Evening star., 1923-08-26
CONFLICT OF AMERICANS >
In CUBA CAUSE OF ROW
But for Hint From Washington Mooted
Tarafa Rail Bill Would Have Passed,
Even Over Veto.

| In Cuba worth s621,219,766. Sugar
| estates in Cuba controlled by Ameri-
| cans because they are dependent en-
tirely on American money are valued
at $125. 100000. while Americans have
| invested something like s156. 100000
| in Cuban industries which are entire
| ly dependent upon the sugar industry.
These investments include the Cuba
| railroad, which runs through the
| section where most Of the mills are
| located. 1t is entirely dependent upon
the sugar mills both in hauling cane
to the mills, taking finished sugar to
the ports and hauling merchandise to
and from the mills. The Cuba rail-
road is a Delaware corporation in
| which Col. Tarafa is large stock
J holder, and Is one Of the three rail-
roads which has agreed to enter the
proposed consolidation. The two other
| Cuban railways which, il is understood.
would join the consolidation, are also
financed TO large extent with Amer
lean money.
! Other L. =. Interests Act.
Other American interests in Cuba.
whose existence depends upon the
sugar industry, include steel car
| works, steamship companies, locomo-
tive companies, electric companies,
! distilling and warehouse companies
and represent investments of millions
i Of dollars.
Roughly speaking. therefore, the
two opposing interests affected by the
proposed Legislation are the public
railways and railway equipment COM
panies, largely financed with Ameri-
can money. which would profit
| through passage Of the bill and the
sugar companies proper. which own
their own shortline railways and
docking facilities. also financed by
Americans, who would stand to suffer
If the bill We're passed
There are forty-seven private, or
supports. which opponents of the leg
islation claim would be confiscated if
the bill is passed. Proponents of the
! legislation argue that these SUPPORTS
are simply piers which have been
built out into the water adjacent 10
the sugar lands. and connected with
the plantations by privately owned
short-line railroads. The sugar COM
panies own all the land surrounding
the supports, with the result, it is
stated. that no community or town
can grow up there. They have de-
VelopeG to such an extent, il is
pointed out, that II allowed to con-
tinue they will constitute a menace
to Cuba. for. it is argued. If each of
the $50 sugar "centrals" in Cuba were
allowed a private or SUPPORT, there
would be no industry in Cuba except
the American sugar industry.
| II the policy of allowing the sub
ports to continue or to expand is
continued. it is pointed out, the rail-
roads of Cuba will be bled to death
and Cuba will have no public wealth
If the American government Is in
duced to prevent Cuba from levying
a tax upon the sugar industry, it is
stated. Cuba will be left without any
means for the payment of her bonds.
held by American citizens, and the
sources Of her taxation will be dried
up.
Would Yield s9OO.OOO.
The proposed tax upon the sub
ports, it is contended. would yield III
the neighborhood of $500, 900 annually
to the Cuban government. 1t would
not be confiscatory tax, it is argued,
because the forty-seven sugar cen
, trails, which own their private ports.
gave about so cents a bag in the ship
ment OF sugar because of owning
their own ports. The tax would mean
that the Cuban government would
collect 5 cents bag out OF the so
cents the companies save, it is stated.
On the other hand, opponents of the
bill have arguments just as con-
vincing First, it is stated that the
only three railroads which can an
swer the qualifications necessary to
consolidate, are those in which Col.
Tarafa is interested as a stockholder.
The provision for lowering the freight
rates on sugar, it is stated. would
only be legislating reduction al
ready in effect on the railroad of
which Tarafa is president. The bill
would raise no revenue for the Cuban
government, it is pointed out, because
the tax on the ports would be con-
fiscatory and force their closing. The
bill would simply put a sugar hauling
monopoly in the hands of the con-
tSOllOd llOil ran" dyS duQ piONiu al M
crease in revenue where none is
needed.
Opponents point out that present
railway facilities in Cuba are made
quate in trackage and in equipment
to haul the large increase in traffic.
They haul at present only 60 per cent
Of the sugar, 1t is stated, and expen-
sive delays occur in furnishing and
handling the cars. The port facilities
in the national ports" which would
be established under the law, are al
ready strained and serious congestion
loccurs every year. Shipping all sugar
through these ports would increase
expense through demurrage, multiple
handling and warehouse charges.
The mills which own their own rail-
ways and port facilities. It is stated.
are known as the low production cost
mills of Cuba, and they produced 81
per cent of all the sugar produced
in Cuba last year.
Such Is the situation which has led
to frantic appeals to the State De-
partment for protection of American
Interests in Cuba. Coming as II does
on the heels of the passage Of the
lCuban lottery bill, interpreted In some
quarters as a direct slap at what AM
bassador Crowder has been trying TO
do in the way of purifying Cuban
arouses keen enthusiasm at the State