AMERICAN SUGAR
SENT TO FRANCE
American Price Rigidly Regulatec
by United States Food
Administration.
CONSUMERS HERE PAY 9o,
Sugar Cost 35 Cents a Pound During
Civil War—Refiners' Profits
Now Curtailed.
Sugar is selling today throughout
America at from 8^ to 9 cents a
pound to the consumer, even though
there Is a world shortage which has
reduced this nation’s sugar allotment
to 70 per cent, of normal.
Through the efforts of the United
States food administration the sugar
market has been regulated as far as
the producer, refiner and wholesaler
is concerned. The food administration
has no power to regulate retail prices
except by public opinion. Even though
more than 85,000 tons of sugar have
been shipped to France in the last
four months the retail grocer’s sugar
price is around 8 to 8% cents. He
should sell this sugar at 8*£ to 9
cents, the food administration believes,
and asks the American housewife to
pay no more than this amount.
Last August when the food admin
istration was organized the price of
sugar rose suddenly to 11 cents a
pound. During the Civil War sugar
cost the consumer 85 cents a pound.
By regulation of the sugar market and
reducing the price to 8^ and 9 cents
and keeping it from advancing to 20
cents the food administration has sav
ed the American public at least $180,
000 000 in four months, according to
a statement made by Herbert Hoover
the other day.
“It is our stern duty to feed the al
lies, to maintain their health and
strength at any cost to ourselves,”
Mr. Hoover declared. “There has not
been, nor will be as we see it, enough
sugar for even their present meagre
and depressing ration unless they send
ships to remote markets for it. If we
in our greed and gluttony force them
either to further reduce their ration
or to send these ships we will have
done damage to our abilities to win
this war.
“If we send the ships to Java
for 250,000 tons of sugar next year
we will have necessitated the em
ployment of eleven extra ships for
one year. These ships—if used In
transporting troops—would take
150,000 to 200,000 men to France/’
Reason for World Shortage.
As Mr. Hoover pointed out, the
United States, Canada and England
w^ere sugar importing countries before
the war, while France and Italy were
very nearly self supporting. The main
sources of the world’s sugar supply
w^as Germany and neighboring powrers,
the West Indies and the East Indies.
German sugar Is no longer available,
as it is used entirely in Germany,
which also absorbs sugar Qf surround
ing countries.
England can no longer buy 1,400,000
long tons of sugar each year from
Germany. The French sugar produc
tion has dropped from 750,000 to 210,
000 tons. The Italian production has
fallen from 210,000 tons to 75,000 tons.
Thus three countries were thrown
upon East and West Indian sources
for 1,925,000 tons annually to maintain
their normal consumption.
Because of the world’s shipping
shortage the allied nations started
drawing on the West Indies for sugar;
East Indian sugar took three times
the number of ships, since the dis
tance was three times as great. Sud
denly the w'est was called on to fur
nish and did furnish 1,420,000 tons of
sugar to Europe when 800,000 tons a
year was the pre-war demand. The
allies had drawn from Java 400,000
tons before the shipping situation be
came acute.
“In spite of these shipments,” Mr.
Hoover stated the other day, “the
English government in August reduced
the household sugar ration to a basis
of 24 pounds per annum per capita.
And in September the French govern
ment reduced their household ration
to 13 2-10 pounds a year, or a bit over
1 pound of sugar a month. Even this
meagre ration could not be illed by
the French government it was found
early in the fall. America was then
asked for 100,000 tons of sugar and
succeeded In sending 85,000 tons by
December 1. The French request was
granted because the American house
hold consumption was then at least 55
pounds per person, and it was consid
ered the duty of maintaining^ the
French morale made our course clear.”
Today the sugar situation may
be summarized by stating that if
America will reduce its sugar con
sumption 10 to 15 per cent, this
nation will be able to send 200,000
more soldiers to. France.
Sugar today sells at seaboard re
fineries at $7.25 a hundred pounds.
The wholesale grocer has agreed to
limit his profit to 25 cents a hundred
plus freight, and the retail grocer is
supposed to take no more than 50 cents
a hundred pounds profit. This regu
lation was made by the food adminis
tration, which now asks the housewife
to reduce sugar consumption as much
as possible, using other sweeteners,
and also reminds her that she should
pay no more than 9 cents a pound for
sugar.
Control of Cane Refiners' Profits.
“Immediately upon the establish
ment of the food administration,’'’ Mr.
Hoover said, “an examination was
made of the costs and profits of refin
ing and it was finally determined that
the spread between the cost of raw
and the sale of refined cane sugar
should be limited to $1.30 per hundred
pounds. The pre-war differential had
averaged about 85 cents and ucreased
costs were found to have been impos
ed by the war in increased cost of re
fining, losses, cost of bags, labor, insur
ance, interest and other things, rather
more than cover the difference. After
prolonged negotiations the refiners
were placed under agreement estab
lishing these limits on October 1, and
anything over this amount to be agreed
extortionate under the law.
“In the course of these investiga
tions it was found by canvass of the
Cuban producers that their sugar had,
during the first nine months of the
past year, sold for an average of about
$4.24 per hundred f. o. b. Cuba, to
which duty and freight added to the
refiners’ cost amount to about $5.66
per hundred. The average sale price
of granulated by various refineries, ac
cording to our investigation, was about
$7.50 per hundred, or a differential of
$1.84.
“In reducing the differential to $1.30
there was a saving to the public of 54
cents per hundred. Had such a dif
ferential been in use from the 1st of
January, 1017. the public would have
saved in the first, nine months of the
year about $24 800.000.”
Next Year.
With a view to more efficient organ
ization of the trade in Imported sugars
next year two committees have been
formed by the food administration:
1. A committee comprising repre
sentatives of all of the elements of
American cane refining groups. The
principal duty of this committee is to
divide the sugar imports pro rata to
their various capacities and see that
absolute Justice Is done to every re
finer.
2. A committee comprising three rep
resentatives of the English, French
and Italian govex-nments; two repre
sentatives of the American refiners,
with a member of the food administra
tion. Only two of the committee have
ai*rived from Europe, but they repre
sent the allied governments. The du
ties of this committee are to determine
the most ecpnoinical sources from a
transport point of view of all the al
lies to arrange transport at uniform
rates, to distribute the foreign sugar
between the United States and allies,
subject to the approval of the Ameri
can, English, French and Italian gov
ernments.
This committee, while holding strong
views as to the price to be paid for
Cuban sugar, has not had the final
voice. This voice has rested in the
governments concerned, together with
the Cuban government, and I wish to
state emphatically that all of the gen
tlemen concerned as good commercial
men have endeavored with the utmost
patience and skill to secure a lower
price, and their persistence has re
duced Cuban demands by 15 cents per
hundred. The price agreed upon is
about $4.60 per hundred pounds, f. o. b.
Cuba, or equal to about $6 duty paid
New York.
“This price should eventuate,"
Mr. Hoover said, “to about $7.30
per hundred for refined sugar from
the refiners at seaboard points or
should place sugar In the hands of
the consumer at from &J/2 to 9
cents per pound, depending upon
locality and conditions of trade, or
at from 1 to 2 cents below the
prices of August last and from one
half to a cent per pound cheaper
than today.
“There is now *n elimination ©.1
speculation, extortionate profits, aifd
in the refining alone the American
people will save over $25,000,000 of
the refining charges last year. A part
of these savings goes to the Cuban,
Hawaiian, Porto Rican and Lousianian
producer and part to the consumer.
“Appeals to prejudice against the
food administration have been made
because the Cuban price is 34 cents
above that of 1917. It is said in effect
that the Cubans are at our mercy;
that we could get sugar a cent lower.
We made exhaustive study of the cost
of producing sugar in Cuba last year
through our own agents in Cuba, and
we find it averages $3.39, while many
producers are at a higher level. Wc
found that ao average profit of at
least a cent per pound was necessary
In order to maintain and stimulate
production or that a minimum price of
$4.37 was necessary, and even this
would stifle some producers.
“The price ultimately agreed was 23
cents above these figures, or about one
fifth of a cent per pound to the Ameri
can consumer, aiid more than this
amount tyis been saved by our reduc
tion in refiners' profits. If we wash to
stifle production in Cuba we could
take that course Just at the time of all
times In our history when we want
production for ourselves and the al
lies. Further than that, the state de
partment will assure you that such a
course would produce disturbances in
Cuba and destroy even our present
supplies, but beyond all these material
reasons is one of human justice. This
great country has no right by the
might of its position to strangle Cuba.
“Therefore there is no Imposition
upon the American public. Charges
have been made before this commit
tee that Mr. Rolph endeavored to ben
efit the California refinery of which he
was manager by this 34 cent increase
in Cuban price. Mr. Rolph did not fix
the price. It does raise the price tc
the Hawaiian farmer about thm
amount. It does not raise the profit of
the California refinery, because their
charge for refining is, like all other re
finers, limited to $1.80 per hundred
pounds, plus the freight differential on
the established custom of the trade.
“Mr. Rolph has not one penny of in
terest In that refinery.”
Baptist Church
Preaching every 2nd and 4th
Sundays at 11:00 a. m. and 7:00
p« m.
Sunday school at 9:45 a. m. and
B. Y. P. U. at 6:00 p. m.
R. P. Bain, Pastor.
Methodist Church
Announcement
Preaching each Sunday at
11:00 a. m. and 7:00 p. rn.
Communion first Sunday jn
each month at 11:00 a. m.
Epworth League each Sunday
at 6:00 p. m.
Sunday School 9:45 a. m.
Prayer meetiug Wednesday
evenings at 7:00.
Woman’s Missionary Society
meets first, third and fourth
Thursdays in each month.
First and Third Study Circle,
led by Mrs. S. A. Pettit.
Fourth Thursday, programme
and business meeting, Mrs. J.
H. Crossett, President.
Junior Missionary Society
meets each Sunday at 4:00 p. m.
Mrs. Ross Jeffries, Leader.
J. R. Nelson, Pastor.
Earley’s Shoe Shop
' Earley is prepared to furnish
you those rubber shoe heels.
Black and tan for gentlemen, 50
cents per pair. Black, only, for
ladies, 50 cents per pair.
Adv. 10-26tf. G. T. Earley.
Had The Grip Three Weeks
With January comes lagrippe.
Lingering colds seem to settle in
the system, causing one to ache
all over, feel feverish and chilly,
tired, heavy and drooping. Mrs.
Lizzie Tyles, Henderson, Ky.,
writes: “My daughter had la
grippe for three weeks. I gave
her Foley’s Honey and Tar and
now she is all right.” Sold by
Red Cross Drug Co.
DR. R. L. FRASER,
IS READY TO ANSWER
CALLS, DAY OR NIGHT.
Phone Number 2,
McCrory. . \ .'. Arkansas
L. B. WINFREE, J. P.
CONVEYANCES
G. W. BARBER
NOTARY PUBLIC
AND INSURANCE
Feed, Lumber, Coal
Shingles, Doors, Rubber
Roofing, Paints, Brick and
Lime.
Corn, Oats, Chops, Hulls
and Meal.
H. D. SWAYZE