New-York tribune., 1901-06-20
arrobas of cane should net percent OK sugar
In addition 10 the molasses by product.
WANT AN AGRICULTURAL BANK

cultural bank the panacea for most OF ms
Ills The Sugar Planters Association rarely
holds a meeting that this project is not IN
dorsed. II is a very alluring one, for the islahd
is lacking in proper banking facilities. To the
planter as rule, the agricultural bank means
a sem-state institution. which would go on
loaning to him his own terms indefinitely.
Under the present conditions. he pays dearly
for the ordinary accommodations. After he
has put a first and second mortgage on ms
land there is still the 'contrato de refaccion
or third incumbrance on the land, 10 secure the
advance made on the crop itself. When this
point is reached ii is a mathematical certainty
that the banker or the money lender who is,
advancing the loan for the crop will insist on
having the sugar Consigned to him. 1t is also
more than likely that the planter VIII mo IL
desirable 10 buy his sugar bags through the
same agency. He complains bitterly that ne is
hardly more than tenant on his own plan
tation, and where he has become involved III
mortgages and "contratos de refaccion this is
true, but the agricultural bank OF which ne
dreams would not save him. In time, the grau,
ual extension of normal banking faciltles VIII
be help. yet this Will be chiefly for the newer
generation OF planters, who Will not undertake
10 keep up the old baronial notion that the
planter is the lord of the estate. and that MS
only duty is to put fresh mortgages on the lano
and spend the proceeds as he lists.
Among some of the planters disposition Is
shown to complain OF the tendency to reduce
their personalities 10 that or mere agents OF
managers. This is more than a tendency III
is a recognition of the fact that the plantations
IN the future are likely TO become corporate
properties and 10 he managed as all corpora
tions managed in order TO secure. economy
of production and distribution. The chanSe
which began in Hawaii ten or twelve years ago
when most OF the plantations were merged into
stock companies. is just discernible in Cuba to-
day but IL is inevitable change which VIII
be worked out within few years. some OF tne
planters whose estates were heavily incum-
bered sought TO raise the capital necessary 10
clear them by forming companies ana lnNltlns
American capitalists to go in with them Few
Of these projects were successful, because on
investigation the Americans usually found that
the planters main idea was TO realize COM
Portable existence for himself by running plan
tation in the old way with SOMEBODY else
capital: but the idea at the basis was taken
hold OF. and in a number OF instances is being
worked out.
In their efforts t. have the mortgage extern
sion decree further prolonged the planters were
inclined TO insinuate that greedy American syn
dicates were waiting a chance 10 become pos
sessed OF their property through foreclosure
After infinite patience, General Wood. with the
full approval Of the Washington authorities,
declined TO grant further extensions. The es-
tates on which machinery and mills had been
destroyed were given some special consideration
In being allowed four years in which to close
out their Indebtedness by series of graduated
payments but the other plantations We're left
subject TO the ordinary provisions Of the law OF
mortgages.
NO WAITING AMERICAN SYNDICATES.
1t has been a surprise to the distressed plant
ers 10 find that American syndicates were
waiting TO seize the property. The mortgages
We're held almost exclusively by the Spanish
money lenders, and it develops that in many
instances some of these greedy sharks have
overreached themselves and have bought sec
ond mortgages which worthless The indi-
vidual planter is keenly distressed at the pros
pect Of foreclosure, for in a good many cases
his equity will prove almost nothing. but the
process which is now going on was an inevita-
BILE one 1t was the only way in which the
sloO,oo0,o00 Of mortgages on land could be lqui-
dated and a sound Industrial condition be re-
stored. In the mean time. Cuba will go on rails
ing sugar cane because II cannot do otherwise
ana out OF the new conditions viii come the de-
Veiopment OF companies rather than Of indi-
vidual sugar planters. This process necessarily
VIII extend through period of years.
1t has been a revelation both TO the CubarS
ana the Spanlards to find that the American
investors who are not yet very numerous show
so little disposition 10 look for bargains in old
plantations. In a few cases in the central and
western part OF the island Americans who are
already interested in the sugar industry in
terested others. but the majority of them go to
the eastern provinces, where the resources are
yet undeveloped and where, If the immediate.
returns are not so sure, the ultimate profits
bound to be larger There are a number of
Spanish mortgage owners and of Cuban plant
ers who have been disgusted at the way Amer
lean investors have passed over the tired"
OF Santiago Province and Puerto Principe.
SIR WILLIAM VAN HORNE'S ENTERPRISE
Sir William Van Horne's railway enterprise
in opening up the eastern country probably has
something to do with this preference In all
the projects for new plantations in the east
central idea obtains. which is likely 10 help
along the revolution in the methods of sugar
production. This is to diversity the products
Mr.. Van Horne and his associates have def
mite plans of alternating fruit culture with
sugar raising double purpose is thus ac-
complished. The tendency to depend on a single
crop is lessened, and the proposed fruit belts
serve a barrier TO extensive areas OF cane
being burned. The United Fruit Company
which is going into the business of raising sugar
cane. it is understood, will follow the same gen
eral policy, and some of the minor companies
which opening up lands in Santiago have
the same plan. Indirectly all this will help in
the economic emancipation Of the small farmer
because his emancipation only can come through
diversified cultivation. With the assurance OF
competing mills and with the promise of
market for the fruits and vegetables which he
VIII raise. the outlook for the small farmer in
Cuba is fairly encouraging
Americans who are in the island interesting
themselves in the sugar industry have not yet
learned to make full allowance for the differ
ences in the conditions of production. Even
Louisiana planters at first failed to notice that
their mills. which ground the seven months
green cane easily. could not with the same mo-
tive power grind the tougher fibre of the Cuban
eighteen months cane. In Cuba they have dis
covered that il requires motor for each
mill. while in Louisiana the same motive power
might be sufficient for two more mills. The
difference between Louisiana and Cuba, one
OF them put it, is great as the difference be-
tween day and night
The Hawaiian chemists and planters who have
been investigating the Cuban soil we'll as the
methods of production have noted this differ
ence. They have found that conditions which
obtain in the central and western parts of the
island do not prevail In the eastern end. It is