Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-01-17
ENGLISH CONQUEST
British Capitalists Control the Com
merCial Resources of Cuba.
PAID CASH FOR THE RAILROADS
America Guarantees Good Govern
ment for Foreign Investors
TOBACCO-SUGAR INDUSTRIES


HAVANA January 10. 1899.
Cuba is the theater of a commercial con-
quest. National vanity may be hurt by the
knowledge that the conquest is not by
American enterprise 1t is the English
capitalists who are possessing themselves
of the future resources of the island. They
are not saying much about it. They are
getting what they want and are content
during the process OF absorption TO remain
quiet. If the present movement continues
the result OI expansion in the West Indies
can be foreseen. The United States in some
form will be guaranteeing good govern
ment in Cuba for the benefit of English
investors. - capitalist from the states may
have chance once il while to get a job
as brakeman on The Cuban railways, which
are owned in London. That will be the eX-
tent of his opportunities.
Americans are beginning to show irrita-
tion toward these bulIheaded Englishmen.
l never saw such d mulish set of investors.
They have bought control of the railroad
system Of the Island in the face of repeated
warnings from Americans that the political
future was TOO uncertain to warrant such
risks / say bought control adVlSediy. The
ELSHSEneu are paying real money for the
properties they are acquiring. 1t is the yell
low money that can be felt between the
fingers and seen by the eyes. Some passa-
BY shrewd Americans thought they saw
some time in the future different means
of obtaining the railroads They had no
tlo1s Of reorganization committees, fat fees
Tor big lawyers, addresses to stockholders
new issues OF bonds and stocks and things
OF that sort They We're in no hurry about
II, and while they were waiting the London
capitalists have taken the quicker way of
paying the money down and securing the
railways They have paid high yet they
have d bargain.
Possibly this absorption of the railroads
is the sequence Of the previous holdings of
the BritIshers- They owned two or three
OF the lines before the insurrectfon and
We're interested in others. The most valua-
Die real estate in the heart of Havana iS
the property of an English company which
acquired 1t as depot. After a time the
raliroad station will be moved further out
anu the property viii be used for hotels
ana other buildings. The profit will be
kl,Cop.OoO or so, but the owners of the rail
Tgau !ook upon that simply as an incident
IheE are not diverted rom their main pur-
pose OF acquiring more railroads A wear
OF Two ago had an idea that because the
English had a footing in Cuba American
capitalists would be stimulated to exertions
Tor their share of the Industrial enterprise
OF the future That idea was wrong and il
only remains for me to record rho rr,oI--
ments OF the foreigners.
The Cuban Railroads
The existing railroads of Cuba extend
from the town of Pinar del Rio in the west
to the town of Santa Clara-the central
part of the island, with branches to the
north and south coasts. The system as il
Is generally understood, does not Include a
line which runs from Nuevitas on tn,
north coast TO the town Of Puerto PrinciDs
torty-tiVe miles inland. Some disconnected
: spurs ii santiago are also excluded. When
the backbone or Central railway is built
az theSe spurs and disconnected lines will
become branches of the main systen
Heretofore the lines east from Havana
nave h7en owned and operated by indie
peHdent companies. Everybody saw that
consolidation under one general control
vas inevitable, though separate organiza-
tCnS might be maintained The aggregate
capitalization of the roads from Pinar del
RIO east as far as Puerto Principe Is S31 :
$500 ON spanish gold, which may be dis
counted , per cent in American money!
The aggregate Indebtedness of the lines.
bonded mortgaged and floating. is Sl2,-
2'''""- Some of them have only small
hodiinS Indebtedness. These managed TO
pay slight dividends during the period Of
1IlSurrec.lon- Their rolling stock and equip
m Mt suffered heavily, and large sums will
have to be paid out for betterments.
How the English Got Control.
The English capitalists knew this. They
also knsw that an era of political uncer-
tainty for Cuba is ahead Nevertheless
they thought the field was one for con-
servative Investment and they started out
to gain control of the entire railway svs-
tenn To do SO ii was necessary to buy the
stock in the open market. In the trans
action Il may be that more than the actual
value was paid for some of the shares
II this were done, the investment would
siiA he tustfable part of the general
plan The shares We're carried up steadily
until control was gained. They have ad-
Fanced since then The English capitalist
still lack one line TO complete their
link This is the Cardenas and Ju-
cairo railroad. which runs through the
llsheSt sugar producing district on the
island The stockholders of that linz
knowing they have good thing have de-
clied 20 keep it. The Engl;shrnen are
thres tening 20 parallel the line and the
kH4.GeES ara OF
parall ling il ourselves" one of them told
me. He is a Cuban. too. and the Cubans
are not sHpposed to have much sense in
business affairs.
Notwithstanding that this one link is
lacking, II : proper 10 say that the railway
system OF Cuba is in English hands. l have
n" doubt that they will ultimately reach an
agreement with the stubborn line. In their
operations these EnGlishmen seem to have
been guided hy some old-fashioned notions
eboAt making money. They have not rushed
into new enterprises to the exclusion of old
ones whose dividend producing capa bilities
have been demonstrated. They knew that
The existing railways had been profitable
IN 'hg past as carriers Of tobacco and su-
gar They vrr" willing 20 take the chances
81 those Industries rcNivinS and broadening.
30 hey bought the railroads They have
rot Vel gone into the business of raising
su-ar cane. Tor EuElishmen have not been
sHocesSlu! plantation managers in the West
Indies. y want sem Uuu." said one bic
planter 20 me the other evening Cant
we Set those London Utu interested in SUI
gar Indirectly, perhaps but not as own
'r~- Sir Thoras Upton. who ! believe.
controls the tea product Of Ceylon. India
and Formcsa. is said to have a plan for
controlling ;hc sugar cane of Cuba. II he
develops il his co"ntTymeu who have in
vested III railUay viii find reason for
blessing him The sugar industry in Cuba
must be pulled up hill. The men at the end
Of the rope must tug and sweat in doing it
Tho English capitalists do not know how
70 pull at this rope but they have faith
that ii won't break. and they show their
faith by investing in railroads, which can.
not prosper unless the sugar Industry pros
pers-
Do Not Look for Concessions
While these London investors have pre.
ferred TO take up with established enter.
priseS. they are looking ahead TO new rail
road projects. Part of their general plar
is the extension OF the system through Il
Santiago. The island now has / 100 mile.
Of railroad. II is capable of eustafnins
1900 miles The Englishmen expect to con