New-York tribune., 1919-10-08
Officials Allege Their Ac-
tion i'll Hoarding Prod
uct Is Responsible for
the Pres sent Shortage
Brooklyn Dealer Refunds
GUARDING Company Had
Received II Cents When
Legal Price Was 0h

Convinced that the reported sugar
shortage is largely caused by the
boarding practices of many whole
salers, Federal officials yesterday an
nounced that they were prepared to
prosecute criminally all offending deal
ers.
The crusade against these dealers
was started by Federal Food Admins
TRAITOR Arthur Williams, following re-
ports that dealers have 200 tons of
sugar concealed in Brooklyn. Mr.. Will
iams learned OF this alleged cache
while taking steps against the Guar
dino Purity Ice Cream Company, which
demanded and received IA cents 8
pound for 10000 pounds Of sugar. Tho
Thomas Roulston Company, of Brook
iyn, made the purchase and P. J.
O'Brien, one Of the company's execu-
tives. placed the matter before MI.
Williams
According to Mr.. O'Brien's complaint,
the GUARDING company received the
$1,4oo for the sugar In two checks,
one for $1,000 made out to the Guar
dino Company and the other for $400
made payable to bearer This would
make the accounts of the Roulston
company show that it had paid but 10
cents pound for the sugar
Concern Refunds Money
Mr.. Williams Immediately commune
Gated with Vincenzo GUARDING, presi-
dent of the ice cream company, and
asked for an explanation, at the same
time informing Mr.. Guardino that 95
cents was the maximum price it could
,Eo-
ufacturer replied es follows:
"Confirming the report that you have
received, permit me % say that I have
sold to Thomas Rou,ston 100 bags of
sugar at IA cents a pound. In doing
this I was under the impression that,
being an ice cream manufacturer,
was not subject to the control of the
Federal food authorities. I regret to
have made an excessive charge of this
nature and will at once return to
Thomas Roulston all payment in ex-
cess of 9@s cents a pound for the sug-
ar, this excess payment amounting to
$3.50. do this voluntarily and as an
evidence that 1t was not my intention
to violate the sugar regulations"
Wholesalers Hoard Sugar
The fact that the GUARDING company
was able to obtain sugar WIS regarded
as significant by Mr.. Williams. as
numerous wholesalers and retailers
have pleaded with him TO obtain q
small supply for them. The Food Adj
ministrator learned from officials of
the sugar Equalization Board that
much of the sugar is in the hands of
wholesalers, who are waiting for the
lifting of the sugar regulation on Janu-
Rry |. when higher prices are almost
certain to prevail.
Henry E. Costello, head Of the raw
sugar division Of the Sugar Equaliza-
ton Board, declared yesterday that re-
finers are not boarding, but that the
sugar is being lost" in q continuous
round of reselling. He said that he
would actively cooperate in the prose
cution of any Of the spectators who
are tying up portion OF the sugar
supply in a gambling tangle.
The apparent sugar shortage Mr..
Costello said, "is caused also by the
fact that the nations demand this year
is 100000 long tons above its normal
by prohibition, more candy being man
ufactured and the output of soft drinks
increasing greatly.
Will Apportion Product
Mr Costello declared that board
of distribution of the available sugar
has been appointed and will proceed
TO apporti0n the sugar, acting arbi-
trarily. The supply will be divided on
the basis OF 80 per cent for the manu-
facturers and so per cent for the
consumers.
United States Attorney Francis G..
CaFcy said last night that he would
prosecute under the Lever act all those
obviously boarding sugar for higher
. prices. He pointed to the provision in
the Lever act which permits dealer
20 hold only, the amount required for
she use Of his business or that of his
customers.
Retail dealers throughout the city
continue to complain of the shortage
of sugar. The practice of selling one
pound Of sugar only to those purchas-
Ing certain amount of other COM
modities has been discouraged by the
local food administration officials, but
1t was learned that steady customers
along are able to obtain sufficient
sugar.