Evening star., 1942-02-08
Sugar Profiteering
May Force Ceiling
On Retail Prices
Rotioning Is Delayed
For Month at Least
By Preliminary Tasks

BY Preliminary Tasks
While preparations are being
rushed for the sugar rationing
program, the Office of Price Ad-
ministration disclosed yesterday
that an outbreak of prof1teering
in the retail market may force
the Government to place price
ceilings on retail sugar.
The tasks of printing ration stamp
hooks for every man, woman and
child in the country and setting up
registration and distribution centers
under school teachers on a Nation
wide basis will delay the inaugura-
ton of the rationing program for at
least another month, it was under
stood.
The o. P. A. advised consumers
who are asked to pay much more
than one cent per five pounds high
er for sugar than they paid in the
first week of last December to pro-
test vigorously to the storekeeper.
Small Rise Held Justified.
Price Administrator Leon Hender-
son branded any increases greater
than this as pure and simple
profteering."> - He explained that
a one-cent- t-per-fve-pounds markup
was justified in view of an increase
of 20 cents per 100 pounds recently
allowed refiners.
He added, however, that there Is
no Justification for retail ad-
vance of more than one cent except
in a few localities where additional
'adjustments" have been necessary.
One o. P. A. spokesman said that
some Washington merchants have
been reported selling sugar for more
than twice the December price, and
similar price advances, though none
quite as drastic, have been reported
from other sections Of the country.
Meanwhile, proposal to alleviate
the sugar shortage by using Gov
ernment-controlled surpluses Of
wheat and corn to produce indus
trial alcohol was laid before Chair
man Donald M. Nelson Of the War
Production Board by Republican
Senate Leader McNary of Oregon.
Method Declared Cheap.
In a letter to Mr. Nelson, Senator
McNary said he had been advised
that under existing price levels,
wheat and corn could be converted
Into ethyl alcohol-an ingredient Of
smokeless powder-as cheaply as
could molassses, a sugarcane prod
uct.
Mr.. Henderson pointed out yes
terday that the rationing program
will insure a fair sharing of the
sugar supply for every one, and in
the meantime scarcity is absolutely
no justification for raising prices
He said that during the current
month all wholesale sugar buyers
are entitled to receive 80 per cent
Of the amount Of sugar they re-
ceived during the corresponding
period last year.
Mr.. Henderson said he hoped "the
force OF public opinion" would in
duce merchants to keep their prices
down, but that If such were not
the case, maximum prices would be
forthcoming from his office.
He warned consumers not. to
hoard sugar, and to buy for cur
rent needs only, as one way to
prevent prices from rising is to avoid
panic buying, which always tends
to create shortages and boost
prices"
He also pointed out that under
the pending rationing program
boarded supplies of sugar will have
to be used up before additional pur-
chases can be made.
Must Declare Amount.
The person who registers for his
family's copies of War Ration
Book No. /" will have to sign an
application declaring the amount
Of sugar in his home. Anyone
whose family supply exceeds two
pounds per person will have torn
from his book an appropriate num-
Der Of stamps, thereby preventing
his purchasing any more sugar
until the boarded stocks are used
up. Since each stamp will be num-
bered for use in % consecutive
weeks, those who have boarded
supplies will be lacking the first
few stamps.
The o. P. A. feels certain that
the prospect Of distastcful neigh
borhood gossip, the fear of legal
action and the sense of patriotic
duty will combine to eliminate any
widespread boarding after the "a
tioning program goes in effect.
Some officials said the inclination
to hoard stocks would disappear in
large degree, too, when consumers
discover how well they can get along
on II ounces a week, which is the
per-person allotment contemplated
under the program.
Senator McNary wrote Mr.. Nelson
that the conversion of surplus wheat
and corn would make available for
domestic consumption about one
fifth of the production of sugar for
1941 which otherwise would be used
In the industrial alcohol field. Sen
ator McNary said he was advised
that there were sufficient existing
distillery facilities to take care of
the diversion.
While Senator McNary gave no
figures, it was generally understood
in congressional circles that more
than 100000 tons of sugar had been
allocated by the War Production
Board to be converted into indus
trial alcohol.
Senator McNary said half dozen
factors are involved in the sugar
shortage, namely, the cutting off of
major supplies from the Pacific, the
commitments to ship a large guam
tity of sugar to England and Russia,