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his cane was, by improved methods, being turned into sugar of a 

 much superior color and higher optical rotation, unless the benefit 

 thereby resulting to him were made evident in terms of Philippine 

 currency. The central factory, on the other hand, is not ordinarily 

 conducted as a philanthropic enterprise, but represents a large amount 

 of capital — often greater than the combined value of the farms from 

 which it draws its supply of cane — on which dividends must be paid. 

 To be satisfactory to all parties concerned, then, a change to modern 

 methods of manufacture must not only yield the planter a greater 

 profit than he is now receiving from his cane, but must likewise pay 

 interest, depreciation, and dividends on an equal or larger investment 

 represented by the central factory ; in other words, from the same weight 

 of cane just about double the amount of pesos must be extracted than are 

 now being yielded by the process in use. 



The methods of apportionment of the sugar produced vary in dif- 

 ferent countries, but as a rule the fanner receives from 45 to 55 per 

 cent of the value of the sugar secured from his cane, according to 

 local conditions and as to whether delivery is made at the central factory 

 or on the hacienda. Taking 50 per cent as the average, without, how- 

 ever, assuming that this would necessarily be the most equitable ratio 

 here, and leaving the prospective manufacturer as the most competent 

 judge of what his share in the profits of such a transaction might be, 

 it may be of interest to calculate approximately what would be the 

 gain or loss to the planter if he should receive the value of half his 

 cane only, manufactured into 96° centrifugal sugar, instead of the 

 whole of it as 82° concrete as at present. It will be necessary to assume 

 for such a calculation a fixed price for the two grades of sugar. 



The price paid in the Iloilo market for Negros sugar has averaged during the 

 first five months of this season, beginning November 1, 1909, about as follows: 



* ] peso per picul=0. 3580 cents U. S. currency per pound avoirdupois. 



In the New York market the price quoted for Iloilo "Assorted" is practically 

 constant at 1 cent gold per pound less than that of 96° centrifugal. Therefore it 

 would be logical to presume that at least the same difference in value would 

 hold good in Iloilo, or, since a central factory of any size would be in a position 

 to ship its sugar directly to New York at the same cost as if shipped from Iloilo, 



