The Washington times., 1920-01-04
j. S. WILL NOT BUY
CUBAN SUGAR CROP
President Won't Use Part OF
Power Given In McNary'
Measure.

The Cuban sugar crop swiiltnot be
bought, IL was announced 10 formal
statement Issued by Secretary In-
multy at the white House last nlsbI
Following is the text OF the White
House statement: "a.
s'rhe following memorandum with
reference 10 the sugar situation was
made public at the White House TO-
night by the Secretary to the. Presl-
dent: ffLr ,noo
"on the basis OF the facts present-
ed and the conc sions 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 II IN
wolves the purchase and distribution
of the Cuban crop By the Government
would not be exercised.
''The matter OF repeating the opera
ton Of the Governments purchasing
and controlling the Cuban sugar crop
for another year under war powers
came up for active consideration IN
August. 1910. At that timo there was
an expectation that the treaty OF
peace with Germany would be ratified
within a reasonable time and that
peace conditions would resppear.
Against Buying Crop.
"There appeared TO be very def
mite view on the part OF Congress
ional leaders that the exercise OF
war power should not, be extended
another year. There was dissent by
one member of the Board of Equaliza-
ton from the conclusion reached at
that time by the majority OF the board
that the control SHOULD be further eN-
ercised. His view WAS that II was de-
a. Ia
tions and that a beginning in respect
60 suga rshould be made. 49,.
'The majority OF the board was
definitely of the opinion that The
Cuban crop should not be bought un-
less IL was clear that its powers OF
control oyer sugar would be effective,
and this could not be medc certain
without action by Congress,
THE President had not reached a
conclusion in the matter when he
started on his Western trip and was
taken i'll On October 8, the Equaliza-
ton Board, through its President, ex-
pressed to the Senate committee its
view that the Cuban crop for 1920
should and could be purchased pro-
Vided the powers OF control hereto
fore exercised by the board were con-
tinued ififull until December 81, 1920,
thus enabling the board to see that
the consumers SHOULD secure nne
sugar at a reasonable. price. The
board at that time felt that 1t could
renew it's contract with the Cuban
and American producers as well as
with the refiners. No action was
taken by the Congress until Dccem-
Der 20.
Much Sold Overseas.
Conditions have now SO changed
that the members of the board do not
believe that action by it under the
provisions of the act of Congress re-
ferred to offers a solution of the prob
lem Of securing a regular supply of
sugar for the people for the year 1920
at a reasonable price.
"The board has had no contract
with the Western beet or the Louis
lana sugar cane producers for the
new 1919-20 crop, which began to
come into market in the fall and,
therefore, from October Is the con-
troll which the board could exercise
applied only to the remainder of the
1919 Cuban sugar crop which 1t had
purchased and which was deliverable
on or before November 80, 1919.
"A considerable quantity OF the Gu
ban crop of 1920 has already been