New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-29
Two Indicted
A Profiteers
In Sugar Deals
Charged With Making More
Than s Gents on Sales:
One Company Accused
of Lacking az License
Riley Attacks Hoover
Produces Letter Dealing
With Failure to Purchase
1920 Crop From Cuba

Two indictments for profteering in
,ucar and one for dealing in sugar
without a license were returned by the
Federal grand jury yesterday after
room. The Economy Wholesale Gro
,srv Company and Abraham Gladstone,
both Of Chicago. were indicted for buy
ing $4,000 pounds of sugar at 1872
cpnts pound and selling it on the
Now Yort market at - cents a pound.
D. D.'Netter. of Meter & Co., $50
Nassau Street. and Morris Spirit. of
Waterbury, Conn. were indicted Jointly
Ter buying sugar at 1857 cents a
Mound and selling it to the United
States Exporting Company at 2612
cents a pound. ChiidS, Johnston &
e.. Inc. and Charles Il. Scott. sugar
dealers. Were indicted fer dealing in
sugar without q license. Their con-
tracts. according TO Federal authori-
ties, approximate 100000 a year.
Hoover's Assertion Denied
Arfnin ". Riley, chief of the Depart
mert o. Justice flying squadron,
g.ve ou, statement yesterday before
he departed for Washington. in which
Re denies The assertion Of Herbert c.
Hoover that the present high price of
sugar IS due to the neglect OF the gov
ernment 70 purchase the Cuban crop
At 81. cents pound.
Mr. R..tyS statement was accom-
panied BY letter from John B. Floyd
10 Senator Arthur Capper, of Kansas.
II which Floyd, who is an attache Of
Nr. Rileys office. says that Mr. Hoo
yer as chairman of the Sugar Equali-
zation Board had full power 10 acquire
the Cuban crop, but failed TO exercise
that power. In this letter Mr.. Floyd
says that the Sugar Equalization
Board would have made no purchase of
the Cuban crop "even though the Pres
dent had specifically ordered it 10 be
cone"
Cites Boards Proclamation
While still head Of the Sugar Equal
zation Board MIR. Hoover concurred in
a proclamation, according to Mr. Floyd.
which was ISSUED by the board January
3, 1920, u which the following state
men1 was made:
On the basis Of the facts presented
ard the conclusions reached by the
Sugar Equalization Board the Presi-
dent has decided that the authority
conferred by the McNary sugar act,
passed December 20, so far as it in
wolves The purchase and distribution
Of the Cuban crop by the government
would not be exercised.
Apparently the supply Of sugar
available for consumption in the
United States viii be sufficient to meet
the demands o. the consumers, even on
me present unnecessarily large basis
G, consumption
From this proclamation, says Mr.
lloyd, It appears that the action of the
President IN the matter of purchasing
TIE Cuban sugar crop was taken upon
nc facts presented and the conclu-
ions reached by the Sugar Equaliza-
non Board. 1T is equally clear" says
Ar. Floyd, that the statement that
the supply of sugar is apparently suf-
hclenc % meet the demands of the con-
slmers must have been made on infor-
nation furnished by the Sugar Equali-
aation Board"
How Mr.. Hoover can hold the De
p4rtment of Justice responsible for his
own acts and those of the United
states Sugar Equalization Board is diff
Acult for me TO understand" Mr.. Riley
SAID. That he and the other members
Of the board had the power and the
money to bay the Cuban 1920 crop is
admitted by them, and the responsible
lty Tor their failure to exercise this
power must be borne by them"