24 THE CUBA REVIE W 



Cuba Cane Sugar Corporation 



Sixth Annual Report 



For the Fiscal Year Ended September 30, 1921 



January 9, 1922. 

 To THE Stockholders: 



Your Board of Directors submits herewith the Annual Report of the Cuba Cane 

 Sugar Corporation for the fiscal year ended September 30, 1921. 



A general survey of the sugar market events of 1921 is given below, similar to that 

 given in the report for the preceding year. 



The last year was as abnormal and disastrous a year to the sugar industry as it was 

 to the producers of many other commodities, the year having started with high prices 

 and higla costs of production. During the year an almost perpendicular drop took place in 

 the price of the product with very restricted sales, and prices at the end of the year were 

 the lowest of those at any time during the period covered by the report. 



The corporation produced 3,978,102 bags of sugar at a cost of $56,261,638.17, show- 

 ing an operating loss of $5,998,603.15; unsold sugars being valued below the market price 

 at September 30, 1921, viz., 2>4c. c. & f. 



Proceeds of sale per pound were 3.891c. f. o. b.; costs 4.355c. f. o. b. ; loss per 

 pound, .464c. 



A reserve has been established to cover further declines down to 154c. c. & f. per 

 pound. 



The Profit and Loss and Surplus Accounts will be found on page 20. 



The aftermath of inflated prices and the Cuban financial crisis referred to in the 

 review contained in our last annual report resulted in the creation, under Cuban presi- 

 dential decree, of the Sugar Finance Committee, for the purpose of controlling both the 

 selling and shipping of sugar that had not been sold prior to February 22, 1921. 



As was shown in last year's report, your corporation followed a most conservative 

 policy in marketing its 1919-1920 crop. During the summer of 1920 your corporation 

 sold ahead 400,000 bags and in January, 1921, 500,000 bags, or a total of some 900,000 

 bags of the 1920-1021 crop at an average of 7.6625c. f. o. b. per pound. These sales having 

 been made prior to the decree were not affected by the creation of the Sugar Finance 

 Committee, but after February 22, 1921, all unsold sugar came under the control of that 

 committee. 



Innumerable difficulties attended the disposal of the crop by the Sugar Finance Com- 

 mittee, which is fully explained under the Review of the Sugar Situation further on in this 

 report. As a result your corporation found itself at one period of the season with about 

 2,400.000 bags of sugar unsold. Because of these large holdings of sugar and of the low 

 prices received for such sugar as was sold, your corporation was compelled to become a 

 large borrower. At one time your corporation was borrowing as much as $18,000,000 by 

 means of acceptances against sugar. That amount has now been reduced to $13,500,000, 

 due January 30, 1922, against which there is now held by the trustee for the lenders 

 approximately $3,600,000 in cash and U. S. certificates of indebtedness, representing the 

 proceeds collected on pledged sugars sold and shipped. The proceeds of additional sales 

 already made and awaiting shipment, as well as cash still to be received from the Sugar 

 Finance Committee on account of sales will permit a further substantial liquidation of 

 the sugar acceptances outstanding. Your corporation now has unsold approximately 

 1,100.000 bags. 



During June your corporation was also compelled to increase its other borrowings to 

 $10,000,000, due October 1, 1922, against various Treasury assets. The officers of the 

 corporation have bent their efforts to meet the changed conditions and have instituted 

 economies in every direction both in Cuba and elsewhere, economies which under the 

 conditions of war and post-war production had not been possible. All construction and 

 betterment work was suspended and cash was conserved in every possible way, but in 



