The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-08
MIGHT CAUSE A PANIC
THERE MAY BE TROUBLE IF DUTY
ON SUGAR BE NOT CUT
Testimony of Manual Rionda and
George Il. BrysOn Before the Sem
ate investigation Committee.

WASHINGTON, May Manuel Rionda,
a member of the sugar brokerage firm of
Czarnikow, MacDougall & Co, of New
York and London, was before the Senate
on relations with Cuba to-day.
He said his firm has business connections
in all parts of Cuba, but no branch houses
in that country. He estimated the annual
product of the independent sugar refineries
of the United States at 36,04S tons. and said
that his firm sells more Cuban sugars to
the independent refperies than to the trust.
He presented a statement 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. as
the largest sugar producer in the world.
fixed the price of sugar. In February and
March, however. there is a reduction on
Cuban sugars below the Hamburg price,
owing to the fact tina at that season of
the year the supply is greater than the de-
mand. The variation is seldom, the wit
ness said, more than Is Of a cent a pound.
Senator Plat 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 ben
eft. The price on Cuban sugar never
would, however, go beyond the parity of
beet sugars-that was the anger line-fOr
the purchaser would take the beet sugar in
preference. He did not believe the Amer
lean Sugar Refining Company would get
any of the benefits of a concession. The
Cuban producers could hold their sugar,
and the refners would be compelled to go
to another market, with the result that
they would advance the price in that mar
ket and thus get squeezed themselves. in
stead of squeezing the Cuban producers.
What would be the effect upon Cuban
sugars in case there should be no reduc-
ton in the duty?'
"Verv disastrous, because those who have
made advances on Cuban sugar TO the ex-
tent of ~ cents per pound would call all
their loans in for fear the price would go
lower, and il is to be feared that a panic
would enSue.'
Would it not lower the price the world
over?'
Not necessarily. because Cuba is very
weak financially"
George E. Bryson, newspaper editor and
commissioner of deeds, Of Havana, gave
the names of a number of large sugar plan
tations in Cuba which are owned by Amer
leans. One firm, composed OF Englishmen
and Americans, when shlps about l2O,Uo
hogsheads annually, owns a large part of
the land around Guantanamo bay. In adj
dition to the large plantations held by
Americans. Mr.. BrysOn said, there were
probably 100 smaller plantations held in the
island by Americans. There are many
large holdings by Spaniards In the vicinity
of Havana, MatanZas, Colon and Cardenas.
AS a rule. however. the Spaniards control
sugar production by holding mortgages
rather thar by owning the estates out
right. He estimated that 20 per cent. of
the sugar production of the island is thus
controlled by Spanish citizens.
In reply TO Senator Teller he said that
more than one-half of the sugar of the
island is produced by American citizens
and American corporations. He knew Of
no large plantation in Cuba owned by Gu
han citizens. There were hundreds of small
Cuban planters, but he did not know Of
a single central or sugar factory owned
by Cubans. Many of those described as
American citizens are, Mr.. Bryson said,
natives of Cuba but naturalZed 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 pro-
duced by Cubans is grown by poems who
get only what the planter on whose estate
they are located sees fit TO give them. He
did not think as a rule they would re-
price of sugar. As for the Cuban planta-
tions. most OF them were burned out.
Oscar w. Bonner, advertising agent for
the American Conee Company. was ques-
toned by Senator Teller concerning a pam
phlet entitled Facts About Cuba" which
the witness said he had compiled. The read
ing matter was composed OF extracts from
a number of newspapers advocating a re-
ductiOn of the duty on sugar. There had
he said, been about $4,000 OF these pam
phlets printed at a cost of 81 100. He had
up, the object being TO counteract the ef.
feet 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 that he hat
never had them printed in other papers.