CHAPTER XV

SUGAR

Considered from the point of view of agriculture, manufactures or

commerce, Cane is King in Cuba. The sugar crop of 1918, amounting to

25,346,000 bags, or 3,620,857 tons, was sold for over $350,000,000; and

the crop of 1919, consisting of 27,769,662 bags, equivalent to 3,967,094

tons, will probably realize the sum of $500,000,000. The significance of

these facts may be strikingly appreciated by making a simple comparison.

The Cuban sugar crop of 1919 is worth $200 for every man, woman and

child on the island; while the corn crop of the United States, the most

valuable crop of that country, worth $3,000,000,000, is equal to only

$30 per capita of the population.

The production and consumption of sugar throughout the world was

practically doubled during the fifteen years preceding the world war.

The total production for 1914 was 18,697,331 tons, of which 8,875,918

tons came from beets, and 9,821,413 tons from cane. As a consequence of

the war, the world production for 1919 was only 16,354,580 tons, of

which only 4,339,856 tons were obtained from beets, while 12,014,724

tons were obtained from cane. The crop of 1919 shows, therefore, a gross

shortage of 2,342,751 tons compared with that of 1914, without taking

into account the normal increase in consumption indicated by the

experience of the fifteen years before the war; during which period the

production of cane sugar in Cuba was actually trebled in volume, showing

an average annual increase of approximately 125,000 tons. The production

of sugar in Cuba in 1914 was 2,597,732 tons, and in 1919 it was

3,967,064 tons; showing an average annual increase of about 275,000

tons, or approximately seven per cent. These figures, taken with those

of the fifteen preceding years, indicate that the development of the

cane sugar business in Cuba during the past twenty years, or since the

establishment of the Republic, has been of steady growth and healthy

proportions.

Natural conditions have greatly favored the growing of sugar cane in

Cuba, and the demand for sugar throughout the world has increased so

rapidly that it is not surprising that this industry has become

paramount in the insular Republic. Begun on a small scale and in almost

indescribably primitive fashion nearly four hundred years ago, as

related in the first volume of the History of Cuba, it was not until

near the end of the sixteenth century that the industry was established

on a secure foundation. Even then it received little encouragement from

the Spanish Government, and it was not until the close of the eighteenth

and opening of the nineteenth century that it began to assume the

proportions for which nature had afforded opportunity. With the

emancipation of the island from peninsular rule, however, and the firm

establishment of a government of Cuba by Cubans and for Cubans, the

sugar industry has developed into proportionately one of the greatest in

the world.

A general impression prevails that practically all of the lands in Cuba

are adapted to the profitable cultivation of sugar cane; that numerous

large and desirably located tracts, suitable in character and sufficient

in area to justify the installation of modern “centrales” or factories

of normal average capacity, are still to be found, scattered throughout

the island and purchasable at nominal cost when compared with their

economic value; and that the annual production of sugar in Cuba can,

therefore, be profitably increased to the extent even of “supplying the

whole world with all the sugar it needs.” This impression is, however,

erroneous and misleading. General James H. Wilson, commanding the

Military Department of Matanzas and Santa Clara under the first

Government of Intervention, who was esteemed an authority on the

subject, reported in 1899 that it was a mistake to suppose that all

Cuban lands were of the first quality, such as would grow sugar cane

continuously for twenty or thirty years without replanting; that there

were in fact few such estates in Cuba; that most of the land, whether

red or black soil, produces cane for only twelve or fifteen years, and

much of it for from three to five years only; and that, in the two

provinces named, there was then little new or virgin cane land left,

nearly all of first class quality having at some time been under

cultivation. In this report he did not, however, take into account the

extensive areas of “cienaga” or swamp lands, which would not be

available for cane growing purposes until drained. Since then it has

also been satisfactorily demonstrated that some of the so-called

“savana” land, which has a “mulatto” or yellow soil, hitherto regarded

as worthless for sugar-producing purposes, can be made to produce good

crops of cane by the judicious application of fertilizers and with

suitable methods of cultivation. Sufficient time has not elapsed to

determine the durability of such plantations.

More conservative opinions, entitled to serious and careful

consideration, have been expressed to the effect that first class new

and virgin cane lands, favorably located and now available, can still be

purchased in Cuba at figures as low as twenty dollars an acre and in

sufficient area to make possible the profitable production of 3,000,000

tons of sugar above the present output, which approximates 4,000,000

tons; increasing the total to 7,000,000. It does not seem that such

great areas could easily be hidden under a bushel in as small an island

as Cuba, and it is probable that not more than one half of the total

area of the new lands, purchasable at such a price, would be suitable

for cane-growing purposes; in which case the cost would be raised to

approximately forty dollars an acre for the actual cane-producing area.

If these opinions and claims are accepted, it would seem unreasonable

to expect that such large areas of land, yet remaining and now

available, could average as good or prove as economically productive as

the lands now actually under cultivation; and it would not, therefore,

seem unreasonable to assume that to produce 3,000,000 additional tons of

sugar would require an area nearly if not quite as large as that now

required to produce the present annual output of approximately 4,000,000

tons. It is certainly difficult to believe that the area of land now

producing sugar could be duplicated from the new and virgin lands now

available in Cuba. The recent purchase of considerable acreages along

the line of the newly constructed Northern Railway by the American Sugar

Refining Company and the Czarnikow-Rionda interests, at prices ranging

from seven hundred and fifty to one thousand dollars a caballeria, or

about seventy five dollars an acre, for the actual cane-growing and

sugar-producing area, would seem to emphasize the conclusion that first

class new and virgin cane lands, yet remaining and now available in

Cuba, are not so plentiful or so cheap as claimed by some and generally

supposed.

The total area of Cuba is estimated at a maximum of about 30,000,000

acres; and it is probable that not more than ten per cent of this total

area, or 3,000,000 acres, is adapted to and now available for the

profitable cultivation of sugar cane, with sugar at even relatively

normal pre-war average prices. Indeed it is doubtful if even continuance

of the present abnormally high prices for sugar could greatly enlarge

such now available area. Large tracts of the richest lands in Cuba,

favorably conditioned and advantageously located but now covered by

“cienagas” or swamps, can however be effectively and economically

drained and made available for the cultivation of sugar cane; and such

lands when drained should produce sugar more economically and profitably

than any similar area of land in the island now growing cane. The

largest of these swamps are in the Cauto River valley, in the vicinity

of the Bay of Cardenas, and along the line of the Roque Canal leading

thereto, and in the region covered by the Cienaga de Zapata. The

reclaimable area of these swamp lands is estimated at not less than

750,000 acres.

Putting the present average annual production of cane in Cuba at 20 long

tons, and the average yield of sugar at 11.25 per cent, or 2.25 tons an

acre, and assuming a gross yearly production of 4,000,000 tons of sugar,

indicates that about 35,000,000 tons of cane are grown upon

approximately 1,750,000 acres of land; and allowing an additional

500,000 acres, to provide for and cover planting, replanting as

pasturage, it would seem that approximately 2,250,000 acres of the best

conditioned and most favorably located cane lands now available are

required to produce the present output of 4,000,000 tons. Careful

consideration of the subject leads to the conclusion that there are not

now available in the island over 500,000 acres of new and virgin lands,

upon which cane can be planted and profitably grown, with sugar at

prices approximating the pre-war ten-year average. But these additional

lands cannot reasonably be expected to average as good or prove as

economically productive as the lands now actually planted with and

growing cane. It should not be unreasonable to allow, for planting,

replanting and pasturage, the additional 250,000 acres required to

complete the estimated 3,000,000 acres given as the probable maximum

area adapted to, and now available for, the profitable cultivation of

cane in Cuba; unless and until the swamp lands, having an area of about

750,000 acres, shall be drained, reclaimed and put under cultivation.

Assuming that the additional 500,000 acres of land now available would

yield in the same proportion as the lands now planted and producing, an

increase of only 1,125,000 tons of sugar yearly would result, which

would raise the total annual production to about 5,125,000 tons. Should

the swamp lands be reclaimed and made productive, upon the same basis of

calculation there would be a further increase of only 1,687,500 tons,

bringing the total production of sugar in Cuba up to a maximum of only

6,812,500 tons a year, or at most, in round figures, about 7,000,000

tons. It seems most improbable that a larger production could be

developed and permanently maintained, unless through fertilization and

improved methods of cultivation, including irrigation; and it appears

doubtful if such measures would more than compensate for the natural

deterioration of soil and exhaustion of lands, that will inevitably

result from long continued cultivation; for much of the lands now under

cultivation will not produce for periods longer than from three to seven

or at most ten years.

The Cienaga de Zapata is the largest and most easily drainable of the

swamp areas mentioned. It is a vast alluvial plain, built up of the

washings of the most fertile and durable cane growing lands of Cuba,

enriched by the decomposition of the vegetable growth of uncounted

centuries. It has a total area of 15,307 caballerias, or 505,154 acres;

which is greater than the sugar-producing area of the Island of Porto

Rico, or that of the Hawaiian Islands; indeed it is nearly as large as

both combined. The net reclaimable area is not less than 450,000 acres;

which is sufficient to provide cane for thirty “centrales” of 250,000

bags, or fifteen of 500,000 bags capacity each; equivalent to an output

of 7,500,000 bags, or approximately 1,000,000 tons of sugar a year; the

production of which would be effected under a combination of

advantageous economic conditions not found in the production of sugar

elsewhere in Cuba, if in the world. Chief among these advantageous

conditions are the fertility of the soil, the extent and compactness of

the area of land, its convenient and economical accessibility to a deep

water port, and the fact that the entire area can be irrigated with

water from the drainage canals at a maximum lift of not over ten feet.

The drainage of these lands can be effected entirely by gravity and at a

cost not exceeding twenty dollars per acre for the net sugar producing

area. Comprehensive surveys have been made for effecting the drainage of

this great territory by well known American engineers; and a plan

providing for the utilization of the lands, when drained, has been

prepared by Mr. R. G. Ward of New York City, who was one of the chief

factors under Sir William Van Home in the building and putting into

successful operation of the original main line of the Cuba Railroad,

extending from Santa Clara to Santiago. Under the franchises or

concessions controlled by Mr. Ward, the not distant future may,

therefore, see the present output of sugar in Cuba increased by

approximately one-fourth, from the now neglected lands of the Cienaga de

Zapata.

According to Mr. H. A. Himely, who is a recognized authority on the

subject, 196 “centrales” handled the crop of 1919, amounting to

27,769,662 bags, or 3,967,064 tons of sugar. These “centrales” varied in

output, from a minimum capacity of only 145 to a maximum of 701,768

bags, showing an average of about 142,000. Hence it is clear that the

word “central” conveys no definite idea of capacity, and constitutes no

exact unit of thought or calculation. Let us, however, assume that the

word applies to a complete modern sugar factory of 250,000 bags yearly

capacity, each bag containing 325 pounds of sugar; an output of

81,250,000 pounds. Factories of such capacity may be installed as single

units or in multiple units. To obtain maximum results it is necessary

that they shall be provided with sufficient areas of suitable land in

one contiguous and reasonably compact body, within easy access of an

economical deep water port, so that the costs of hauling and delivering

the cane to the mill, and of transporting the sugar and molasses to the

port, or shipside, may be reduced to the minimum. Now, of the new and

virgin cane lands still remaining and now available in Cuba, there are

few if any now obtainable which answer to these demands; and it is

questionable if there are yet remaining and now available in the island

new and virgin lands in tracts of sufficient size and aggregate area to

warrant the installation of more than twenty “centrales,” having a

combined yearly capacity of 5,000,000 bags. Indeed it is believed that

it would be difficult if not impossible to find desirable and

economically satisfactory locations for even so large a number.

Wherever possible, virgin forests are cleared and planted for cane

fields, as the accumulated humus of centuries produces a growth of cane

that with care will endure for from five to twenty-five years without

replanting. In Oriente cane fields are still producing good crops which

were planted fifty and even sixty years ago. This method of cane culture

is, however, most uneconomical, since the soil in time will certainly

become exhausted. No plant responds more quickly to judicious and

generous use of fertilizers than does sugar cane; and, according to the

best authorities, no matter how rich the soil may be, it pays to

fertilize.

In opening up a sugar plantation, the trees are first felled and the

trunks of valuable timber drawn off the land, while the limbs, brush and

other waste materials are piled and burned. Owing to the previous shade

of the trees, the ground is free from weeds, and but little preparation

of the soil is required.

For the first planting, men with heavy sharp pointed “jique” sticks,

about five feet in length, travel on parallel lines across the fields,

jabbing these stakes into the ground at intervals of four or five feet.

Behind them follow others, bearing sacks of cane cut into short pieces,

containing one or two joints each, a piece of which is thrust into each

hole, and the earth pressed over it with the bare foot. From the eyes of

these sections of cane in the rich, moist earth there quickly rise

shoots or sprouts of cane, and under the influence of the heavy tropical

rains that fall during the summer months the growth is so rapid that the

young cane shades the ground before weeds have time to grow. According

to the usual custom of the country, the stumps of trees are left to rot

and enrich the soil. Thus in the course of a few years a plantation is

started at comparatively small cost, from which cane may be cut without

replanting for many years to come.

Where sugar plantations are developed upon “savana” lands, the rows may

be laid out with greater regularity and cultivated with modern machinery

and implements until the cane has secured sufficient growth. At the

expiration of eighteen months from the first planting, the cane should

be ready for the mill. Cutters, with heavy machetes, go into the fields,

seize the stalks of cane with the left hand, and with one deft blow of

the machete cut them close to the ground. With three or four more

strokes the canes are stripped of their leaves, topped, cut in halves

and thrown into piles, ready to be loaded upon carts and carried to the

mills or railroad stations.

During recent years hand labor in the fields has been difficult to

secure in Cuba, and since the beginning of the European War the wages of

cane cutters have risen from the usual average of $1.25 to $2.50 and

even as high as $3.00 a day. Cuba has never had a sufficient amount of

resident labor to handle her enormous crops of sugar. Thousands of men

are brought to the Island annually, from Spain, the Azores, the Canary

Islands, Venezuela, Panama and the West India Islands. Most of these

laborers return to their homes at the end of the season, as they can

live there in comfort upon the money earned until the next cane-cutting

season. A machine for cutting cane, to do the work of forty men, has

been invented and in 1918 received practical trial, which is said to

have been fairly satisfactory. It is possible that this and other labor

saving machinery will soon be perfected so that the large number of

field hands now required may thus be replaced, to some extent, and the

cost of cane culture and cutting correspondingly reduced.

Heavy two wheeled carts, drawn by from four to eight oxen, are still

generally used to convey the cane from the fields to the mills or

railroad stations. Plowing, also, is done largely with oxen, although

these are being replaced on the more modern and up to date estates by

traction engines hauling gang plows, and by motor driven trucks for the

transportation of the cane. One of the latter, which was first used in

1918, is provided with several light steel demountable bodies, that are

dropped at convenient places through the cane fields, where they are

loaded and then drawn up again upon the frame of the truck by the power

of the motor. The load of cane is then carried to the mill or loading

station, and the empty body brought back to the field for reloading.

Meanwhile other bodies have been loaded with cane, and the operation is

repeated. Other experiments are being made with trucks of the ordinary

type, mounted upon low wheels carrying so called caterpillar belts, so

that they may be used in wet weather and on soft ground. These

contrivances have not, however, eliminated the ox cart, which still

hauls from the fields over ninety per cent of the cane produced in Cuba.

Labor plays an important part in the cost of producing sugar in Cuba and

largely determines the profits of the industry. In 1914 the cost of

producing a pound of sugar, in most of the well located and otherwise

favorably conditioned mills in Cuba, was estimated at about two cents;

and in some of the exceptionally favored mills even this figure left a

margin of profit. But with the rapid rise in wages following the

outbreak of the European War, and the consequent increase of expense of

cultivating, cutting and handling cane, the cost of making sugar has

become increasingly difficult to determine, as the wage rate may vary,

both from day to day, and also in the different sections of the island,

where labor may be scarce or plentiful.

The urgent demand for sugar brought about by the European War caused

many fields to be planted with cane the soils of which were not suited

for the purpose. Mills were also erected at several places in districts

not favored by nature for sugar production. Later, when the selling

price of sugar was fixed by the Sugar Commission appointed for that

purpose, these less fortunately situated mills, compelled as they were

to pay practically double the usual amounts for labor, found little if

any profit remaining at the end of the year’s operations. Those mills

favored by fertile lands and good locations yielded and continue to

yield excellent returns upon the capital invested, in spite of the

increased cost of labor.

In Cuba two altogether different methods are employed for planting,

cultivating, cutting and delivering cane to the mills or loading

stations, known, respectively, as the “Administration” and the “Colono”

systems. Under the Administration system the work is directed by the

management of the enterprise, and all labor and other expenses involved

are paid by the owners of the property. Less than ten per cent of the

cane annually produced is grown and delivered by this system. More than

ninety per cent is, therefore, grown and delivered by the Colono system,

which constitutes the distinctive feature of Cuban agriculture so far as

it relates to the production of sugar. The system differs from the usual

tenant-farming system in that there is no agreed sharing of the crop or

fixed cash rental paid by the Colono to the landlord, in cases where the

Colono is not himself the proprietor of the land in question. The system

applies alike to lands owned by the enterprise, privately owned, or

leased by the enterprise or the Colono; the terms and conditions varying

slightly in each case. By a process of bargaining, based upon local

conditions, the Colono gets from 4-1/2% to 8%, with a probable average

of 6-1/4%, of the weight of cane grown and delivered, in sugar, or its

value in cash. That is to say, for every 100 pounds of cane grown and

delivered by him he would get an average of 6-1/4 pounds of sugar, or

its market value, in cash. Deducting the 6-1/4 pounds, paid as an

average to the Colono, from the 11-1/4 pounds, given as the average

yield of sugar, leaves only 5 pounds to the enterprise, out of which all

expenses must be paid before profits or dividends can be shown.

Moreover, under this system, any reduction in the yield of sugar would

fall entirely upon the enterprise until it reached the 6-1/4% payable,

on an average, to the Colono. As an illustration, take the crop of 1918

and 1919, amounting to 4,000,000 tons of sugar; about 2,222,225 tons

went to the Colono, to cover the “cost of cane,” while only 1,777,775

tons went to the enterprise to cover all other expenses and provide for

dividends upon the capital invested: and, should the yield of sugar have

fallen one per cent, equivalent to 355,555 tons, the Colono would have

received the same, while the enterprise would have received only

1,422,220 tons--and so on, until the enterprise would get nothing at

all, although the earnings of the Colono would remain unchanged.

The system is, therefore, well named, for the Colono receives first

consideration, while the enterprise carries the burden and accepts all

risks; against which the advantage of a possible abnormal yield is

certainly an inadequate compensation. Furthermore the mill owners

generally assume the burden and risk of “financing” their Colonos;

frequently advancing credits of from three to five times the amounts

contributed by the Colono himself. However, with all its disadvantages,

the Colono system is likely to prevail for some time to come, as it is

doubtful if, under existing labor conditions, the large tonnage of cane

now required could otherwise be obtained. The “guajiro,” or cane-cutter,

is the autocrat of the situation; he knows he is scarce and, therefore,

believes that he is indispensable. As a result, his efficiency has

fallen from three and a quarter to two and a quarter tons a day; while

his earnings, on a tonnage basis, have risen from 150% to 200%, when

compared with pre-war conditions. The only solution for this unfavorable

situation seems to depend upon the provision of continuous employment

for labor, and the effecting of a rearrangement of the Colono system so

as to permit of the performance of all heavy work, such as plowing and

preparing the lands for planting, and hauling the cane from the fields,

by the owners of the sugar-producing properties. They can afford to

equip their establishments for the doing of such work upon a large and

comprehensive scale, that will accomplish an indirect reduction in the

present cost of producing and delivering cane to the mills, which, while

increasing the profits of the Mill Owners, will not reduce the net

earnings of labor or of the Colono.

Natural conditions combine to favor the production of sugar in Cuba.

Ample rains, so essential to the growth of cane, fall during the summer

season while the cane is growing; and during the rest of the year the

weather is sufficiently cool to bring about the complete ripening of the

cane and the formation of its sucrose content, and to make possible the

easy harvesting and handling of the cane in the fields, and its

economical conveyance to the “centrales.” Careless and uneconomical

methods have heretofore prevailed in the treatment of soils and in the

cultivation of cane, which will undoubtedly be remedied in due course of

time.

Under a more intensive system of cultivation, assisted by a better

selection of seed, and the judicious and generous employment of

fertilizers, including irrigation, wherever practicable, the position of

Cuba as the largest and most economical producer of sugar in the world

will be permanently assured.

No account of the sugar industry of Cuba would be complete which failed

to make special mention of some of the most notable enterprises now

existing in that Island; or of the men mainly responsible for their

inception and development. Taking them in the order of their productive

capacity, the following list covers the most important of such

properties:

_Mills_ _Bags_ _Percentage_

_Controlled_ _Produced_ _of Crops_

Cuba Cane Sugar Corp 17 4,319,189 15.59

Cuban-American Sugar Co 6 1,938,368 7.00

Rionda Properties 7 1,856,563 6.60

United Fruit Co 2 776,045 2.80

Atkins Properties 4 736,043 2.66

Poté Rodriguez Properties 2 625,054 2.29

West Indies Sugar Finance Corp 3 619,204 2.23

Gomez-Mena Properties 2 605,000 2.19

Cuba Company Properties 2 587,800 2.12

Mendoza-Cunagua Property 1 452,583 1.64

The Cuba Cane Sugar Corporation was organized in 1915, to acquire and

operate eighteen sugar properties upon which options had been obtained

by Don Manuel Rionda, head of the long established sugar brokerage firm

called the Czarnikow-Rionda Company, of New York City; who, though for

many years a resident of the United States, still clings to his Spanish

citizenship. Shortly after the organization of the corporation another

large sugar property, including a railroad leading to a port on the

Caribbean Sea, was acquired; but soon thereafter one of the original

properties purchased was sold and another was dismantled, so that

seventeen is the actual number now owned and operated by the

corporation. Mr. Rionda deserved and received great credit for having

negotiated, organized and launched the Cuba Cane Sugar Corporation, as

and when he did; and the great success which almost immediately attended

its consummation brought him great prestige and made him at once a

dominant factor in and authority upon matters relating to sugar. It is

immaterial that the eminence achieved was due largely, if not entirely,

to the successive rises in the price of sugar, which applied especially

to the crops of 1916, 1917 and 1919; for nothing succeeds like success.

The Cuba Cane Sugar Corporation was organized and financed upon the

strength of a letter written by Mr. Rionda to Messrs. J. & W. Seligman &

Co., of New York, on December 16, 1915, in which he made an “estimate

that, with sugar at the lowest, say 2 cents per pound, the Corporation

would earn at least 1-1/2 times the dividends on its preferred stock.”

The f. o. b. production cost for the crop of 1915 and 1916, immediately

following, was reported as 2.748 cents per pound, notwithstanding the

fact that the sellers of the properties acquired had paid the so-called

dead season expenses. It is clear, therefore, that, “with sugar at its

lowest, say 2 cents per pound,” the first year’s operations of the

corporation would have shown an operating deficit of 0.748 cents per

pound, instead of earning “at least 1-1/2 times the dividends on its

preferred stock,” as estimated by Mr. Rionda. The large gross operating

profits reported for the first year’s operations were, therefore, due in

part to the exclusion of the dead season expenses, but mainly to the

rise in price of sugar, from 2 cents per pound in July, 1915, to an

average of 4.112 cents per pound during the crop season of 1915 and

1916. Such profits might possibly be creditable to Mr. Rionda’s business

acumen, but it cannot be justly claimed that they were due to the

infallibility of his original estimates, or to his demonstrated

administrative capacity for the successful handling of so large and

complex an enterprise, the physical conditions of which make

administrative co-ordination extremely difficult and expensive.

Nevertheless, he has profited by the experience of succeeding years, and

shows an increasing capacity for coping with the numerous and

complicated problems involved in the administration of the largest sugar

producing enterprise in the world; and it is generally conceded that the

abnormally large profits now earned by the corporation, as the result of

further rises in the price of sugar, will provide for the readjustments

of and cover the improvements to the various properties comprised, that

are necessary to put the property, taken as a whole, upon an absolutely

satisfactory and permanently impregnable footing, physically and

financially. This goal is known to accord with Mr. Rionda’s ardent

desire, as constituting the consummation of his most commendable

aspirations, and the crowning glory of his achievements. It is intimated

that he will then, and not until then, retire from the field of his

activities, in which he has played so conspicuous a role.

The Cuban-American Sugar Company was incorporated in 1906, as a holding

company, to acquire the entire capital stock of five independent

companies then engaged in the cultivation of sugar cane and the

manufacture of raw and refined sugar in the Island of Cuba. Other

properties were acquired in 1908, and again in 1910, including a

refinery located at Gramercy, Louisiana. On September 30, 1918, the

Company owned 504,391 acres of land, of which 157,000 acres or 31 per

cent were planted with cane. It also leased 16,713 acres of land, of

which 7,825 acres or 47 per cent were under cultivation. Thus there was

a total of owned and leased lands of 521,104 acres, of which 164,825

acres or 32 per cent were producing cane. The Cuban-American Sugar

Company was for years the largest sugar producing enterprise in the

world, until the organization of the Cuba Cane Sugar Corporation, which

alone out-ranks it. It has grown out of the Chaparra Sugar Company, now

one of its subsidiary companies; which was organized shortly after the

conclusion of the Spanish-American War by State Senator Robert B.

Hawley, of Galveston, Texas, who at the very beginning employed as his

confidential representative and manager of the Chaparra property General

Mario G. Menocal, now President of the Cuban Republic but still regarded

as the actual General Manager of the Cuban-American Company’s properties

in Cuba. The capabilities, enterprise and industry of these two men, and

the warm personal as well as cordial business relations established and

maintained between them, made it not only possible but easy for each to

supplement and co-operate with the other; and to those conditions the

great success of the Cuban-American Sugar Company is attributed. While

it is true that this Company, like all others, has profited greatly by

the high prices resulting from the War, it is also true that the

foundations of the success that has been attained by it were laid by the

courageous enterprise and perfected by the untiring industry of Mr.

Hawley, made effective in Cuba by the energetic and loyal co-operation

of General Menocal and his large following of patriotic Cuban compadres,

without whose assistance no sugar producing enterprise in Cuba has ever

been or will ever be a complete success. Indeed it is largely because of

the wise recognition of and sympathetic relations established with the

Cuban people by Mr. Hawley that the securities of the Cuban-American

Sugar Company are quoted in the markets of the world at higher figures

than those of any other sugar producing enterprise.

The Rionda Properties are seven in number, comprising five estates which

are in effect the personal property of Don Manuel Rionda, his relatives

and family associates, and two others in which he is the controlling

factor. All of these properties are operated as separate and independent

units, or as individual or one-man enterprises, in the development and

supervision of which few have equaled and none have been more successful

than Mr. Rionda. Part of this success has been due to the fact that

during the creative period these independent properties have been as a

rule under the management of members of his own family, prominent among

whom were two nephews, Don Leandro J. Rionda and Don José B. Rionda,

both capable men, who grew up with the properties they came to

administer, thus acquiring that close personal touch with employees and

conditions which is so desirable an asset, but which is unfortunately

lost to the larger enterprises, and who rendered to their uncle, Don

Manuel, the loyalty he had inspired in them and so richly deserved at

their hands. In such circumstances it is not to be wondered at that

success of a high order has attended their co-operative efforts. Mr.

Rionda has no children of his own and it is probably for this reason

that so close an affection and so intimate business relations exist

between him and his two nephews and the fine sugar producing properties

they have developed under his auspices.

The United Fruit Company entered the sugar business through an accident;

and yet it is the only company that combines all the essentials for

producing, transporting and refining sugar. Shortly after the conclusion

of the Spanish-American War, the Company acquired the Banes property,

and also a large tract of land on the Bahia de Nipé, now known as the

Nipé Bay property, upon both of which bananas were planted on an

extensive scale. But it was soon discovered that atmospheric conditions

in that part of Cuba were unfavorable to the successful production of

bananas. Therefore in order to utilize the lands which it had acquired

the Company planted them with cane and began the production of sugar; it

was of course already a transportation company; and now it has built a

refinery in Boston, to which its raw sugar is shipped from Cuba on its

own steamers, and there refined; thus completing the cycle of operations

from planting the cane to marketing the product. No other sugar

producing enterprise has ever gone into the business upon such

comprehensive lines. Such however are the lines upon which everything

undertaken by Andrew W. Preston and Minor C. Keith, the directing

geniuses of that company, is planned and projected; which largely

accounts for the enviable success that has always crowned their efforts.

The Atkins Properties comprise one property belonging to Mr. Edward F.

Atkins, of Boston, who is reputed to be the first American to have

acquired a sugar property in Cuba, and three others belonging to or

controlled by the Punta Alegre Sugar Company, the most active

personality connected with which is Mr. Robert W. Atkins. The Punta

Alegre Sugar Company was incorporated, in 1915, as a holding and

operating company, engaged in the business of owning and operating

sugar plantations and factories in the Island of Cuba. It owns and

controls 40,831 acres and leases 25,717 acres of land; and is reported

to be doubling the capacity of its central at Punta Alegre. Credit for

the suggestion and initiative that resulted in the combination of these

properties and the organization of this Company is generally given to

Mr. Ezra J. Barker (Ray Barker) of New York, and Major Maude, a retired

British Army officer who for many years has resided in Cuba. The

prestige and financial standing of the officers and directors of and of

the capitalists interested in the Punta Alegre Sugar Company and the

Atkins Properties is sufficient to guarantee the successful operation of

these properties.

The Poté Rodriguez Properties are the personal property of Don José

Lopez Rodriguez, who is a Spanish subject residing in Havana, and known

to every body as “Poté.” Some say that this nickname is an abbreviation

of the word “poder,” or “power.” Certain it is that Don Poté Rodriguez

is, in fact, a human dynamo, the very embodiment of power and push.

Beginning as a book-seller, stationer and printer, on Obispo Street,

Havana, where he still conducts that business and makes his

headquarters, he has, in recent years, acquired a controlling interest

in the Banco Nacional de Cuba, a corporation having a capital of

$8,000,000; he has also invested several millions of dollars in an

elaborate suburban annex to the city of Havana, including a large

Portland cement plant; he has contracted to dig the Roque Canal,

projected to drain the Jovellanos Flats and part of the Cienaga or swamp

lands near Cardenas; and he is the sole owner of the Central España, the

pride of his heart, upon which he has worked day and night for years,

hoping to make it the largest producing sugar “central” in Cuba. But

despite his efforts three other “centrales” surpass it in productive

capacity.

The West Indies Sugar Finance Corporation is a protege if not actually a

subsidiary of the B. H. Howell-Cuban-American-National Sugar Refining

Company group, which under the intelligent and experienced direction of

Mr. H. Edson, of New York City, has come to be a factor of prime

importance in the sugar business in Cuba. It is claimed that the tonnage

of cane obtained from the lands of one of the properties owned by this

Corporation in the season of 1918-19 averaged higher than that of any

other sugar producing property in Cuba; and that the average yield of

sugar was as good as the best. The splendidly economical milling plants

at Tinguaro, Chaparra and Delicias were installed under Mr. Edson’s

direction, and it is reasonable to assume that the mills of his own

corporation are equally efficient. Few men interested in the sugar

business in Cuba have had a broader, more varied or more useful

experience; and there are none whose judgment as to the value of cane

lands and sugar properties is more to be relied upon.

The Gomez-Mena Properties were united and built up by Don Antonio

Gomez-Mena, a Spanish subject, who has resided for many years in Cuba,

where he developed a large mercantile business in the city of Havana;

out of the profits of which he began the building of the well known

Manzaña de Gomez-Mena, or Gomez-Mena Block, which has recently been

completed by his heirs; and also acquired and developed the two sugar

properties with which his name is identified, and which are now owned by

his son, Don Andres Gomez-Mena. These “centrales,” known as Amistad and

Gomez-Mena, and located respectively near Guines and San Nicolas, in the

southeastern part of the Province of Havana are of special interest

since on them more clearly than elsewhere in Cuba are practically

demonstrated the benefits to be derived from irrigation and the value of

cienaga or swamp lands when drained and reclaimed. When Señor Gomez-Mena

purchased the properties they were regarded as of little value, because

a large part of the area consisted of swamp lands, carrying an excess of

water, while the balance was composed of higher lands of a character so

dry as to be practically valueless for purposes of agriculture. It was

rightly reasoned that both of these difficulties could be overcome. So

the wet lands were drained and the dry lands were irrigated; with the

result that these two properties are now regarded as among the most

profitably productive sugar estates in Cuba; relative areas, of course,

being taken into consideration.

The Cuba Company Properties were developed by Sir William C. Van Home

for the purpose primarily of providing traffic for the newly constructed

Cuba Railroad; which fact accounts for their location along that line,

remote from shipping ports, at a time when more desirable locations

could have been acquired, looked at from the point of view of economical

sugar production. Nevertheless both of these properties seem to have

paid well upon the capital invested in them, while at the same time

contributing handsomely to swell the revenues of the Cuba Railroad; all

of which speaks well for the sagacity and enterprise of Sir William Van

Home, and increases the credit to which he is justly entitled.

The Mendoza Cunagua Property differs from all other sugar producing

properties in Cuba in that it was projected, developed and built up as a

complete whole, from start to finish, by a group of Cuban capitalists

dominated by members of the well known and highly respected Mendoza

family; the most active personalities in the enterprise being Don

Antonio and Don Miguel Mendoza. Considered in every feature and detail,

the Central Cunagua Property is probably the most complete and most

perfectly appointed and equipped cane growing and sugar producing

establishment that was ever created as the result of one continuous and

comprehensive effort; Don Antonio Mendoza having the credit for its

accomplishment. At Cunagua more than any where else in connection with

the growing of cane and the production of sugar does the human equation

receive prime consideration, as compared with the beasts of the field,

or the machinery of the factory; all of which are, however, looked upon

as assets and are well cared for. So well and thoroughly, indeed, was

all of this planned and accomplished, and so promisingly did everything

point towards a future rich with reward, honestly earned and well

deserved by the creators of this splendid property, that it is in a

sense regrettable to have to add that the Central Cunagua Property has

recently been sold to the American Sugar Refining Company of New York

City; which company has also acquired additional lands in its vicinity,

upon which a duplicate of the Central Cunagua will be installed.

There are many other meritorious cane growing and sugar producing

enterprises in Cuba, that are deserving of consideration; but which

cannot be satisfactorily described within the space here available for

the purpose. It must suffice to add that of the total sugar produced in

Cuba during the season of 1918 and 1919, amounting to 27,747,704 bags,

13,587,733 bags or 49.04 per cent were produced by sixty-five properties

owned or controlled by American interests, and 14,159,971 bags or 50.96

per cent were produced by one hundred and thirty-one properties owned or

controlled by Cuban and European interests. It may not be amiss also to

call attention to the fact that the sugar crop of Cuba, for the season

of 1918-19 amounted to nearly one-fourth of the total sugar production

of the world. If allowance is made for the normal average increase in

consumption of sugar, as indicated by experience during the fifteen

years just before the European War, the world’s production of sugar for

the year 1919 should have been 21,813,551 tons, while in fact it

amounted to only 16,354,580 tons. This shows that the actual net

shortage in the world’s production of sugar amounted to 5,458,971 tons

instead of the 2,342,751 tons commonly mentioned, the latter figures

representing only the difference in production between the years 1914

and 1919. This indicates that there are no grounds for apprehension on

the part of anyone contemplating investing in desirable property in

Cuba, as to the world’s production overtaking the world’s consumption of

sugar for a number of years to come. The economic position of Cuba as

the premier sugar-producing country of the world may therefore be

confidently regarded as secure.

The History of Cuba, vol. 5 · 第 15 / 36 章