38 THECUBAREVIEW 



SUGAR REVIEW 



Specially written for The Cuba Review by Willett & Gray, of New York 



Our last review for tliis magazine was dated February 16, 1914. 



At that date Cuban centrifugals !)G° test was quoted at :^.48c. per lb., old duty paid, 

 and 3.14c. per lb., new duty paid. The cost and freight quotation was 2i/fec. per lb. 



Since March 1st the reduced duty on Cuban centrifugals of 96° test is 1.0048c. per lb., 

 at which basis all business in Cubas is done, and Porto Rico and all other free duty 

 sugar is quoted at Cubas duty paid, value of which is now 2.9.")C. per lb., sliowing a 

 decline of .19c. per lb. during the period under review. Tlie present cost and freight 

 value of Cubas 90° test is 1 15/l6c. per Ih. 



■ This market and the European market have had a steady trend downward, until the 

 present low values are touched. European beet sugar declined from 9s 3%d to 9s %d, 

 closing at 9s l%d at this writing. 



The change over from the old to the new duty basis was especially l^eneticial to refiners. 



Previous to March 1st the price of refined for several weeks was at 4c. less 2% for 

 fine granulated, which gave refiners a margin difference between raws and refined of less 

 than %c. per lb., showing that the reduced duty on raws was fully discounted on refined. 

 Passing over into March at the same value of 4c. less 2% — 3.92c. per lb. net, the margin 

 difference for refiners became .S8c. per lb., which has been about the normal for many 

 years past. 



The decline in raws since Alarch 1st from 3.04c. to 2.9oc. per lb. has induced refiners 

 to lower their granulated price 10c. per 100 lbs. to 3.822c. per 11)., net cash, leaving a 

 margin difference between raws and refined of (f.872c. per lb., whicli if maintained will 

 give them a fair profit in the business against doing their business at a loss as in 1913. 



The American Sugar Refining Company's annual statement was the poorest in its his- 

 tory showing net earnings from all sources, not sufficient to pay dividends, the balance 

 necessary being taken from the surplus account of the company to the extent of $3,200,000. 

 but still leaving the company with a surplus of $18,229,423.02 for use for dividends for 

 poor outturn years. The year 1913 was not exceptional with this company, but all 

 refiners participated in the losses in proportional amounts, and some stopped payment 

 of dividends on part or all of their capitalization. 



Cuba is not likely to suffer thereby, except for the first half of the campaign possibly, 

 but the domestic cane of Louisiana, and the beet sugar industries of 17 States of the 

 Union will find it impossible to continue expansion of the industry, and it may be cur- 

 tailed to some extent. 



The Cuba crop production to date indicates a final crop up to 2,.">()0,000 tons to 2,600,000 

 tons in the mind of the sugar trade here. Of special interest to Cuba is the application 

 of Louisiana planters to the Supreme Court of the United States for an injunction 

 against collecting duties on Cuba sugars at less duty than 1.348c. per lb. for 96° test. The 

 case will be argued before the Court April 6th. No importers show any anxiety about 

 the result being the continued collection of 1.0048c. per lb. as is now being collected by 

 the custom house. Another matter of interest to Cuba is the decision that sugars coming 

 into the United States in American vessels is Subject to 5 per cent duty benefit over sugars 

 coming in vessels of another country. This may however create such a disturbance with 

 treaties with other countries, that it may be repealed by Congress entirely. 



At the close Cuba centrifugals for prompt and late March shipment were sold at 

 1: 3l/32c. cost and freight, 2.98c. duty paid and April was sold at 2c. cost and freight, 

 .101c. duty paid. Market firm. 



THOMAS F. TURULL, HABANA, Oficios 16, Apar. 1377 

 Comerciante Importador 



Acids, Chemical Products and I^aw Materials for Industries in General 

 Acidos, Productos Quimicos y Materias Primas para las Industrias en 



General 



