Evening star., 1901-02-19
CUBAN INVESTMENTS
Some Channels Into Which American
Capital Has Gone.
THE PASSING OF THE PROMOTER
Review of the Industrial Situation
in the Island.
B EER, ICE AND MINES
Copyright, 1901 by Charles N. Pepper.)
pecial Correspondence of The Evening Star

Copyright 1901, by Charles NJ Pepper)
Special Correspondence of The Evening Star.
HAVANA, February Is, 1901.
Investments in Cuba may suffer a tenn
porary check. but 1 do not think there is
any danger of halt in the enterprises that
have been undertaken in the last year.
Most of them were entered upon with the
belief that period of political uncertainty
would come. Probably the projectors be-
lieved that this would be the transition
period which would end in annexation. The
abiest and broadest of them now think that
the Cuban ship of state Is going to rock
before 1t gets far out to sea, and that it
will have to put into port for more ballast
But they do not take this a ground for
abandoning their projects. The head of the
financial institution which has the most at
stake in the future of Cuba told me he was
glad that the test was coming. He thought
the next six months would determine def
nitely what could be expected, and though
previously he had advocated policy of in
action which would postpone meeting the
issues that were coming up, he changed his
mind.
While 1t may be said that the era of in
vestment in Cuba opened in the face of po-
litlca uncertainty, it should also be said
that this is vastly different from the era
of speculation which marked the first few
months of the American control. The pass
ing of the promoter has been one of the
events that has encouraged investment. The
promoter came with the American troops.
He had no money and he represented no
money. He was full of schemes for getting
franchises and concessions and for possess
ing himself of the property Of the Cubans
and the Spaniards without paying for it.
He caused distruSt among the people of
the island and for time he succeeded in
deceiving the people Of the United States
But the American capitalist found that the
promoter had nothing to sell which was of
value, and that the only way to make
money out of Cuba was to put money into
Cuba. When they learned this simple truth
scme of them really did begin making in
vestmentS and they have continued to do
so. This ended the promoter.
Havana Holds Things High.
Havana itself Is not and will not be the
best field for investment by Americans for
possibly five or ten years. Real estate
offers no field at all. 1t is held too high
either for investment or for speculation.
No city of the same size in the United
States gives so large a return on money
invested In real estate. Rents are very
high, and dwellings and business houses are
made to accommodate a much larger num-
ber of tenants than would be possible in
the north. According to the figures of the
secretary of finance, the real estate of the
City manages 10 carry a mortgage indebt-
edness of s1O0, 900 900, and this is done
without serious Inconvenience.
In an American city the crowding would
last no longer than 1t was possible to pro-
vide means of transit out into the country
and inviting suburbs would spring up faster
than mushrooms. There is plenty of room
for suburbs on the hills back of Havana
and across the bay, but notwithstanding
that the population of the city is SO con-
gested, real estate enterprises of this kind
Will not yield immediate returns. The cleo
trio railway will be the beginning, and in
the course Of time portion of the crowded
population will find Its way out beyond the
city, but habits of living change very slow
ly among the Spaniards and Cubans, and
they will not embrace the first opportuni-
ties, as they would in an American city.
This Is the reason why American capital
lists have not yet put money into Havana
real estate. They could not buy it in the
city proper for anything like a reasonable
price, and their Judgment does not encour-
age them to go into the business of build
ing suburbs which might remain unoccu-
pied for years. In Havana itself there is
considerable building going on at present,
and two or three structures which are to
be put up will be erected by American capt.
taliSts, but these edifces are office buildings
intended primarily for the concerns which
hl1ilI