Durango semi-weekly herald., 1907-05-20

planters are deriving from the reel
procity treaty between the United
States and Cuba he said:
"It is very difficult to say what We
are getting out of it. Up to this year
we received no practical benefit, be
cause the sales of sugar have been
forced on account of the needs of the
planters for money and Cuban sugars
have been selling in New York below
the parity of beet sugar on the Lon.
don market. This year the planter
is getting more benefit because the
market is rising and prices are ad-
iusting themselves all over the world
The price of sugar is fixed in London
by the law of supply and demand. and
beet sugar is the controlling factor
Germany produces twice as much
sugar as Cuba. OF course the sugar
trust in New York, being the largest
buyer in the world, has an enormous
influence on prices, but it does not
control them by any means.
THE wholesale price of raw sugar
in New York today is $2.25 per hun
dredweight, plus the insurance and
duty. That is what the planter gets.
The average cost of producing differs
in the several provinces. Large plant
ers and corporations that grow their
own cane and have their own mills
can produce sugar more cheaply than
those who operate on a smaller scale,
and under ordinary conditions can
make sugar for $1.90 per hundred
weight. That is the minimum. A
margin of So cents a hundred pounds
Is all the slack the best equipped
planter can expect. On the older
estates, where the machinery is not up
to date and much of the cane is
bought from outsiders, it costs at
least 2.12h to produce sugar. which
leaves a margin of only 121A cents
a hundred. And the profit of the great
majority of planters varies from that
to nothing.
NO, the planters are not entirely
at the mercy of the trust. They can
ship to Europe If they please and get
the same prices that the trust will
pay them, but the latter is so well
more promptly and easily than the
European buyers; it is quick pay.
sure pay, and the natural channel for
the export of Cuban sugar. The trust
owns no plantations. The individual
stockholders may have shares in any
m hpr Of MIA
body knows how much. The shares
of most of the sugar companies are
bought and sold on the stock markets
in the United States just like other
stocks and bonds, and there Is nothing
to prevent the officials and stockhold
ers of the trust at New York from
buying and selling whenever they like
but that is not done by the companies
and in its corporate capacity the
sugar trust owns no plantations. II
has. however, made a practice of ad-
vancing money to some of the large
crop. The business is conducted that
way. Nearly all the planters and com.
panies engaged in sugar are compelled
to borrow from banks, commission
houses and other money loaners to
carry them through. They give their
notes for sixty or ninety days or six
months and pay when they realize on
their crops. | have heard of several
instances in which advances were oh
tained from the treasurer of the trust
in New York, under the authority Of
the board of directors. But it con.
trolls comparatively small number
of Plantations.
"The largest sugar interests in
Cuba are owned by Spaniards; the
native Cubans are close second
there Is very little difference
Americans come next, then the Eng
lish and Germans. There are about
$50 sugar estates on the island, valued
all the way from 100000 to $4,000
0OO aQrh Thu larpact oanoI r,L..