T H E C U B A R E Y I E W 27 



facturing the sugars therefrom and the delivery of the sugars on board steamer 

 would be as follows, per pound : 



1915-1916 191G-1917 191T-191S 1918-1919 



0.715c 1.0T2C 1.456c 1.555c 



The increases were, consequently : 



0.357 cents per pound increase 1916-1917 over 1915-1916 

 0.3S4 " " " " 1917-1918 " 1916-1917 



0.099 " " " " 1918-1919 " 1917-1918 



From the above table it is gratifying to note that the cost of manufacturing for the 

 last crop shows only a slight increase over that of the previous crop, an increase of 

 6.8% as compared with an increase of 36% for the year 1917-18 over 1916-17. The 

 increase would have been even less had the sucrose in the cane not been so disap- 

 pointing. 



OPERATING PROFITS PER POUND OF SUGAR 

 If from the preceding f. o. b. prices at which the sugars of the last four crops were 

 sold we deduct the Cost of Production, including the Cane, it will give us the Operating 

 Profits made, per pound, as follows : 



191.5-16 191(5-17 1917-18 1918-19 



Receipts 4.112c 4.479c 4.630c 5..398c 



Producton cost 2.748 3.431 3.998 4.606 



Operating profits 1.364c 1.04Sc 0.632c 0.792c 



It is interesting to note that during the two years of Governmental control of 

 sugar the Operating Profits were smaller than during the preceding years of open 

 market. 



From the above statements it can be easily seen that as the Colono shares the 

 benefits of high prices of sugar because he is paid for his cane in sugar, so he will 

 bear the corresponding share of the burden of lower prices Avhenever they may prevail. 

 Lower prices, whenever they do come, will therefore mean not only cheaper cane 

 (which is the largest item in our costs), but it will also mean lower salaries, wages, 

 cost of fuel, packages and general supplies. In other words, any decrease In price 

 must be offset by decrease in cost. 



Cuba, in the future as in the past, will continue to be the country producing sugar 

 at the lowest cost. 



As stated above, the increases in Cost per pound of sugar during the last crop 

 were: 



0.509c in cane, 



(This extra cost in cane, however, is recovered by the extra price obtained 

 for the sugars, as already explained.) 

 0.099c in wages and other expenses 



These figures confirm the prediction made in last Annual Report that the items other 

 than cane would this year show but little increase. 



COMPARISON OF CROPS MADE BY YOUR COMPANY 



Bags Tons 



1915-16 3,174,168 or 452.035 



1916-17 3,261,621 or 472.-542 



1917-18 3,613,325 or 521,-328 



1918-19 4,319,189 or 624,101 



This production has been divided between the Western and Eastern Estates as follows : 



Western Eastern 



Bags Tons Bags Tons 



1915-1916 2,616,-301 or 372,589 557.867 or 79,446 



1916-1917 2,-383,866 or 345,373 877,755 or 127,169 



1917-1918 - ■ - 2.437,926 or 351,742 1.175,-399 or 169,586 



1918-1919 2,6-53,620 or 382,783 1,665,569 or 241,318 



These figures show the large increase of 161,872 tons in the Eastern plantations be- 



