New-York tribune., 1902-05-08
THE SUGAR INVESTIGATION
A BROKER TESTIFIES THE CUBAN
SELLERS WILL GET THE ENTIRE
BENEFIT OF TARIFF REDUCTION

BENEFIT OF TARIFF REDDCIlON-
Washington. May Manuel Rionda a mem
Der Of the sugar brokerage firm of Czarnikow.
MacDougau & Co, Of New-YOrk and London,
was before the subcommittee of the Senate
Committee on Relations with Cuba to-day He
said that his firm has business connections in
all parts Of Cuba but no branch houses in that
country He estimated the annual production
of the independent sugar refineries of the United
States at 536 04S tons. and said that his firm
sells more Cuban sugars TO the independent re-
ineries than to the trust. He presented a state
ment of sales of Cuban sugar for the present
year, showing that he had sold less than five
thousand tons TO the trust for that period.
Germany he said. the largest sugar producer
ir the world, fixed the price for sugar. In Feb
ruary and March, however. there is a reduction
on Cuban sugars below the Hamburg price
owing to the fact that at thai season of the
year the supply is greater than the demand.
The variation is seldom. the witness said, more
than one-eighth Of a cent a pound.
Senator Platt asked what would be the effect
OF a reduction of the duty on Cuban sugar, and
the witness replied that the Cuban seller would
receive the entire benefit. The price on Cuban
sugar never would. however, go beyond the
parity Of beet sugars-that was the danger line
for the purchaser would take the beet sugar
in preference. He did not believe that the
American Sugar Refining Company would get
any OF the benefits of a concession. The Cuban
producers could hold their sugar and the refn-
ers would be compelled to go to another market,
with the result that they would advance the
price in that market. and thus get squeezed
themselves. instead Of squeezing the Cuban pro-
ducers.
What would be the effect upon Cuban sugar
in there should be no reduction in the
duty?"
Very disastrous. because those who have
made advances on Cuban sugar to the extent of
one and one-half cents pound would call all
their loans in for fear the price would go lower,
and it is to be feared that a panic would
ensue"
over?"
Not necessarily. because Cuba IS very weak
financially"
George E Bryson. newspaper editor and COM
missioner of deeds Of Havana gave the names
Of a number Of large sugar plantations in Cuba
which owned by Americans. One firm, COM
posed Of Englishmen and Americans, which
ships about hundred and twenty thousand
hogsheads annually. owns a large part OF the
land around Guantanamo Bay. In addition to
the large plantations held by Americans, Mr..
Bryson said. there were probably one hundred
smaller plantations held in the island by Amer
leans. There are many large holdings by Span
iards near Havana, Matanzas. Colon and Car
denas. AS a rule, however, the Spaniards con-
troll sugar production by holding mortgages
rather than by owning the estates outright He
estimated that 20 per cent of the sugar produc-
tion Of the island is thus controlled by Spanish
citizens.
In reply TO Senator Teller he said more than
half OF the sugar of the island is produced
by American citizens and American corpora
rons He knew Of no large plantations in Cuba
which are owned by Cuban citizens. There were
hundreds of small Cuban planters, but he did
not know Of a single central. sugar factory.
owned by Cubans. Many Of those described
American citizens are. Mr. Bryson said, natives
of Cuba, but naturalized citizens of the United
States, and they could. if they should so elect,
now reclaim their Cuban citizenship.
Mr.. Bryson said much of the sugar produced
by Cubans is grown by poems or Coonos, who
get only what the planter on whose estates they
are located sees fit TO give them. He did not
think, a rule. they would receive any benefit
from an increase in the price OF sugar. AS for
the Cuban plantations most Of them
burned out.
Oscar W. Donner advertising agent for the
American Coffee Company, questioned by
Senator Teller concerning a pamphlet entitled
Facts About Cuba which the witness said
he had compiled. The reading matter was COM
advocating a reduction of the duty sugar
There had, he said, been about three hundred
and fifty thousand of these pamphlets printed
at a cost of 81, 100. He had consulted Mr.. Have
meyer about getting ii up the OBJECT being TO
counteract the effect of charges against the
Sugar Trust He said that he had had many
OF these articles reprinted in patent inside"
papers. paying for their insertion but he had
never had them printed in other papers.