26 THE CUBA RET IE W 



this matter to the attention of your association, since your members have important 

 business relations with Cuba, trusting that you will look favorably upon the request 

 for the restoration of the previous duty on Cuban sugar, which has already been made 

 to the Government of the United States in the memorandum submitted by the Cuban 

 Commercial Mission, a copy of which we l)eg to enclose, and that you will likewise be 

 in sympathy with the proposal, which has also been made, as an alternative, to the 

 Honorable Secretary of State of the United States, bj^ the Government of Cuba, for the 

 establishment of a new commercial agreement with Cuba by which the reduction on 

 our sugar would be increased from 20% to 50%. We are hopeful that, since the duty 

 on sugar which the Emergency Tariff has established works serious injury to Cuba, 

 it will be readjusted on the first opportunity, so as to safeguard our sugar industry on 

 which the economic life of Cuba so largelj^ depends. 



Capital Invested in the Sugar Industry of Cuba 



(Estimate prepared by Mr. Luis V. de Abad, Commissioner of the Economic Corporations 

 " of Cuba in Washington, D. C, 1900-1902) 



In order to estimate the amount of capital invested in the sugar industry of Cuba, 

 it is convenient to make the following division: 



1. The plants, with all the machinery and buildings; 



2. The railroad tracks and rolling stock; 



3. The lands; 



4. The cane; and 



5. Carts, oxen, agricultural implements and other equipment. 



1. The Plants, with all the Machinery and Buildings 



Before 1914, the cost of a complete plant might be estimated, on the basis of the 

 total capacity of the mill, as follows: for old plants, between $6 and $7 per bag of sugar, 

 and, for modern plants, between $9 and $10; or $8 as the general average. During the 

 years of the war the cost constantly increased until it represented, in 1920, from $20 

 to $25 per bag. Thus a plant to produce 100,000 bags would have cost $2,000,000 in 

 1920 compared with $800,000 in 1914. At present a plant could not be set up for less 

 than $15 per bag. Since the minimum productive capacity of our plants is at present 

 not less than 30,000,000 bags we can estimate the value of the plants as follows: 



In 1920, at $20 per bag .$600,000,000 



In 1921, at $10 per bag 300,000,000 



2. The Railroads and Rolling Stock 



The estimated value of the railroad tracks in 1918 was $120,000,000. The cost 

 of the railroad tracks up to 1914 varied between $10,000 and $25,000 per kilometer. 

 From 1916 on the cost constantly advanced: steel rails increased from $26 to $110 

 per ton; railroad ties, from $1 to $3; cement, from $3.20 to $7 per barrel; and labor, 

 from $1.50 to $4 per da^^ Since there exist about 7,000 kilometers of railroad tracks 

 extending through the mills and lands planted to cane, with their side tracks, loading 

 apparatus, etc., and the value may be estimated at $25,000 per kilometer in 1920 and 

 $18,000 at present, the total value in 1920 represents $175,000,000 and in 1921, $126,- 

 000,000. The rolling stock (locomotives and cane cars) and the flagman's .station may 

 be estimated as having a value of .$40,000,000 in 1920, and $20,000,000 in 1921. 



