32 THE CUBA REVIEW 



MANY CHANGES IN OWNERSHIP OF CUBAN MILLS 



One of the most interesting developnionts in the Cuban sugar industry during 

 tlie present year lias been the numerous changes in the ownership of mill properties 

 that have taken place. 



Three notable tendencies are observable in these transactions which in turn reflect 

 the marked changes that are taking place in the sugar industry of the world at 

 large. 



In Cuba these tendencies may be classified as follows: First, the beginning of a 

 movement, destined to grow, toward the acquisition of producing properties by 

 American refiners ; second, the purchase by manufacturers of the United States of 

 Cul)an mills and plantations in order to insure their supply of sugar ; and, third, a 

 growing interest on the part of United States investors, not directly connected with 

 the industry, in sugar mill properties. 



REPRESEXT MILLIONS 



The number of mills and plantations that have changed hands during the past 

 six moiitlis represents values extending to hundreds of millions of dollars. The full 

 number has not at this date been revealed, but it is known that the sales of prop- 

 erties closed far exceeds the total of any similar transactions for at least the past 

 decade. 



The entry of the American refiners into the Cuban production field is one of the 

 most imitortant phases of this development. Prior to 1920 the policy of the majority 

 of refiners was an entirely opposite one. It had been held practically from the begin- 

 ning of American refining operations, that because of the strength of the American 

 demand for sugar which created a steady market for raws, an expansion of the 

 refining Industry into the field of sugar production was unnecessary. 



PRODUCERS CAUSE CHANGE 

 That a "right about face" attitude is being taken now by the refiners is due 

 mainly to the general tendency of sugar producers to engage in the manufacture of 

 white sugars direct at the source of the production. 



Cuba today is alive to the possibilities of the production of direct consumption 

 sugar, available not only for the American market but for Europe as well. That 

 this sentiment is prevalent in Cuba has not been lost on the American refiners. This 

 is well established by the fact that several have recently acquired large property 

 holdings in the island. 



The advantages gained by a refinery in strengthening its position through the 

 ownership of Cuban sugar mills are a steady source of supply and a lowering of 

 production costs through the elimination of the producer's profit. During the present 

 era of high sugar prices this saving runs into large figures. 



IMPERIAL IS FIRST 



The first of the refining interests seeking to acquire a Cuban mill this year was 

 the Imperial Sugar Refining Company of Sugar Land, Texas. This refiner secured an 

 option on the Santa Lucia mill and plantation in Oriento Province. This proposed 

 purchase, however, finally fell through, and the project was abandoned. 



The second important transaction of this character, which was successfully car- 

 ried out, was the purchase by the American Sugar Refining Company of Central 

 Cunagua. This mill has a capacity of 600,000 bags, which is not large enough to 

 take care of all the cane the estate can grow, and Central Jaronu. virtually a duplicate 

 of Cunagua, is now being built to take care of the full crop. The two mills will pro- 

 vide the American with approximately 1,200,000 bags of sugar of its owti production 

 annually. 



