New-York tribune., 1919-09-28
Senator i'll Presenting Res
olutiOn Asserts Wilson
Ignored Timely Warming
Of the Present Situation
Foreigners Buy in Cuba
Neglect of u. S. to Act
Expected to Lead to
Famine and Speculation
Ne,c York Tribune
WQsIinUtoN Bureau

WASHINGTON, Sept 27.-An in
vestigation into the prices of sugar in
the United States and the sugar short
age, was ordered by the Senate to-day
A resolution directing the Commerce
Committee Of the Senate to conduct an
inquiry was adopted by 81 unanimous
vote.
Senator New, Republican, of indiana.
author of the resolution, in q state
rnent declared that consumers soon will
have to pay 1S and 90 cents a pound
for sugar because Of the failure OF
President Wilson to act upon a request
OF the sugar equalization board that
Its control over the sugar market be
extended to embrace the beet sugar in
dustry
Calls for Information
The resolution adopted by the SEN
ate follows:
THAT the Senate Committee on Com
merce IS instructed to investigate the
shortage of sugar and prices Of sugar
IN the United States and that the sugar
equalization board is respectfully re-
quested to cooperate with the com ait
tee in this investigation
Resolved, further. that the Senate
Committee on Agriculture is directed
to report at the earliest possible time
its conclusions, especially on the fol-
lowing:
"(a) The reasons for the shortage of
sugar.
"(b) Information regarding prices of
sugar, and whether any unjust or ex-
orbitant profits have been made on
sugar. and, if so, by whom.
"(c) The prospects for relief from
the sugar shortage.
"(d) Fixing the responsibility for
the shortage of sugar.
"(e) Advice as to whether legislation
to prevent speculation in sugar is de-
sirable.
How Crisis Has Developed
"f) Whether the surar equaliza
tion board should be continued within
is present capacity"
Senator New in his statement said in
part:
"The sugar equalization board.
authorzed by the President, bought
the entire Cuban crop of raw SUGAR for
1919 and made contracts with the re-
finer to sell them their entire allot
ment with the understanding that the
refined sugars should be sod to the
wholesale trade at 9 cents less 2 per
cent, T. 0. B. reiners." The sugar
equalization board also controlled the
best beet crop Of 1918, but had no con-
troll over the 1919 crop of beet sugar
III lnlS country.
IN October, 1918. the sugar eqnali-
zatlon board allotted to the British
royal commission, who are the author
lzed buyers for Eng'and France and
Italy, one-third of the raw sugar Of
Cuba, wNich at that time was decided
to be fair distribution for ourselves
and our Allies. Owing to the heavy
demand in this country a sugar short
age developed in June this wear and
all export orders were stopped on
July l. except the British royal com
mirslon's share of the Cuban crop.
which is being refined in this coun-
try on toll and shipped aboard.
Board Warned President
EARLY in August the sugar eoual,-
zation board called the attention of the
Presldent to the critical situation CON
fronting the consumer of sugar and ad
vised at that time that the board
control be extended to cover the beet
sugar crop Of 1919 and the Cuban cane
crop of 1920 in order to provide an
aqultable distribution and price con-
troll and prevent speculation in sugars.
which naturally prevail on short
supply.
ION September / the equalization
BOARD could have made contracts with
the beet SUGAR refiners to sell their
with the Cuban planters on the same
OASIS, making refined sugar 10 cents
seaboard instead of cents for this
years cdop.
Owing to the Executives failure TO
act and extend this control the sugar
rehners are asking 11s cents for beet
sugar to-day, f. o. b. refinery, and the
STOCK OF raw sugNr will be exhausted
IN four weeks and the refiners will he
out Of sugar in November and Decem-
bsr, resulting in serious shortage and
sugar famine for the entire eastern
half OF the country
Foreigners Make Contracts
"Meantme foreign buyers have con.
tracted for Is per cent of the Cuban
crop for 1920 and our refiners in this
country have not contracted for a sim
gle pound, awaiting the Presidents de-
cision as to q final control. Unless
immediate action is taken foreign buy
ers Will buy 90 per cent of The Cuban.I
crop, which Wal result in sugar
famine and extreme shortage in this |
country all cf next year, causing hial
rrices and speculation
lhe failure of the President to act
on the boards suggestions has alreadv
resulted III an advance of 10 cents
above the price offered the equaliza-
ton board of September !, and without !
control the refiners will not make con- |
tracts for future delivery, which will !
result in 1S-cent sugar wholesale and !
probably 20 cents to the consumer
III 1t is true that the equalization
board has several times asked the
PRESIDENT to give attention to this sub /
lect the country ought to know it, and |
II 1t Is misStatement of the fact the !
President ought to have an opportunity
to say so to the country At all events. /
| think we realize that the subject is
most important and the country ought |
to have the truth without delay"