THE C U P. A It B V I i: \Y 



31 



THE SUGAR INDUSTRY 



PROPOSED PRODUCERS ORGANIZATION 



Discussion "t" the question of whether 

 Cuba's sugar producers shall effect an 

 organization for handling the sale of 

 sugar in the future, and revival of the 

 question <>t' compensation of the brokers 

 for their services in connection with the 

 disposal i't' the crop have been topics of 

 great interesl in connection with the 

 sugar industry. 



.Mr. II. ( >. Neville, Bavana correspond- 

 ent l'ui- Facts \in, nt Sugar, gives a com- 

 plete account of the situation, which we 

 quote below. 



Tlu' latter question has been brought 

 up afresh through the presentation to 

 President Menocal of a petition ask- 

 ing for a modification of the presiden- 

 tial decree of December 30, 1918, which 

 established a commission of one cent per 

 bag to he divided among those brokers 

 who had engaged in sugar operation 

 during the years 1914 to 1917, in propor- 

 tion to the average business handled by 

 each in that period. 



The present petition, which was pre- 

 sented by Dr. Ricardo Dolz, asks : 



First, that the commissions for authen- 

 ticating shipments from any port be al- 

 lotted among the brokers of that port in 

 proportion to the operations of each in 

 the period of 1914-17. 



Second, that commissions corresponding 

 to 60 per cent, of the sugars shipped he 

 divided equally among all the notarial 

 commercial brokers of the island. 



The reasons put forward for this mod- 

 ification are that all notarial commercial 

 brokers in Cuba are sugar brokers, there 

 being no such thing in Cuba as brokers 

 who deal with sugar exclusively, and 

 that only 40 per cent, of the total sugars 

 sold were in the past sold through the 

 brokers, the other GO per cent, being han- 

 dled through other channels. Hence the 

 request for the setting aside of commis- 

 sions on 60 per cent, of the crop for di- 

 vision among all the brokers, regardless 

 of the extent of their sugar transactions 

 in previous years. 



The question of whether a producers' 



league or other organization for con- 

 trolling the sab- of sugar ought to be 



formed ha- 1 a discussed In the press 



by a number of pr inent members of the 



financial and business worlds, generally 

 with an affirmal Lve conclusion. 



PEOPOSI - oi i n i w, I'.nnv 



Sr. Vidal .Morales believes that a League 

 or committee of sugar producers is essen- 

 tial, hut that the Government should have 

 a part in any such organization, inas- 

 much as what affects the sugar industry 

 affects the whole of Cuba. He suggests 

 as the best solution that the creation of 

 a League of sugar manufacturers and 

 colonos be provided for by law, so that 

 the organization shall have an official 

 character, and that the sale of sugar ex- 

 cept through the committee appointed by 

 this body be prevented by the state. 



Sr. Morales expresses the opinion that 

 under such conditions there w r ould no 

 Longer exist the necessity for selling sugar 

 as soon as possible after its manufacture, 

 as the banks would be encouraged to fur- 

 nish the funds required to carry it in 

 store. He also suggests that it may be 

 found desirable to limit the increase of 

 sugar production. 



Sr. Higinio Fanjul also helieves in the 

 necessity of a producers' organization, 

 and proposes the appointment of a com- 

 mission, made up of persons who com- 

 mand entire general confidence, to which 

 the sale of the entire Cuban crop should 

 he left in future. Such a commission, he 

 suggests, should also have the handling 

 of other problems, including that of ob- 

 taining labor for the sugar industry. 



Sr. J. I. Lezama likewise holds that the 

 condition existing at present, by which 

 the sale of Cuba's sugar is effected by a 

 small committee appointed for the pur- 

 pose, should be continued, at least for 

 the next two years, and proposes the ap- 

 pointment of a commission of producers, 

 on which the Government shall also be 

 represented, and which shall endeavor to 

 obtain a contract covering the sale of the 

 1920-21 crop, under terms similar to those 

 of the contracts of last year and this. 



