Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-02-25
SUGAR TRUST STEALS MARCH
American Company FOrestsI1s TariH
FsvOrs ORered Cubh-Buys Up
Whole Crop I'm Advances.
CFrom a stafr corresponaent.l }

meubelS Oi the admln1StratiOn tnat seri-
GUS scandal will neutralize President Roose-
Velt's earnest efforts to aid the new re-
public Of Cuba by establishing reciprocal
trade relations.
II has come to light that the American
Sugar Refining company, commonly known
as the Sugar trust, has forestalled any ad-
vantage which might come to the Cuban
planters from tariff reductions on the sugar
crop OF 1sO1-2 by buying Il all up The
crop is estimated to be somewhat in excess
OF 100000 tons and the only considerable
amount not controlled by the trust is held
by the Spanish Bank OF Havana.
At $36 ton duty a Reduction OF 80 per
cent in the tariff would net the Sugar trust
Sl4,4OO,OO0 over and above the legitimate
profts OF handling and refining, not a dol
lar OF which would inure to the benefit Of
the Cuban people, for the sugar has been
bought, the crop has been made and the
laborers paid.
Since the American demand for sugar in
1902 will be nearly 100000 tons more than
the combined production of the United
States, its colonies and Cuba, Il is evident
that the holders OF the Cuban crop will re-
ceive the entire benefit Of any tariff con-
cession and that the American taxpayers
VIII have to make up the revenue thus
surrendered from some othd source.
AS to the necessity for any reduction on
Cuban sugar in the interestiOf Cuba itself,
strong doubts have been thrown by state
ments made by several American officials
connected with the military government OF
Cuba under General Wood Statements
made before the house ways and means
committee were practically contradicted
by statements made in private conversa-
tions and the excuse made that ''it would
not do to publicly oppose the admlnistra-
tion program"
One Of the officials referred to is respon> :
sible for the following lucid exposition of
the Cuban sugar situation:
There are three facts in plain sight.
said he. which disprove the assertion that
the Cuban sugar industry is paralyzed
| heavy tari1 concession.
First-The Cuban sugar crop has in
6l5,O 900 in 19OO-O1, and to over 500 600 tons
IN the crop year just closing. No such
increase would have been possible had the
second-From 1000 to 1000 lusty young
immigrants from Spain have been arriv-
ing monthly nth y,i15 since the grinding season
higher than ever before in the history
To thoroughly understand the situation
the sugar plantations should be put in four
| ClasS l-PlantauonS which are thor
oughly up to date in machinery and equip
| ment, out of debt and backed by ample
capital, thus being enabled to manufac-
Class EXAMINATIONS so ravaged during
| the late war, so handicapped by debt and
| the destruction of machinery as TO be en-
! tirely out Of the field as producers.
Class 3-The huge hAcfendas and CEN
| trales which have fallen into the hands
| lists, with the former owners generally
! In charge as resident managers. These
plantations are usually, irt condition to
face face Of their overwheii.s s st and enfiduf. mn h
Class 4-somse Some 1900 small farms of from
| fifteen to twenty-five acres, two-fifths OF
which are titled by the owners and three
Glass / produces about 115,OOO tons of the
| new crop, class g. 100000, and class T. 1885,
G Class produced about 100000 tons
Glasses l and 3 escaped serious damage
during the war by paying taxes to both
sides.
Through all classes, but principally in
| class z, lie properties owned by Amer
lean citizens, whose claims for damages
| commission, which has been organized q
| year without determining a single case
/ 1t Is evident that these need action on the
relief.
critics as Trinidad near Cienfuegos, owned
| by Mr.. Atkins of Boston; the Brooks
plantation, near Guantanamo; the Beattie
near Manzanillo; the Mcdowell. neal
| Spanish Portugulate plantation, near Ha-
vana. These can all produce sugar cen
them at the shipping dock for a "a quarter. G,
| cent additional. One of them, by its books
| shows a production cost of only 72 cents
per 100 pounds. Certainly these planta.
| tions need no aid.
Plantations of class 2 are hopelessly in,
| just as thousands of American farms have
| every year the crops have failed. Not
being present producers, tariff reduction
Glass 8 is the most important of all
In 1t are to be found the huge estates
| owned and controlled by capitalists OF
the American Sugar trust, including tbs
| tremendous Sanchez plantations, on which
the Havemeyer Interests rests hold no the, the mort
| season; Ell Senado and Ell Congreso, il
as IS 600 tons and 5000 tons respectively
| Well up on this list is the Espana III
Matanzas. one of the numerous Spanish
y Certain features are common to all thes,
| class properties. They were all heavily
mortgaged when the instruction broke on
by bankers in Havana. Madrid, Paris anC
London. Campos suspended foreclosure fo
two years: Weyler extended the order
which was again renewed by Genera
Brooke and General Wood. Seven years
interest at from 10 TO IS per cent. coupled
estates into hopeless insolvency. In nearl!
every case the creditors have been per
mitted TO come in and assume charge, max
ing the crop, paying the labOrers and sell
ing the sugar, the former owners retaineS
on salary as resident managers.
These plantations can all make sugar a
low cost and at a profit, but TO throw dus
| in congressional eyes the entire mortgage
Indebtedness is presented like stock
| watered corporation to prove that suga
is being produced at loss. To the mort
gage owners of these estates tartn reduc
ton means,in the future chance to recoul
millions of their usuriOus mortgage losse
at the expense of the American taxpayers
The class most entitled to sympathy ar
the small farmers and renters OF class
Under the old Spanish regime they wer
| permitted to sell their cane at the big cen
trales at fair prices From this class cam
the soldiers OF the Cuban army Now tn
dent Spanish, French and British mortgag
landlords want to crowd them out from tn
edges OF their huge plantations so as Z
| consolidate their holdings. To accomplish
this arbitrary purpose they crowd dow
the price of cane TO the lowest possibl
or grind the small farmers cane at all
and will not as formerly employ them Z
help on the big estates when the smal
farmers have time to spare. This unwis
course on the part OF the nonresident land
lords is the greatest menace to the pros
perity and stability OF Cuba
But relief cannot come from America
legislation. 1t must comes from the legis
lation of the Cuban congress, which withi
a few years will in all probability adop
similar measures of taxation 10 New Zea
lands. where nonresident landlordism an
ownership Of huge estates has been dts
couraRed and practically broken up by tn
I mi nf ~ a