but each told the next OF 1t
and prepared to take one quarter cent q
pound commission If sale we're made.
The eight brokers added two cents g.
pound to the price in this way. They
did not attempt TO find q purchaser
themselves, Mr. Williams learned, be
cause Of the excessive price asked for
the augar-18M cents--compared with
+he governments fixed prico of 9.35
cents.
Bush Denies Sale Blame
While slill on tho quest OF the
much "brokered" sugar, the attention
OF the food administrator was called
by the Department Of Justice at
Washington to O sale Of 1650,000
pounds Of sugar at 1S cents 81 pound,
reported to have been made BY Bush
Terminal Company 70 one Of the arg-
est candy manufacturers in this coun-
1
.urer, IN need of sugar TO keen his
huge plants engaged, attempt - TO
make tic purchase without complaint,
but the information Got out through
othe' channels
Mr.. Williams communicated with
irving T. Bush, president of the Bush
Termiral Company The latter wrote
'he administrator saying that the sale
nad been called to his attention Friday
and that he had Aargad f.
Middle ton, head OF the company's for
eisn department, for negotiating it.
Mr.. Bush was so concerned about the
incident that he called personally to
zee Mr. Williams.
He explained thai the sugar had
been purchased from Young & Vile,
of 366-37O West Fifteenth Street,
20 be sold abroad The purchaser, c.
6. Merrills, after depositing check
or $4,000, and signing e contract,
nd not consummate the tran saction.
Nf busn said the check was not paid
Employee Is Blamed
This, according to Mr Bush, left the
sugar on the hands Of Mr. Middleton.
and the latter. apparently unaware OF
me governments price regulations on
sugar, sought TO sell IL here a. 19 cents
+ pound.
Mr.. Williams Instituted search to
ocate the sugar, which was reported ~
DC in q local warehouse.
From Young Vile It was learned
shat. Kruger & Dickson, confectionery
manu- fac.urers, of 167 Wooster Street.
aad offered them the sugar. He
Fifth Avenue. had offered the sugar
20 Kruger & Dickson. 1t was from
Hecht & H,-nt that Mr.. Williams
learned of the Wall Street banker who
plays with sugar On the side, who tod
Mr.. Williams the sugar was in New
York. Mr.. Williams said last night he
vas confident that 1t was in a ware
mouse below Fifteenth Street. on the
West Side, and added that Department
Of Justice agents would comb every
warehouse in the area.
In tracing the sugar Offered by the
Bush Company Mr.. Williams learned
that Kruger and Vile, although Of
tered 100000 pounds of sugar. had re
aimed $4,000 pounds TO be sold q
smaller customers. 1t was definitely
established that the two million pounds
of sugar were the same Mr. Hamcl
attempted to sell Mr.. Williams before
he knew the latter's identity One oi
the brokers figured In both the chair
~ dealers leading from Hamel anc
"a the one traced on information fur
nished by Mr.. Bush 1t was through
shis crossing Of trails It was l-arnee
that the same Sugar was being offered
IN two distinct channels and by more
shan twelve dealers.
Prosecutions Are Predicted
Ben A. Matthews. Assistant Unite,
States Attorney, declared that by tn,
signing by the President of the amend
nent to the Lever act, he would b
able TO proceed Immediately agains
sugar profiteers.
The storage In this city Of hug
quantities of sugar for export Will
consumers and manufacturers hero ar
almost without sugar. was admittedly
Mr.. Williams end the Sugar Equaliza
ton Hoard yesterday, when it was an
nounced that sugar held for expor
could be sold here at a price hig
enough to compensate tho owner
In statement last night, MIR. VII
liams pointed out that the numeroD
offers OF large qualities of supa
showed conclusiyeiy that local ware
houses could disgorge enough to sat
lsiy the demands Of consumers an
manufacturers.
This sugar, Mr.. Williams said. wa
purchased fer export, but becansa n
'he iongshoscrner-'s strike and the ~
IN the exchange rite. much spoar
neld in this city. e"'