The New York herald., 1921-02-20

Col. Manuel Matute is the new Gov
ernor Of Atlantida. He is credited with
being a man OF energy and force, and
withal OF being a convivial person. The
Honduran republic expects him to main
tain order, but without harshness OF
undue use OF the mailed fist.
Events In Atlantida this month and
the next will tell whether or not he is
succeeding.
There are two sides to the story OF
the Atlantida near-revolution which
must be heard before an intelligent
opinion can be reached on the merits OF
the controversy.
First comes the plaint Of the planta-
ton laborer that the wage OF S1.25
day was not sufficient properly to sup
port him and his family.
This is well founded. according to ad-
vices received by the United States
Government.
In the coastal regions of Atlantida
practically all of the laboring mans food
Is imported. This includes not only
manufactured products, but rice and
beans. the principal staples, as we'll.
These all come from the United States.
To the original selling prices must be
added the cost of transportation and
the Honduran import duties Even the
much needed rice and beans must pay
a tax of from one to two cents to enter
Honduras.
When banana cultivation became CEN
tralized by the United Fruit Company
and other concerns and the raising OF
the other foodstuffs was discontinued
commissaries were established by these
big plantations.
With the high cost of the imported
foods sold by the companies which were
able to keep down competition ano
wages the discomfort naturally was
directed at these concerns. One Of these
the vacaro Brothers Company, was hi
by the strike throughout it's entire opera
tions.
The standard of living In the Ceiba
region is low. The adults wear compar-
atively few clothes and the children In
very many cases wear no clothes at all
This explains how it was at all possible
for a laborer to keep his family on the
daily wage of S1.25 on and near the
large plantations.
In the interior, where foodstuffs are
raised for home consumption and the re-
quirements as to clothing are the same.
the wage would nave been considered
ample for the class of work performed.
With these conditions 1t is easy to see
that the laborer in the coastal banana
and sugar cane fields practically was
forced to rely on company commissaries
for food.
There is a wide margin between the
prices these companies pay for their
bananas and the prices for which they
market them. The companies have an
explanation which will be given further
on.
The laborer is not interested In expla-
nations. He sees the companies pay 30
cents a 100 pounds for bananas at the
ship. Then he reads the New Orleans
market quotations and learns that the
same bananas sell for $3.50 100 pounds.
The small planter has grievance
against the United Fruit Company
Bananas are supposed TO be paid for
on delivery at the railway. However
the fruit Is not inspected until 1t gets
to the ship, and then may be and often
is rejected. AS the fruit is handled by
the company's employees or under their
supervision from the time 1t gets to the
railway, the planters contend that the
inspection and rejection should be made
then and there.
Obviously this would relieve them
from loss due to damage or spelling Of
fruit en- route to the vessel. At any
rate the Independent plantations assert
they are running at loss. They fear
they will go the way of others and have
to borrow money from the companys
bank, the Banco Atlantida, and even
tually may have to sell out at the COM
pany's price and terms.
Some of the smaller plantation owners
profess their willingness to raise labor
ers' wages and concede the necessity for
paying more, but contend that the mo-
nopoly prevents this by forcing them to
take low prices for their product
Now comes the argument OF the United
Fruit Company. The big difference be-
tween the buying and selling prices Of
the bananas is necessary owing to the
unusual business conditions prevailing
In this trade, It Is contended.
Losses due to strikes and revolutions,
excessive risks and high operating costs
constitute n tremendous overhead which
must be met. Rates of insurance are
another factor. being quite high. Lack
a stable. dependable Government is
given as the principal cause for the con-
tinued existence OF many business evils.
The present situation is unique. The
Honduran Government. which restored
order finally, is not in favor with the
planters, big or small. nor with the mer-
chants and professional classes in At
lantida. The laborers were only partly
pacified.
The fruit companies all would like
change Of Administration, and so express
Honduras is quiet.
II has all the appearance OF the calm
before a storm.