New-York tribune., 1920-05-20
Experts Blame
u. S. for High
! Sugar Prices
r.;lure to Buy Cuban Raw
Crop Held by Witnesses
BEFORE Lusk Committee
Primary Cause of Rise
Testimony OF Two Heard
Tell of Competition When
Eaualization Boards
Findings We're Ignored

The Lusk Legislative Committee,
-s;,h Is conducting an investigation
,,,o possible prohteering in sugar, held
:, onen hearing yesterday and devoted
-. two sessions chiefly to the Cuban
.,esr situation. The committee, at
.,.ssd sessions earlier in the week, ex-
.n;,ed officials of the American Sugar
refining Company and other large re-
sn;ne companies. Yesterday it CON
ssed its attention to sugar brokers and
Merchants who handle large share of
,he raw sugar crop of Cuba.
Arthur Henry Lamborn, of the firm
,,A H. Lamborn & Co, sugar bro,
,srs. with Offices at 1856 Front Street,
and also Offices in score of other
rites in this and other countries, and
Emanuel Z. Rionda, vice president of
the Czarnkow- Rionda Company, Of 112
Wall Street, were examined. Mr.. Lam
born was on the stand during the
morning session and Mr.. Rionda testi-
field at the afternoon session.
Both Of the witnesses agreed that the
Federal government was primarily re-
sponsible for the present high price of
sugar in faiiing TO act favorably on
the recommendation Of the Sugar
Equalization Board, which advised the
purchase of the Cuban raw sugar crop,
amounting 10 three and half million
tons, at 6i2 cents a pound.
Mr.. Lamborn said that the govern
men. had every meaps Of knowing the
situation, and that every member of
the Equalization Board recommended
me government to buy, with the excep-
ton Of Professor Tossey. an economist.
Both witnesses declared that if the
government had obtained control of the
Cuban crop the price level would be
very much lower at the present time.
Lost Opportunity
In explaining hts conclusions on this
point, Mr.. Lamborn said:
Our government had the opportu-
nity Of buying the Cuban crop at what
seemed like fair price TO the Cubans
or they would not have offered it. and
which now is obviously a very low
price If we had bought it in the
middle Of last summer, when the in
visible supplies all over the world were
exhausted practically, conditions would
be much improved now. When France
opened the markets to the merchants.
for the first time in four years, on
June 6, 1t must have been obvious TO
every thinking man in the raw sugar
country did not buy the raw sugar
crop. But this country did not buy the
crop, although 1t was we'll known that
Immediately there would be thousands
Of buyers for sugar. either raw or re-
fined, all over the world.
There are buyers trying 70 by
sugar for all parts Of the world. THIN
again, some of the refners in this
country immediately after the gov
eminent refused to buy the crop said
the price was too high, or they acted
as If they were afraid the price was
TOO nigh, and they let outsiders from
al over the world, and particularly the
English government. come in and buy
considerable quantities of the crop.
l1e competition of all these interests
made higher price. of course
II developed from the testimony that
the large sugar refneries for some
time had not bought raw sugar directly
from the producer. but through brok-
ers and merchants who dealt in the
raw sugar, such as the Lambor and
Klonda firms. Their business was de
scroed as "tolling," by which they re-
aned the sugar for the brokers-for a
price-and the brokers then disposed
q, or previously had disposed of, the
refined product.
1t was brought out that the higher
me price OF raw sugar the more the
Eehner charged for tolling, although
me cost Of refining il was no more a
pound. The retiner charged 10 cents
lVo pounds for every cent advance
N 'he prlce of raw sugar, the wit
nesseS said, but could not explain why
ne should charge more to refine 49,
cent sugar than eight-cent sugar. Mr.
Lamoorn said that the refner asserted
ne mad more losses on the higher
priced sugar and that he, the witness,
was not IN position to dispute him.
Mr.. Lamborn said that the lowest
p.ice OF Cuban sugar he recalled for
.ae 4s2o crop was six and a half cents
= pound delivered to New York. The
ngnest price was paid Tuesday, he
said' 221e cents and freight to Savan-
Ian' he said that his company had
Ussought TO this country since the first
=. me year 1853, ,450 tons of raw sugar
20 De rehned by the Federal Sugar Re
ming Company and others. This was
uIHe uh on a tolling basis, he said, for
an.en the refinery charged 2.25 cents
pound, which must be added to the
.llual cost. The refner also got all
'ns oy-products of molasses and
gfup' and was allowed about ten
pVanas ant hundred for shrinkage.
!, ulVe the people an idea that there
NJ enough sugar to go around" said
~;; p1i kionda, "and tell them if they
Nh economic, then in October and
.tb.'emner, ~. when we get our crops in,
~, s prices viii go down. But l have
ern,.;sh seen any propaganda to try and
Tf.S Tfrrs'n TINS situation to the people
I;ns I;rJs are really responsible for these
bny bsH prices, because they are crazy TO