Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-03
CUBA FACES CRISIS
OVER SUGAR PRICE
Political Unrest Follows De-
cline in Value of Prin-
cipaI Crop.
BY JOHN F. SINCLAIR.

Special Dispatch to The Star.
NEW YORK, October 3.-Cuba. "th'
Pearl of the Antilles" is in trouble
its most serious trouble since the Unitec
States, in 1900, made the island fret
and independent.
For $50 years sugar has been Cuba's
one crop and the barometer of its pros
perity. In 1920, it exported more thar
500, 000, 900 worth of the raw product
After that prices began to decline. In
1922, its sugar export was but S276, 000,-
900. This rose to 1858, 600 900 in 1925
but it dropped again to S199, 100000 In
1928.
Decree Plan Fails.
The term of President Machado, ST
inaugurated President in 1925, does not
expire until 1888. He has many power
full political enemies.
In 1927, Cuba passed a sugar defense
act, authorizing commission of five to
investigate and create a sugar export
corporation. In January, 1928, the
President signed a decree fixing the
Cuban sugar crop at 1000 600 long tons,
of which 100000 were sent to the
United States, and the balance to the
rest of the world. But this plan didn't
work
1neTP Is DteUIN Oh lIlS lSidlu.
A strict censorship over the local press,
and, possibly over the foreign. already
exists The constitutional rights of
their citizens may be suspended any
time.
Every one hopes that intervention by
the United States can be avoided. Those
who understand Cuban conditions real
ize, however. that the situation now is
anything but encouraging:
Stephensons Career.
Rome C. Stephenson, SIS, of South
Bend, born and bred in Indiana, the
new president of the American Bankers
Association, did not start his business
career as banker. For 10 years he was
a practicing attorney and appeared in
many cases before the Indiana Supreme
Court.
At first he acted merely as bank at
torney Then when his interest in the
st. Joseph Loan 81 Trust Co. of South
Bend, Ind, became more substantial, he
quit the law and turned to banking.
He served term in the Indiana State
Senate rs years ago. Later he was made
president of the Indiana Bankers AsSo-
citation. Last year his selection of first
vice president of the American Bankers
Association made his elevation to the
presidency this year certainty.
This new American bank leader does
not believe that branch banking and
group banking will absorb all the 81 ,824
unit banks, which were operating last
January in the United States, independ-
ent of groups.
Nevertheless, he thinks branch bank
Ing will assume greater and greater i'm
portance each year.
Branch banking and group banking
have developed too far and entrenched
themselves too firmly to be expected to
Withdrew he says. The question is
whether they will occupy the entire
banking field or share it with independ-
ent banks"
Not much encouragement for the unit
banker in that statement.
Ford's Prophecy.
Henry Ford believes it's the business
of American industrial leaders to move
forward toward "the greater and widely
diffused prosperity that will abolish
poverty itself"
In 1910 Henry Ford was paying rs
cents an hour for day labor Today, a
dollar an hour. In 20 years, Mr.. Ford
prophecies, wages will be four times as
high as today. He opposes wage reduc-
ton. But how is this to be accom-
plished? Here's his answer:
l. To make an ever-increasing guam
tity of goods of the best possible quail
ity, to make them in the best and
most economical fashion and to force
them out on the market.
2. To strive always for higher quail
ity and lower prices as well as lower
costs.
3. To raise wages gradually, but con-
tinuously-and never to cut them.
4. To get the goods to the consumer
In the most economical manner, so that
the benefits OF low-cost production may
reach him.
Such a program will be challenged
by many, who will say it's a fantastic
dream. But is it? Most fantastic
statements of Henry Ford have a way
OF being realized. He is, judged on past
performances. the greatest authority
and champion of high wages in history.
Now he makes another prediction in
the 1leld OF which he is the acknowl-
edged master: I'm 20 years the mini
mum wage viii be $27 a day"
twenty years ago, when he announced
his minimum wage as SIS a day. he was
heralded as a madman-a wrecker of
wage scales-an undesirable citizen
But was he? He was not. He led the
world out of the wilderness Of wage
slavery.
Then, who is there today to challenge
his latest wage prophecy?
Chain Store Problem.
Chain store leaders, in. session in
Chicago this week, are graphing with
the most difficult problem yet faced
how TO become integral parts of local
communities.
THE duties of chain stores as citi-
zens OF communities in which they
operate are rather closely defined" J.
c. Penney said. Past experience in
our own business has definitely proved
to me that no business can reach its
highest development in any locality I'M
less it is community minded"
Chain store leaders in the past have
unduly emphasized the advantages
gained by large purchases, to the ex-
clusion of other equally important fac
tors in community life.
Efficiency in life isn't everything.
Selling goods even at a cheaper price
at the expense of other factors can do
a community harm rather than good!
So large chain store operators may well
concentrate on the problem of how to
combine their unusual buying advan-
tageS with the local community needs
and share with the local communities
the advantages which grow out OF such
O relationship.
It's a problem of first magnitude, and
until it Is fully met in every community
the chain store operator will continue
to have plenty of distractions in his
path.
(copyright 1890. by North American News
paper AllianceD