Evening star., 1942-03-07
Byrd Opens Fight
To Halt Payments
OF Sugar Benefits
Letter to Wickurd
Coils for Contract Delay
Pending Review
BY J. A. O'LEARY.

payments TO sugar growers In view
of the lifting of acreage and market
ing restrictions due to war condi-
tions has been launched by Chair
man Byrd of the Joint Congressional
Economy Committee, in his search
for retrenchment.
His first step was letter sent
late yesterday to Secretary of Agri-
culture Wickard, requesting him not
to make any further contracts for
such payments until Congress can
review sugar control legislation. He
also announced today he will go
into the question at hearings the
Senate Finance Committee plans
to start soon into the sugar situa-
ton.
The s47.962,91O budget estimate
for sugar payments during the next
fiscal year is now before the House
in the agricultural supply bill, with
a recommendation from the House
Appropriation Committee that 1t
be cut s50O,000.
Sees Supply Lagging.
The House committee stated in
It's report that it sees no sound
reason for the continuance OF this
program of benefit payments to
growers who are free to produce
without restriction for market in
which the demand is certain to be
substantially in excess of the supply
for some time to come, and would
have stricken the item from the bill
except for the recent action OF Con-
gress extending the act.
The House group expressed its
belief the sugar law should be Sus-
pended under present conditions,
contending the new price control
law could be so administered as to
assure fair prices for sugar pro-
ducers.
The chief justification for such
an appropriation" Senator BYRD
said. referring to the pending esti-
mate, has been that producers
should be compensated for reduc-
ton in the acreage devoted to the
production of both cane and beet
sugar within the United States and
its continental possessions. Now the
situation has changed completely.
We are facing a sugar shortage, and
even now sugar is being ratloned,
with more drastic action to come.
Listing some of the larger pay
mentS, he said, would be made II the
Sugar Control Act is kept in force,
Senator BVrd'S letter to Mr.. Wickard
continued:
Your department., for the year
1912, has removed the limitation on
sugar production. If this had been
done last year, at least part OF the
present sugar shortage would have
been avoided.
Act Would Raise Benefits.
"I am informed now by repre-
tentative of your department that
Notwithstanding the removal of the
limitation on sugar production, your
department is preparing to pay
sugar producers benefits, the main
justification for which originally was
q reduction in the acreage devoted
TO sugar production. In fact. these
benefit payments, under an act
passed by Congress. will be increased
for 1912 to the extent of 80 per cent
over 1941.
Let me call your attention to the
Corp. in Florida will receive bene-
fit payment of S474,807. 1t is true. /.
of course. that this company will |
make greatly increased profits be-
cause of the fact that the price of |
sugar has increased and, likewise, !
because the limitation on produc- /
tion has been removed. Why. then, |
should this wealthy corporation re-
ceive nearly a half million dollars
out of the Federal Treasury?
"I list below other large payments /.
to sugar companies: Realty Oper-
stors, Inc. New Orleans, s126,O35; |
South Coast Corp, New Orleans. |
s186,020; Hawaiian Commercial &
Sugar Co. Puunene. Maui. S572 $40;
Lihue Plantation Co, Ltd, Lihue,
Kauai, s5l4.884: Oahu Sugar Co.,
Ltd, Waipahu Oahu, S514,862.
The largest subsidy payment
being made is to Luce & Co. S. en- c.
Aguirre. in the amount of S619 443
Sees Large Sugar Lobby.
IT will not take the time to give
all Of the other large benefit pay
mentS that will be made out of the
Treasury to those who have hereto
fore had to reduce their sugar acre
age, but who now will benefit by
the removal of all restrictions, 46
corporations in all receive payments
ranging from 100000 to S6l9OO
Hundreds of individuals and cor
porations likewise receive payments
ranging from $4,000 to 100000.
"As you know, have consistently
opposed these huge subsidies out OF
the Federal Treasury. I can see
no reason why the sugar operators
should be placed in a preferred
class. Likewise, I have come in
contact with one of the most power
ful Hobbies that exists in Washing
ton, and that is the sugar lobby
1T should be remembered that
all of these sugar producers receive,
in addition to these benefit pay
ments. the soil conservation pay
ments and the other benefit pay
ments generally made to farmers.
Here is a chance to save nearly
$50 100000 Every dollar saved means
dollar less in new taxes or a dollar
more to finance our war prepara-
tionS.
My main purpose in writing you
Is to request that you make no con-
tracts for these benefit payments
until Congress has an opportunity
to review the sugar control legisla-
ton in the light of the present situa-
tion. so that the repeal of these
subsidies can be effected I ask
YOU, as Secretary of Agriculture, to
assist those in both branches of
Congress who will make a deter
mined effort to eliminate this non
essential spending"
Increased Base Rate.
Congress, less than three months
ago, extended the life of the Sugar
Control Act, and at the same time
increased the base rate of payment