522 IOWA DEPARTMENT OF AGRICULTURE 



The prices mentioned in the foregoing table were those in effect August 

 5, 1919. Apparently there is a great spread existing between the price 

 paid producer and that paid by the consumer. It must be remembered, 

 however, that (or a good part of the year the price paid by the distributor 

 is considerably higher than on the date mentioned, while the retail price 

 remains fairly constant. Then too, the expenses of the distributor are 

 very high per unit; the cost of collection, transportation, pasteurization, 

 bottling and distribution is high. Milk is a highly perishable product and 

 the risks incurred, particularly in the summer, are great. I cannot con- 

 scientiously make any criticism of present milk prices, particularly in view 

 .of the fact that from a standpoint of. food value, milk is far cheaper 

 than a large number of other staples, even at the high prices being paid 

 for it in this state. 



The shortage of sugar also has been the source of constant annoyance 

 to both the housewife and the manufacturer of products in which sugar 

 is used. Here are a few facts concerning this situation: 



The United States Food Administration has had a sugar adjunct 

 known ,as the United States Sugar Equalization Board. This board, 

 under the authorities of the United States government, and jointly with 

 representatives of France, England and Italy, was formed for the purpose 

 of handling the sugar productions of Cuba, Porto Rico, the Islands of the 

 West Indies, the Philippine Islands, Hawaii Islands, the Island of Java. 

 From these sources comes practically all of the world's supply of sugar. 

 The price of raw sugar is regulated; so is the price of raw sugar to 

 wholesalers also standardized at nine cents per pound, and not subject 

 to fluctuation. Wholesale grocers must pay their own freight; they are 

 regulated so that their profit cannot exceed 35 cents per cwt., plus 15 

 cents for handling. The President of the Board has made the statement 

 that a gross profit of 68 cents per cwt., would be the maximum amount 

 that any jobber could take without liability of prosecution. 



Furthermore, the sugar bins of the country have been entirely empty. 

 The consumers have been without an appreciable quantity; the retailers 

 have been buying from hand to mouth, and the wholesale grocers could 

 not force sales as it was generally understood that the speculative 

 feature of this commodity had been eliminated. What is the consequence? 

 That practically all of the sugar was held in stock by wholesale grocers, 

 who were unable to move any quantity of it until the demand caused by a 

 good sized crop was upon us. 



Speculators in large centers like New York, Chicago, and St. Louis, 

 have been successful in getting a large supply for the reason that they 

 have been in a position to receive inside information several weeks 

 ahead of the other fellow. An extreme shortage would not have occurred 

 had it not been for the Marine strike which continued for almost two 

 months last summer. During that period but few cargoes of raw sugar 

 arrived at our shores, and no vessels departed to the sugar producing 

 countries during that strike. 



Furthermore, the Beet sugar crop of 191S, which is under the same 

 control, as above mentioned, became exhausted about that time, which 

 radically increased the shortage. Most people have the idea that the 



