The Washington times., 1902-05-08
Manuel Rionda TeStifies
/ Regarding Sugar Before
Senate Committee.
THE TRUST NOT IN CONTROL
Firm Represented by Witness Bought
One-quarter of Last Years Crop
Prices Governed by Beet Sugar-0ther
Witnesses Heard.

4ow, MacDougall & c., of New Yorl
and London. sugar brokers, was wit
ness yesterday before the subcommittee
of the Senate Committee on Relations
with Cuba investigating the ownership Of
Cuban sugar and sugar lands.
Replying to questions by Senator Plat
The witness said his firm last year had
handled approximately one-quarter of the
Cuban sugar crop-in fact 134.412 tons.
The total sales of all kinds of sugar
made by his firm last year were 31.i79
lions.
The independent refiners had purchas-
Ned more of his firm last year than had
The trust. From January ] last TO May 2,
The trust had taken from them 1909 tons
pf Cuban sugar.
The capacity OF the independent re-
fineries In the United States. Mr.. Rionda
said. was about $4,000 tons a year. the
Arbuckles being the largest.
As to what fixed the price of Cuban
sugar, he asserted, il was dependent al
most entirely upon the price of beet
sugar. 1t was a natural law that the larg-
est producer fixed the price, and as Ger
many was the largest producer in the
world. Germany was looked TO for quo
tations.
4 Governed by Beet Sugar.
Cuban sugar was usually on parity
with the worlds price of beet, he said,
and the variation was usually due to an
oversupply OF raw sugar at the port CT
arrival. where the owner sometimes
shaded his prices rather than store it,
unshipped Cuban sugar never fell below
parity with beet sugar
Senator Platt asked what the effect
would be on the price of Cuban sugar if
the United States reduced the duty. The
witness replied that II would enhance the
value of the sugar to the Cubans just
as much as the duty was reduced.
AT the request of the committee he
went into details and demonstrated by fig
ures that no other result could be
reached. The trust he said. could not
control the price, because If it declined to
buy the sugars at ruling prices the inde-
pendent refiners would purchase it. He
also showed that even il the latter COM
biped with the trust TO squeeze the Gu
bans, the Cubans would beneft by not
only the reduction but the rise in beet
sugar. which would surely come with the
buying of 300, 900 tons or more OF beet to
replace the Cuban crop.
Mr.. Rionda stated that the next four or
five months are those of the greatest con-
sumption and the smallest production. The
refneries do not keep on hand anv large
stock and they must have raw sugar TO
meet the demands of consumption. There
fore IL they attempt to squeeze the Cubans
by declining to buy those sugars they
must buy beet sugar in Europe TO re-
place them and the unusual demand for
beet will increase the price of sugar all
over :se world. On the other hand thn
Crhans hs- -. vvuIu easily hold thtir
sugar. knowing they would eventually
obtain better prices for their product
Disastrous to Cubans.
Asked what the effect in Cuba would
be II Congress refused to grant a ta-ir
concession. MIR. Rionda said omphaticaiiy
1t would be very disastrous, because those
who had advanced money on tie crop in
the expectation that sugar would bring
at least one and half cents a pound
would Immediately call in their loans ard
the crop would be dumred on the market
and sold at any price il would bring. The
Cubans were financially weak ard would
be forced to sell. Tie result would be
panic.
George Z. Bryson, the next witness
said he had been newspaper correspond
ent In Cuha for seven years, and had
for time published a paper in Havana.
After giving the names of the prfncipal
sugar plantations in Cuba which accord
ing to report were owned by American
corporations, Mr.. Bryson said there were
in addition about 100 smaller plantations
owned by Americans. individually. natur-
RliseC and native. Fifty per cent of the
entire sugar crop OF the island, he esti-
mated, was produced on plantations
owned by Americans OF American corpor-
ations, and at least 20 per cent on planta-
tiops owned or controlled by Spaniards, |
leaving but 80 per cent of the output to /
the Cubans.
Examined by Senator Platt, Mr. Bryson |
said he knew Of but one large plantation |
In the island owned by Cuban citizens. |
He acknowledged that many of the Cuban |
owners had taken out American naturali- |
Eation papers in order to protect them |
selves, and that they might renounce alle- |
Eiance to the United States as soon as the |
Cuban constitution became effective. In |
Lact. he knew OF some who had already /
lone SO.
His information as TO the citizenship of
plantation owners and the output of the
he confessed. was largely cir
and general. Pressed for
more specific statements regarding the
sources of his information. Mr.. Bryson
aid he knew 1t just as well as he knew
he Maine was blown up by the Spaniards.
a" .uerieans 10, 50 Wtes
.1rt." gs rHa-r. nl- "ar trr