The Elk Mountain pilot., 1920-06-10
WHY THE SUGAR SIT
uATION Is As IT IS
Denver, Colorado, June 8, 1902
Hon. c. T. Rawalt,


Hon. c. T. Rawalt,
Gunnison, Colorado.
My Dear MIR. Rawalt:
The three different prices for sugar
made by jobbers at practically ths
same time for Gunnison possibly find
an explanation in the following:
The northern Colorado territory is
served by The Great Western Sugar
Company, whose price to the jobber
is s12.s2 per hundred The Arkansas
Valley, the :south and western parts
of the state, are supposed to be
served by the factories in their re-
spective LOCALITIES These latter
charge higher price to the jobber
than the Great Western, claiming
that their cost of production is great
er. The Department of Justice has
recognized as reasonable profit OF
1c per pound to the jobber and &c per
pound to the retailer, or &c per
pound between the refiner and the
consumer. The Gunnison dealer who
buys of a Denver jobber would find
his cost based upon the northern Col
orado refiner's price. The dealer who
buys in Pueblo would find his cost
based upon the Arkansas valley re-
finer's price. My information is that
the sugar refinery which is supposed
to serve the western slope did not
reserve any sugar this year for the
people of that region, but sold 1T
elsewhere, and so it is necessary to
bring in sugar from outside the state
for western Colorado, including cane
sugar from the Pacific Coast. Here
would create the possibility for a
third, and higher, price.
| I have been enjoined from prosecut-
ing under that feature of the Lever
Act which forbids exacting excessive
or unreasonable prices, and cannot
proceed until the Supreme Court OF
onstitutionality, in the case of the
! thirteen Denver merchants versus
Tedrow construed the boarding pro-
visions of the Act as authorizing
prosecution of speculators for ship
ping sugar out of the state, and that
it empowered me to keep in Colorado
that proportion of its own sugar to
which it is entitled, and l made some
arrests, procured indictments, and
siezed some sugar. Yesterday, in con-
nection with one of these indict-
ments, the Federal court ruled that
my position in that respect is legally
unsound, so that at this writing the
entire Lever Act, so far as it applies
in Colorado, is practically imperative.
There is no Federal law dealing
with profiteering except the Lever
Act. Furthermore, its life is express
ly dependent upon the existence of a
state of war with Germany, and when
peace comes it dies. Indeed, Congress
may kill it before then. Is there any
hope that Congress would pass a SUBJ
stiute, if this piece of legiNlation ex-
pires? The limited powers OF the
national government give room for
the legal claim that the national gov
ernment cannot deal with profiteer-
ing at all in times of peace, altho
with this l personally do not agree,
in view of the latitude which the
courts have given Congress under the
interstate commerce and internal rev.
enue provisions of the Constitution
However, the states undoubtedly do
have a clearer right, and it is too bad
that the states keep eternally surren-
dering their powers to the national
government, or at least, depend upon
Washington to do everything for their
people. The proper spirit would be
cooperation between the states and
the national government in this COM
plex problem of increased cost of liv-
ing. 1t is to be regretted that the
Governor of Colorado declined to in
corporate the subject in the call for
the extra session of the general as
sembly, when petitioned to do so.
Something might have been accom-
phshed. The state of Colorado can
do something in the way of coal for it
actually owns coal mines. The extinc-
tion of the middleman when possible
would contribute toward lowering
costs to the consumer, and at the
same time tend to bring to the pro-
ducer that greater proportion of the
products of his toll which is absolute
ly imperative.
You may use any part of the fore
going for print which you desire.
wish had time to write book upon
'the thoughts that arise in met.
With best wishes, I remain,
Sincerely,
HARRY r TEDPOW