BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1901-08-13
The Cuban Sugar Situation.
Probable. Action of the Trust


The question of reciprocity or possible
free trade with Cuba has suddenly assumed
great public Importance, but there has never
been moment, since the war with SpalG
began, when it DID not figure largely in the
minds of influential persons and classes IL
this country. Two events have given II
fresh interest at this time. One is tire en-
argement of the Capital stock Of the Sugar
Refining Company, commonly called the
Sugar Trust, by $15,00O,000 of new cash
subscriptions, Which points to the acqulst
ion Of properties in Cuba for the production
Of sugar The announcement of this addlt-
ron to the capital Of the ctmpany was ac-
c, mpauied by published interview with
Mr.. I'll. o Havemeyer, in which he SAID
hat an application could be made 10 Con
gr.ss for the admission of raw sugar from
I'uba tree of duty, and that in his opinion
| he application would lie successful. The
other fact of immediate interest is the ener'
getc protest issued by the domestic sugar
producers, both beet ard cane. against any
such proceeding, SAYS the New York Post.
| There are several elements in This prob.
| lem which will need to he considered before
solution can be reached. The FIRST, and in
he long run the most IL fuentlal, IS the sit :
nation of Cuba and the United States in
reference to each other. The former, as our
correspondent. Mr. Albert e. Robinson, set
forth in our columns yesterday, is capable OF
producing as much sugar as is now con
| ,umed in the civilized world. The Unled
States is the largest sugar consuming coun
rry in the wfr rid, and is situated within a
few hours sail Of this rich sugar estate
What Cuba needs to call forth her energies
i'll this line of industry is capital. The
United States can supply this requisite With
out stint, and will do so even under the
terms of the Dingley tariff; much more un
der system of free trade. Here is a per
sistent force of self interest, which comedies
in some degree also with the public interest
and which will work untiringly and without
ceasng for the introduction of raw sugar
from Cuba free of duty. either with or without
: the annexation of the island. We are MOI
prepared to say that Mr.. Havemeyer acas
too confident in his prediction that free sug
ar will win the fght at " Washington, al
though it may not win the first battle. y
course, the beet sugar and the cane sugal
! interests of the United States will oppose
any reduction of the duties of raw sugar, ant
will demand that the other protected inter
esls shall make common cause with them
The next element OF Importance IS the
fact that the Government derives revenue
) of 500, 600, 600 per annum from tie duties
on sugar Under the Mckinley tariff o.
1890, the duties on raw sugar were repealed
and this loss of revenue was one of the prime
causes contributing to the Treasury deici
Ia. 1,I,n 1f e
achether the Government can afford TO thrOV
over the sugar duties is too important to bt
Ignored. On the other band, the argument
will be advanced that qohat the Treasury
loses in the way of revenue the people will
gain in cheaper sugar. In this argument
there will be much force unless the sugar
Trust finds some way to pocket the differen
ce. 1t will do SO if it can. That is to be
expected, and is not blameworthy, since
business is business Ii the government ar
4 20 that u ft,ssc,r
7 ard Roe can make inordlnate gains it mus
expect them to take all that is put in thel
: aCay.
OF course there is a middle ground bel
4 ween Cuban sugar free and the presen
: duty Of about two cents per pound. Their
have been hints at washington that th
President would rec mmend reduction Q
20 or % per Cent. in favor Of uba. Al
the principles which govern the traffic, an
which we have cors dered above, apply to
reduced duty, as well as to an entire rep
cal. Tae domestic producers will oppos,
the reduction as s;outly as they will oppos
the repeal, and it remains to be seen boo
IL uch ihe Administration really desires t.
favor Cuban interests. The latter hav
the susp con that reciprocity will be KEEP
, dapglng before them just beyond their reach
as lure for annex ton, and that the pecun
. larry temptation will eventually overcom
, ,chat remains Of the desire tor independence
in the island.