Evening journal., 1920-01-03
SUGAR GOUGING
TO BE STOPPED
Palmer Orders Vigorous
Prosecution of Violators
BY Federal Attorneys
EXPECT LOWER
PRICES VERY SOON
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WASHINGTON, Jan. 3--Eliminatlo
~ proflteering in sugar with the con
sequence That present prices will be re
.duccd and boarded supplies placed OF
Me nRrket. is promised by the FoOC
Administration division Of the Depart
ncni of Just ce. This viii be accom-
plished through exercising the war
time act as extended during 1920 by the
McNary bin. 10 was said.
Orders were sent out by Attorney
General Palmer TO district attorneys "a
prosecute vigorously-all sugar pro0-
tcers, Of whom there undoubtedly is n
lsrgt number, Judging from reports
reaching the department. Of eXorbliant
sirarges during The last two weeks.
Tbs will affect mainly the retailers.
The expectation az The Department Of
Justice Is that the large distributors
viii bt reached through a resumption
a. the license system used during the
W7f which The McNary bill authorizes
for tho FIRST six months Of 1920. The
Government probably Will license all
dealers with an annual business OF $780,
COO or more. Any pr0flteering by the
large dealers VIII result in royOcatior
OF The Incense % do business.
Tho Government Will not flx the
Prices Of various grades OF sugar be-
cause that power Is not conferred on
the President by the McNary law, said
Howard r. Figg, In charge OF food ad-
ministraiion work for the department
Fair PROFITS will be allowed both whole
saiers and retailers by the Government
but TO prosecute or revoke licenses an
investigation IN each case is required.
Hiail prices. Mr.. Figg said, VIII be
controlled largely through the local
1air price committees, which have been
revived by The Attorney General. II
prices above those OF the committee are
charged, PROSECUTIONS will follow on
the charge OF profteering
Rumors were current here today that
The Sugar Equalization Board. because
or The fact that the President had
turned down its recommendation Of |
last summer TO buy the Cuban crop.
mas asked the President 10 be relieved |
OF its work. n this is the case, the 4
boards powrs probrbly will be con- !
fe-red on the Department OF Justice.
The President is still considering
whether 1t would be wise to buy The
rest OF the Cuban crop now, but IL Is
doubtful II this would be done despite /
the fact that this was the original pro
posal of the Equalization Board.
Secretary Of Agriculture Houston. 1.
one Of the Presidents main advisors !
on the sugar situation, said that such
a step would enhance the price OF
sugar because OF the fact that a cen
tral control Of the Cuban sugar has
ceased TO exist and individual produc- K
ers would ask much higher figures II
The United States stepped, into The
market.
The United states needs about
100000 tons Of sugar from Cuba" Mr. q
Houston said. "Ou- total consumption {
his year viii be above 100000 tons
" this one-fourth approximately will I
De raised ln this country another
ourth will come from Porto Rico. IA 4
Nail, The Philippines. the Virgin Is ,
ands and other small sources leaving n
one-half TO come from Cuba. I
inc Cuban crop is estimated at c
r2uV'oO tons, OF which 10000 tons u
ave been contracted for by the Brit p
sh, leaving 100000 tons from which v
nc United states supply much come o
IN increased consumption OF sugar :
nay be expected this year because OF n
rohlbltion. II IS a strange fact that u
fter the Civil War the per capita sugar
assumption was about rs pounds. -
While today It is about So" a
The food administration division ad- q,
lifted It had approved a price Of about 7
cents a pound for Louisiana cane q
igar. An Investigation showed that Y
lis did not allow an abnormal profit a
ecause The Louisiana crop was only y
per cent. Of normal The Southern =
roducers are both growers and re0n- I.
rs. and a high overhead requires the o.
igher price Il was asserted. Con- ..
ress probably will Investigate this !,
'tion OF the department as a House u
solution Is even now on the Attorney ~,
enerals desk asking for complete in -
'rmatiun.