New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-06-03
Fixing of Sugar
Price by Palmer
Called Illegal
Majority Report of. House
Committee Says Action
on Louisiana Crop Had
No Authority in Law
Caus ell Cuban Price Raise
Democratic Minority Re
fuses to Sign and
Will Submit Findings

WASHINGTON. June 2.-The sugar
Investigating committee, in a majority
report presented to the House to-day,
declared that Attorney General Palmer
had used his power as chief prosecut-
ing officer of the government "for the
purpose of fixing maximum selling
prices of sugar in Louisiana, and in so
doing acted wholly without authority
OF law and in violation of his own
construction OF his official duty
TIE report, prepared by Representa-
tive busted, Republican. of New York,
as chairman, charged that the egalistic
method adopted was "wholly ineffec-
tive as means of price control" and
that 1T gave apparent governmental
senction to extremely high sugar
prices, which excited the cupdity of
Cuban producers and caused an adj
vance in the Cuban market"
Repre- 5enta,lves Whaley, OF South
Carolina. and Summers, of Texas,
Democratic members of the judiciary
sub committee which conducted the in
vestigation. refused to sign the report
and announced they would file d mi
nority report Republican members.
including Chairman Hustled, who
agreed IN the findings, We're Represent
t&tives Classon, of Wisconsin, and
Boies. of Iowa.
Representative Tinkham, in a state
ment issued tonight, demanded that
Mr.. Palmer resign at once as Attorney
General. He said in his statements:
For the Attorney General to have
given immunity to profiteers increased
the price of sugar and violated in two
particulars the law which ne has
sworn to obey and makes his further
occupancy of the Office of Attorney
General impossible"
Palmer's Contention
Mr.. Palmer insisted before the COM
mitteo that he had not fixed sugar
prices, but had merely stated the posi-
ton of the department as to prosecu-
ton for profiteering -that Louisiana
planters selling at more than IT and
IL cents wholesale would be prose
cuted under the Lever law.
There were eight findings in the
majority report, the resolution intro
tuced by Representative Tinkham, Re
publican, of MASSAGE usetts, calling for
al investigation, continuing the corn
yAi-tee inquiry to Louisiana transac-
tons.
The majority findings follow:
The Attorney General on the eighth
CAs OF -NoNenD per. 4Si%, gave MS OfAclal
approval to tentative arrangement
made by United States Attorney
Henry Mooney with committee rep
resenting the sugar planters of Lou
isiana, by which was established a
maximum price of II cents per pound
for prime yellow clarified sugar and Is
cents per pound for clear granulated
sugar net on plantation.
The Attorney General fixed said
prices at a time when he considered
them rather high; had just been ad-
vised by his representative in Louisi-
ana, United States Attorney Henry
Mooney, that such prices were IN ex-
cess OF the fair average price for the
crop. and when he had reason 10 be-
lieve that the entire crop could be pur-
chased for IA or 10 cents per pound.
Crop conditions in Louisiana dur
irg the year 1919 varied greatly in
different parts of the state and on diff
ferent plantations. In some cases the
loss OF the crop was very heavy, in
others it was comparatively light, so
that fixed pr.ce for sugar which
would yield only q far and reasonable
profit to the producer whose cost of
production did not exceed the general
average for the state would permit a
certain class of producers to make ex-
ccssive profits and would deprive an
other class Of the fair and reasonable
profit 10 which il was entitled under
the law
Immunity for Profiteers Charged
80 n2er the arrangement effected by
the ATTORNEY General with the commit