Arizona republican., 1920-06-03
Aetion causes Hieh Prices


 The report was prepared by Repre- sentative Husted, republican, New York. and charged that the legalistie method adopted by sMr. Palmer was wholly ineffective as a means or price controT' and that it gave apparent government sanction to extremely high sugar prices which excited the cupid1ty of Cuban producers and caused an ad- vance in the Cuban market"
 There were eight findings in the ma jority report, the resolution introduced by Representative Tinkham, republi- can, Massachusetts, calling for an i'm vestigation, confining the committee inquiry to Louisiana transactions. The majority findings follow:
 .The attorney general on the eighth day of November, 1919, gave his official approval to a tentative arrangement made by United States Attorney Henry Mooney, with committee representing the sugar planters of Louisiana, by which was established a maximum price of IT cents per pound for prime yellow clarified sugar and IS cents per pound for clear granulated sugar, net on plantation
 'sThe above stated prices were fixed by said arrangement for the entire Louisiana 1e19-192O sugar crop.
 Palmer Advised of Excess
 'The attorney general fixed said prices at a time when he considered them rather high and had just been advised by his representatives in Louisiana, United States Attorney Henry Mooney, that such prices were in excess of the fair average price for the crop and when he had reason to believe that the entire crop could be purchased at IA or IS cents per pound. Crop conditions in Louisiana during the year 1919 varied greatly in differ ent parts of the state and on different plantations. In some cases the loss of crop was very heavy, in others it was comparatively light, so that a fixed price for sugar which would yield only a fair and reasonable profit ito the producer whose cost of production did not exceed the general average for the state, would permit a certain class of producers to make excessive profits and would deprive another class of the fair and reasonable profit to which it was entitled, under the law.
 Under the arrangement effected by the attorney general with the commit tee representing the sugar planters of Louisiana, immunity from prosecution for profiteering was conferred upon any and all persons who might seu ar or under the prices fixed by the attor- ney general, whether such prices were in violation of the Lever act or not.
 Exceeded Authority
 'Tbe attorney general used his power as chief prosecuting officer of the United States for the purpose of fixing maximum selling prices of sugar in the state of Louisiana, and in so doing acted wholly without authority of law and in violation of his own construc- tion of his own duty, which precluded him from placing an interpretation upon United States criminal statutes under which possible violaters might escape prosecution.
 con the eighth day of November. 1919, the attorney general had no power to fix prices and his authority in the premises was limited to the prosecu- tion of violators of the provisions of the fortieth section of the Lever act. public number fl; 65th congress.
 The ie9alistic method adopted
 by the attorney general was wholly
 ineffective as a means of price
 control; 1t gave apparent govern
 mental sanction to extremely high
 sugar prices, which excited the cu-
 pidity or Cuban producers and
 caused an advance in the Cuban
 market"
 The attorney general was advised in October, 1919 the majority held, that excessive prices were being charged by Louisiana. producers. and he directed United States Attorney Mooney to make every effort to reach an agree ment with producers and refiners to establish a fair price for the new crop. After conferences with a committee representing producers, the report added, Mir. Mooney obtained an a gree ment with them not to sell over IT and IS cents. At that time, the report set forth, sugar was selling in the open market at New Orleans from 15 to 20 cents.
 Profits Grossly Excessive
 Declaring that the Louisiana crop was small. with big demand. the ma