Evening star., 1923-04-19
SUIT CAUSES DROP
OF 50 TO "A POINTS
Heavy Selling Develops, Fol-
lowed by Rally Back
35 Points.
NEW HIGH on CUBAN RAW
Action Described as Effort to Take
Roulette Wheel From
Breakfast Table"
NEW HIGH on CUBAN RAW
By the Associated Press.

NEW YORK, April 19.-Raw sugar
futures took a perpendicular drop of
approximately so points on the New
York Coffee and Sugar Exchange today
upon receipt of word of the govern
ments suit to enjoin trading in sugar
futures.
Heavy general selling developed as
soon as news of the Injunction suit
reached the floor. Drops ranged from
so to IA points. but were followed by
a rally which carried prices back 35
points.
New High on Cuban Raw.
Cuban raw sugar. however. sold at
a new high record since 1920. A sale
of $500 bags was made to one opera
tor at 6S cents cost and freight.
equal to SIG for centrifugal
United States Attorney Hayward,
who was in charge locally of the in
veStigation which resulted in the
suit. characterized the procedure as
united effort on the part of federal
on1elais to make the gamblers in
from the American breakfast table.
Every Increase of l cent in the
Price OF sugar. artificially stimulated
by these defendants in their specula-
tons. has cost and is costing the
american people 100000 week"
Mr.. Hayward asserted.
Sherman Act Developments.
The theory of the government in
this suit is the logical development
of the Sherman law, the Wilson act
and the decisions the United States Su-
In nd
the Totten corner case and the grain
futures case"
Stocks of sugar companies listed on
ttf New York Stock Exchange also
were hit by news Of the Injunction
suit. They had started off with an
trading. but when word Of the suit
reached the floor they dropped 1 to
nearly points from their early
highs.
Supply Held Normal.
Cuba cane sugar preferred dropped
2A points; Cuban American and
Manati. az each: Punta Alegere. 2A :;
South Porto Rican. 2, and American
Beet Sugar, 1.
1t was said at Mr.. Hayward's office
that there is every indication that
the supply of sugar is normal and
that the demand Is also normal for
the present time of year. Only the
price Is abnormal, 1t was asserted.
THE price of sugar is high because
or manipulation on paper contracts
for sugar which did not exist" said
one of the Department of Justice
investigators.
Paper Transactions.
THE February figures of transac-
tions on the sugar exchange show
that 100000 tons of sugar were
bought and sold on paper contracts,
and that only 800 tons of sugar were
actually delivered during the month
of February. These figures show
that actually only 2-1o,0OOths of 1
per cent of all the February trans
actions on the sugar exchange were
bona fide and representing sugar
that was actually delivered"
A check-up on the hectic trading in
futures which took place on the
sugar exchange following news of
the filing of the suit showed the
tumble in futures ranged from SO to
SO points. The drop was followed by
a rally of Fl to 81 points, bringing
prices within 10 to 35 points of the
days high.
The hearing on the governments
application for a temporary iuiunc-
tion will be held April 80, unless a.
postpoEement is granted by the court
it was announced at Mr.. Hayward 8
office.