T II E C U B A R E V I E W 23 



coiiniiencemeiit of operation of any of our sugar mills for this season many of Cuba's 

 largest and most important sugar producers had in apparent co-operation sold for 

 future deliveries at prices averaging about 6% cents per pound f. o. b. Cuba, a 

 quite considerable tonnage estimated at times to lie as much as 1,500,000 tons of 

 sugar. It was at that time thought that these sales would prove advantageous, and 

 doubtless the fact that they were made has influenced to a consideralile extent the 

 prices \vhich have since been obtained. These sales were made in August and 

 September, 1019. In late September, October, Xovemlier, December and even January 

 of this year a remarkable scarcity of sugar in the United States caused the be- 

 lief, founded upon facts that, notwithstanding the large prospective sugar crop in 

 Cuba, the supply to meet the world's demand would prove small. Prices, therefore, 

 began advancing very rapidly, reaching, we believe, as high as 12% cents c. & f. 

 New Yoi'k f(n- inhnediate delivery of sugar in early January. The position, of 

 course, of those mill owners in Cuba who had made sales at the much lower level 

 cited can readily be realized. Their sales were made on speculation, and could 

 Bot under any circumstances be taken into consideration in the determination of 

 the promedios at which the canes of the colonos growing this product for the mills 

 owned by those who had made such sales should be liquidated. Doubtless these 

 conditions influenced greatly the various organizations of authorized Brokers in the 

 Island, causing them to hesitate in giving out promedios covering the months of 

 November and December, and the conflict of interest was settled only upon the is- 

 suance of the decree No. 112 already referred to. 



At the time this decree was given out, it was correctly understood that, re- 

 garding the deliveries of cane in November, which on account of the early period of 

 the harvest were proportionately small, satisfactory settlements had been reached 

 voluntarily between the owners of the few mills operating during that month and 

 the cane growers furnishing cane thereto. This left, therefore, prices to be fixed for 

 the two fifteen day periods of December and regulations to be made by which 

 satisfactory promedios could lie fixed for the remainder of this crop and for coming 

 crops. The recommendation of the Committee of the Association of Hacendados and 

 Colonos regarding the month of December was that all canes delivered during this 

 month should lie settled for at a promedio of 10% cents per pound of sugar to 

 which the colono was entitled. The promedios for January and for the rest of the 

 crop were to be determined according to certain regulations specified in the decree, 

 the essence of which Is as follows : The promedios were to be calculated by the 

 authorized Brokers of each locality in which such organization exists, taking into 

 consideration the quantity of sugar sold, in each case using the Cuban pound as 

 the unit of ^^'eight and the price in warehouse or f. o. b. Cuban port or c. & f. 

 Northern ports, in each of these cases a deduction being made from the price 

 specified of a sum considered to represent the expenses incurred by the purchaser, 

 thus arriving at the true net price received by the seller in Cuba. In the case of 

 sugar sold in warehouse, the expenses deducted are storage, lighterage, insurance. 

 Cuban taxes as specified in the law of the 31st of July, 1917, and the commission 

 due the Cuban Broker. In the case of sales f. o. b. Cuban ports, the above expenses 

 will be deducted and in addition % of 1% of the price agreed upon, this being 

 supposed to represent the expenses at the port of destination. In the case of sales 

 c. & f., all the above expenses will be deducted in addition to that of freight to 

 port of destination. In case in any of the markets in which an authorized organi- 

 zation of Brokers exists no sales fulfilling the requirements are made during the 

 period for which promedios are to be established, none shall be fixed and the promedio 

 considered ofiicial shall be that of the organization of Brokers of Havana for the 

 corresponding period. Also before the shipment of any sugars from the Island a 

 sworn statement shall be presented stating that the sugar is of the crop of 1919-1920, 

 and also giving the date at which the sale was made, the price and other conditions 



