Evening star., 1920-05-25
TWILL INVESTIGATE
| SUGAR BROKERS
Government to Make Sweep.
ing Inquiry, Based on Her.
bert Hoover's CHARGES.

NEW YORK. May 25.-The govern
ment will seek to obtain fair distribu-
ton OF the country's sugar supply
through a sweeping Investigation of
sugar brokers who ignore conditions
OF their federal licenses. Arnin w.
Riley. special assistant to Attorney
General Palmer. has announced here.
This announcement followed closely
fore the. joint legislative committee In
vestisating proflteering. He charged
the government with responsibility
for the present high price Of sugar
because OF Its failure. to author
purchase the Cuban crop last year
for Sh cents a pound. and upon an
nounoement that the price of refined
sugar had been increased to 22h cents
an advance of . cents within a
week.
"lnformal Meetings" Proposed.
The investigation headed by Mr.
Riley VIII begin today, when he will
three representatives Of the sugar mon
appointed by their colleagues last
week in Washington.
The purpose of these meetings will
be more than Just for the purpose of
Furnishing violators Of the Lever act"
Mr.. Riley said. TT Is our purpose to
do everything In our power to remedy
the market conditions and obtain q
fair distribution of the sugar supply,
even II It must be at the expense Of
some OF the non-essential industries,' .
Mr.. Riley said that when sugar
dealers were confronted with the evil
dence Of violations of their wartime
license agreements 1t was the usual
thing Tor them to attempt to wriggle
out OF the responsibility by claiming
they thought the war legislation was
no longer in effect
Licenses Still in Force.
These licenses are most emphat-
lcally still in effect Mr.. Riley said,
"and it is part of the governments 8
present task to bring this fact to the
dealers attention. We will stop the
practice of selling sugar at prices
| based upon replacement value instead
of cost. Through this means specu-
| lators have been reselling. stocks pur-
chased at and 10 cents for the prices
now current in the market. realizing
as much as 100 per cent profit"
Mr.. Hoover's Charges.
He said that under a recent court
decision 1t was illegal to do this
The employment of economic pat
ent medicines" as cure for the high
cost Of living was attacked by Mr.
I1OOVcT III his testimony De1Ore the
legislative committee. He said what
was required was a definite co-ordi-
nation of policies of readjustment and
a policy Of seeking a remedy through
studying conditions under the surface
of things.
In amplifying his opening state
ment Mr.. Hoover declared there could
be no question that the remedy lay in
the reduction Of credits and imitation
and in vigorous regulation by the
government.
Mr.. Hoover said he believed the
sugar equalization board should have
been authorized to purchase the
Cuban crop of last year. which would
have maintained the retail price this
year at about Is cents.
Credit Curtailments "surgicaI."
The curtailment of credits for spec
ulation and non essen ntial purposes
taken in hand during the last few
weeks" he said. "is in some part a
surgical operation. The best skill of
avoid difficulties that may flow from
"a too abrupt handling of the knife.
On the other hand. it offers one of
the best roads to reduction OF specu-
lation and profteering. e
Cites MAIN Causes sofs II. c. L..
NEW YORK, May .24.-Mr. Hoover
said he would Lists the eight predomi-
nant causes of the high cost OF living
as follows:
First, shortage in commodities due
to underproduction'in in Europe and our
participation therein. through the
drain upon us by exports.
Second. imitation, especially in its
expansion of our credit facilities for
purposes or uses Of speculation and
non essential industry.
Third. profiteering and speculating 8
arising from the combined opportuni-
ties afforded in the previous two items.
Fourth, maladjustment of taxation.
particularly the excess profits tax.
Fifth, decrease in our own produc-
tivity, due to the relaxation of effort
since the war, to strikes and other
causes.
sixth, increase in our own con-
sumption. waste of commodities and
the increase of extravaganza.
Seventh, deterioration of our trans
portation system during the war.
Eighth, an expensive and wasteful
distribution system and other causes
of less Importance"