Show I SUGAR PRICES TO GO HIGHER AS RESULT OF CUBAN PLANS island Adopts Drastic Form of McNary- McNary l ar- ar PRODUCT IS DUMPED Price Cut Out in London to toMake toMake Make fake U. U S. S Pay More l By Dy WILLIAM BIRD Copyright 1927 Consolidated Press Association WASHINGTON W Oct OcL 22 Farm Tarm Farm re relief re- re relief relief lief senators were fascinated today to observe that the Cuban govern govern- government government ment has thoroughly beaten the Amer Amer- American AmerIcan American ican government to the adoption of a drastic sort of ot McNary McNary-Haugen en farm relief measure me ure and that In conse come consequence consequence quence the chances now are that pres pres- presently presently e In the United Elates tes will be paying more for sugar The Cuban McNary McNary-Haugen is a gentleman named Tarafa He Is all out for the sugar farmers of Cuba He has secured the passage by the Cuban congress of a law for taking care of the tremendous surplus of ot sugar which the Cuban farmers pro pro- duce Under this law the president of Cuba will put the United States on what might be called a 0 sugar ra ra- ra ration ration tion That is he will decide that we can have from Cuba Just so 50 many tons of or sugar sugar and and no more He thus will reduce the amount of sugar In Inthe Inthe inthe the United States Slates and he thus will ill make the price of sugar in the United States to the American Amerl an consumer go up REDUCED RATIONS We last year imported from Cuba some three million millin eight tight hundred thousand tons of or sugar It is thought that the president of Cuba Senor Ma- Ma Machado chado will cut us down at least l ast three hundred thousand tons below that fig fig- ure It is thought that the total amount of sugar that Senor Machado will let us have base next year will not be bemore bemore bemore more than three million five fl hundred thousand tons That difference Is Is' Is enough to make all the difference be between be- be bet between tween t een the present price and a mount mount- mounting mountIng ing price Every sugar producer In in Cuba will be given en a ticket showing how much of his product he he- can export to the United States He lIe will be Riven given an an- another another another other ticket which will Identify all the rest of his sugar and which will mark It for Tor use ue irr liv CuM Itself Itself- or for fore export e POrt to Europe Euro Europe or or r to anywhere else except to the United States ALL SUGAR DIVIDED Thus all Cuban export sugar will be divided into two parts Darts t There will be first a restricted part which can be besent besent besent sent In search for high prices to the American market will be second an unrestricted cart art t which can cnn be dumped at any obtainable price in other parts par of the world This dumping has hac already begun be un In order to accomplish It It the Cuban government under the new Tarafa farm relief reller law Is organizing a sugar export corporation Every Ev ry sugar producer In Cuba must Join this corporation He must provide his quota of sugar for the sales sale which the corporation n mav may make If the cor cor- corporation corporation corporation encounters any losses s h ho h must ts t bear benr his part of or the burden to them This is h the to the equalization feeS fee which the McNary- McNary Hugen bill would level upon u Ameri Amen American AmerIcan can agricultural producers to cover coven losses incurred In the marketing of surpluses of American basic farm products at world prices abroad AT CUT PRICES The Cubans today are dumping their sugar sUllar In Europe at prices t i even actually below the world level While planning to put the New York ork raw sugar higher than It Is they already have put the London England raw susan price than It was They have ha sold under their new law lawand lawand lawand and by order of their government a block of one hundred and fifty thousand tons of ot sugar ugar to he English sugar SUllar refining firm of ot Tate and Lyle at a 1 price which is nt lit least leasta a quarter cent a pound under the reg reg- regular regular ular London world price A loss of a quarter cent a pound means means on on one I Continued on Page Two SUGAR PRICES GOING HIGHER I Continued from Pale Page One hundred bundred and fifty thousand tr a tins ns a loss Iou of seven se hundred and an 1 fifty thou thou- thousand thousand sand land dollars CUE GREAT T S S. Tint That Is la the Immediate Imm sacrifice which the Cuban government has ha been willing to make In order to clear out the Cuban warehouses and ana in order to diminish the quantity of ot sugar in Cuba which might be tempted to flow toward this country The Justification is that the Cuban sugar augar producers both producers both those tho-ce who grow the cane cino and those who grind the cane have have been on the whole In a most unsatisfactory i fl c J financial rc situation IU i iThe There 1 is litUs 3 doubt on that point t The Cuban sugar suar producers have been demanding an equality with the hap hap- happier happier I pier and more fortunate fortun te producers of the world They have been demand- demand demandIng demandIng demandIng Ing that their government do do some some- something something thing thing to remedy the results of their unorganized competition among themselves them them- selves elves That competition has hoa greatly extended the area of ot sugar suar cullin cultivation lion tion on in Cuba It has changed Cuba Into being virtually the virtually the whole of It Ita I a a one-crop one country All other Cu- Cu Culan Cuan tan lan an exports put together are today utterly negligible in comparison with the Cuban exports of sugar Cuba is sugar ar and sugar has hits been unprofitable able and therefore the government must take t. t e hold and sn an operate and en- en flUe EUre the solution ARGUMENT WINS That Is La the argument lm arb nt and In tn Cuba It has totally won von The Th president of Cuba under Cuban legislation can forbid his fellow citizens to cut down do thy eny 1 1 more trees to make way for an any spore ore new mw sugar fields He can and he lie does thus restrict the sugar area orea In the next place he can tell teU each sugar producer just how much cane his mill can grind He lie can thus restrict production Finally under the Tar Tarafa a fa law In he hll can determine the destination of sugar may come into exist exist- existence lice ence in n Cuba after he has accomplished cd his h restrictions I of area a arid and of production Dy By own O order he heden cM den destine so 60 much much and and no more more more- to us Americans and through the new lw sugar sugar ugar export corporation he lie can destine d so much and much and at such suds and such times to times to the tho rest rut of the world A II more complete experiment exp In na national na- na governmental control of a pet pet- ute ide Industry has never been put on the worlds world's state HIGHER AMBITIONS Yet Yot the ambition of the Cubans soar even n higher They are looking now for an International as as well wen as national control Senor Tarafa Tarata Is sailing railing to Europe to enter Into conver conver- conversations with the governments and tho the spar ar producers of Czechoslovakia and Poland and The Tho Netherlands They are competitors of Cuba Senor Tarafa wants to g set get t them to enter Into Int concerted sugar selling 5 nil plans ians with Cub Cuba it Is surmised that one reason reon why the tho Ih Cuban broke the 7 sugar sUller price in Ire their one hun lion hundred dred and fifty ton thousand sale aie al to Tate and arid Lyle was In order to show the Euro an suar producers that they can cm take their choice ch between en entering n en- entering into lito co ton with Cubs Cuba end pirt getting undersold Und old and ruined by b Cuba In other words Cuba Cube Is on Its I way wy trying tr the sUllar of the worM world Into an In- In l u ar not ot with them our farm form relief l don dori in congress teem seem like timid |