New-York tribune., 1919-10-22
an to Sell
Hoarded Sugar
Exposed byU.S.
Food Administrator Williams
Finds Broker WhoOffered
100000 Lbs. at Double
the Governments Price
May Discover Cache
Cache
Leo ". Hanmell Says Ware
houses Are Filled butHieh
Rate Is Being Demanded

Representatives OF the Master Bak-
ers' Association OF Brooklyn yesterday
told Arthur Williams, Federal Food
Administrator, that Leo W. Hammol
a food exporter and broker, had offered
to sell them 100000 pounds of sugar
at 18&4 cents pound This complaint
! followed several others by manufac-
, turers and dealers against brokers and
wholesalers, who were charged with
| holding millions of pounds of Sugar
| IN the hope of obtaining more than
the governments fixed price Of nine
and one-half cents a pound.
Mr.. Williams asked the master ba kers
| to permit him to act as their repre-
sentative in dealing with Hammel The
| permission was granted and he got the
! broker on the telephone.
- understand,' Mr.. Williams said,
''tRat you have six thousand barrels
of sugar to sell. am in the market
| for some"
ooh, yes, we have the sugar" Ham
mel is reported to have replied, "and
we can sell it to you at 1874 cents
Call and see me in the morning and
we can arrange for the payments"
~ would like you to come to my
Office" Mr.. Williams said.
"Where is it ?" asked Hammel.
at 1870 East Fifteenth Street. Ask
for the food administrators" Mr. Will
Jams replied.
Within fifteen minutes Hammel was
in the food administrator office, tell
ing Mr.. Williams that he was only
to have received three-quarters of
cent pound commission. He offered
to help Mr.. Williams trace the sugar
through the dealers who have handled
it. He said he did not know where
the sugar was, but could learn. He
offered to cooperate with the food
administration.
Mr.. Williams said last night that he
had already traced the sugar to three
other dealers.
Selling 5000 barrels, or 100000
pounds, of sugar at 18A cents pound
meant that some one was to reap a
profit of more than 100000, which he
could not have made had he abided by
the ruling of the food administration, -
Mr. Williams said. "This sugar should
not be sold at more than 9ls cents q
pound, and yet when it was offered at
1881 cents there were severaI pros
pective buyers.
eve are convinced some sugar is
being boarded here, although ! am not
certain as to the exact location and
the quantity. We believe this sugar
was purchased ostensibly for export
but is being held here"
Mr. Hamel later recounted a practice
of dealers which he said enabled them
to hold huge sugar supplies in ware
! houses without arousing suspicion.
The sugar is prepared for export and
even brought to the docks, Mr.. Ham
mel said, but is not loaded on the
steamers because of an alleged eleventh.
hour failure of credit. Apparently dis
appointed, the pseudo exporter returns
the sugar to a warehouse until the
matter of credits can be settled. The
sugar is not moved again until pur-
chased by firm willing to pay prompt
ly and excessively.
made more than $1,0O0,0OO this year
by such practices. He added that he
is convinced that many warehouses in
this city are choked with boarded
sugar.
Mr.. Williams learned Of 5000 pounds
of sugar which was being held in
storehouses uptown yesterday and sue
ceeded in obtaining assurances from
the owners that it would be moved
shortly.
A Brooklyn soda water manufacturer
complained to Mr.. Williams that an
East Side merchant had demanded %
cents pound for 500 pounds of sugar,
which would not be sold unless the
purchaser also bought 500 pounds of
corn sugar at lOh cents. The manu-
facturer said his output was being
curtailed by the lack of sugar and that
in desperation he drove from place
to place in an automobile, finally being
taken to the place on the East Side
where the exorbtant demand was made.
Mr.. Williams has summoned the deal
er and the chauffeur to appear before
him to-day.