Omaha daily bee., 1919-08-29
BROKER TELLS
OF RE SELLING
SUGAR IN EAST
Evidence Previously Submitted
to Federal Officials and
Witness Is Excused
at Hearing.

hhchido W. Soiica vi tho Sui-
len Brokerage Co., yesterday after
noon was excused by state officials
holding a food investigation in the
court house, from publicly testify
ing to information which he ex-
planned hadsbeen given to the Fed
eral Trade Commission and the
United States Department of JUS
tice. concerning the sugar situation
in Omaha.
A brief recess was ordered while
Mr.. Cullen conferred privately with
George A. Williams. chief of the
state bureau Of markets and mar
keting, and Albert Munger, special
counsel for the state.
After Mr.. Cullen had impaired
his information confidentially to
the representatives of the state,
Mr.. Munger explained that it
would not be public policy to di-
vulge the nature of the informa-
ton at this time. as the state did
not wish to do anything that might
embarrass the federal government
in its Investigations.
Tells of Combine.
Mr.. Cullen testified that the in
formation which he had given to
the Department OF Justice was in
connection with an effort to deter
mine whether a sugar combine has
existed in Omaha.
The witness was called upon to
explain recent resale of sugar by
his firm to Chicago concerns. He
offered documentary evidence to
show that he sold $500 bags of
sugar in II cars to Chicago, and
that the profit averaged IS cents
bag of 100 pounds. He stated that
this resale was part of a purchase
of 9,625 bags, which cost on an aver
age of $10,63 IL per 100 pounds.
Two cars of the sugar sold to Chi
cago. he asserted. were bought from
an Omaha wholesale grocer. He
added that the sugar sent to Chicago
was shipped during a period of three
weeks and brought prices ranging
from 1888 to SIZES per 100 pounds.
In Face of Shortage.
George A. Williams, chief OF the
bureau of markets and marketing,
and Attorney Munger were interest
ed in knowing why an Omaha sugar
jobber should resell to Chicago in
the face of an apparent shortage on
this market.
81 know that sugar was being sold
in Chicago this week for $l2.75 to
$l3 and much sugar could be
brought in here at that price" Mr..
Cullen testified. Il believe that
know where to took for sugar. There
are about Is big operators in Chi
cago."
Explaining sugar conditions this
year, he stated that last March,
April and May jobbers and manu-
facturers were not inclined to put
their money into sugar, according to
usual custom, because they did not
anticipate any appreciable advance
during the season. This was fol-
lowed, he added, by auite an export
business by the rehners who were
restrained in July when the mis-
chief had been done. An unex-
pected demand for sugar then arose
by reason of prohibition and IN
creased manufacture of soft drinks
and candies.
Tells of Profits.
Mr.. Cullen testified that his firm
has sold 100000 bags of sugar in
this territory this year at a proht
of 5 to 20 cents per bag. He also
stated that the rehner's base price
on sugar has been 9 cents for some
time. In view of the general sugar
situation, he was unable to state
where sugar was coming from to
supply this territory for the next
few weeks.
Robert F. Smith. secretary Of
Bradley, Merriam & Smith. mail
order merchants. testified that his
firm has encountered much oppo-
sition from manufacturers and
wholesalers, on account of his re.
fusal to maintain the fixed prices Of
standard package goods.
I'VE understand" he said, that
local wholesale dealers have threat
ened brokers with cancellation OF
patronage if they sell goods to US"
he stated,
To Undersell Retailers.
"Was it because you would under
sell the retailers?" he was asked.
"We were given to understand so.
We have endeavored to buy direct
from manufacturers, who referred
us to their local representatives. he
testified.
Mr.. Smith expressed his belief
that as long as this country is
financing European countries, and
those countries continue to bid for
our products, there will be high
prices in the United States.
Man Arrested for Beatjn0