The Washington times., 1919-11-06
Sugar Shortage Blame
Placed on Equalization
Board by d. C.. Attorney

Prolonged neglect by the Sugar
| Equalization Board of the practical
! workings of the law of supply and
demand, the longshoremen's strike
along the Atlantic Coast, crippled
freight conditions in the beet-growing
districts and a vastly increased con-
| sumption, were reasons advanced to-
day for the sugar shortage by Sidney
Ballou, attorney for the Hawaiian
| sugar planters, with offices in this
lcity. s
Mr.. Ballou gave one of the most
comprehensive statements of sugar
conditions made during the present
famine. He enumerated three causes
| of increased demand-general pros
perity particularly of the working
| classes; the relative abundance of
money, and prohibition.
In speaking of prosperity. Mr.. Bal.
lou said that the workingman of to-.
day, earning more money, will in
clude candy among. the ordinary pur-
chases for his family. Several years
ago sweets in the average household
were regarded as luxury. Mr.. Bal
lou declared that the craving for can
dies Is on the increase and must be
| satisfied.
The effect Of prohibition to create
a larger consumption of sugar was
said by Mr.. Ballou to be seen princi-
paIly in the ever-multiplytng use of
soft drinks.
Pre-War Consumption.
Mr. Ballou stated that before the
shortage was felt the; American con-
sumption OF sugar was running at the
unprecedented rate OF ninety-two
pounds per capita. The pre-war per
capita consumption was eighty-four
pounds. and the wartime consumption
averaged about seventy-hve pounds.
He further declared, in reviewing
the sugar situation:
THE last three months in the year
is the time when any shortage Of
sugar is most likely to be felt. The
Cuban cane crop, which supplies about
half our consumption. together with
the Hawaiian and Porto Rican crops,
are nearly exhausted by October 1.
For the remainder of the year we are
mainly dependent upon the beet sugar
crop of the Western States and the
cane crop of Louisiana
The crop shortage this year was
caused in my opinion by the sugar
equalization boards too long neglect
J ing the practical workings Of the Law
, Of supply and demand. In normal times
sugar sells strictly upon a supply and
demand basis, and any tendency ia
excessive consumption is promptly
checked by rising price During the
war, sugar was sold on the basis OF
cost plus fair profit and this ar
rangement was continued by the
equalization board after the cessation
of hostilities.
Selling sugar upon a plan by
which producers and renners' costs
are accurately determined and fair
profit allowed, with q stabilized price
| to the consumer, seems at first sight
an ideal arrangement
'-rhe inevitable tendency Of q low
price, however, particularly during a
| worlds shortage, is that the consumer
| will eat in one form or another more
sugar than is available. During the
war this tendency was checked by a
drastic system of .rationing through
out the year, so that the supply and
consumption were made to come cut
even.
This year 1t seemed et first that
| there would be plenty of sugar to
inject all demands BY July l., how
ever, IL was apparent that the Ameri-
can consumption, at the price fixed by
Government regulation, was running
at the unprecedented rate of ninety
two pounds per capita, and that the
margin of safety of available supplies
to the end Of the year was very
slender
1.-THE only methods possible to
| check this consumption would have
been to increase the price or to have
returned to rationing. Neither Of
these would have been popular and
neither was done The result was
that the excessive rate of consump-
tion went unchecked and the Ameri-