THE PRICE OF SUGAR

In spite of the short supply, the Food Administration has kept down the price of sugar by an agreement with the sugar-refineries that the wholesale price must not be more than the cost of the raw sugar plus a fixed amount to cover costs of refining. Even during December, 1917, when there was a severe shortage in the East, the price remained stable. Refiners say that without regulation by the Food Administration the price would have gone to 25 cents a pound or higher.

At times the Food Administration has had to use compulsion to keep the price level and has not hesitated to do so where necessary. Licenses have been withdrawn for failure to comply with regulations, and businesses closed for longer or shorter times. One dealer who was charging 14 cents a pound for sugar had his store closed for 2 weeks; another paid $200 to the Red Cross for overcharging; another, for selling sugar and flour without regard to regulations, was closed indefinitely.