New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-05-25
High g Sugar Cost
Laid by Hoover
ToPresident
Administration Made Grave
Mistake in Rejecting Plea
to Buy Up Cuban Crop,
He Tells Lusk Committee

Herbert c. Hoover, testifying before
the Lusk Legislative Committee inves
tigatng the high cost of living yester.
day, laid the present high price OIL
sugar directly at the door of President
Wilson, Attorney General Palmer and
the Democratic Administration.
Hc also discussed at great length the
underlying causes of the high cost OF
living and suggested remedies for it,
Mr. .doover said that had the govern.
ment carried out the recommendation
OF the Sugar Equalization Board tc
purchase the 1919-'20 Cuban crop. Of
1erec to the government at 61a cents a
pound, the retail price of sugar would
now be between IL and 13 cents pound
instead of nearly a hundred per cent
above that figure. He said the people of
the United States were deprived of this
advantage by the government permit
ting the Cuban offer to lapse without
taking any action.
Riley Tells of Campaign
Following close upon Mr.. Hoover's
charge Armin w. Riley, special assist
ant to Attorney General Palmer, with
offices in this city, announced that the
government will seek to obtain fair
distribution of the country's sugar
supply. through sweeping investiga,
ton of sugar brokers who ignore con
ditions of their Federal licenses.
Mr. Riley will begin to-day what he
described as a "ser:es. of informal
meetings" with three representatives
OF the sugar men, appointed by theil
colleagues last week in Washington.
1T is our purpose to remedy the
market conditions and to obtain a fail
distribution of the sugar supply, even
If 1T must be at the expense of some
of the non-essential industries" said
Mr.. Riley
Mr. Hoover's charge against the I'd
following question directed by Deputy
Attorney General Samue! A. Berger:
The very high price of sugar could
have been avoided, could it not, if this
country had availed itself of the offer
OF the sugar planters, made last sum-
mer, to purchase sugar at 6h cents ~
Mr.. Hoover replied:
Both the sugar board and out
lined the approaching situation for
1920 as early as last July and recon-
mended that the Sugar Equalization
Board should be extended over another
year and should purchase the Cuban
crop, in order that the price might be
stabilized at some reasonable figure.
AT subsequent date the board re-
ceived an offer of the crop, but, due to
various difficulties, the offer was not
accepted by the government, and the
consequence is that the markets are
in complete chaos"
Offer Made to Wilson
"To whom was that offer made-that
is, whose attention specifically was
called to the advisab1iity of purchas-
ing the sugar crop of -1920?" asked
Mr.. Berger.
ooh, the recommendations were
laid before the President and the At
torney General and other members of
the Cabinet by the sugar board from
time to time last fall" said Mr..
Hoover.
The offer. he declared, was simply al
lowed to lapse, without any definite
conclusion.
From your intimate knowledge of
the situation" continued Mr.. Berger,
"can you say whether we would now
be paying the present price for sugar
had the offer been accepted ?"
Mr.. Hoover replied:
81 believe the Sugar Board could
have purchased the crop at about 61a
cents a pound-that is, raw sugar
and that would have meant somewhere
Continued on page six)