24 THECUBAREVIEW 



so that in considering the duty upon sugar, the Cul^an product alone is to be considered, 

 and it is against the importations from that country that we must be protected." It 

 appears that the reason for increasing the duty was that, according to the estimates 

 worked out by the United States Tariff Commission and the figures submitted by dif- 

 ferent witnesses before the Committees of the House and Senate, the cost of producing 

 sugar in Cuba was about two cents below the cost in United States territory. The 

 United States Tariff Commission nevertheless recognized (Tariff Information Surveys, 

 E 1, 1921, page 32) that "In all of the regions in which domestic sugar is produced, 

 except perhaps Louisiana, a considerable proportion is produced at a cost as low as, 

 or lower than, that of the marginal Cuban cost. Such producers would be able to con- 

 tinue to compete with Cuba if there were no duty, though their profits would be less. 

 With every increase in duty a newer and higher margin is established for domestic pro- 

 ducers, a greater proportion of the consumption will be domesticalh^ produced, and a less 

 proportion imported from Cuba." It is therefore clear that the purpose of the increase 

 of the duty on sugar was to favor the domestic industry of the United States by placing 

 an additional burden on Cuban sugar, and it so happened that this measure was adopted 

 precisely at a time when the sugar industry of Cuba was itself greatly in need of pro- 

 tection, on account of the severe losses and trying circumstances which the Cuban pro- 

 ducers were facing. 



Now, bej^ond an}^ doubt, the economic welfare of Cuba and the prosperity of her 

 sugar industry are matters of considerable concern to the United States, and various 

 writers, among them Mr. William S. Culberton, a member of the United States Tariff 

 Commission, even affirm that "Cuba is economically a part of the United States." 

 Everyone familiar with the conditions of the Island knows that during the last twenty 

 years American capital and enterprise have l^een steadily engaged in the development of 

 the natural wealth of Cuba, so that in nearly all branches of industry, commerce and 

 finance in Cuba American interests have become exceedingly important. Besides the 

 sugar industry, by far the principal industrj^ of Cuba, owned or controlled today, to a 

 considerable extent, by American capital, there are very large American investments 

 in the tobacco and mining industries of Cuba, in the growing of pineapples and grape- 

 fruit and in other agricultural products, in the railroads, which have been built mainly 

 with English, American and Canadian capital, in street railways, power plants, docks 

 and warehouses, cable and telephone service, hotels and other enterprises. Many of 

 the largest importing and commercial houses established in Cuba are American, and 

 American citizens are successfully engaged in Cuba in almost every line of business 

 activit}'. Banking in Cuba is today very largely in the hands of American and Canadian 

 institutions; and the Bonds of the Republic of Cuba, representing foreign loans for 

 about $58,000,000, are held mainly by American bankers and investors. American 

 vessels convey about 75% of the cargoes which enter and clear from the ports of Cuba, 

 and receive the millions of dollars paid each year for inward and outward freights, the 

 insurance of these shipments being made principall}^ with American companies. This 

 traffic became so important that it called for the l^uilding of the railroad to Key West, 

 practically connecting Cuba and the United States by rail, and more recently, for the 

 establishment of a telephone service between the two countries. The freight cars of the 

 principal railroads of the United States are regularh^ to be seen on the tracks of the 

 Cuban lines, so that both countries may be said to have a common railway system. 



Turning again to the sugar industry of Cuba, its great importance to the United 

 States cannot be questioned. About 60% of the sugar mills of Cuba are American 

 property, and it is estimated that fully 80% of next year's crop will be owned or con- 

 trolled by American capital. The mills, equipment, lands, and cane, which together 

 make up the sugar industry of Cuba, expanded greatly under the circumstances created 

 bj^ the European war, and about 350 million dollars were then invested, chiefly by 

 American capitalists, in increasing and improving the mills, eciuipment and lands in 

 Cuba devoted to the production of sugar, so that Cuba's crop was increased from 2,- 

 600,000 long tons in 1913-14 to 4,000,000 in 1918-19. This year's crop is very near 



