Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-17

troll the other 900 They do not know how
or when the backbone" line will be built
They would like to have the United States
construct it as military measure and
then, when the military occupancy is ended
sell the line to them. If that is not done
they Will wait their time. Apparently, they
DO not expect that the United States will
undertake in the present circumstances to
grant concessions and franchises which will
run beyond it's temporary military control
In this they differ from some American
spectators and promoters, who are count
1ng on securing concessions.
How Cuba is Benefited.
In its present phase the absorption of the
railroads by English capitalists is beneficial
to Cuba. Some of the shareholders who
sold out We're Spaniards, who returned to
Spain with the proceeds. The majority of
the shareholders remain in the island.
London has added to its welfare by send
ing several millions of fresh capital The
money they receive helps them to restore
ruined estates and productive lands Clti-
mately Barney BarnatO or a Hooley may
appear in London the financier of Gu
bans and some glittering fnanciering fol-
low his advent. At present there is moth
ing of the sort. The Englishmen have
made legitimate investments and are en-
titled to legitimate returns. They have
bet heavily, persfstently and stubbornly on
the future OF Cuba More of their redund-
ant capital will follow that which has al
ready come. In the end 1 do not believe
these investments will prove as good for
Cuba as would be similar investments by
American capitalists. While the English
owners viii improve their railroad proper
ties they will do it slowly. Material which
can be had cheaper in the United States
and shipped cheaper will naturally be
bought there; otherwise the purchases will
be made in Great Britain. The British
owners Will want their properties managed
by their own people, and that will serve TO
shut out Americans who, under different
auspices, would have hppn
The Apparent Disadvantages.
The disadvantage is that the conservative
Englishmen do not appreciate certain re-
forms In railroad management which Amer
leans would be prompt to inaugurate
Rates in Cuba are excessively high, both
for passenger and freight traffic. The
Spanish theory for every kind of business
was high profits and restricted trade This
was applied in their TRANSPORTATION system
Inc English investors readily fall into it.
American owners would begin at once to
create freer movement of internal COM
merce by lowering the rates and increas-
ing the volume of commerce. The English
managers are not likely to adopt that
policy if they are left to themselves Tn
der the old regime the Spanish government
regulated the rates. and regulated them
on nigh basis. The American military au-
thorities have had to make contracts for
transportation of men and supplies at
much higher figure than obtains in the
states With temporary military control
the feasibility of compelling the roads to
lower their charges is doubted. No inter-
state commerce law applies and the rail-
roads are not apt to encourage the princi-
pie OF such legislation. If they were under
American management the oDportunity
which is offered for increased business
through lower rates would be seized with
out waiting for legislation
The Tobacco Control.
The control of the tobacco factories by
English syndicates does not excite the same
concern among Americans that is felt over
the ownership of the railroad systems The
tobacco deal was arranged a year ago and
was completed after the blockade was
raised. Some German interests were trans
ferred to English hands but the tobacco
men in the United States were not affect
ed. some Of them speak of the syndicate
as likely to give the English investors an
experience similar to that which they had
when the lager beer breWeries in the states
We're disposed of to the London syndcates
That is their own affair. American tobacco
men retain their factories and will have
more factories in the future They under
stand both the raising Of tobacco and the
manufacture of cigars. The trade situation
does not call for a large inflow of fresh
capital What is needed will come of lie
own accord and through channels that are
already established.
capital for Banking Institutions
Not all the foreign capital which is COM
ing to Cuba is being invested in railroads.
Engllshmen, and even some Scotchmen
from canada, are going into the banking
business. One of the smaller banks of Ha-
vana is owned by English capital. The
present plans contemplate the establish
ment of at least two large financial instftu-
tons. 1t is possible that some of the nri
Vate banking houses will be absorbed in the
organization. l have also heard a report
that Paris bank is to establish a branch
IN Havana. A large amount of French
capital is invested in Cuba, but its identi-
~ is concealed under nominal Spanisb ov,n
ership. The Paris banks have also oner-
ated in conjunction with the London fnan-
cial institutions. The Fashoda incident and
other diplomatic wrangIes do not prevent
the Frenchman working amicably with the
AngIo-SaXon in the matter of making
money.
But Little Left for Americans.
The question may arise whether after
this European commercial invasion of Cuba
anything will be left for Americans A few
openings. perhaps. They can raise potatoes
and onions, crops which always bring a
good profit 1t is possible the electric light
enterprises Will remain in their hands
W men the instruction broke out these
electric plants were becoming valuable
properties. They will be increased with
Some minor industries Will also remain to
the citizens of the United States. Every
ship brings a fresh batch of promoters
with schemes. They may develop some un
suspected opportunities but schemes alone
Will not give the United States the indus
trial and commercial advantage in Cuba
Money is also needed
once In while real American capital
lst does appear. One of them was talking
TO group Of his countrymen In the hotel
last night. Il represent $50, 600 600" he
said, and I'm telling these Cubans that
not a cent of il will be invested here until
they let US know what they're going to
do with themselves. The taxpayers in the
United States won't stand 1t to keep sup
porting our army forever to make them
behave. Then they say they want their
independence. They haven't got sense
enough to ask for annexation. and none of
my money comes TO Cuba till they know
what's good for them"
He was Dragging a bit when he said he
represented S50,0U,090. Nevertheless he
controls money enough to enable him to
make 4 successful fight against one of the
big trusts From the present indications,
this American capitalist need not worry
over the taxpayers supporting an army in
Cuba very long. Most of it will probably
return within few months because not
needed on the island. As for the other
matter. everybody is entitled to his own