34 THECUBAREVIEW 



THE SUGAR REVIEW 



Specially written for The Cuba Review by Willelt & Gray, Sew York 



Our last review for this magazine was ilated May 8, 191(5. 



At that date Cuba Centrifugal sugar 9(5° test was quoted at (5.52c. jht pound duty 

 paid (5Hc. c & f) and is now 6.21c. per pound duty ])aid (o'wf. c & f), showing a decline for 

 the period under review of 5.16c. per pound. 



This reaction in values can be traced directly to certain congested conditions resulting 

 from labor strikes and difficulties of obtaining storage facilities readily. Strikes at the barrel 

 factories also caused refiners to change deliveries to a considerable extent from barrels to 

 bags which has not proved entirely satisfactory to buyers of refined. 



Resulting from these outside conditions affecting both the raw and refined sugar market, 

 two Philadelphia refiners this week reduced their CJranulated quotations from 7. (55c. i)er 

 pound to 7.30c. JHM- i)ound (less 2' f each). The Penn.><ylvania Refinery issued a statement 

 intimating that the cutting of price was due to local comjjctition. Inasmuch as the American 

 in Philadelphia and other refiners in the United States still maintain their price at 7.65c. per 

 pound, the lower price of 7.30c. is not likely to be continued longer than the capacities of the 

 two refineries involved in the competition for business remain sufficient to satisfy the demand 

 going to them at their reduced quotations. 



A very considerable amount of contracts at lower than present values remain on the 

 books of refiners still awaiting delivery, even as low as at 6.50c. for Granulated. If such 

 deliveries were ofTered for resale under pressure of refiners to complete such contracts by de- 

 liveries, then the present higher rates for refined might become reduced somewhat. Thus, to con- 

 clude, a downward trend to raws and with some refineries at lower level than others for refined, 

 it is not altogether certain that the higher level for refined can be continued indefinitely. 

 However, it is equally jiossible that the decline in raw sugar may be checked and an advancing 

 tone and tendency take its place, based upon the whole statistical i)()sition, which is certainly 

 more favorable for advances than fleclines for the conu'ng months. 



As affecting the Cuban sugar corporations incorporated in the United States and under 

 American control and management, a .somewhat .serious and dra.stic legislation seems to be 

 develojiing in the Island of Cuba. As reported in the press dis])atches from Havana, .June 3d, a 

 bill has l)een drafted by the Conunittee on Codes of the House of Legislation, the 1st .\rticle of 

 which declares null and void all sales of rural j^roperties to persons or entities not of Cuban 

 nationality, including sugar mills or other headquarters of landed properties located within the 

 limits of municipalities. Deeds of gift to non-nationals are alike null and void. 



Other drastic provisions are named in the Bill, all detrimental to foreign ownership o' 

 sugar plantations in Cuba, but we call attention to the matter in the hope that Cuban legislators 

 may be induced to hesitate before jjerfecting legislation directed against all interests trading 

 between Cuba and the Ignited States. It is to be hoped in the mutual interests of Cuba and the 

 United States that this matter is more imaginative on the part of newspaper correspondents 

 than real. We have ourselves received no direct confirmation of the report thus far. 



This matter would seem to be a good subject for investigation and report by the Cuba 

 Review, and would be most welcome to the numerous .Americans now interested in Cuban 

 sugar stocks. 



Looking for^vard, there appears no good rea.son for considering the present decline as any 

 more than a reaction brought about by reasons given above, and that the statistical situation 

 fully warrants an entire lecovery to recent prices if not to a further advance in values. 



WILLETT & CRAY 

 Xew York, June S, 191t5. 



