New-York tribune., 1920-05-26
Rise i'm Cuban
Sugar Cost Laid
Upon Menocal
President 4 Director of Com
uauv. Whose Profits We're
$500, 900 in Year, VIII
mot Tells the Lusk Board
US. Blunder Again Aired
Witness Says Government
Failure to Buy Up Crop
Permitted Prices 10 Soar

Witness Gays Government
Failure to Buy Up Crop
Permitted Prices 10 Soar
The Lusk joint legislative committee
;,ysstigatinc the high cost of living
Earned yesterday few inside facts
sbnyt the 500 per cent rise in the price
~ sgcar since last January. The wit
Tssses we're Henry W. Wilmot, vice
resident OF the Cuban American Sugar
company, and Harry Balfe, chairman
~ AUSTIN. Nichols & Co.
From Ny Wilmot the committee
learned tnat President Menocal, of
cuba. Exed the price of raw sugar last
I.ru1ry when e: advanced almost 100
nor cent % ten ard one half Genus a
eovnd. Nj. Wiimot admitted that
}resnent Menocal IS a director of the
cuban Am orican Sugar Company. which
candles big share Of the Cuban crop.
TIE committee also learned from M
Wlmo, that while there is cane crop
shortage Of about twenty per cent
this wear because of the drouth the
lessened European consumption, due to
rationjng. more than compensates for
Ills 50 far as the supply for the United
States is concerned.
100000 Ton Crop Shortage
After Mr.. WIlmot had testified that
,be Cuban planters expected a big
price for their cane because of the
arouth. which he referred to as q
catastrophe, and had been questioned
about the extent OF the resulting crop
oss, Chairman Lusk asked:
50 that there will be about 400 600
tons less produced this year than last
year. $ that right?"
Yes replied My Wilmot.
~Ana that is the extent OF the catas-
.ro7ne isn', lt9'
YES"
That is less than twenty Per cent
dim:autiou In lnie vars G. . IS com
pared with last years CROP"
"Yes, but there have been many new
Planters"
That being the extent Of the catas-
trophe s You describe it, where is the
occasion tor 300 per cent increase in
Qrce with the twenty per cent reduc-
ton III cron ,"
= think che answer to that lies in the
-sct that L IS world commodity; it is
& world situation.'
Then that gets down to this. doesn't
il; that the purchasers Of sugar have
aiken advantage Of the world situation
to the extent of increasing the price to
SOC per cent over what ii was last year;
.snt that the fact?'
NJ Wilmot hesitated and then re-
7.ied:
"Of course they are taking advan-
.aee, but I should like to point out to
You that those who had the matter in
hand last July-here is letter to the
cha rman of the Sugar Equalization
Board urging them TO do something. 1t
Is almost prophetic"
Mr Nllmot read portions Of this
letter and then Perley Morse. the Ger
Uaed public accountant assisting the
comm tee, asked
"N wasn't the staple pr ce fixed in
and a FRACTION >" ~ az '
For the consumer replied Mr.. Viii
mot.
w hat was the price before Janu-
af5, ~ l'-o
basis ~ ,i. ''9'c c.o.. - :, 00''S 0iop Was on q
economic Factors
What economic factors entered in
70 maae uu the difference between 512
and I'D and a fraction cents in the in
creased cost ot producing raw sugar ~
"ro the farmer"
What was MS increased cost"
10 increased cost"
az ar Of surprise.
"1ou cannot say absolutely none;
everything has increased The cost
Of living increased down here"
Bat yoa say me cost had increased
very nJtle when the President OF Cuba
MAZE tie Decent price ?"
10 ANYBODY who planted the cane
'hgTe T5 was me- increased cost
~, eAam ma then tralled off into
a,n's1i5S d se1iss or ouer'es about fertilizer,
b-c. H.. IN ana was hnaliy switched
Es,oc3ii, Oil...' i.sI,il il''n huok TO Freslcent
..Jag. '.5,.GC'' eHortS at price fixing. He
@B.,. NJ, U-;t..o. ~
Is - ,.-aa. ~. 5d lan'ol' tne oiherence here
month - r''. - 'oU per PEI sen cent @ ,nside OF a
'4 IAea 'he prlce at IL cents"
rurehase by nited states Urged