The Washington herald., 1916-01-27

out about g per cent OF the working days
ian unusual rainfall
Burned Mahogany Trees
When Rionda started the Manati plan
tstion on the north coast of Cuba m
1872, 7e0ce acres were purchased at from
S to 81 per acre and great trees of ma
bogany and cedar had 10 be felied and
burned. II was sugar they were after,
and there was no large market for ium-
Der from Cubs's 80 varieties OF trees. IL
is mo uncommon thing 70 ind mahogany
In the ties under the railroad. II is ng-
ured that Il costs $40 per acre 10 plant
Cuban cane. and Rionds says you can
figure on $4,000 In buildings and ma
chinery to make $4,000 bags Of sugar.
This is $40 per bag. but equipment for
double this output does not cost as much
proportionately. But you must reckon.
he says, on the basis Of at least 81 per
bag for up-to-dste machinery.
On this basis the Cuba Cane Corpora
tion for its 500, 600 bags per annum pro-
duction must have s245oo.ooo in ma
ehinery. buildings, etc. But here IL the
way Rionda figures the replacement
value OF the plant and machinery in the
Cuba Cane Corporation:
SO kiloneters OF railroad at
$4,000 per kilometer......... S,5oo.oqo
200 steel cars at ssoo......... $4,000
rs locomotives at 300. 10000
Machinery, buildings. oxen,
supplies. etc............-...... N,sooco
Total SIS 10000
To the above should be added the cost
represented in the planting OF one-hslf
{ company's $4,000 acres at so per acre,
valuation for the planting OF S,ooo.ooo.
This. added TO the above. makes ffz.5co :
900 at replacement valuation. without
valuing the land under the plant or plant
Ing.
Land Scarcely Figures.
As the proposal is to invest So coo. .coo.
of the sSo ooo. 900 paid In cash. in the pur-
chase OF going plantations with the above
railroad. buildings and machinery. 1t is
easily seen how little the plantation Land
may be accounted in the investment
Since the Cuba Cane Corporation op-
tions were secured there has been such
an advance in machinery and other costs
that II may be safely asserted that Sf5-
0oo, 900 would not today replace the above
property. This insuI ance against any
substantial depreciation IN the plant is
found in the high prices secured for sugar
In 1915, which gave the Cubans money
for replanting and for machinery repairs.
the Cuba Cane Corporation about $50. 600
acres, Of which nearly one-third will be
outside the company's ownership. but
tributary TO its twenty csntrales.
II should require the cultivation Of
10000 acres TO produce 55o0,ooo bags, and
5000 additional acres will furnish the
pasturase for the maintenance Of the
oxen. The value OF oxen in soft soil is
being demonstrated in the European war.
Horses may founder, but the hoof OF
the OK spreads apart as Il sinks and Is
ca sily withdrawn
After Cuba was devastated by the
revolution. which ended in 1875. the rrst
order was for 1850 900 worth Of oxen
from South America
Cuban sugar machinery has been
brought to a high state Of perfection.
but there has been no corresponding de-
velopment In soil cultivation
One of Rionda's Dreams.
Here lies one Of the dreams Of Rionda,
but before It's realization can take place
the capital Of upper Wall Street must
be invited into the fields. the profits
fully demonstrated IN dividend return,
and then nothing can hold back the
second Cuban revolution-the revolution
In its agriculture supported by American
finance from the strongest houses in the
United States.
Investors and Wall Street have had a
taste Of sugar profits. The American
Sugar Refining Company. after II
amalgamated. unified and systems tzed
the refining companies, returned millions.
but the millions made here are nothing
compared with the possible millions be-
hind IN Cuba itself Cuba and Wall
Street have entered a new era and the
sugar foot Of Wall Street is again NOV
ing toward Broadway
Wall Street will in time take due note
~ the Cuba Cane Corporatiou directora te
| and what IL represents In American