Evening star., 1923-08-22
U. S.-CUBAN ACCORD ON
RAILWAYS BILL NEAR,
BELIEF IN WASHINGTON

Continued From First Page)
Ambassador Crowder. This statement
declared charges that the legislation
was confiscatory or anti-American
were wholly unfounded.
Details Of any suggestions this
government may make for modifica-
ton of the bill were withheld, nor
would Secretary Hughes make any
comment on his talk with Col Tarafa.
In other quarters, however, IL was
learned that the statement left at
the department attributed the op-
OF sugar companies. and declared
that the conflict was not one between
American and Cuban interest. In
stead. Col. Tarafa held. it involved
| fight by the sugar men to retain
privileges which constitute a sreal
menace to the future OF the island If
extended"
No Ports to be Closed.
1t also was declared In the state
ment that contrary to published re-
ports. the bill did not propose to
close any port in Cuba. The only
terminal facilities affected, IL was
said. were private piers" established
by the sugar interests, sometimes
contrary to law
The statement which Col Tarafa
left with State Departm officials,
after his conferences with Secretary
Hughes and Ambassador Crowder,
follows:
"Since the American sugar companies
in Cuba, through their Attorneys, Sui
livan and Cromwell. and others have
placed before the State Department in
washington protests against the pro-
1ected bill passed by the Cuban House
Of Representatives. relating to the pro-
| tional commerce for private use. it
| would have undoubtedly been more
proper and fitting to await the action
| OF the State Department through its
Secretary or General Crowder under its
direction. and l have been waiting TO
AFFORD the time for study and investiga-
ton OF the bill. but ii is so evident
mat the American sugar companies are
! engaged In propaganda through various
newspapers here and in Havana, and
It is so evident that they are endeavor-
ing to try their case on half truths
and prejudicial statements. feel / am
well within the proprietjes in making
single reply to all of the statements,
all of the articles which have un-
douotly been inspired by them
Denies Anti-U. 8. Feeling.
These sugar companies, through
their representatives, have diligently
circulated rumor and used the lam
guage that the ports Of Cuba are
about to be closed, or that forty.
seven ports will be shut down. or
that American industries owning pri-
vate railroads are to be destroyed or
that the Cuban people. resentful of
American fnfarfaronna
can interests
These and similar expressions have
found their way into the newspapers
and are wholly misleading, SO much
gotten out Of the minds of the people
no understanding Of the situation can
be had.
There has never been any proposal
made to close any port. 1t must be
| understood. first that what are So
called ports in this legislation, which
are owned by these American sugar
companies. are simply piers whicn
! they have built out in the water ad-
jacent to their sugar lands, to whfcn
piers they have built private rail-
ways of a short mileage. They have
then induced the Cuban government
to furnish them with a customs off,
cial, whose salary and keep they pay,
and import or to engage in interna-
t!onal trade.
Called Private Ports.
These sugar companies own all of
| the land surrounding the SUPPORT,
and, Of course, no sort or community
| or town or village can grow up there.
| and have been permitted from time to
time, sometimes by decree and some
times without a decree. but unques-
/, tionably contrary to the law since
| 1880. They have developed to such
hof hax Of 70 ran
| menace to the future of the island IL
extended. 1t Is not difficult for any
one to see that II the 180 sugar CEN
| trails in Cuba shall each be allowed
private or SUPPORT of the character
| just described, there will be no in
| dustry in Cuba except the American
| sugar industry.
"The railroads will be bled to death
| and thrown in the scrap heap, and
what Is more important, Cuba will
| have no public wealth, and IL every
| time she should attempt to impose a
| small tax upon the sugar industry,
| which will now have absorbed the
entire island. the sugar industry runs
to the American government and cries
I To induce the American government
| to prevent the Cuban government
from levying any tax, then Cuba will
be without any means for the pay
ment of her public bonds, which are
4
sources 6f her taxation will be dried
up.
/ Interests Seen CIashfng.
| TT must not be overlooked that
this is not a controversy between
American interests and Cuban inter-
ests. but is a controversy between
American interests invested In sugar
| and American interests invested In
Cuban government bonds and rail-
road securities.
The feature Of the bill which is
being criticised, and the only feature
which is really being considered by
| the State Department, to wit, the
so-called confiscatory feature, Is the
tax upon the forty-seven existing pri-
vate or supports Of the character al
| ready described, which tax roughly
speaking would yield about $500, 900
annually to the government of Cuba
on an. exportation.. Of something like
] 8, 100000: bags of sugar. or to put 1T