New-York tribune., 1919-11-01
$4,000 Profit
In Sugarless
Sugar Deals
Agents of 7 Firms Tell How
200 Tons Contracted
for ''Export'' We're Sold;
Resold at Higher Prices

Seven firms purchased, sold and re-
sold 900 tons Of sugar the cane still
growing in tho fields of Cuba. 1t de-
veloped yesterday at a hearing held by
Arthur Williams, Federal Food Ad-
ministrator
During the transactions involving this
unharvested sugar cane one firm cleared
practically $4,000 and another stands
TO make $4A 900, it Developed In the
reseling the price advanced from 80
cents pound to l35
This is the phantom sugar which was
recently traced to the door OF L. d.
Harrington, of 10 Wall Street. who tes-
tilted Yesterday
The witnesses we're called in the se-
qncnce in which they had figured in
the sugar transaction.
Lester Livingston, Of 13t Nassau
Street, an exporter, said he had re
ceived numerous Inquiries from Eu-
ropcan clients asking for candy. He
said he communicated with The Bcin-
hauer Brothers Candy Company, of 220
West Forty-second Street, asking if
they had any chocolate for export He
said he promised to aid them in OBJ
tanning sugar, and applied to Ilecht &
Hecht. brokers. of 200 Fifth Avenue.
W. K. llauptman, general manager Of
the BelnhaIcr company, said through
~ I'4N ii4S0lOu Nc ldii met IttCUt d
Hecht. They, in turn. he said, informed
him it was possible to obtain some
sugar from the Bush Terminal com
pany THIS deal did not matcrialiac,
he said, but through it IIauptman got
IN touch with MIR. harrington he said
Harrington told him he could obtain
twenty-five tons Of sugar a day. 900
tons in all. at Sl2.40 hundred pounds.
lie VAS asked 10 make an advance pay
ment, and Nh. Beinhaucr gave lIar-
rlngton certified check for $l0. eco.
Kaufman said that his firm signed
contract which called for the deliv-
cry Of The sugAr after january 20. He
SAID he had called this to the attention
OF Mr.. harrington and an Edmond c.
Io"ne, purchasing agent for the Bush
terminal Company at this time He
declared ne had been assured that this
sugar would be delivered as promised,
regardless of the contracts stipu!a-
ions. The sugar was not delivered, he
testified. and now Harrington las his
firms cheek Tor $4,000 and wants
}267 ,OO0 IN addition.
+. ID. Tarring on. the banker i1. the
case. testified that the sugar had been
offered 10 him by Edmond {. I.owrie. Of
the Bush Terminal Company, at 1925
cents hundred pounds lie had first
attempted to sell it to IIocht, but when
hecht withdrew he dealt with the Bein-
h&uer firm direct. He denied that he
had ever promised the Boinhauer com
paNy before concluding business with
menta Of twenty-five tons daily. begin
nln@ Immediately. He said that the
contract was self-exp explanatory. lie
stood to make seven cents a hundred
pounds, or slightly more than $500,
ne s,tld. lie admitted he had closed
tho contract with the Beinnauer COM
pan y6efore coucludiA. business with
the principal holding the sugar Haupt-
man had told him. he said, that the
sugar would be purchased ostensibly
Tor export, but that influence would be
used with the Sugar Equalization
Board to persuade It TO permit the util-
i2ation Of the sugar here.
The principals, for whom Iowrie
acted, MIR. harrington said. were Dill
sizlan Brothers, oS u Battery Place.
L. y. Doyle. manager for Dilsizian
Brothers, testified that the sugar on
winch the NeinhaUer company had 81
ready paid SO 900, IL now contracted
Tor by the Sherburne company of Bos-
ton, which had already given him ir-
revocoble letters Of credit
According to Doyle, he had received
orders for sugar for shipment TO Con
StahtlNopie. hut had not made the pur-
chase, awaiting { confirming order.
Meanwhile the sugar price WAS climb
ing stead ~, he said. inducing hNn TO
take a chance and purchase 1000 tons
Of sugar TO cover the order Instead
Of confirmation, he testified, he re-
ceived cancellation. He was instructed
to dispose Of the sugar on the domes-
tic market. He had paid $50 cents
pound for the sugar, buying it from
the Czanikow, Reonea Company.
He said that he told Turner & Tur
nor, brokers, to help him get rid Of
the sugar Through them. he said, he
met Harrington, who agreed on Oc-
tober TO purchase it and make a sub
stantlal binding payment. As this was
not forthcoming, he testified. he sold
the contract for the sugar TO the Sher-
burnc company OF Boston on October
"a, at a price which would net Dill
sizian Brothers d profit Of close 70