The sun., 1919-10-20
BY s. r. WERNER.
Written Especior,v to,. the Latin Am

Written Especially for the Latin -Amerf-
con Section Of THE SUN.
Foreign investors In tropical enter
as they might because they do not make
the most of all the resources on their
properties. Native investors have been
inveterate offenders in this respect also.
but they at least do not involve distant
stockholders in their failure and give
their country bad reputation abroad
because of their lack of comprehension
In their industrial operations.
An Illustration of the point in ques-
ton may be afforded by the history of
one Of the oldest and largest enterprises
on the Canal Zone, the Las Cascadas
Plantation Company. About forty years
ago a number of gentlemen on the 18TH
mus of Panama conceived the project of
developing a cacao plantation near the
site of the present great excavation In
Culebra Cut. The French love choco-
late. To sell cacao to the French canal
diggers looked easy and profitable. The
promoters obtained tract of land OF
about 500 acres and commenced opera
lions
The resources on this tract then con-
sisted approximately OF the following
Two million feet of hardwood timber
(mahogany, coco-bolo, lignum vitae.
nispero. etc.), worth, gross, about $780,
600: $4,000 cords of fuel wood. worth,
gross, in the Panama market. about
$3.50, 900; several good waterpowers,
worth. for the purposes to which they
might have been adapted, at least $751;
900; building stone sufficient for every
possible local purpose limestone from
which cement could have been made; be-
sides gravel, sand and good brick clay.
The total gross value of these resources,
practically none of which was utilized
In the development of the property.
might be estimated at 100000; the net
value would have been at least 100000
They paid, all expenses Included,
perhaps as much as 100000 for the
land. --
Big Resources Disregarded.
The usual rule in Panama is that I'M
developed agricultural land Is valued at
the cost OF clearing II plus the purchase
price, which makes the price OF cleared
land, without reference to crops upon
IL, on the average about $50 per acre
So when these gentlemen cleared their
land they had a property considered to
be worth about $4,000. They burned
up and disregarded the 100000 repre-
sented by the net value Of the resources
scheduled ABOVE.
They built a plantation house on the
place, having imported lumber carried
| by pack train from the Panama Rail.
| road, about five miles distant. and used
! imported cement and reinforcing steel
| They claimed that the house cost $780,
| 900.
| After clearing the place and burning
off the timber Incidentally burning
much of the humus In the SOLD, the!
planted most Of 1t in cacao. Thirty
years afterward they had about 25,oot
| cacao trees on the place, with som'
other miscellaneous fruit trees The!
were awarded $4,000 for the whole by
| the Joint Land Commission when 1t wa
| appropriated by the United States Gov
| eminent The property had passed int'
| the hands of an English company il
London, which claimed to have expended
$780, 900 on II.
The total gross output of the propert'
during the whole of its history probabl!
| did not exceed 100000. while 1t !
doubtful g. II eyer made a net proh'
Under better management by the Gov
eminent It has been producing approx
imately $4,000 per year OF late years
mainly because the Government had tn
necessary resources to put It into goo
shape.
This plantation involved loss to tn
| stockholders of altogether more tina
800, 900, where it ought to have bee
profitable. The sol. vas good, the re
sources plentiful, the market right at II
doors. but It failed because of two fac
tors-lack of sufficient initial capital an
lack of comprehensive utilization of a
|