New-York tribune., 1920-05-27
U.S.Banks Lend
$25O,OOO,OOO
OnCuban Sugar
Money Advanced on Million
Tons Held on the Island
for Higher Prices, Finlav
Tells Lusk Investigators
He Proposes Rationing
Increase in Retail Cost From
% TO % Cents Forecast
Within Next Two DAYS

American banks have OUTSTANDING.
loans of $3.50, 100000 on more than
100000 tons of sugar which is beino
held in Cuba for higher prices. accord
Ing to testimony given before the Lusk
legislative committee yesterday bv
George Henry Finlay 80 Wall Street. .
sugar broker. He said the banks were
extending loans at the rate of 8 to is
cents for every pound of sugar held.
Mr.. Finlay appeared as witness in
the committees 5 investigation into the
high cost Of sugar He was asked
specifically concerning testimony given
or Tuesday by Harry Balfe, of Austin.
Nichols & Co., that 100000 tons of
raw sugar was being boarded in Cuba
or the United States for higher prices.
Nr Finlay said he believed that al
though there might be great quantities
OF "invisib.e' sugar in this country. he
thought the greatest amount was held
IN Cuba.
100000 Tons in Cuba
He said that 600 900 tons were re-
corded in the Cuban ports and more
tran 100000 tons more was still on the
plantations. where it was held for
speculative purposes
Predictions that the retail price of
sugar which is now % cents a pound.
would De increased by the Arbuckles
within TWO days to p or 2S cents, were
made By Raymond NJ. Wilson, 104 Wall
Street, president Of the B. Axtell Com
pany. l04 Wall Street Mr.. Wilson
testified that the sugar business was
practically in the hands of three or
four concerns.
Mr.. Finlay at first declined to an
swer questions on the ground that he
was under Federal indictment. His at
torney refused to disclose the charge
against him. The witness said he un-
derstood the Lusk committee was ap-
pointed 70 investigate solely seditious
activities. and He did not consider the
questions put him within the scope of
its authority He finally consented to
answer questions which, he said, would
no. tend 20 incriminate him.
HIS explanation for the increased
cost Of sugar. he testified, was that
Americans consumed four times as
much sugar per capita as any other
country, that the wholesale cost of
sugar was higher, due to labor troy bles :;
that delays in deliveries have stopped
competition; that the government failed
to bey the 1919-'20 sugar crop at 61a
cent, and that importers are re-
stra med in their activities here.
He said q remedy would be found in
rationing distribution for ninety days
After September the rat!oning would be
of4- r.-- l nj
expected here. he added
Uncertain Who Holds 1t
Who is holding the sugar in Cuba %
9 Aed Samuel A. Berger, counsel for
1h committee.
Il am not certain whether YOU are
aware q the fact that $3.50 100000 has
been loaned by American banks to con-
Germs In Cuba for holding sugar" an
swered MIR. Finlay. who returned from
Cuba three weeks ago.
Are those concerns in Cuba, Amer
lean or Cuban ."
Il don't know. know that the
Are those New York banks that
have loaned the monev?"
Il should think that a great deal
comes from New York, bat | would be
afraid TO make that statement. The
Ne.+o +oIal lLE DdNh N havana -
You mean the Havana branch of
the National City Bank of New YORK 90
Yes, it and other banks would loan
only 50 on 320-Dound bag, while
some bank, loaned as much as $50 on
bag. That $ at the rate of s cents
a pound. while the other is at .he
rate Of II cents pound"
Those banks that were loaning at
The rate of II cents-are thev Ameri-
can or Cuban?
Cuban banks, believed to be sup
ported by American tinanciers."
DO Won know the names of any
cther banks that have made such ad-
vances?"
The National City was not making
those advances. I have not conveyed
the idea mat the National City was
making advances of more than s25
q oag and 40 with the Royal Bank of
Canada"
10 YOU know of any other banks ~
know. but millions are involved
and II ! disclosed what they are do
ing might be liable to q suit for
damages"
Predicts Increase Soon
Mr.. Fin!ay said the Cuban crop this
season would De about 100000 tons,
Dut more than 100000 tons Of it was
-, ot.HB "ltnnelG from export. tie
aeciared that not much sugar was be-
ing boarded on the Atlantic coast.
,, Alter mentioning the Warner, the
novel;, the Federal, the Arbuckle and
.ne .Penns lvania companies as con-
tWoLling largely the sugar business Of
tte country Mr. Wilson testified:
aft2.ueAle will probably name price
o%,-hio the next forty-eight hours of
:. or = cents. They have got to do
It, They paid 2412 cents for raw
be a good hing" to have @ public cOriU ex.
animation Of the books of the sugar
Companies
HT, Wilson said that another reason
t toT the advance in sugar was specula-
lion by persons who never dealt in
pnagaf until the price became high.
snI1 mg sad some lots of sugar had been
sO'o IN al 'endless ring and he had