New-York tribune., 1920-04-30
Sugar Makers
Pied ge Aid to
Stop Cougiing g
Rehners Would Prohibit
Resales So Goods Nav
Reach the Consumer by
the Most Direct Course
War Board Is Renamed
Palmer Places Blame for
the Present Situation OH
Congress, Not President

From The Tribune's Washington Bureau
WASHINGTON, April 30. Prohibi-
tlon of resales in the sugar trade IS q
means of preventing boarding and
speculation and to control prices for
sugar was tentatively proposed at a
conference here to-day between repre-
sentativcs of the Eastern sugar re-
tincrs and officials of the Department
of Justice.
The reiiners expressed Willingness
to refuse to resell to their customary
purchasers whenever there was evi
dencc that these customers were SELL
ing IN excess quantities to their local
trade, and thus making boarding and
speculation possible.
Announcing in an oxc;al statement
that "the moro likely" of the proposals
made would probably be adopted by
the department in the shape of formal
agreements, Attorney General Palmer.
who had just previously finished testi-
tying before an investigating sub COM
mittec Of the House Judiciary Commit
tee on the sugar situation, stated that
the rchners had also recreatcd the re-
fincrS' committee which worked in CO.
operation with the food administration
during the war. The reiiners sug-
gcsted that this committee meet from
time to time with officials of the de-
partment for the purpose of fixing
prices. The statement read in part:
Shortage Blamed for Condition
"Thc conference agreed that the pres
ent chaotic condition of the sugar mar
kct is due to a shortage of supply and
an abnormal demand. The European
output of beet sugar is far below nor
NAL. Before the war Great Britain
drew IS per cent Of her sugar from the
European supply. With that supply
cut off Great Britain and other Euro
pcan countries must look elsewhere,
and the Cuban supply has been her
logical depot. The Cuban supply in
turn is short of the present demand
as result of an unexpected drought.
This Cuban shortage amounts to ap-
proximatcly half million tons under
what was expected from that source.
"Conservativcly estimated the Amer
lean sugar demand increases normally
25O,0O0 tons year, and for 1919 we
reached the new high level of S5.43
pounds per capita. The 1920 beet crop
is not expected to reach the market be-
fore July Is. Meanwhile, with the de-
mand for soft drinks, candies and other
of sugar, it will take close
vigilance to protect the consumer in
his scramble for his normal supply,
but in spite Of exaggerated reports to
the contrary. the rctincrs informed the
representatives. of the department that
the manufacturers arc at present, ac-
cording to their information, receiving
only about Is per cent of the sugar
consumea.
Offer to Stop Rcsalcs
"Among the agreements the rctincrs
offered to enter into with the approval
of the government was one OF cooper
alton to prevent resales on the part
Of those within the trade that would
tend to allow the sugar to take any
but direct course to the legitimate
manufacturers and ultimate consum-
crs. This, they said, could be done by
refusing to resell to their customary
purchasers where it was found the lat
ter were selling in excessive quantities
CONTINUED page four)