The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1907-05-24

| CAMAGUEf, Cuba, April IL, 1907.
At the Jatibonico station on tn
American railroad, almost at the exac
geographical center of the island, an
on the boundary line between the prov
inees Of Santa Clara and Puerto Prin
cipe, Is an impressive example Of Amer
lean enterprise in the form of a suga
plantation that was started about thre
years ago in the midst of tropica
forest by Sir William Van Horne, Ger
Granville M. Dodge and other larg
stockholders in the Cuba Railroad CO
Mr.. Dodge's son-in-law, Mr.. Pusey
formerly of Council Bluffs and sol
of Judge Pussey, who represented tina
district in Congress for several years
went into the wilderness with five o.
six hundred Cnbans, cut out the trees
cleared the ground, planted the can,
and raised crop within fifteen month,
from the time he came into the coun
try. In the meantime one of the largest
and the most modern sugar mills in
Cuba was erected at the station tc
grind the cane. 1t has been great
success and serves as brilliant ex.
ample.
The manager of the Jatibonico sugar
estate is Mr.. Wilfred Skate of Mon
treal, who has become familiar with
affairs during his residence in Cuba,
particularly with the sugar industry.
Wien I asked him how much benefit
the planters are deriving from the
reciprocity treaty between the United
States and Cuba, he said:
cit is very difficult to say what we
are getting out of it. Up to this year
we received no practical benefit, be-
cause the sails 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 sugars on the London
This year the planter is get
ting more benefit because the market
is rising and prices are adjusting them
selves 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. Ger !
many produces twice as much sugar
rs Cuba. OF course, the sugar trust |
n New York being the largest buyer
n the world has an enormous influence
IN prices, but it does not control them
~ any means.
NARROW MARGIN OF PROFIT.
"The wholesale price of raw sugar
n New York today is 1925 per hun
lredweight, plus the insurance and
luty. That is what the planter gets.
The average cost of producing differs
n the several provinces. Large plan
ers and corporations that grow their
wn cane and have their own mills
an produce sugar more eheaply than
hose who Operate on smaller scale
nd under ordinary conditions can make {
lgar for $l.90 per hundredweight That
the minimum. A margin of 80 cents
hundred pounds is all the slack the {
est equipped planter can expect. On
lie older estates, where the machinery
not up-to-date and much of the cane ,
bought from outsiders, it costs at t
ast $2.12k to produce sugar, which
aves a margin of only 1g2 cents :
nndred. And the profit of the great ,
ajority of planters varies from that ,
nothing.
"Not the planters are not entirely =
/, the mercy of the trust. They can =
Zip to Europe if they please and get t
e same prices that the trust will pay '
EN-, but the latter is so well organized +
at it can handle sugar more prompt g
and easily than the European buy
s; it is quick pay, sure pay, and
o natural channel for the export of d
iban sugar. The trust owns no plan n
tions. The individual stockholders a
ny have shares in any number of
antation companies, nobody knows NJ
w much The shares of most of the 81
gar companies are bought and sold on n
z stock markets in the United States re
It like other stocks and bonds, and ~,
ere is nothing to prevent the Off m
lis and stockholders of the trust at e,
w York from buying and selling "a
enever they like, but that is not 50
ne by the companies, and in its A,
porate capacity the sugar trust owns pc
plantations. 1t has, however, made d.
Practice of advancing money to some "
the large producers to enable them A.
make crop. The business is con
tied that way. Nearly all the plant no
and companies engaged in sugar are ~
lpelled 10 borrow from banks, com go
sion houses and other money loan
to carry them through. They give rel
ir notes for sixty days, ninety days .'I
six months and pay when they re- ~,
% on their crops have heard Of ma
eral instances In which advances pr
o obtained from the treasurer Of ~