op, THE CUBA REVIEW 



Had the sucrose in the cane this year been the same as in 1915-16, namely, 13.87% 

 instead of 13.31$ , the yield of 96° Centrifugals, with the same improvements in ma- 

 chinery, would have been about 12%, or 180,000 bags over what was actually made, 

 which would have increased the earnings of your Company by $2,500,000.00. 



CROPS MADE BY THE COMPANY 



1918-19 

 1015-10 1916-17 1917-J8 Estimated 



Tons Tons Tons Tons 



Bans 2,240 lbs. Bags 2,240 lbs. Bags 2,240 lbs. Bags 2,240 IDs. 



3 174168 452 035 3,201,021 472,5412 3,o\l3,325 521.328 4,000,000 580,000 



to 4,200,000 to 600,000 



These figures show an increase of 351,704 bags for 1017-18 over the 1916-17 

 crop and of 439,157 bags over the 1915-16 crop, and for 1918-10 an estimated in- 

 crease of approximately 1,000,000 bags over our first crop of 1915-16. 



COMPARATIVE EARNINGS TER POUND OE SUGAR 

 For the purpose of comparing the f. o. b. price per pound obtained during the 

 last three crops, the proceeds from "Molasses" and "Other Earnings" are included 

 in the following: 



1915-16 1916-17 1917-18 



4.112c 4.479c 4.630c 



From these figures it is seen that your Company only obtained .151c per pound 

 f. o. b. more this year than last year for its sugar. This was due to your Company 

 having sold the previous crop at very favorable cost and freight prices, with very 

 low rates of marine freight. 



COST OF PRODUCTION 



The cost of producing sugars on an f. o. 1). basis at your factories during the 

 last three crops was as follows: 



1915-10 1916-17 1917-18 



2.748c 3.431c 3.998c 



The vendors of your properties bore the dead season expenses of the 1915-16 crop, 

 nence the low cost of production in that year. 



The cost <0' production may be divided as follows: 



63% for Cost of Cane— this is paid to the colono in sugar which is subsequently 

 bought by the Company at the price fixed by the United States Sugar 

 Equalization Board, under its contract of purchase of the season's crop. 

 26% for Salaries, Wages, Fuel, General Supplies and Maintenance during the Head 



and Crop Seasons and Fiscal Year expenses. 

 11% for Bags, Inland Railroad Freight, Shipping Expenses and Cost of deliver- 

 ing the Sugars at the Port of Discharge. 

 Cost of Cane: The general practice in Cuba is to purchase the cane from the 

 tenant farmer (colono) by allowing him a percentage in sugar per hundred of cane. 

 This sugar is then bought by the mill at a price based on the ruling market price. 

 As the price of sugar fixed by the contract with the United States Sugar Equalization 

 Board, Inc., for the 191S-1919 crop will be about 20% higher than that of last year, 

 the price of cane will also be higher, but this increase in cost will be offset to the 

 Company by its obtaining a correspondingly higher price for its sugars. 



It is not expected that the other two items of cost will be materially increased. 



Careful calcylations show that the average cost of producing sugar in many 



Plantations in Cuba was .50c to .60c per pound greater than in the previous year. 



The increased cost to your Company was .567c per pound. Not having sold this 



