San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-04-08
SUGAR PROBE Z
.GO FIX ROLE
n OF REF|NERS
Movement to Learn If
4 Prices Were Put Up BY
American Interests.
CONTROL THE CROP?
Evidence Sought 70 Show
e Refiners In Close AL
lance With Cubans.
Rx HARDEN COLFAX.

By HARDEN COLFAX.
Copyright. by The San Antonio Light.
Washington, d. c., April All
government agencies investigating the
sugar situation-and that means most
of them. for sugar holds the spotlight
here-have virtually reached the lden-
teal conclusion that the tariff had
nothing whatever to do with the re-
cent rise in prices and is IN no wise
responsible for the present price level.
Official pronouncement to that effect
probably will be made within a short
time.
In checking up the tariffs effect,
if any, on sugar prices, the govern.
ment's investigators have disgested
during the past week or ten days an
enormous volume of price sheets and
similar data showing quotations on
Cuban raw at New York which con-
trolls the market, before the Fordney-
McCumber tariff act was passed and
ever since it has been in operation.
They have found, it is reported,
abundant information upon which to
base their conclusion. On September
20 last, the day before the tariff act
went into effect, the investigators
have established the market price of
Cuban raw sugar, laid down at New
York, at three cents a pound before
the payment of duty.
Who Boosted Prices?
On April 5, the middle of the pres
emit week, the market at New York
on Cuban raw sugar, before payment
of duty was 3 1-2 cents pound:
Under the dney-McCumber tariff
act, the duty is 1.76 cents a pound.
The tariff has increased ten per cent,
but the price of raw sugar before the
payment of the levy imposed by the
tariff and therefore irrespective of
the tariffs operation, has increased
. IL cents a pound laid down at New
York, or BY more than so per cent
within little more than six months.
The government is conducting an
active inquiry, chiefly through the
Department of Justice, into the causes
contsibuting to the so per cent adj
vance in sugar prices before the sugar
IL even admitted to the United States.
Its agents have begun work to deter
mine the truth of reports that the
Cuban producers are largely controlled
By American refining interests located
along the Atlantic seaboard and that
the whole scheme of advancing prices
to their present lofty levels is the
outcome Of such alleged control.
In other words the government is
looking closely into the report that
the rise in prices was conceived, en-
gineered and directed by American
interests closely connected with the
eastern refiners. What the investiga-
ton will disclose, of course, is prob
lematical; but the department is PIE
pared to proceed in the courts vigor-
ously and without delay IL there ap-
pears sufficient warrant for it to do
DO.
Who Controls Raw Sugars
OF considerable interest to the gov.
eminent agents are reports Of the al
legged alliance between American re-
timers and Cuban producers. 1t is
alleged, among other things, that a
close relationship exists between the
raw sugar producing industry of Cuba
and the refined sugar industry in this
country; and that with only two ex-
ceptions, all the eastern sugar re-
.finers are interested, directly or in
uifcCtIy III raw suBut ptouuciiS Soui-
panies. 1t is also reported that GER
tain powerful United States banking
Institutions control a great portion
Of the Cuban crop.
What banking institutions, II any,
and what refiners come within the
scope Of these charges? To these and
similar pertinent questions, the gov
hwsnt's agents are seeking reply.
Another question to which answer is
being sought, is this:
ais II now TO the advantage Of the
American refiner to see that the raw
Cuban sugar receives a high price?"
If the control of q large volume Of
Cuban production has fallen into
American hands, the answer to the
question, Il can easily be assumed, is
In the affirmative.
Use Tariff As q Screen.
In addition to sugar price sheets.
the statements and declarations of
Cuban growers prior to the enactment
of the tariff are receiving careful
scrutiny. The Cuban commercial mis-
sion, for instance, protested in 1921
to the Secretary of State that "the
emergency tariff imposed burden and
hardship upon the Cuban producers
snd the Cuban producers will con-
fInue to stand the burden of that adj
difional duty" When the emergency
tariff went into effect, the same mis-
sion asserted, "Cuban sugar depreciat-
ed to the price of 60 cents per hundred
pounds which Is exactly the difference
between the old and new rates on
sugar for Cuba"
Before the Senate finance commit
tee.s the Cuban producers asserted in
1871, government investigators have
found, that "the increased tariff has
always been borne by Cuban produc-
ers."
While using the tariff as a screen
behind which to advance prices has
always been regarded as q more or
less popular, pastime, in this instance.
the government apparently intends to
drive the real interests responsible for
the increase out from behind the
screen, and. according to present in
dications, Is about ready to start the
drive.