New-York tribune., 1920-05-04
Sugar Famine
To Continue
Many Months
Experts Predict Scarcity
Will Exist for Another
Year Owing to Inevi.
table Shortage of Produc,
Resale Check May Help
Normal Conditions Impossi.
BILE Until German Beet
Fields Resume Operation


WASHINGTON, May s. Despite
their belief that the proposal of the
Eastern refners to cooperate with the
government lin preventing re-sales
would tend to break up speculation in
sugar, representatives of the growers
and manufacturers to-day predicted
little material relief for months to
come.
Denying there is anything like a
corner, Truman G. Palmer, representa-
tive here of the beet sugar interests,
declared the scarcity in the worlds
supply compels the belief that it will
be another year at Yeast before the
supply is equal to the demand.
The Department of Justice is still
celebrating on the offer of the Eastern
rehners to cooperate with the govern
ment in prevention of re-sales and in
f1Xlng prices, and an announcement ac-
ceptlng the proposition is expected
soon. While members of the trade
believe check on re-sales would help
some IN preventing artificial boosting
OF prices. 1T is nevertheless their con-
vlctlon that the public cannot expect
any material relief either as to supply
or prices until the world gets back to
normal production.
German Production Missed
The worlds requirements of sugar
tor the fiscal year 1920 have been
estimated at 24,030, lao tons, whereas
the actual yield in the last crop has
been figured at approximately 1S,OOO,-
600 tons. Germany's output of beet
sugar, previously the largest in the
world, dropped during the war from
9,645,125 tons to 3,979,3O3, and it has
been impossible to determine what the
Russian yield this year will be. While
there has been an increase in the out
put of cane sugar of about 1850 600
tons during the war, refiners in Wash
lngton declare it is impossible to figure
on anything like normal supply or
prices until Germany gets back into a
parceled off from Germany, like
Czecho- -Slovakia, assume their share of
the burden of producing.
The retiners estimate the actual
shortage in the supply for the United
States at 100000 tons the normal
consumption being about 100000. This
shortage is due principally to the re-
fusal of President Wilson to approve
the recommendation of the now de-
funct Sugar Equalization Board that
the United States buy the Cuban crop
as it did during the war and allocate it
to the European powers. This left the
way open for Great Britain to buy the
bulk of this crop. In this connection,
the rehners bitterly criticize the Ad-
ministration on the ground of short
sightedness.
The refners are fearful that the
present situation will lead to drastic
legislation and perhaps naturalization
of the industry. They declare that
when normal production returns and
prices drop they will fn1 themselves
face to face with high prices for their
raw material and high wages for their
employees.
Individual Hoarding Charged
"Under threat of government prose
cution," said Mr.. Palmer to-day, "the
beet sugar refners in the West and
Middle West disposed of their 1919 crop
as rapidly as it was refined, and at the
government fixed price of 10E2 cents.
So there is no corner as far as we are
concerned. There has been, however
apparently a great deal of Individual
boarding on the part of householders
which has aggravated the situation for
the consumer who did not hoard.
"Also. there has been a great deal of
speculation in the way of resales
which the offer made by the rehners to
| the government is destined to correct
| know of one instance in which lot
of sugar which went on the Chicago
market was resold eleven times before
it reached the consumer, each Of the
intermediary brokers taking his profit
How general this is I cannot say.
"But that there is a real shortage
is perfectly patent from the figures.
The beet sugar crop in this country
last year was 726,451 tons, as against
76O,95O tons for 1918, and there was
some drop in the Louisiana cane crop.
| know that the refners in southern
California have recently paid farmers
as high as $40 a ton for sugar beets.
The yield in southern California of re-
fined sugar from sugar beets is con
siderably higher than elsewhere, or
about 1888 pounds a ton. Elsewhere
the yield is about 272 pounds ton OF
! beets."
Yield to Increase Slightly
According to Mr.. Palmer the yield
of beet sugar in the United States
this summer will be about 10000 OF
! 100000 tons more than the 1919 crop
extra large acreages being reported
from Michigan, Colorado and Califor-
MIA, the three principal beet sugar
required considerable time to increase
the yield, owing to the close attention
required of the farmers. The Cali
! forna crop is expected to come on the
market in July. He told of sugar
brokers vainly seeking supplies, and
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