Evening star., 1923-03-22
j. s. DECLARES WAR
ON SUGAR GOUGERS
TO FULLEST EXTENT
Hoover Reveals Agencies Al
ready at Work to Curb
Higher Prices.
PLEDGE SWIFT JUSTICE
FOR ALL PROFITEERS
Letter to Basil M. Manly Shows
Steps Already Taken in
Spectacular Rise.

Agencies Of the government Will be
used to the full if necessary to pre-
vent gouging of the American public
in the prices paid for sugar, it was
made clear today.
Secretary Hoover of the Depart
mcnt of Commerce, in statement re-
plying to letter written by Basil NJ.
Manly of the Peoples Legislative
Service to President Harding and
made public here, in which Mr.. Man
ly traced the spectacular rise in su-
gar prices to statement issued by
the Department of Commerce Febru-
AIRY g. said that his department al
ready was Investigating the situation
in Cuba. He said further that inform
ally he had suggested to tho chair
man of the Federal Trade Commits
sion that the domestic situation with
regard to sugar and advancing prices
be investigated by that commission.
The trade commission will likely
consider the matter at u meeting to-
morrow.
Swift Justice Promised.
At the Department of Justic IL was
declared that if there is any evil
of trade seeking to increase sugar
prices. the department would act
swiftly
Still another agency of the gov
ernment is about to investigate the
sugar situation-the United States
Tariff Commission. Sugar is one Of
the schedules which the commission
announced this week would be inves-
on fa1 dnr h lyrtf
visions Of the Fordney- -McCumber
tariff act. 1T is understood that the
request for such an investigation has
come from Americans interested IN
Cuban sugar properties, who are
anxious to have the tariff reduced.
Rise Brings Criticism.
The rapid increase in the price
in sugar in the last few weeks has
given rise to sharp criticism and
charges that speculators are in COM
bination to force prices even to 20
cents a pound. Since February 9 the
retail price Of sugar has incr eased
3 cents a pound.
letter to President Harding made
public yesterday, urged that the Pres
ident take steps to have a grand jury
investigation of the increase in sugar
prices.
Secretary Hoover. in a formal state
ment issued today, takes sharp issue
with Mr.. Manly's attempt to place on
the Department of Commerce blame
for increases In the sugar prices. Mr..
Hoover said:
LAS l have repeatedly stated, there
is no economic justification for the
high price of sugar. rs there is an
estimated world surplus.
Month Behind Times.
Mr. Manly is about a month behind
the times in his proposed investiga-
tion into the rise in price. Under
authority of Congress to Investigate
combinations of foreign producers OF
import commodities. this department.,
as soon as appropriations were avail
able on March 4, instituted an in
vestigation into the situation in Cuba.
AS the department has no jurisdiction
in domestic questions, l informally
suggested to the chairman of the
Federal Trade Commission that it
should undertake this end of the
matter.
I wrote to Senator Brookhart on
February 26 in this connection, and
which was read into the Congress
sional Record. as follows:
II am in receipt of your letter of
February %. The only laws at all
related to the subject to which you
refer are the restraint of trade acts.
as all price and other war regulations
have been long since repealed by
Congress. This department neces-
sarily has no knowledge of any
corner in sugar, as such matters are
dealt with by the Department OF
Justice and the Federal Trade Com
mission
Figures on Surplus.
LAS to the question of sugar sup
plies. world survey made by this
department showed that the stocks
of sugar on hand from last year
plus the production Of this year. were
estimated a. a tota! of 1851 900 tons
whereas the consumption for the year
was estimated at 19.0S5.000 tons,
leaving a probable surplus at the
end of the year of 476.000 tons. Some
misconception has arisen because the
estimated surplus at the end of the
year showed a decrease from the
abnormal stocks at the beginning of
the year.
There is obviously no shortage in
sugar, and, moreover, an undue in
crease in price will decrease con-
sumption.
'I would be delighted to see any i'm
partial inquiry into the speculation
which has brought about the rise in
the price of sugar. or any phase of
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