The Washington times., 1923-05-08
j. s. DEFEAT IN
SUGAR WAR
LIKELY
Judges Not impressed by Gov
ernnnent's Arguments and In
junction May Be Denied.


Judges Not Impressed by Gov
ernment's Arguments and In
junction May Be Denied.
unless the boycott by housewives
continues to exist and continues
to increase in effectiveness.
Judges Not Impressed.
1t was day of defeat for perma-
nent low prices and for Govern
mental interference with sugar
speculation.
Two of the four judges showed
clearly by their comments and ques-
tons that they are not one bit I'M
pressed by the Governments case
against the sugar exchange.
The Government is seeking to
have the sugar exchange enjoined
out of existence. In order to ac-
COZ plish that result. it will be nee.
essary to have majority of the.
four judges voting in favor of the
proposed enjoining. An evenly di-
vided court will mean that no af-
ffrmatiye action will be taken and
LndJ no 1nJunGLlOH Will pc lSSuSu'
Yesterday it was clear that at
least one-half OF the judges are at
present hostile to the Government
case. and that, accordingly. unless
they change their minds, no injunc.
ton is possible and the Government
will have failed to carry its point.
This will confirm the forecasts
made in these columns regarding
the probable outcome of the Govern
ment's action The vital point is
that the Government has not been
able to prove that the rise in the
price in sugar is merely and pure
ly an artificial gambling accom-
plishment. On the contrary the
evidence presented was strongly TO
the effect that the worlds constlmp.
ton OF sugar is doing precisely
what the United States Commerce
Departments fatefuI original bull
letin said 1t was doing: Namely.
going ahead faster than production.
Surplus TO Be Small.
The amount of sugar which will
be left in the world unconsumed at
the end of this sugar season Is even
smaller than the Department OF
Commerce said it would be. The
Department of Commerce estimated
that surpIus-or Garry -over'-at
476. 900 tons. If normal recent con-
sumption should continue, the total
of that surplus will in fact be not
more than 100000 tons.
1t will be only the equivalent Of
lust about one weeks supply for
the United States. Thus all the
dreams of a great supply grabbed
off by gamblers were suddenly
punctured for the Department Of
Justice and the country was left
face to face with the problem of
either taking very high prices for
the sugar which it consumes or
else of proceeding to restrict its
consumption of sugar even more
drastically than to date.
The milk in this sugar cocoanut
is the Cuban crop. The Commerce
Department. in issuing the bulletin
which created the fear of
sugar shortage and which started
sugar on It's recent upward flight,
said that the Cuban crop would he
100000 tons. This now turns out
to have been in fact a violently
optimistic overestimate. Evidence
presented here yesterday showed
that the Cuban crop will sink to
O,IVUBVuu III Io~S NAAAN7 A'"SA
knows from immediate advices out
of Cuba that the very sources
which gave the Commerce Depart
ment it's estimate Of 100000 tons
have reduced their calculations
down to the level Of actually
3,520,000 tons.
POrtend Ultimate Squeeze.
Such situations portend an ulti-
mate sugar squeeze, and they are
all thoroughly displayed on the
bulletin boards and in the private
informa ton services of the mem
bers of the. New York Sugar Ex-
change. Accordingly those members
have been betting on rise in the
price of sugar: and two at least of
the four judges who listened to
this sugar case yesterday were
openly scornful of the idea that
the Government had succeeded i'll
proving any artificial conspiracy
for the arbitrary ballooning of
sugar prices.
Meanwhile in the sugar exchange.
in a high room with pink and
gold paneled ceiling. and around
wooden pit and circular brass
rail the members of the sugar eX-
change gathered and began shaking
their fingers at each other and