^8 THECUBAREVIEW 



SUGAR REVIEW 



Specially written for The Cuba Review by Willett & Gray, New York, N. Y. 



Since our last report on the sugar market, dated October 3, the Cuban crop has come to an 

 end, and we have received the total outturn figure from Messrs. Guma-Mejer, the well-known 

 Havana statisticians, as 3,446,083 tons. Although Cuban sugars continue to arrive at the 

 shipping ports in Cuba they originate in the stock held by factories in the interior of the Island, 

 and are all accounted for in this total outturn figure. 



The old Cuban crop having ended, interest is now centered on the conditions influencing 

 the new crop, wliich will commence harvesting in December, and our latest cables report the 

 weather as rainy and warm, which conditions are favorable for the growth of the cane. While 

 the copies of the new Cuban contract are still in the hands of the printer, the text has been 

 leleased, and is as follows: 



AGREEMENT FOR PURCHASE OF 1918-19 CUBA CROP 



AGREEMENT entered into this 24th day of October, 1918, in the City and gtate o f New York, by and be 

 tween United States Sugar EquaHzation Board, Inc., a corporation of the State of Delaware, party of the first part 

 Carlos Manuel de Cespedes, Robert B. Hawley and Manuel Rionda, a Cuban Commission, parties of the second 

 parL, and agents of various Cuban producers acting severally for the producers of sugar in the Island of Cuba, 

 parties of the third part, witnesseth: 



Whereas, the United States Sugar Equalization Beard, Inc., was created and is acting as an agency of the 

 United States for the purpose in part of equalizing the distribution and selling price of sugar, and to that end has 

 power and authority to purchase domestic cr foreign raw sugar in such quantities, at such prices and upon such 

 terms and conditions as it may deem advisable, and to lesell said sugar in its discretion at, below or above cost 

 and UDon the same or other additional terms and conditions; and 



Whereas, the President of the Republic of Cuba, by Executive order has appointed Carlos M anuel de Cespedes, 

 Robert B. Hawley and Manuel Ricnda a Cuban Commission to arrange for the sale of sugar produced in the Island 

 of Cuba during the crop seasrn 1918-1919, and to pledge the Republic of Cuba to the terms and conditions provided 

 herein to be performed by said Republic; and 



Whereas, the said Cuban Commission has represented that there is power and purpose in the Government 

 of the Republic of Cuba to co-operate in the establishment of a stabilized price for the whole of the Cuban sugar 

 crops of 1918-19, and also to control by license the export of any Cuban sugar to any person, entity or country 

 under specified terms and conditions, includiufi orice; and 



Whereas, the said United States Sugar Equalization Beard, Inc., and the said Cuban Commission have ar- 

 ranged for the purchase and sale of sugar produced in the Island of Cuba during the crop season 1918-1919, upon 

 the terms and conditions hereinafter stated; 



New, therefore, the parties hereto each for its cr himself for the part to be performed by it or him, cr in behalf 

 of others herein described, agree as follows: 



1. The said Cuban Commission agrees that it will immediately arrange that each and every producer of 

 sugar in Cuba shall duly authorize an agent in the City of New York, one of the parties hereto (hereinafter severally 

 or collectively called the Seller), to contract for and sell to the United States Sugar Equalization Board, Inc. (here- 

 inafter called the Buyer) the whole of his or their output of sugar deliverable at the option and upon the direction 

 of the Buyer for shipment to the United States, United Kingdom, Canada, France or Italy, or to any other country 

 upon the terms and conditions hereinafter stated; said authorizations shall be in writing and filed wi.h the Buyer 

 and shall state the name and location of the factory or factories of each of the said producers and the estimated 

 production of each during the crop season 1918-1919. 



2. Pursuant to the said authorization the Sellers en behalf of himself and his principles agrees to sell and to 

 deliver to the Buyer all the raw sugar produced by him or his principals in the Island of Cuba during the crop 

 season of 1918-1919 (except that actually used for local consumption in Cuba) and the Buyer agrees to purchase 

 and receive the same for local consumption in Cuba) and the Buyer agrees to purchase and receive the same on 

 the following terms: 



For shipment to the United States at the price of $5.88 cents* per pound c. & f. 



*{Note. — Inasmuch as the Buyer assumes all risk of insurance up to an average rate of 31c. per $100, which 

 risk includes the excess insurance of 7c. per $100 paid by the Seller under the agreement for the 1917-1918 crop, 

 the basic cost and freight price is made $5. 88c. per pound for shipments to the United States in place of S5.885c. 

 per pound. The difference of .005 is to compensate the Buyer for the excess insurance paid by the Seller under 

 the agreement for the 1917-1918 crop and to provide for the contingency of advancing rates under the Buyer's 

 average rate policy up to an average of 31c. per $100) to New York/Philadelphia basis 96* average outturn polariza- 

 tion, net landed weights, based on a freight rate of 38 J 2 cents per 100 pounds from North Side Ports west of and 

 including Caibarien, subject to United States Raw Sugar ccn'ract terms, a copy of which is hereto annexed marked 

 Schedme A and made a part hereof; 



For shipment to the United Kingdom, France and Italy at a price of 5.50 cents per pound f.o.b. Northern 

 Ports, or 5.45 cents per pound f.o.b. South Side Ports basis for 96<^ centrifugal sugav, subject to all the conditions 

 of the usual contract form for shipment to these countries, a copy of which is hereto annexed marked Schedule B 

 and made a part hereof: 



For shipment to Canada, if shipped direct to a Canadian port, at the same prices and upon the same terms 

 as are provided for shipments to the United Kingdom, but if shipped via New York, at the same prices and upon 

 the same terms as are provided for shipments to the United States. 



For shipment to all countries other than the United States, the United Kingdom, Canada, France and Italy, 

 at the same prices and upon the same terms as are provided for shipments to the United Kingdon, except, however, 

 that net shipping weights less 1 per cent, and Cuban tests shall be excepted by the Buyer and the Seller (weight to 

 be calculated on United States standard), and that payment for such sugar shall be made by the Buyer in cash in 

 New York in ten days after presentation of shipping documents, or, at Seller's option, by ten days sight draft 

 drawn on Buyer with shipping documents attached, and except that all matters of disagreement shall be deter- 

 mined pursuant to the provisions of Article VI hereof. 



The freight rates from various Cuban ports to various United States ports and the minimum amount of sugar 

 to be loaded per day at each Cuban port are and will be as set forth in Schedule C annexed hereto and made a 

 part hereof, except as the same may be hereafter changed by the United States Shipping Board or other agency of the 

 United States Government having jurisdiction in the premises. 



Shipments are to be made as soon as possible after grinding commences and not less than 2 per cent, of the 

 amount shall be shipped during December, 1918; the balance in approximate equal monthly shipments from 

 January to November, 1919, both inclusive. ^ 



