SUGAR RING

Evening Star, Issue 18256, 21 April 1923, Page 3

SUGAR RING

U.S. GOVERNMENT ACTS. FEDERAL COURT INVOKED, INJUNCTION AGAINST CONSPIRACY. HEAVY FALL IN FUTURES. Frees Association—By Telegraph—Copyright. WASHINGTON, April 19.' The Department of Justice, which conducted an investigation into tho sugar situation, has filed with tho Federal Court in New York a petition in equity against the New York Sugar Exchange and tho New York Coffeo and Cleaning Association. This petition asks tho court io enjoin defendants from further engaging as a combination in a conspiracy in restraint of trad© in raw and refined sugar. Tlie petition charges that, ns a result of fictitious transactions in raw ami refined sugar, the price to the consumer has increased over two dollars per 1001 b since February 7, and that speculative operations are being carried on for tho solo purpose of undidv enhancing prices. The petition asks for tho perpetual enjoinmont of defendants from conducting any transactions involving tho purchase, sale, or delivery of sugar,'" unless the persons purporting to make the sale actually possess a supply of sugar. The petition recites the figures of sugar production during tho past year, and summarises the actual sugar trade conditions from February 7, 1923, to the present date. It states that there has existed during this period no economic justifies tion for a sudden or appreciable increase in the price, or for any increase, but an orgy of speculation in raw sugar has been indulged in through the instrumo dabty of the Sugar Exchange and the Clearing Association. The petition, which is drafted by the U.S. Attorney-General (Mr Harry M. Daugherty), was filed after the matter had been considered by Cabinet. Following the announcement of the Government's sugar suit, future sugar quotations fell precipitately. Spot quotations however, jumped, Cuban raws selling at 6J cents per lb.—A. and N.Z. Cable.