Evening star., 1922-03-08
|RAPS j. s. CONTROL
| OF FSUGAR|NDUSTRY
Refinery Head Says Decon-
!, troll Experiment Has Cost
People Millions.
By the Associated Press.

/ By the Associated Press.
| NEW YORK, March S.-Seyere con-
demnation of the government control
of the sugar industry is contained In
the annual report Of Earl D. Babst'
i president of the American Sugar Re-
fining Company. which was read to
the stockholders at a meeting in Jer-
sey City today. "a
| For these experiments of contHol
and of decontrol," he said. 1.-The peo-
world have paid hundreds Of millions
| of dollars. The magnificent sugar in
dustry of the United States field, in
! Guiding the producers and rehners,
both beet and cane. whether OF contl-
mental United States, the Philippines,
| Hawaii, Porto Rico or of Cuba. has
paid almost with it's life. United
! States investments. in the hands or
| hundreds of thousands OF people,
amounting to several billions of dol
Decontrolled by Fiat.
| THE United States sugar industry,
the greatest of it's kind in the world,
ranking in Importance with steel,
,, railroads and farm products. was de-
| controlled by Legislative fiat and eX-
| ecutive order without regard to
elementary economic laws.
Inc report SHOWS a loss on opera
tions of $2,177,276 during 1921. Sur
plus was drawn on for $5.311,S67 to
meet operating losses and to provide
for dividends declared. The operating
| losses We're attributed to steadily de-
| clining prices. The total tonnage of
before. and the volume of business
| amounted to $140,000,00O. Balance of
| surplus and reserves amount to more
| than S29,000,o00.
Merely Continuation. =.
"The events of 1921" the report
| said, "are merely a continuation of
1920, all incident to the disastrous at
| tempt by our government to control
\ world staple, for two years held below
/ its worlds parity, without the eau
! ton of accommodating stocks or of TAX
| ing any other preparatory measure
for, the transition. While the finan-
| cal effect on the refiners and pro-
| ducers of the United States. both beet
| and cane, has been most disastrous,
yet the abject disaster of Cuba has
been the outstanding feature OF the
year. Cuba has had to bear not only
! the burden of its ordinary crop, but of
| its stimulated production.
$50 violent was CubaS reaction that
most of it's banks were carried away.
In the stress of it's financial needs it,
too, undertook the risk of sugar con-
troll. 1t should be set down, however,
to the credit Of the Cuban sugar in
dustry that even in its great national
financial distress the necessary con-
sent of 10 per cent of Cuban produc-
tion was obtained with the very great
est difficulty. The Cuban sugar in
dustry, like others. has learned the
peril of government control.
Pictures Great Risk.
"Is it not time for the public, who
must in the end pay the bill on every
lpound of sugar they buy" the report
continued, ito insist that the sugar
industry be given a rest from any
further control or experiments of any
kind, Of any name, of any device. and
be given an opportunity to recover
| it's position under it's own direction
whoever undertakes to introduce
further artificial measures in the
present complicated position of the
sugar industry does SO at great risk
and under grave responsibility to the
entire people of the United States.
producer and the consumer and usual
! ly bears the burden of the consumers
! complaints, but he Will assume no
responsibility for the high prices
| which will come with any artificial
crop curtailment or other expert
ments. The people of the United
States understand that the govern
diring the war, but certainly they
will be unwilling to pay the price
of any further experiments, or any
effort to exploit the disaster of de-
control to the advantage of any Sec
| tion of the industry.
THE law Of supply and demand
is inexorable in itself. and before
| 1t all people, whatever government
| or individuals, whether legislators or
| consumers, still must yield"