Pine Bluff daily graphic., 1920-06-03
HOUSE REPUBLICANS SAY PALMER BROKE
 LAW IN SUGAR CASE
Majority Report Charges He Fixed Louisiana Crop
 High e
DEMOCRATIC MINORITY
 DISSENT FROM VIEW
Republicans Declare That Immunity From Prosecution for Profiteer- ing Practically Was Given
 to LOuisianans

to LOuisianans
 washington, June 2.-Attorney Gen eral Palmer as the nations chief pros- ecutlng officer used his power ''for the purpose of fixing maximum selling prlces of sugar in Louisiana and in so dolng acted wholly without authority ot law and inviolation of his own con- structlon of his official duty, accord Ing to majority report submitted to the house today by it's sugar inves- tigating committee.
 There were eight findings in the maporty report, the resolution in- troduced by Representative Tinkham, republican, Massachusetts, calling for an investigation, confining the con- mlttee inquiry to Louisiana transac. tions.
 The majority findings follow:
 The attorney general, on November $, 1919, gave his official approval to tentative arrangement made by United States Attorney Mooney with a com- mlttee representing the sugar planters of Louisiana, by which was establish ed maximum price of IT cents for prime yellow clarified sugar and IS cents per pound for clear granulated sugar, net on plantation
 "Ihe above stated prices were fixed by said arrangement for the entire Louisiana 1919-1920 sugar crop.
 "The attorney general fixed said prices when he considered them rather high;' had just been advised by his representative 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 en- tire crop could be purchased at IA or 15 cents per pound.
 Crop conditions in Louisiana dur ing 1919, varied greatly in different parts of the state and on different plantations. In some cases the loss of crop was very heavy, in others com partively light. so that fixed price for sugar which would yield only fair and reasonable profit to the pro- ducer whose cost of production did not exceed the general average for the state, would permit certain class of producers to make excessive prof it's and would deprive another class of the fair and reasonable profit to which it was entitled. under the law.
 Sanctioned Boost
 "Under the arrangement effected bv the attorney general with the com mittee representing the sugar plant CTS of Louisiana immunity from pros ecution fro profiteering was conferred upon any and all persons who might sell at or under the prices fixed bw the attorney general. whether such prices were in violation of the Lever act or not.
 "The attorney general used his DOW er as chief prosecuting officer of the United States for the purpose of fix ing maximum selling prices of sugar in the state of Louisiana and. in so doing, acted wholly without authority of law and inviolation of his own con- structon of his official duty, which precluded him from placing any in depreciation upon the United States criminal statutes under which possible violators might escape prosecution.
 con November 8, 1919, the attorney general had no power to fix prices and his authority in the premises was limited to the prosecution of violators of the provisions of the 10th section of the Lever act, public No. Al, 65th coneress.
 "The legalistic method sdonted bv the attorney general was wholly inef- fective as a means of price control, it gave apparent governmental sane tion to extremely high sugar prices, which excited the cupidity of Cuban producers and caused an advance in the Cuban market"
 Representative Tinkham, in state ment tonight declared "the attorney general should immediately resign his office"
 "The attorney general" MT. link ham said, "has been found guilty by the subcommittee of the judiciary committee of the house of represen- tatives Investigating his official ac- tion in relation to fixing price for Louisiana sugar last November, first, of acting "wholly without authority of law and also of violating his own construction of his official duty which precluded him from placing any in- terretation upon United States crim- inal statutes under which possible vioiators might escape prosecution.
 "He also has been found guilty of giving immunity from prosecution by his official action to profiteers in the sugar traffic in Louisiana. This fact was based upon his own confession before the committee. Since the com mittee found that his action 'gave aparent governmental sanction to ex- tremely high sugar prices thus caus- ing an advance in the Cuban market he IS responsible in some consider able degree for the high price of sugar in America today. For the at- torney-general to have given immun- itv to profiteers. increased the price or sugar and violated in two particu lars the law which he has sworn to obey, makes his further occupancy of the offlee of attorney-general impos- sible"
 Democrats rendered minority re- port disagreeing with the majority on practically all points.