The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-04-03
SUGAR SWlNDlE
IS ALLEGED
Said That Cuban Sugar
Was Struggled Into Lou
iSiana for Resale
BIG PROFITS MADE
IN LOUISIANA PRICES
Senate and House Both Starting In
vestigations of Attorney General
Palmer's Conduct-Has Cost Con-
Sumers Billion.

Sumers a Billion
WASHINGTON, April s. Charges
systematically swindled on huge
scale and that the breakdown of the
department Of justice scheme for con
trolling sugar prices is responsible have
been laid before the senate committee
on agriculture and turned over to Sen
ator McNary of Oregon, chairman of
the subcommittee on sugar. Senator
McNary will Immediately proceed to
investigate. Attorney General Palmer
and George Zabriskie, sugar control
Ter, will be asked to explain. The
charges originate with legal authorities
in several states in whom Senator Nc
Nary and other senators have conf
dence.
1t is charged that great quantities
of sugar are being imported via Lou
isiana from Cuba; that they are re-
fined there and then marketed at the
excessive prices that Ihave been al
lowed on the Louisiana product
Further, it is alleged that the Cuban
raw sugar that has been coming to
New York has fallen into control of
spectators, who get it refined and then
sell it AZ a big advance.
The story of this manipulation has
been laid before Senator McNary in
detail and with many documents. Last
summer the sugar control board strong
~ recommended purchase Of the Cuba
crop, which could have been had en-
bloc around | / cents n pound. Instead
The President took the advice of one
member Of the board who in opposi-
lion to all the others insisted that the
crop should not be bought. 1t was not,
md a. result prices went up and
up, aS the world scarcity and compc-
tition for limited supplies bullcd the
market.
Attorney General Palmer arranged
for handling the sugar situation. The
Louisiana planters had short cToT
last year, and insisted on some special
consideration for them. They were I'M,
willing that the Cuba crop be bought
and prices kept strictly under control
because that would make it impossible
for them 10 get the high price for THEN
crop, that would hardly make up fol
he fact that their crop was short. Fl
rally it was arranged that Louisiana
hould be allowed price of II cents
pm its own production.
This had the effect of specifying The
7-cent base price in the Louisiana
district, while the Cuba sugar would
have TO take its chances in the genera
market elsewhere. Now it is charged
that TO get the benefit of the higl
price allowed Louisiana the importer,
have been stealing Cuban sugars int,
Louisiana and selling them as Lousi
ina stuff at the Louisiana price, netting
a large profit.
Along With this is the charge o
speculation in sugars entering by wa,
of New York controlled by spcculators
refined on contract and then placed OF
he market by the speculative owner
pit such prices rs they can getaway
high prices, however,
1t is charged these operations ar
largely responsible for present exccs
i've prices The McNary sub-com
hlittee, which was never satisfied wit
the Palmer plan for handling the suga
situation and urged that a vital mi
take was made by failing to buy tn
Cuba crop, is now on the trail an
proposes to insist that the attornc
general explain Just how he manage
70 get affairs in their present shap,
lie and Mr.. Zabriskie will be examine
IS soon as possible. The sub-commit
ee will open its hearing Monday, an
is promised there will be sensation;
developments.
At the same time the house is star
ng another sugar inquiry. The sui
committee Of judiciary, headed by Rel
Fesentativc Hustled of New York an
including Representative Classon
Wisconsin, Boles of Iowa, Sumner
Texas, and Whaley of South Carolin
to take up at once an inquiry int
he Louisiana situation. A house rest
ution recently directed this inqur
lnd it also will include an examinatic
pf the attorney general.
1t has been repeatedly charged tn;
he consumers of the country will pa
billion dollars more for their sug;
his year than they would have to pa
f the staple had been kept under pro
br control.