Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-05-13
BACU WOULD BENEFIT
MR.. KEL17Y TESTIMONY BEFORE
SENATE COMMITTEES.
Effect of RAuetion in the Tariff on
sugar-HRldings Of American
Companies.

| oehaeS SoAuHittee on SuDd IOuay.-- he mas
been interested In the production of sugar
In Cuba for thirty years, and is a director
and STOCKHOLDERS in the Central Teresa
| Sugar Companx the Chapara Sugar Com
| pany and the Boston Fruit Company. ell Of
which companies are American corpora
| lions and all OF which do business In the
province of Santiago. Cuba. He had, he
| said, been IN the Teresa Company since
1885 and in the others not so long. The
witness gave the names of the stockholders
| OF these companies as tar as he knew
| them, and said that not to his knowledge
OLD Mr.. Havemeyer have any stock In either
OF these companies. The fact was brought
out that Mr.. Havemeyer had testified when
| on the stand that he had interests in the
Cnapara Company. The Boston Fruit Com
pany mad, the witness said, formerly been
| engaged exclusively in fruit growing. but
since the Cuban war the company had
planted 10000 acres in cane.
MT Kelly gave the names Of other large
american companies which are producing
sugar SUI ir in Cuba giving the aggregate greg daily
TONS distributed as follows: Chapara, 300;
| Francisco, 100; Boston. $50; Central Teresa,
10; Solidad. 100; Trinidad. 100; Cuban
American. 100; Damuji. $50; Cape Cruz, 100;
Hormiguero, 100.
These figures did not however, show the
| actual output Of the factories. This, he
considered, did not exceed $4,000 tons an
AiuoItS, VI dUOut ~ per cent VI lIe yearly
product He thought there were about It's
| mills in the island.
Cane Growers Would Benefit.
| Mr.. Kelly was firmly of the opinion that
the cane gro wers would receive the entire
benefit from reduction in the American
duty on sugar. Their contracts are based
entirely on the value of the cane" he de-
clared. every dollar would go to the far
mer"
Much of the benefit therefore. would go
TO the tenant farmers or colonos. of
course he said in reply to a question from
senator Teller. 1.-The owners Of mills who
raise their own cane would be benefited,
out there are many mill owners who do not
raise stalk of cane.
Mr.. Kelly also said it would be impossible
for the retiners in the United States to con-
troll the price of Cuban sugar. In support
OF his contention that the cane growers
would be the beneficiaries of a reduction
Mr.. Kelly instanced the condition In Porto
Rico where, he said, cane is worth three
times as much as in Cuba.
Mr.. Kelly said there are comparatively
few Spanish sugar producers in the island.
but that it would be difficult to separate
them from the Cubans. He gave the names
OF three English houses operating in the
island. as follows: Brooks Brothers OF
Guantanamo with a capacity of $50 tons OF
| sugar per day: Beattie & Company Of Man
zanillo. 125 tons daily, and the James Nc
Kinley estate Of Santiago, with small
capacity.
In reply to a question from Senator Teller
as to whether there had not recently been
a great deal Of sugar land bought in Cuba,
Mr.. Kelly said: There has been a great
deal of talk about such purchases but IT
doesn't materialiZe. 1t Is almost impossible
to get an option now on sugar lands"
THE lands can be bought. however,"
No Options on Lands.
Eyes. but the people say they have been
fooled much that thew will not give
options
The witness said that latterly the produc-
ton Of sugar in Cuba had not been profit
| able because Of the low price and the
higher cost of labor in the island, which
| now averaged. he said, fully dollar in gold
per day.
Reverting to the benefits to be derived
from reduction Of the duty on sugar Mr..
Kelly argued that the Cuban sugar planters
would be able to hold their product until
the refiners would have to buy 1t, and that
time must necessarily come soon. However,
the length Of time that the planter could
hold would depend upon his banker. He
also admitted that raw sugar would de-
teriorate II held too long.
Mr.. Kelly said the production Of Cuban
sugar could be increased to g. 100000 tons
| with favorable labor conditions. Free trade
| between the United States and Cuba would
mean trade of $500 100000 each way an
nually
Competition With Beet Sugar.
do you believe" Senator Teller asked,
that the United States could compete with
Cuba in the production of sugar with Cuban
sugar on the free list?'
II am not in the sugar production in the
United States. I only know that the beet
sugar princes the Oxnards, announced some
time ago that they were in position to so
| compete"
In reply to Senator Plat, Mr.. Kelly modi-
| fled his statement that the Cuban sugar
product could be increased within the next
| five years SO as to bring the product up to
25O0, 600 tons. because Of the difficulty of
securing labor.
Before the committee adjourned for the
| day Senator Piatt presented a cablegram
| from Governor General Wood Of Cuba CIV
| ing list of the raw sugar factories In the
| island. and placing the last crop at 10000
| tons instead Of $4,000 TONS as heretofore
| estimated by him. OF this amount, he said,
100000 tons had been shipped from the
| island. He also said that the producers still
| hold about so per cent Of the crop.