THE CUBA REVIEW 



15 



sugar today. Sales liave been made within tlie last few days at 22% cents Cuba 

 and no large quantities were offered at this figure. 



The European beet sugar crop of nearly 4,000,000 tons will not materially assist 

 the situation, although it is an increase of 1,000,000 tons over the production of a 

 year ago. The demands of Europe are greater by far this year than last and high 

 prices are expected to prevail for another year or two, as Europe will not, it is deemed, 

 reach her normal production for at least three years. 



It has been rumored that control of the coming sugar season will be attempted 

 by the American and Cuban Governments but, since the question has resolved itself 

 into one of supply and demand, little action is expected. 



High prices paid for sugar are given as the main reason why so many sugar 

 centrals have recently passed into American hands. No less than fifteen centrals have 

 been purchased recently by American capital and several very large new centrals 

 have been projected. These new projects are principally located in the Provinces 

 of Camaguey and Oriente, but Pinar del Rio and Havana Provinces are to have at 

 least one each and Santa Clara Province is to have two large electrically operated 

 plants which are expected to be ready for operation this coming fall. 



Great prosperity has attended the rise in sugar prices and sugar planters are 

 making many purchases of valuable property in Havana for home sites. 



SETTLEMENT OF MC GIVNEY & ROKEBY 

 CONTRACT DISPUTE 



Payment of about $1,000,000 was in- 

 volved in the settlement made recently by 

 President Menocal and R. Floyd Clark, a 

 prominent lawyer of New York, of the 

 longstanding differences between the 

 Cuban Government and the McGivney & 

 Rokeby Construction Company over street 

 paving and sewage work in Havana. Deli- 

 cate international legal points were in- 

 volved in the transaction, which has been 

 in dispute since 1914 and the final adjust- 

 ment was made imder the provisions of 

 the Piatt Amendment, which made the 

 United States Government figure in the 

 matter, 



Mr. Clark had several audiences with 

 President Menocal and after they had ex- 

 changed grievances the various interna- 

 tional issues were cleared up satisfactor- 

 ily. The Cuban Government had made a 

 claim of approximately $2,000,000 for de- 

 fects in the work and for work that had 

 not been completed. The construction 

 company opposed this with a counter 

 claim and over this the dispute arose. 



The paving and sewage contract which 

 the McGivney & Rokeby Company had 

 dates back to General Wood's administra- 

 tion, although work did not start until 

 1908, when new clauses were inserted into 

 the document. The construction work 



went on until 1914. 



The entire proposition amounted to 

 about $17,000,000, most of which was paid 

 and the remainder was contested after 

 the company got out of Cuba six years 

 ago. 



In view of the fact that the Piatt 

 Amendment was involved, the construc- 

 tion company became virtually an agent 

 of the United States Government in the 

 matter. The Piatt Amendment has been 

 incorporated into the Cuban Constitution, 

 specifying that the Cuban Government 

 shall maintain sanitation in Havana. The 

 McGivney contract was made under this 

 amendment and it was on this basis that 

 a settlement was finally effected. 



FUNDS FOR AERIAL MAIL SERVICE 

 TO CUBA 



The legislative appropriation bill car- 

 rying permission for the U. S. Post Office 

 Department to contract with an airplane 

 concern to carry mail between Havana 

 and Key West passed Congress on April 

 2.3d and was placed before the President 

 for his signature. 



The extra cost for carrying first-class 

 mail alone would be $30,000 a year and 

 the department is hesitating to spend 

 that amount. It is believed that the com- 

 pany may present a plan, making a com- 

 promise possible. 



