Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-20
PLIGHT OF SUGAR
| DEALERS FAILS TO
MOVE GOVERNMENT
Those Caught in Price Slump
Ask Justice Department to
End Crusade.

Nature was the only thing around
the Department of Justice today
which was weeping over the plight of
sugar dealers caught in the price
slump with large stocks on their
hands. and who have appealed to the
department to help them out.
John f. Crosby. who is acting head
or the departments campaign to re-
duce the cost of living, said many
dealers now are appealing to the de-
partment to stop the landslide they
claim was caused by this campaign.
The Department of Justice is in no
way alarmed. it is stated, and has
taken no action
Whether the slump in prices of
sugar can be blamed on the Depart
ment of Justice is a question. Mr..
Crosby said today the department
was caused by enforcement of the
Lever law against profiteering and
hoardlng. But there are other causes,
1t is believed, for the slump ard the
American public stands ready to take
Its share of condemnation.
Inc facts are, as stated today. that
many dealers in sugar bought large
stocks at high prices. anticipating d
greater demand than was evidenced
TINS winter and spring for the COM
modify. The demand failed to show
up-the public failed to get panicky
over sugar shortage. and as a re-
suit these sugar men have been fore
ed to sell their product below cost
The total loss to them. it is estimated,
will run into the millions.
Maybe There Is Not Any Bottom.
Within the week prices for whole
sale sugar in various parts of the
country have dropped from 30. "a and
rs cents a pound to Is, II and IS cents
a pound, and there is no telling what
the bottom price will be. Sugar is
selling in Washington, retail, as low
as 1512 cents pound, and the predic-
ton of one dealer here last week that
sugar woul reach IA cents a pound
retail bids fair to come true.
There seems to have been a mis-
calculation about the effect of pro-
hibition on the demand for sugar.
situation. 1t was anticipated that
the sale of candy and soft drinks
would reach high into the skies when
the consumer was deprived of his
alcoholic stimulant. These sales did
increase, but the sugar men. appar-
emily, have found out that there are
many Americans who have not missed
whisky and beer enough to plunge
heavily in candy and soft drinks.
Sugar was brought here from Brazil
Peru, Argentina. China and even from
far Africa-hitherto small sources of
supply for the American market. 1t
was a mad rush on the part of for
eign merchants to get their sugar
here and dispose of it at high prices.
Now, with all this sugar in hand, the
manufacturers of candy and soft
drinks have found the public is not
candy craZy-there are other things
to spend money on-and they have
been forced to dispose of their stocks.
Sleuths Still on Job.
Gradual unloading of this sugar on
the market, it is stated, caused an in.
crease in the supply which went be
yond the demand. The Department O,
Justice. instead of adopting a hand.
off" policy now that prices have be-
gun to slump, is watching to prose
cute any refinery which takes advan.
tage of the slump to profteer. An
example of a possibility in this di-
rection would be for a refinery to sell
sugar to the jobher under contract
agreed to last winter when prices
were at their height, instead of low
ering them with the price he mus
pay from the manufacturer. By doing