THE CUB A RE VIEW 25 



There are no special regulations for the shipment of lumber to Cuba other than the 

 ordinary consular invoice requirements. 



Present Conditions in Cuba 



Since the crisis during the fall of 1920 the Cuban lumber trade has been almost stag- 

 Inant, in so far as new orders from the United States are concerned, and our exporters have 

 been chiefly occupied in settling their accounts and have been reluctant in granting any 

 additional credit to Cuban importers. There are still large stocks of lumber on hand in 

 the Cuban lumber yards, besides considerable quantities of rejected stocks left at the 

 disposal of the American shippers which cannot be returned to the United States owing 

 to prohibitive freight rates. However, the situation is greatly improved compared to 

 conditions at the beginning of 1921, and little by Uttle the rejected stocks are being dis- 

 posed of, but at greatly reduced prices, owing partly to the heavy drops in the lumber mar- 

 ket and partly to the fact that lumber has often been carelessly stored, and, being exposed 

 'to the elements, it has rapidly deteriorated. 



Lumber Prices Greatly Reduced 



Lumber which a year ago sold at $70 to $80 per thousand feet is now being disposed of 

 at from $28 to $30. During the last year a weeding-out process has been going on, which no 

 doubt has cleaned up the Cuban lumber import trade and driven certain undesirable elements 

 'out of the lumber import business. The remaining lumber importers are chiefly Spaniards, 

 who announce their determination to pay to the best of their ability what they owe. These 

 people generally managed to do a very satisfactory business at large profits during the war 

 and have large sums due them by local dealers and sugar mills all over the island. With 

 sugar selling now at from IJ^ to 2 cents per pound as compared with 20 cents or over a 

 little more than a year ago, it is evident that collection of these amounts at the present 

 time is an extremely difi&cult matter. The conditions of the sugar industry seem now to 

 have reached bottom, and nothing whatever would be gained by forcing the Cuban lumber 

 dealers or importers into liquidation or bankruptcy. 



Favorable Condition of Cuban Lumber Business 



' One of the largest bankers in Cuba, recognized as an authority on Cuban conditions, 

 ' expresses the opinion that there is no business in Cuba at the present time in so satisfactory 

 i a condition as the lumber business. The same authority states that, whereas it is usually 

 difficult for other industries in Cuba to obtain the necessary credit from the banks, the 

 lumber merchants of good standing are not placed in the same position. Everyone famihar 

 ;with conditions in Cuba to-day agrees that it would be very poor policy on the part of 

 American lumber exporters to bring expensive legal proceedings against their Cuban 

 debtors. The gain to the American exporters would be decidedly problematical, even in 

 apparently clear cases. It is apparent that in time the great majority of the lumber 

 I importers will be able to pay their debts, and that in the case of responsible firms all that 

 is needed is patience on the part of American creditors. Such cases should be intrusted 

 to reliable local agents or banks. 



Uniform Sales Contract 



What has happened during the last year will serve as a warning to American lumber 

 exporters, indicating the necessity for more care in the future in the selection of agents 

 and connections in foreign countries. Every important transaction should be covered 

 by a contract. Many dealers express the belief that American exporters should confer 

 with Cuban importers regarding the establishment of a uniform sales contract. Certain 

 interests advocate an arrangement whereby lumber exporters in the United States would 

 select an American representative of recognized impartiality by exporters and importers, 

 this representative to reside in Cuba, and whose duties would comprise the adjustment of 

 claims in regard to quality and quantity on lumber shipments from the United States. 



