New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-01-25
RECIPROCITY

fraoaAsrAFT CORRESPONDENT OF THE TRIBUNE
Santiago dc Cuba Jan. 9.-Iron mining is the
newest industry of this ancient Spanish town.
Less than ten years ago the first iron claim in the
mountains of Eastern Cuba officially recog-
,ized Now there are three American corpora
lions developing large tracts of rich mining
territory, building railways to the coast. and
exporting ore TO Pennsylvania The Oldest OF
these companies, the Juragua. has been in success
full operation since 1885, when IT received series
If liberal concessions from the Spanish Government.
1t has most extensive plant representing with
the land an investment Of over S2,50O,0OO. IL
employs 1000 miners and railway wOrkmen, has
a rolling stock of 500 cars, and requires for
the transportation Of its ore fleet oil twenty
steamers. Two other companies, the Spanish
American and the Sigue, have been recently organ
lied in New-YorS and Philadelphia for Work III
the foothills fianking the mountain range. Inc
Importance of this industry which has been III
Existence hardly more than six years. is shown
by the commercial statistics furnished to me by
the American Consul, Mr.. Reimer, whose Official
service here has been exceedingly useful, ana even
brilliant especially in directing the attention OF
Northern capitalists TO the mineral wealth OF
these mountains During 500 the iron ore ex-
ported to the United States amounted to 357'OoO
tons, with valuation of $775,1s0 90, and the
This wear these exports will reach Sl,5OO,oOO AT
the lowest estimaee. 1t is easy and economical
mining since the ore is broken up by surface
blasting and carried by short narrow-gauge rail-
ways 10 long pier at Santiago where IL Is
dumped like coal from the cars into the 1relght
steamers 1t is most valuable ore, and the
mountains seem, from surface Indications 10 DC
well stocked with it.
The policy of reciprocity applied to these
Southern countries has been supposed TO be re-
stricted TO the exchange of such produc's ~
cannot be supplied on one side or the otheI'
Brazil, which needs to import its food supplies
and manufactured goods, can profit largely py en-
changing for these on the freest terms and with
the fewest possible restrictions its coffee, sugar
and rubber, which cannot be produced III The
United States In the present instance reciprocity
has a wider application. The iron product OF
Cuba. already large and apparently capable OF
immense development, is brought into market
supplied and sometimes overstOcked with Amer
can ore 1t is not the precise kind Of reciprocity
which has been advocated in Pennsylvania but
q does not operate disadvantageously for Amer
,can interests as can be readily shown In order
tn carry the ore from Cuba 10 the United States
D large feet of steamers has TO be employed
These vessels at first went back empty or Win
ballast but it was not long before they were tax
ing coal TO the West Indies. The export OF Amer
lean coal has been largely increased in this way,
and since these ore steamers have special facllteS
,r carrying it and can afford to take 1t at low
ties rather than TO 90 South without cargo, they
min. already displaced English coal in many OF
IN p ands In other words. while the Spanish
i, ,he a. the iron deposits of Eastern Cuba are
r,arlsrtain extent competitors Of the ore-workers
Shin United States. they are also opening new
. ket for Pennsylvania coal Cuban iron ore
Apped to the American market facilitates the
expectation Of Pennsylvania coal to the West In
dies and active competition with the Cardlf In
dustries Meanwhile, the American iron miner IS
protected by the tariff and paid higher wages
than the Spanish worker employed in these noun
tans. The duty paid on the Santiago ore when
il enters the United States operates to increase
the earnings of American coalmners and furnishes
margin for higher wages 10 American iron
miners than are received by the same class of
Spanish workers. At the same time ii does not
prevent the employment of American capital IL
developing the resources of Cuba and enlarging
the export trade of the United States.
There is one feature of this new traffic with
Cuba which needs plain treatment and sharp
cit csm Tie syndicate controlling the Juragua
mrcs comprises, / am informed the Penn
sv;vania Steel Works, of Steelton and the
Ecthlchem Iron Works, both Pennsylvania cor
rorations whose business has been Systematically
protected and developed BY the tariff Their
prosperity is wholly TO be attributed TO protection
furnished by American legislation If these cor
portions find it to be 10 their interest 10 obtain
supplies of iron and manganese from Cuba and
TO make large investments here they can at least
rut their carrying trade under the American nag
and have their vessels built in American ship
Yards 1t is not creditable to them that they
1,ilt md
in preference to the United States; nor is it
patriotic for them to sail these vessels and as
NAM as seventeen chartered steamers under the
English flag There is fine display OF American
energy on shore in the opening of the mines the
construction of railways and the building of per
at which steamers can be loaded from ore-cais
with facility and Dispatch but this employment
OF an English fleet for the transportation OF the
ore to the United States is to be sharply criticised
Ose Of the large owners in the mines is the
bethlehem Iron Works, which supplies a large
share Of the material for the new Navy. 1t Is
perhaps the last Pennsylvania corporation winch
should be found skulkng the high seas I'M
der the English flag, while employing Spanish
miners in Cuba to compete with American miners.
am told that these corporations are planning to
build ships in Baltimore large scale and TO
have American bottoms in their carrying
ua.e When this is done American enterprise in
the mountains Of Cuba will be supplemented by
American energy and patriotism on the ocean
These mining investments of American capital
illustrate the advantages which Cuba will derive
from policy of reciprocity based upon per-
manent market for free sugar The Spanish Gov
ernment by its highly favorable concessions 10 the
Pennsylvania end New-Ycrk syndicates, has pro-
noted the development of these valuable proper
ties, and the Industrial results arc proving benc-
fetal 70 eastern Cuba Immigration has been
encouraged employment has been offered to an
impoverished population, and the business III.
,erests of Santiago have been powerfully aided
by mining enterprise. The same Government by
responding favOrably 10 the American offer TO
ne-otiate an equitable reciprocity treaty grounded
frnn nn nd re1ncnl