Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1920-05-10
Says Administration Could
Have Purchased the Entire
Cuban Crop for 6 1-2 Cents
Per Pound Last Fall.
FOREIGN BUYERS BID
AGAINST u. S. MERCHANTS
Urges Restrictions Again Be
Placed on Candy and Soft
Drink Manufacturers Until
Shortage Is Relieved.

w dSHlI SOtll, MAY S.-I1tIDGlt
Hoover, former food administrator,
in telegram to Senator Capper Of
Kansas today, bluntly placed the
blame for the present sugar short
age and high prices upon the ad-
ministration. If the administration
had adopted the sugar equalization
boards recommendation last Sep
tember it could have bought raw
Cuban sugar for 6h cents a pound
and furnished the finished product
to the American consumer in abund-
ant amounts at II cents pound. he
declared.
Mr.. Hoover said the situation
could not be remedied by Attorney
General Palmer's threats to punish
sugar profiteers. The sugar specu-
lation is worldwide and requires
something more than a raid on
American profiteering, he said.
The administration should open
negotiations with other nations
with view to obtaining>,an agree
ment to put all end to America and
Europe bidding against each other
for the sugar supply.
Rationing of sugar supplies to
nonessential consumers, such as
manufacturers of candy and soft
drinks.
Due To Bad Business.
"The present sugar position is
due simply to bad business admin
istration,' said Mr.. Hoover. Last
September the administration could
have bought the Cuban sugar crop
at 6H cents per pound for raw su-
gar This would have given l2-cent
sugar to our consumers and, to-
gether with Our domestic produc-
ton, would have furnished supplies
in excess of our demands. AS the
result of failure to act in this mat
ter, we are participating in the
world-shortage of sugar due to de-
creased European production, and
we are subject to unparalleled spec
ulation and profiteering. The use
of sugar is an absolute essential in
our households and the present sit
uation oiscrin1inates terribly against
the poor. The increase in price is
imposing an additional tax on our
people OF about $50 per family per
annum, since the 8,000,000,000
pounds of sugar we consume an
nually, at the present price, will cost
consumers over a billion dollars
more than last year.
Bid Against Europe.
"As at least one-half of our sugar
must come \from foreign sources,
our merchants are bidding against
European governments for its pur-
chase. The profteering is interna-
tional. The situai iion is as much
disliked by the vast majority of our
manufacturers and distributors as
by the public, for they do not like
even to be accused of profiteering.
This situation cannot be rene
died by the attorney generals con-
ception that forces of this charac-
ter can be handled by putting few
people in jail. Something should be
done to remedy matters if our gov
ernnent, even now, entered into ne
6 eotiations with the large European
to stop bidding against
each other and SO secure our fair
share of the available supplies.
Aside from initiation of price, an un-
due share will otherwise go to
Europe, because their purchases are
still being carried on under the di-
rection of their governments and
our merchants have not the re-
sources to compete with such Or
ganization for forwarding supplies
and thus our fair share is seriously
jcopardized. 1t may be too late. to
this.
Reduce Consumption
"The second thing that could be
done to break this gigantic bubble OF
speculation would be to reduce con-
through immediate ration
ing of 1.-THE nonessential consumers.
Over one-third OF our sugar is used
by the candy, sweet drinks and other
of nonessentials.
During the war these trades patriot
ically co-operated in public interest
in such reduction and themselves
found substitutes of other sweeten-
ing materials for the maintenance
of their trade. They would no doubt
cooperate again.
1T is no use crying over split
milk, but simply to show that these
measures are reasonable, | need only |
to recount that they were carried
out for two years by the food ad-
and the equalization
board, Of which | was chairman un-
til last July. The impending situa-
ton was anticipated by the board
and myself last July. The continue
ton of control and insurance of
our supplies through the purchase
of the Cuban crop, as in the two
previous years, was recommended. |
When this proposal failed, the board
recommended the alternative and
less efficient method outlined above.
If it were put in action even now, il
would frighten spectators oft of
IL, Il. Il 4 4 NJ