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THE MERCHANTS ASSOCIATION
OF NEW YORK
REPORT ON CUBA
By H. D. DUMONT
Delegated to visit that Island for the
purpose of investigating the Economic and
Commercial Conditions now prevailing.
Second ºdition, Alſtºy, , 9.3.
THE MERCHANTS’ ASSOCIATION
OF • NEW YORK


Report on Cuba
* Y BY
H. D. DUMONT
, Delegated to visit that Island for the purpose of
2nvestigating the Economic and Commercia/
Conditions now prevailing.
Second Edition, May, 1903.
//C
/57
, C.9
INDEX TO SUBJECTS.
- Page
GENERAL SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
GENERAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
TABLES IMPORTS AND EXPORTs. . . . . . . . . . . . . . . . . . . . . . . . 12
CREDITS AND COLLECTIONS, FINANCIAL CONDITIONS. . . . . . 14
BANKS AND CURRENCY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
TRIP OVER ISLAND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
LANDs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
MINERALS AND TIMBER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SUGAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
TOBACCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
CIGARS, COFFEE, CACAO. . . . . . . . . . . . . e s e s e e s e e s a e e s e o e e 28
CoRN, RICE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
POTATOES, VEGETABLES, CATTLE. . . . . . . . . . . . . . . . . . . . . . . . 30
CANNED MEATS AND PINEAPPLES. . . . . . . . . . . . . . . . . . . . . . . 31
BANANAS AND ORANGES... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
CUBAN GoverNMENT, PAST, PRESENT. . . . . . . . . . . . . . . . . . 33
CUBAN REVENUES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
CUBAN MUNICIPAL GOVERNMENTS. . . . . . . . . . . . . . . . . . . . . 37
SCHOOLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
LABOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
PREFATORY.
T the regular meeting of the Board of Directors of the Mer-
chants’ Association of New York, October 3, 1902, a com-
munication was presented suggesting that the Association send a
representative to Cuba, to study there, at first hand, the natural
conditions pertaining to its commerce, in order that the Associa-
tion might be thoroughly equipped to take an active part in
endeavoring to obtain for Cuba just reciprocal trade relations with
the United States.
After consideration the following resolution was unanimously
adopted :
RESOLVED, That it is the sense of the Board that a repre-
sentative of the Association should be sent to Cuba in the
near future, but that the whole matter be, and hereby is, left
to the discretion of a committee of three to be appointed by
the chairman, said committee to have full power to act.
In conformity with the foregoing resolution, Vice-President
Juhring appointed the following members of the Committee on
Cuban Conditions: Messrs. John C. Eames, chairman; Gustav H.
Schwab and William F. King. The committee reported March 2d.
TO TIIE BOARD OF DIRECTORS:
Your Committee on Cuban Conditions beg to report as
follows:
Under the authorization given to this committee by the
Doard of Directors, at a meeting held October 3, 1902, we
appointed Mr. H. D. Dumont to go to Cuba to make a per-
sonal investigation of conditions there. Mr. Dumont first
went to Washington and talked with the President and other
officials concerning the nature of information desired in re
Cuban reciprocity.
On October 23, 1902, Mr. Dumont sailed for Cuba and
made as extensive a tour through the island as his limited
time would allow, and reached New York December 24.
Since then he has made six trips to Washington on busi-
ness connected with the passage of the Cuban Reciprocity
Treaty now before Congress. Mr. Dumont has reported to
this committee quite fully respecting his trip to Cuba. His
5
report contains a great deal of information on varied subjects
concerning Cuban conditions. We believe that the informa-
tion which he gained while in Cuba has been of inestimable
value to him in Washington in arguing in favor of the pas-
sage of the Cuban Reciprocity Treaty.
Respectfully submitted,
JOHN C. EAMES, Chairman.
Mr. Dumont's report on Cuba had been previously printed and
advance copies sent to Senators and Representatives while the
Cuban Treaty was under consideration. Mr. Dumont was in con-
stant attendance upon Congress from early in January until the
conditional acceptance by the Senate of the Treaty, about the mid-
dle of March, during which time he personally presented to most
of the Senators the facts observed by him in Cuba. The valuable
results of Mr. Dumont's earnest labors in behalf of the Reciprocity
Treaty are attested by personal letters addressed to him by Presi-
dent Roosevelt and Senator Cullom, Chairman of the Senate Com-
mittee on Foreign Relations, who in large degree attribute the
favorable vote upon the Treaty to Mr. Dumont's intelligent pre-
sentment of the business conditions in Cuba and their relation to
the United States.
In view of the fact that action by the House of Representatives
at the next session of Congress is required for the final ratifica-
tion of the Cuban Reciprocity Treaty, this second edition of Mr.
Dumont's report is printed for general distribution throughout
the United States to inform the people of the conditions in Cuba
so far as they relate to reciprocal trade relations.
REPORT ON CUBA.
To the Officers and Directors of The Merchants' Association of
New York.
Gentlemen:
URSUANT to your directions, I have made an examination
into the economic conditions now prevailing in Cuba, visit-
ing for that purpose some cities of the country districts of all
the provinces of the island. I preface my report with a general
summary and statement of my conclusions, and follow with a
detailed statement of the conditions which came under my per-
sonal observation, or of which I learned by extended and careful
inquiry.
GENERAL SUMMARY AND CONCLUSIONS.
HE economic prosperity, and, to a great extent, the political
stability of Cuba depends upon reciprocal trade between
that country and the United States. In order to effect this there
needs to be political action on the part of both countries for the
adjustment of tariff duties.
First: As between the United States and Cuba :
It is necessary that Cuban sugar and tobacco should be
admitted into this country at a very much lower rate of duty
than the present rate, thereby affording Cuba a profitable market
for her principal products, and giving this country the benefit of
natural prices on two great Staples.
On the other hand, the manufactures of the United States
should be admitted into Cuba on a basis of tariff duties which
would insure to Cuba the customs revenue indispensable to the
support of its government, and which would likewise insure to
7
the United States a profitable market for its manufactured
products.
Second: As between Cuba and nations other than the United
States:
For Cuba to equalize, by means of compensatory rebates, the
artificial conditions which now tend to disqualify the United
States from competing for the Cuban trade on a basis of equality.
Cuba's prosperity depends on finding a profitable market for its
sugar and tobacco. Cuba can find an ample natural market for
its sugar product in the United States, in which market that
product is now depressed by a high protective duty, which not
only excludes the foreign product, but has created and sustains
a domestic monopoly which exacts an excessive price from this
entire nation for the benefit of the few.
The proposition is that we shall give Cuba prosperity and
benefit ourselves by modifying the laws which exclude her from
the markets of the United States, her natural and only profitable
market. The counter-proposition is that Cuba shall compensate
us and benefit herself by modifying the artificial conditions
which operate against us in the Cuban market. The United
States maintains a high tariff for protection. Cuba maintains
a high tariff for revenue, and cannot support a government
without it, under the present conditions. The United States
can promote trade with Cuba by abolishing or lowering duties,
but Cuba cannot reciprocate by an equal reduction. It must
raise a revenue by placing a tax on imports, whether from the
United States or elsewhere. As an equivalent for concessions
from the United States to Cuba a considerable rebate from the
Cuban tariff duties on products of the United States would be
effective. Such a rebate would promote the sale of American
products in Cuba without lessening the Cuban revenue from
import duties, provided the latter were sufficiently high.
The duty on leaf tobacco being $1.85 a pound on the wrapper,
and 35 cents a pound on the filler, there is an incentive for the
importation of wrappers declared as fillers. The difference of
$1.50 a pound between these two grades of tobacco is a temptation
to dishonesty, and I would advise a reduction in the tariff to 35
cents a pound on all grades of leaf. This I would consider an
advantage to the Small farmer” in Cuba as well as to the manufac-
turer and consumer in the United States.
*Wherever the term farmer is used it indicates either a rentel or a small land-
holder who does not convert, but sells, his product.
8
The reduction on cigars should be at least 50 per cent. of the
specific duty, making it $2.50 a pound and 25 per cent. ad valorem.
The reduction on cigarettes should be at least 70 per cent. of the
specific duty, making it $1.35 a pound, and 25 per cent. ad
valorem. This latter should be protection enough for the cigar-
ette trade of the United States, without entirely barring out
cigarettes made in Havana.
The duty on sugar should be reduced at least 30 per cent. ; and
even with this reduction the small farmer in many places on
the island would not be able to make any money. The suffering
in Cuba would have been very much less, both financially and other-
wise, if the United States duty in the last few years had been
at least 30 per cent. lower. Such a reduction during the period
of small crops and low prices would have materially aided the
farmers.
Complaint is general that the merchants and manufacturers of
the United States do not study the conditions and requirements
of the Cuban market, whereas European merchants keep them-
selves constantly informed on this point, and show the utmost
readiness to meet the buyers' views. Attention to this condition
is secondary in importance only to the changes suggested in the
tariff. With due regard to this essential and favorable tariff con-
dition, I believe that our export trade to Cuba can soon be
increased by at least $20,000,000 per annum, and very likely a
much larger annount.
There are many conditions in regard to labor, etc., which
are very important factors in considering the general conditions
of the country. These are stated in the general report which is
lmerewith submitted.
GENERAL REPORT.
N accordance with the request of the committee appointed by
| your Board of Directors, I sailed for Havana on the 23d of
October, arriving there on the 27th, and left the island for home
on the 29th of November, reaching New York on the 2d of
December.
The instructions of your committee were that I should, by per-
sonal observation and inquiry in Cuba, fully inform myself as
9
to the past and present conditions of Cuba's principal industries
and foreign trade, as well as acquaint myself with laws now in
force which affect the economic conditions.
With this in view, on my arrival I presented the letters of
introduction given me by the Secretary of State, Hon. John
Hay, to our United States Minister, Hon. H. G. Squiers, and to the
United States Consul-General, Hon. Edward S. Bragg. Through
our Minister I was presented to the Hon. Tomas Estrada Palma,
President of the Republic of Cuba, who expressed to me his
desire to aid me, as the representative of The Merchants’ Associa-
tion of New York, in every way possible. Our Minister also
gave me all the assistance in his power to enable me to collect
the data necessary for my investigations. I presented the
many letters of introduction which I carried with me from New
York to some of the leading bankers, merchants, planters and
lawyers of Havana. These gentlemen, without exception,
extended to me a most cordial greeting, and expressed the desire
to help me in every possible way to get accurate knowledge of the
conditions existing in Cuba.
As the result of my conference with the men engaged in the
leading commercial interests of Havana and other cities on the
island, I am convinced that in order to increase the trade between
the United States and Cuba it will be necessary, in the first place,
to establish a differential Cuban tariff in favor of the United
States, granting sufficient concessions to permit our manufac-
tures, in many classes notably superior to any other, to be placed
in the Cuban market.
Three invoices are required to clear merchandise without delay.
Invoices are required to express in detail the merchandise, and
to specify the number of packages, their marks and numbers,
and the gross and net weight.
I was informed that in the European markets a system of
short weights and measures prevail, that goods are put up in this
way by order of some of the Cuban merchants, and that
European manufacturers are accustomed to send several
invoices for the same goods, each invoice giving a different price,
leaving it open to the Cuban customer to choose which invoice
to use in passing the goods through the Custom House. This sys-
tem of fraud, which was employed before the establishment
of the United States Government Customs, has been largely done
away with through the efficient management and discipline in
the Customs Department that were adopted by the American
10
Government, and are now being continued in force by the Cuban
Government.
A great objection to trading with the United States is
Our System of credit. Large Cuban merchants sell to smaller
merchants on thirty days’ time. Goods sold to planters are to be
paid for after crops have been sold. The merchants state that these
accounts run from three to twelve months, and that it is necessary
to be very lenient with their customers. Large merchants can buy
their goods in the European markets on from three to six months’
time, in Some cases adding 5 to 6 per cent. interest per annum,
or # per cent. per month allowed on advance payments, while
the average credit given by United States merchants is thirty
days' time, or cash, on sight draft with bill of lading attached.
European merchants are very accommodating where debtors wish
the time extended.
The loss to the United States in the exportation of machinery
to Cuba is due largely to delay in the delivery, coupled with
excessive freight charges. Machinery ordered for sugar
mills must be put up and in operation when the crop is ready
to be moved. If the planter is delayed in going forward with his
work a large loss ensues. Parties who have heretofore purchased
large amounts of machinery from the United States inform me
that it is now impossible to make time contracts for the delivery
of the same. They further state that not only do European
manufacturers contract and deliver machinery on time, but they
also give more favorable terms of payment, and the freight,
moreover, is much less from Europe than from the United States.
There seems to be considerable complaint throughout the
island against the high freight charges on all kinds of goods
from the States. This is assigned as one cause why American
manufacturers receive few orders.
Everywhere on the island, in every town and city, I found
agents representing merchants of England, Germany, France and
Spain. In some places I was shown orders placed in Germany
for goods similar to those made in the United States. The mer-
chants told me that they had purchased them for less money than
they could have bought them in the United States. Besides,
the credit extended was much more liberal than that given by
American merchants. They also averred that articles purchased
were almost equal in style and finish to those made in the United
States. If the merchants and manufacturers of the United States
do not soon awake to these conditions, they may wait until the
11
door is closed and the trade lost, for Cuba is bound to be a rich
and great country. The very best way to obviate this difficulty
and turn the tide of trade toward the United States would be a
compensatory treaty which would admit of mutually beneficial
commercial intercourse between the United States and Cuba.
There does not now exist among the merchants and people
of Cuba as much desire to enter into reciprocal arrangements as
would have been entertained before or shortly after the commence-
ment of the new government.
IMPORTS AND EXPORTS.
HE United States Consular Reports show Cuba's total exports
and imports for each period of six months during the years
1899, 1900, 1901 and 1902. These official figures are as follows:


I & º
Year. Imports. Exports. ºn iºn
1899
First six months. . . . . . . . . . . . . . . . . . . *$35,911,800 | *$31,600,600 | * $4,311,200 |....... . . . . . . .
Second six months. . . . . . . . . . . . . . . . . 39,391,700 19332,100 20,059,600 | . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . $75,303 500 $50,932,700 || $24,370,800 |..............
1900.
First six months... . . . . . . . . . . . . . . . . $37,478,200 $30,066,600 $7 411,600 | . . . . . . . . . . . . .
Second six months. . . . . . . . . . . . . . . . . 32,601,100 21,385,800 11,215,300 |. . . . . . . . . . . . . t
Total . . . . . . . . . . . . . . . . . . . . . . . . . $70,079 300 $51,452,400 $18,626,900 | . . . . . . . . . . . . . .
1901.
First six months. . . . . . . . . . . . . . . . . . . $33,663,800 || $42,942,500 | . . . . . . . . . . . . . . *$9,278,700
Second six months. . . . . . . . . . . . . . . . . 34 089,300 4-ºxºsºm- 23,559,600 $10,529,700 | . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . $67,753,100 $66,502,100 $1,251 000 | . . . . . . . . . . . . . .
1902.
First six months. . . . . . . . . . . . . . . . . . . $31,977,100 $30 687,000 $1,290,100 | . . . . . . . . . . . . .
Grand total. . . . . . . . . . . . . . . . . . $245,113,000 || $199,574,200 $45,538,800 |....... . . . . . . .
* The values are given in United States currency.
The first six months of 1902, compared with the same period
of 1901, show a decrease in imports of 5 per cent., and in exports
of 28 per cent. Compared with the same period of 1900, a
decrease is shown in imports of 15 per cent., and an increase in
exports of 2 per cent.
The United States had 44 per cent. of the import trade and 74
per cent. Of Cuba's export trade, while practically all of Cuba's
sugars and fruits exported during the month of June found a mar-
ket in the United States.
12
Of the tobacco exported in that month, over 50 per cent. came
to the United States. We supplied almost all of the wheat, flour,
corn, crude oil and meats, with the exception of jerked beef,
imported by Cuba. The latter article is supplied from South
America, because of lower prices. It will probably be impossible
for the United States to sell this article or anything similar to it.
Canada supplied most of the potatoes, ham, onions and butter,
all of which should come from the United States, or be supplied
by the home market.
In live stock the trade with the United States should be
largely increased. It undoubtedly will be as soon as Americans
become interested in the cattle, horse, goat, and other live stock
industries on the island. There should also be an increase in the
iron, steel, lumber and soap trades with the United States.
The importations of merchandise by Cuba for the month of
June for the following years, were as follows: 1899, $5,242,066;
1900, $5,747,388; 1901, $5,137,708; 1902, $4,831,077.
The exports for the month of June for the same years were
as follows: 1899, $4,473,167; 1900, $5,051,810; 1901, $5,435,-
986; 1902, $5,722,574; showing an increase in 1902 of over one
million dollars over the year 1899.
A careful review of the articles imported by Cuba shows that
at least 30 to 40 per cent., in addition to those already supplied
by the United States, could, without doubt, be sold by the mer-
chants and manufacturers of this country, if United States prod-
ucts received a compensatory rebate upon Cuban tariff duties, as an
equivalent for similar tariff concessions by the United States in
favor of Cuba.
For example, consider the imports for the month of June,
1902, amounting to $4,831,077. There were $1,477,086 of tex-
tile goods, manufactured leather goods, paper and paper mate-
rials and live stock, being about 30 per cent. of the whole imports
for the month, and of this 30 per cent. the United States supplied
$304,935, or about 22 per cent. of this amount. With a protective
tariff of from 20 to 50 per cent. in favor of the United States,
placed on these articles alone, the United States should furnish at
least 80 per cent., and some merchants say 90 per cent., or about
$900,000 to $1,000,000 additional to what we at present supply in
these four articles, and this month represents one of the smallest
for importations during the year. This, also, is not taking into
consideration the additional trade which will necessarily come
13
from the increase in population, which will, undoubtedly, be very
large in a few years.
CREDITS AND COLLECTIONS.
NOTHER inportant factor in the commercial relations is
the question of credits and the method of collecting
accounts. Reliable merchants and bankers tell me that commer-
cial credits are based in very large degree upon honesty, business
integrity and opportunity; and that financial resources are a sec-
ondary consideration. The reason is that under the Spanish code,
in all Spanish-American countries, the law favors the criminal
and the debtor, and if a man, therefore, however rich, is disposed
to quibble or invoke legal technicality, he may bother, if not defeat,
his creditor. Hence personal character becomes of the first im-
portance in credits. If a man is inclined to be dishonest, it is
difficult to collect an account through the courts. If the account
is small, it will cost more to collect it than the amount of the
account, Owing to the system of fees which it is necessary to pay
to the court. In case of suit, the complainant must deposit the
money for costs.
If a note is taken in settlement of an account, in order to com-
mence suit thereon, the account must be proved from the cred-
itor's books; and the signature of the note must be proved by
three outside witnesses, no employee of the creditor being a com-
petent witness. A creditor is also compelled to have all ledgers,
journals, cash, inventory and salesbooks made up in a certain
way, prescribed by law; these books must be registered, and
every page stamped by a Justice of the Peace. If this is not done
they will not be received as evidence in the courts.
To remedy these defects, a number of lawyers are now
engaged in framing a chattel-mortgage law, whereby moneys
loaned or advanced on goods can be collected without delay.
This they hope to have passed by the Cuban Congress.
FINANCIAL CONDITIONS.
FOUND the financial condition of Cuba, in all sections of the
island, to be very bad. This condition is due to the low price
of sugar for the last three years, and losses by bankers and mer-
chants through debts due from planters and merchants, which had
14
been incurred before or during the last war. The volume of mort-
gages on plantations is greater now than ever before in the
history of the island, and merchants and bankers have been
strained to the last point of endurance to carry these debts. It is
remarkable how few failures have occurred under these con-
ditions. This can only be ascribed to the faith the large mer-
chants and bankers of Cuba have in the future possibilities of the
island. They know that if they receive any fair price for their
commodities, they will very soon be able to pay off their debts
and be on a firmer footing than they have been at any time in the
past. The failures on the island, as reported to me by Mr. Mer-
chant, the Cuban manager of R. G. Dun & Co., from July 1, to
October 30, 1902, were fifty-nine, with liabilities of over two mil-
lion dollars. The failures which occurred within that time are
greater, as to the liabilities, than those which occurred in the
entire two years previous to that time. This shows the present
condition of the merchants in Cuba. Of the failures which oc-
curred in the last eighteen months, thirty-three were in eight
towns of the tobacco district of Pinar del Rio, an indication of the
bad state of financial affairs in the tobacco district of that section
of the island.
BANKS.
HERE are a number of banks and banking houses in
Havana, besides agencies of Canadian banks. The princi-
pal banks are the Spanish Bank and the National Bank of Cuba,
which have agencies in the important cities throughout the
island. Large deposits are made in many of the private banking
houses, but the Bank of Spain is the largest depository in
Havana.
The rate of interest charged by the National Bank of Cuba
is from 7 to 12 per cent. on loans, made either on personal knowl-
edge of the man or firm to whom the loan is made, or on
two-named paper of parties who are both well known. Most
of the other banks or bankers have no limit as to the rate of
interest. There is no law compelling banks to make statements,
but the National Bank of Cuba and the Spanish Bank issue state-
ments voluntarily. The latter bank is the only bank of issue in
Cuba.
It is impossible to secure any reliable statement of the amount
15
of gold, silver and currency in circulation in Cuba, owing to
the old system of hoarding money, and not depositing it in the
banks, which custom is still very largely followed by merchants
throughout the country. Except in Havana and Santiago very
few checks are received in exchange, but gold or currency is
counted out. Some of the large concerns carry from $100,000
to $200,000 in gold in their safes. Even the Government hoards
its money and does not deposit it in banks, as is done in our
country. This, of course, curtails the circulation of money. A
law providing for the public examination of all banks to be made
by some Government official appointed for that purpose would be
useful. This might induce a larger volume of bank deposits, as
it would assure the depositors of the financial standing of the
Several banks and result in circulation of the money now hoarded.
It would be beneficial if the Government were to take imme-
diate steps to change the currency. The following statement by
a well-known banker truly expresses the situation in this connec-
tion: -
“A change in Our currency is an absolute necessity. Chaos
is a fit word to describe our present situation. Some places in
the island have as a standard United States currency exclusively;
the greater part, however, continue under the old Spanish
gold and silver currency, to which is added an important amount
of French gold, and also United States gold and silver coins and
bank notes, resulting in utter confusion, and harm to trade, com-
merce and industry. The change is a great necessity, and
unless the Cuban Government establishes its own standard, taking
into consideration the prevailing official basis, the currency of the
United States should be adopted, but with prudence, that we
may save the country from another convulsion, after the re-
peated and remarkable changes just elapsed.
“As you are aware, small payments are made in Spanish sil-
ver, the dollar value of which is about 70 cents United States
currency, and if this were withdrawn without preparation a
considerable increase in the cost of living would be felt imme-
diately, especially in the country districts. A proper time for
the change would be, for instance, after our main crops' seasons
are over, say about the first of July.”
These varying conditions affecting the circulating mediums
of the island cause considerable loss to the laboring men, espe-
cially on the western end of the island, where the several varieties
of currency are most used.
16
TRIP OVER THE ISLAND.
FTER spending two weeks investigating. conditions in
Havana, I started on my examination of the situation in
other places on the island, visiting many cities. I soon found the
work laid out would not permit me to reach all of the principal
places in the short period of time at my disposal. To make the
investigations desired on an island 730 miles long, with an aver-
age width of 80 miles, would have required at least two months’
time, as the means of transportation at present are mostly by
Steamboat to connect with the different ports on the island.
One cannot stop at any port without losing five days between
the sailing of boats. I was, therefore, compelled to restrict my
visit to Havana, Pinar del Rio, Matanzas, Cienfuegos, Man-
zanillo, Santiago de Cuba, Guantanamo, Puerto Principe and
Santa Clara, and even this could not have been done except for
the courtesy extended to me by Sir William Van Horne, who
provided a special train for my return from Santiago to Santa
Clara over his railroad, just completed.
There are about 1,900 miles of railroad on the Island of
Cuba, of which less than 1,400 are for public passenger and
freight service. This mileage includes the new Cuba Railroad.
The remainder, about 500 miles, is owned by the sugar estates,
but can be used for public as well as private purposes. The prin-
cipal lines of railroads have been built in the provinces of Havana,
Pinar del Rio, Matanzas, and the western part of Santa Clara.
The service on these roads is usually a train a day each way.
Most of the lines giving public service are owned by English
capital, having been purchased since the close of the last war.
They have first, second and third class rates for passengers, the
first-class rate being about five cents a mile.
The only other transportation facilities are furnished by dif-
ferent steamship lines around the island. The Ward Line, with
boats sailing twice a week; the Munson Line, with boats leaving
Once a week, and the Peninsula & Occidental Line Operate
between United States ports and Havana. The Menendez Line
runs steamers from the principal points on the South coast, sail-
ing twice a week; and the Herrera Line runs steamers to the
different ports on the north coast around to Santiago de Cuba, on
the south coast, one steamer sailing every ten days from Havana.
The greatest enterprise thus far undertaken on the island has
been the building of the Cuba Railroad, from Santa Clara to San-
17
tiago, a distance of 350 miles. The charter for a road between
these points was obtained many years ago by a French syndicate.
The necessary survey was made, but the road was never con-
structed. About three years ago Sir William Van Horne, former
president of the Canadian Pacific Railroad, with some of his
friends, obtained the rights which enabled him to build this road,
the main line of which was finished a few days before I left the
island. He has obtained rights of way for various branches to
important places throughout the length and breadth of that part
of the island. The construction of the road to some of these
places has been commenced.
It was a great privilege to be enabled to pass through a coun-
try which had never been traveled even by many of the oldest
inhabitants of the island. The building of this road will do very
much for Cuba's development and prosperity. It opens up an
extensive timber country, to the great benefit of the owners of the
land, as well as the commercial interests of the island. These
lands, when cleared, have proved to be the most productive for
all kinds of farming purposes. This company, having bought
large tracts along the line of the road, intends to establish an
experimental bureau to find out to what the lands are best adapted.
The timber lands extend for over one hundred miles along this
line. In them are found all the principal varieties of timber trees
indigenous to the island.
The road also runs through about two hundred miles of the
finest pasture lands on the island. Before the Ten-Year War
many large herds of cattle were kept on these lands. After the
experiments have been made by the company, they purpose selling
the lands to small farmers. This will give an opportunity for
the immigration of people from the United States who desire to
obtain a home where there are no frosts and where the climate
is all that one could desire.
The principal points of interest on the railroad, after leaving
Santiago de Cuba, are Crispo and San Louis, in the vicinity of
which there are several large sugar plantations. At Nipi Junc-
tion, fifty miles from Santiago, a branch is being built to Nipi
Bay, on the north coast. This bay is said to be one of the finest
harbors on the island. From this point this company expects to
make shipments to the United States and Europe of all the timber
and other products raised in that portion of the island adjoining
the railroad and nearest to this point.
18
In the vicinity of Nipi are some of the largest sugar plan-
tations on the Island of Cuba.
The next point is San Pedro, twelve miles from Holguín, from
which latter town there is a line of railroad running to the port of
Gibara, another important place, near which there are some ex-
tensive sugar plantations. -
In the city of Puerto Principe, the capital of the province of
Puerto Principe, which is about two hundred miles from Santiago
by this line, I predict will be found in a very few years the homes
of many wealthy families of the United States. The country
round-about is rolling, dotted with royal palms, and the scenery
is picturesque and attractive. The lands are most fertile for all
kinds of tropical fruits. This is the center of the most extensive
pasture land district of the Island of Cuba. Undoubtedly it will
be much used for pasturage in a very few years.
The Cuba Railway crosses the Jucaro and San Fernando
Railroad (which belongs to the Government) at a town called
Ciego de Avila. The Government road was used by the Spanish
troops during the occupation of the island. It has been leased
by the Cuba Railroad Company.
From this point one travels through pasture lands to the line
between the provinces of Puerto Principe and Santa Clara. From
a few miles beyond this point to Santa Clara 9ne again passes
through numerous sugar estates located on the line of the road,
one of which, the Colonia Maria, is one of the largest on the
island. Santa Clara is the terminus of the road. At that point
the line connects with the road running into Havana, over which
it has arrangements for through traffic, both passenger and freight.
In traveling over the island it is plain to be seen that one of
the greatest necessities is that the Government should build first-
class highways at different points across the island, as it is almost
impossible during the rainy season to travel or carry on traffic
over the present highways. Good roads would tend to open up
the unused lands and make them available to immigration; and
would thus tend to promote the development of the island.
LANDS.
HE Island of Cuba contains about twenty-eight million acres
of land, twenty millions of which are uncultivated, and
about thirteen millions covered with forests. A little over two
million acres have been used for sugar cane, while less than one
million acres have been used for the raising of tobacco.
There are comparatively few public lands in Cuba whose titles
are known to be in the Government.
In many parts of the island there are large tracts of land
which have never been used, the titles not having been accu-
rately settled. Nothing of greater advantage could be done by
the Government than to make a public survey of the lands, lay
them out in square-mile sections, and have all titles proved up
under this survey. A suggestion looking toward this was made
by Sir William Van Horne to General Wood when the latter was
Military Governor of the island. -
As a rule the limits of the old Spanish land grants are illy-
defined. An accurate Government survey would delimit them in
large part, and establish Government titles to large tracts whose
ownership is now obscure. Some equitable and uniform system
for defining limits and titles, and thereby removing the present
hazard attending land transfers could doubtless be devised, and
would do much to further the general sale of cheap Government
lands to small holders—an essential to the influx of new and pro-
gressive population. All disputed titles could be settled by making
the Government trustee for the unknown owners. The Govern-
ment could thus give title by accepting the money in trust in case
of a sale, and holding the proceeds for the one proving title, or by
assessing all lands and selling them under tax sales, by which
latter means a perfect title could be obtained.
Several companies have purchased large tracts of land in
different portions of the island, are now surveying them,
and purpose making experiments in raising cotton, tobacco and
all kinds of cereals and products not heretofore raised on the
island. When they have learned what can best be produced, they
intend to sell the land to small farmers or planters who may come
from different parts of the world.
There are a number of so-called “wildcat” schemes being pro-
moted on the island. Agricultural bureaus and experimental sta-
tions in the different parts of the island would assist legitimate
20
enterprises and stop all of these schemes, by giving reliable infor-
mation as to the actual conditions, thus protecting the small
investor, who has so often been defrauded of his money by mis-
representation. - !
MINERALS.
HE mineral resources of the island have not been extensively
explored. It is known that there is copper in the mountains
all over the island, but whether in paying quantities has not yet
been developed. There is also iron, lead, gold, silver, manganese,
asphaltum, salt, bituminous oils, sulphur, quicksilver and marble.
The marble is found in a very fine quality on the Isle of Pines.
The principal mining industries at the present time are located
near the city of Santiago de Cuba, where the iron and copper
mines employ about two thousand men. It is said that these
properties are run at a profit. Manganese is also mined at a
profit. It is said that a number of beds of asphaltum have been
discovered in the province of Santa Clara, and that such beds
exist in other provinces on the island. All these are open for
future development. -
TIM BER.
THE Island of Cuba has large forests of timber, the principal
woods being mahogany and cedar. There are, however, many
other hard and durable woods suitable for building trimmings,
veneering, etc., but the tariff operates against the exportation of
manufactured lumber to the United States. Last year there
were shipped to Europe from the port of Manzanillo over seven
million feet of mahogany and over ten thousand tons of other
woods. The Cuba Railroad will do much toward helping this
industry, if favorable reciprocal arrangements are made with the
United States. -
21
SUGAR.
HE sugar industry of Cuba is the dominant one of the island,
and will continue so for many years. The principal sugar
producing areas are in the provinces of Pinar del Rio, Havana,
Matanzas, Santa Clara and Santiago de Cuba. At the present
time the great mass of sugar comes from the Matanzas and Santa
Clara provinces, although the largest plantations are located in
the province of Santiago de Cuba.
Throughout the island I found a great many abandoned sugar
estates. Those located in the central portion of the island, espe-
cially where the lands are old, do not pay under the present con-
ditions, because the lands have to be fertilized, which adds
greatly to the cost of production. The additional cost of getting
the cane to the mill or to shipping points also increases the ex-
pense. The yield per acre of cane falls So much below the yield
of the lands which are adjacent to and near the coast, that it is
impossible to make them pay at the present prices of Sugar.
The sugar-cane industry throughout the island has suffered
greatly from different causes, but the past history of it, as gath-
ered by me, is proof that the present conditions are not entirely
due to last year's low prices of sugar, but to other factors which
are hereafter referred to.
This industry was established in Cuba during the first quarter
of the last century, at which time coffee cultivation was abandoned
for the more profitable cultivation of sugar-cane. The same
methods of producing Sugar continued until the last quarter of the
last century. Then an important change in the industry was made
by the general Substitution of steam (which had been but little
used up to this time) for horse-power for operating the
sugar mills. Open sugar-cane trains are used. Muscovado
sugar and a high grade of molasses were produced. Negro slaves
were employed. Some plantation owners hired the slaves, who were
paid from $17 to $20 in Spanish gold monthly, with food. The
average plantation was worked by from two hundred to three
hundred slaves—men, women and children. The price of sugar
was as high as 8% cents a pound. A hogshead of molasses was
worth as much as $30 in Spanish gold. Each plantation cultivated
its own sugar-cane. The average yearly output of a plantation
was about 1,000 hogsheads of sugar of 1,500 pounds each, and
333 hogsheads of molasses, with 175 gallons to the hogshead.
22
In 1880 slavery was abolished, subject to a plan of gradual
emancipation. A system of colonias (sugar-cane farmers),
Separate from the sugar estates, which estates became known as
centrales, was initiated at this period. About 1885 the rail-
ways commenced transporting sugar-cane from distant col-
onias to the centrales along the line. Private branches were also
built and became general, connecting the public railways with the
mills.
About 1885 green bagasse' furnaces were introduced. These,
together with the double grinding-mills for crushing the cane,
represent the last steps of progress in the improvement of the
Cuban sugar industry. The double grinding of the cane increases
the extraction of the juice from about 56 to 68 per cent. (and
sometimes more) of the weight of cane. The bagasse furnace did
away with the handling of the green bagasse, which had thereto-
fore to be dried in the sun. Labor at that time was paid from 60
cents to $1 a day. Cartmen received as much as $34 a month,
Spanish gold.
After the Ten-Years’ Rebellion (1868-1878), the ownership
of lands and sugar estates, which until then had generally been
held by Cubans, in great measure passed over to the Spaniards.
This ownership continued until lately. The cause of this may
be attributed principally to the abolition of slavery.
The great disturbance in conditions in Cuba was due to the
emigration of wealthy families, the confiscation of their property
by the Spanish Government, and bad management of estates
and plantations consequent upon lack of ability and experience in
dealing with the new methods of business which were intro-
duced. The fall in the price of sugar was then about 3 cents
per pound, and at times it was even greater.
During the ten years preceding the last rebellion (1885-1895),
the new conditions required qualifications of a higher character
successfully to operate the sugar plantations. These new con-
ditions were improvements in sugar machinery, the system of
small farmers, the transportation of the cane by railways, and the
necessity of reducing the cost of production. The owners of
most of the estates and the managers employed were not capable
of efficiently dealing with the new situation. The old plantations
producing crops of a thousand hogsheads (5,000 bags) disap-
peared entirely. The new plantations produced from 20,000 to
1Bagasse is the sugar-cane after it has had the juice pressed out. It is now used
for fuel.
23
50,000, and sometimes 100,000 to 150,000 bags of sugar of 310
pounds each. To obtain this result a large investment of capital
was necessary. The mill owners were obliged to go heavily into
debt after having exhausted their own means. Lack of experi-
ence and technical knowledge were very often the cause of failure
in this regard. Large sums were unwisely invested, not only in
the injudicious purchase of machinery, but in advancing money
to small farmers, who failed to live up to their obligation to
use the money in planting cane. Sometimes a second rolling-mill
was put in without considering that other portions of the mill
would also have to be enlarged. To accomplish this would necessi-
tate borrowing additional money. The economical working of
a sugar estate depends largely on regular and continued work
during the grinding season. In effect the new conditions demand
better organization, a higher degree of technical skill, and
advanced scientific methods of manufacture. The owners of many
sugar estates in Cuba will not trust the management and working
of the estates to trained, technical hands. It is often a question
of pride with them. They usually have no technical knowledge
in mechanics, agriculture or matters pertaining to business. A
great many of them are lawyers, doctors, bankers and merchants.
The properties are placed in the hands of some relative or person
who has no knowledge of the methods necessary to conduct the
business. The result is failure.
One of the causes of a large or small crop, independent of
management, is the rainfall. A rainy season will give a large
crop if the rain falls at the right time. A dry season invariably
diminishes the size of the crop.
The invasion of the island at the end of the year 1895 stopped
the working of most of the sugar mills. The burning of the
sugar mills and cane fields continued until 1898. The advances
which had been made by the merchants and bankers to the
planters before the summer of 1895 could not be repaid.
The amount of money laid out for grinding was, therefore,
lost. The Weyler decree extending the foreclosure of mortgages
was a good measure, but the new extensions of that decree,
with modifications, did great harm to the credit of the sugar
planters. After the war, in 1898 and 1899, a great effort
was made on the part of the sugar planters to resume work.
Extensive planting of sugar cane was made, but owing to the
drought in the summer of 1899, the crop from the new growth,
which first matured in that year, was almost a complete failure.
24
The crop had been in 1895, 225,000 tons; in 1896, 212,000 tons;
in 1897, 305,000 tons; in 1898, 336,000 tons; in 1899, 300,000
tons. This drought was the hardest blow to the sugar industry
at this period, and delayed the possibilities of recuperation two
years. The crops of the following years, 1900–1901, were 636,000
tons, 1901-1902, 850,000 tons, but the price of sugar was very low.
In 1902 it went as low as 314 cents, Spanish gold, per arroba (25
pounds). These conditions in the past, coupled with the low price
of sugar in the last few years, explain the cause of the distress
among the merchants, planters and bankers in the Island of Cuba.
The man who is suffering the most is the colono, or small
farmer, as it is impossible for him to make any money with the
present price of sugar, or even with a small advance. In many
cases where I found planters were able to make money, it was at the
expense of the laborer, who worked simply for his living in order
to secure employment. Inquiry made of many plantation owners
as to the price of labor developed that the common laborer
receives from 40 cents in Spanish silver to as high as $1 a day
in American gold, varying as to location on the island.
I have made estimates from figures given me by planters in
various parts of the island, and have discovered that for the
colono to make any money, allowing him .5 per cent. of the
sugar extracted, which is more than an average allowance, he
would have to get at least $3 for 100 arrobas of cane delivered
at the mill.
The cost of production and milling varies, owing to the qual-
ity of lands, the location, the quantity of cane grown upon the
land, the percentage of yield from the cane, the question of
freights, lighterage, storage and other incidental expenses, which
make the absolute cost of the different plantations vary according
to the locality. For instance, in the vicinity of Santiago, fields of
cane were cut last year that had been planted thirty years ago, and
yielded a product of 40,000 arrobas to the caballeria,’ while in
other sections of the island cane only four years old will not yield
over 25,000 arrobas per caballeria. In some cases, the cane will
not last over four years, when the ground must be replowed
and the cane replanted. This is an item of expense varying from
$800 to $1,200 a caballeria. Another important item is the per-
centage of saccharine. Cane on new lands usually will yield a
larger tonnage but less percentage of sugar. The percentage
*An arroba is 25 pounds. 8A caballeria is 333 acres of land.
25
of sugar obtained from cane by the mills varies from 9 to 11;
or from 225 pounds to 290 pounds of sugar to a ton of cane.
This is attributed to the management of the mill, or to the quality
of the cane, or both.
I do not think that the sugar product of Cuba can advantage-
ously exceed two million tons, as the old lands are becoming so
impoverished that fertilization is necessary. This makes culti-
vation too expensive for profit. The substitution of new lands
located convenient to shipping points will not be sufficient to
make up for the loss caused by the necessary abandonment of
impoverished lands elsewhere.
TOBACCO.
HE second largest industry of the island is tobacco growing
and the manufacture of cigars. Tobacco is cultivated
principally in the provinces of Pinar del Rio, Havana, Santa
Clara and Santiago de Cuba, and to some extent in all of the
other provinces. Very little, except that raised in Pinar del
Rio, Havana and Santa Clara provinces, is shipped to the United
States, as that from other parts is of an inferior grade, not mar-
ketable here.
The finest grades of tobacco are grown exclusively in the
province of Pinar del Rio. According to the reports I received
from the merchants there, the majority of the small planters
have been wiped out of business through their indebtedness to
the merchants. A few years ago many small planters owned
their plantations of two and three caballerias. The land in this
section has deteriorated somewhat by the lack of proper fertiliz-
ing. The planters say that they cannot afford to fertilize, Owing
to the low price obtained for the leaf.
I believe that a reduction in the tariff on leaf tobacco to a
uniform duty of 35 cents a pound would be the means of very
materially assisting these small planters.
A considerable quantity of tobacco is raised and sold in the
Havana province, but it is not of the same grade as that pro-
duced in Pinar del Rio. In my opinion, the tobacco industry
cannot be increased very much, as the lands on which to raise
the fine grades seem to be limited to a certain section of country
in the Pinar del Rio district. -
Most of the crop raised in the province of Santiago de Cuba,
26
known as the “Yara” tobacco, is shipped to Germany. The
shipments of this grade of tobacco last year from Manzanillo
amounted to about 3,000,000 lbs., which sold at an average price
of 9 cents per pound.
The “Remedios” tobacco, considered the second best grade
cultivated in Cuba, is grown in certain sections of the Santa
Clara district. This tobacco is extensively shipped to the United
States. t
In the vicinity of Santa Clara most of the planters have been
compelled to abandon their places owing to the low price of
tobacco and the deterioration of quality, because of lack of fer-
tilizing.
At a place called Manicaragua, in Santa Clara province, there
is quite an American colony, whose members let their places to
Small farmers. Each man in the small farmer's family generally
cultivates about two and one-half acres. The people in this sec-
ticn are suffering very much, owing to the present low price of
tobacco. The owner calculates that one man can take care of
from twenty to twenty-five thousand plants. Labor in this sec-
tion is paid from 50 cents to $1 per day in Spanish silver. In
the cutting season some laborers earn $2 per day, but this high
scale of wages is only paid during a short season. The owners
of the land usually contract with the small farmers for its cultiva-
tion, and receive as rent one-third of the tobacco raised. The
owner also advances the money for living expenses or furnishes
the necessary food. For food advanced, he charges in Spanish
silver and collects in Spanish gold for the tobacco sold, which
makes a difference of 20 per cent. in favor of the landholder.
With the lands, the owner supplies the necessary tools, houses
and work animals. In Cienfuegos, the present prices of tobacco
raised in this locality are as follows :
First quality, $25 to $35 (Spanish gold) per cwt.
Second quality, from $10 to $15 (Spanish gold) per cwt.
Third quality, from $10 down (Spanish gold) per cwt.
At these selling prices the small farmer is losing money on his
crop. The first quality consists of from 10 to 40 per cent. of the
crop, dependent upon the soundness and size of the leaf, while
the second quality runs from 10 to 40 per cent. of the crop, both
together never amounting to over 60 to 70 per cent. of the entire
crop.
tºº-ºº. 2 . .
27
CIGARS.
HE cigar industry of the island, the annual volume of which
is estimated at about five hundred million cigars, one-half.
of which are consumed by the United States, would be very
much helped by a reduction in the tariff of at least 50 per cent.,
without causing any injury to the manufacture of cigars in the
United States, as the annual consumption of cigars in this country
is estimated to be in the vicinity of six billions. If we were to
take the whole production of the island of Cuba at this time, it
would amount to but one-twelfth of the quantity of cigars sold in
the United States. It would give American smokers a very fine
grade of cigar, now excluded from the United States and sent to
Europe because of our high tariff. I consider that this branch
of the Cuban cigar industry is injured by our high duty, without
benefit to our own trade, as I do not believe there are, in the
whole island, enough lands adapted to the raising of first-class
leaf tobacco to produce a quantity sufficient to materially affect
this country’s product. -
COFFEE.
EFORE the war of 1895, there were produced in the San-
tiago district over 200,000 quintales (1 quintale of coffee
represents 100 pounds), which brought from 14 to 20 cents a
pound. Before the Ten-Years' War, which began in 1868, there
were over 250,000 quintales a year produced. In this section of
the country there were about 7,500 quintales raised last year. The
coffee is sold at from 8 to 10 cents a pound. The quality of the
coffee is fine, but owing to the great development of coffee-grow-
ing in Brazil and the very low labor cost of Brazilian coffee,
Cuban planters are unable to compete. The production has, there-
fore, been very seriously decreased.
CACAO.
N the Guantanamo district cacao is now raised, and a very
profitable business in it could be done if the industry were
pushed, the freights to this country lowered, and the duty taken
off. I am informed that one caballeria of land devoted to the
cultivation of this product will produce from 120 to 150 quintales
28
N.
a year. The price ranges from 12 to 17 cents a pound. The
cost of cultivation would be about $1,000 a caballeria, but the
young plants reach maturity and become productive only after
seven years' growth. Most of the cacao plantations were
destroyed by the insurgents many years ago, and have not been
restored.
CORN.
ORN can be, and to some extent is, raised, but it does not
harden and will not keep as Northern corn. It is soft
and milky, makes good feed, and it can be grown in almost
every part of the island. It is claimed that three crops a year
are raised in some places, but two crops a year is the rule.
The American colony located at Manicaragua, in Santa Clara
province, raised corn as a counter crop with tobacco, taking two
crops a year off the land. There is not much profit, however,
because the laborer is not accustomed to utilizing American
methods of cultivation.
The corn is sold in the ear with the husk on by the thousand,
at from $2 in October to as high as $6 and $7 per M in April and
May, Spanish silver. Where the small farmer uses hired land
and plants corn, the owner gets one-third of the corn raised. The
crop is very uncertain, too much dry weather affecting it con-
siderably. One farmer stated to me that on twenty-five acres
he had raised 100,000 ears of corn. Fifty thousand he sold at
$5 per thousand. The rest he fed to the pigs. The next year
on forty acres he only raised 100,000 ears, the most of which
he had to feed to the pigs, as it was not of a marketable size.
RICE.
N the Santa Clara province district, as also in other portions
of the island, the cultivation of rice has been experimented
with, but so far it has been found that the cost of raising it is
more than the market price.
POTATOES.
WEET potatoes grow in abundance, and the yield is very
bountiful. Quantities of these are shipped to the United
States, but the profits are not very satisfactory.
VEGETABLES.
HE natural vegetables of the island, such as the malangas
and yuca, afford considerable profit to planters located
near villages or towns. One small farmer near Pinar del Rio
informed me that working mostly “after hours,” by moonlight,
he had raised on two acres a thousand arrobas of malangas, which
he sold at 50 cents an arroba. The same man told me that one
thousand arrobas of yuca could be produced on two acres. For
this he could obtain 25 cents an arroba. The soil throughout the
island is such that all kinds of vegetables can be raised, and it
seems strange that many vegetable products, such as Onions,
should be imported.
CATTLE.
NE of the greatest industries before the war was the raising
of cattle. It is said there were then over one million head
of cattle, but the devastation wrought by the Insurgent and
Spanish armies almost wiped out the industry. To revive and
encourage it, many people in the United States and other coun-
tries are shipping cattle into the country. The best grazing lands
are in the provinces of Puerto Principe and Santiago de Cuba.
Cattle fatten quickly, and their meat is very tender. The
grass grows abundantly, and is very nutritious. Four-year-old
cattle, costing $35 a head laid down in Manzanillo, are being
imported from Venezuela, Colombia and Mexico. In one year's
time, without any cost, except that of herding, the cattle will sell
for $43 a head. The loss by disease is very slight. If this
industry is properly fostered a very large export business from
Cuba may be done in a short time.
A number of American colonists have introduced innproved
breeds of cattle. They are so well satisfied with the results
that they intend to continue and increase their importations.
30
American horses are also being brought into the country.
Those who have made the experiment say that they are doing
well, and expect to work up a profitable business in that line.
Some few people are endeavoring to raise Maltese goats. It
is estimated that there are from ten to fifteen thousand goats on
the island. The average Maltese goat produces from four and
one-half to five pints of milk a day. The cost of a good milch
goat in Malta varies from $10 to $25. A number of Americans
are looking into this industry, with the idea of developing it
extensively.
CANNED MEATS.
OST of the canned meats now sold in Cuba come from
Spain. They are now subject to a tariff of about 25 per
cent. There is no reason why the United States should not sup-
ply these goods. This industry should have attention by those
who wish to promote reciprocal trade with Cuba.
PINEAPPLES’.
HE raising of pineapples and bananas is a considerable
industry, and is increasing every year. At the prices
now prevailing, pineapples can be profitably raised. Many
Americans are taking up this enterprise in a small way.
The “red lands,” principally located in the Havana province,
are best adapted to the purpose, but pineapples are grown in
every part of the island. Owing to the close proximity of
Havana as a shipping point, better results have been obtained
thus far in that section.
Pineapples are planted in combination with bananas, and pro-
duce a crop one and one-half years after planting. The pineapple
plantings, if kept in good condition, last six years, while the
banana crop must be replanted every three years.
One of the leading planters of these fruits, located between
:
•.gº
:
.
º
:
:
31
Punta Brava and Hoyo Colorado, in the Havana province, fur-
nished me the following table:
PINEAPPLES.
Estimated profit on one caballeria (33 1-3 acres) of land for
six years:
Estimated total crop, first year of produc-
tivity, 16,200 dozen, sold at 32 cents a
dozen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,670
Rent of land, cost of planting, plowing, culti-
vating, shipping to market, etc., for first
Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,531
Profit first year. . . . . . . . . . . . . . . . . . . . . $1,139
Estimated total crop second year, 14,400
dozen, sold at 32 cents a dozen. . . . . . . . . . 4,320
Rent of land, cost of plowing, cultivating,
shipping to market, etc., for second year. . 2,240
Profit second year. . . . . . . . . . . . . . . . . . . 2,080
Estimated total crop third year, 11,340 dozen,
sold at 32 cents a dozen. . . . . . . . . . . . . . . . 3,402
Rent of land, cost of plowing, cultivating,
shipping to market, etc., for third year. . 1,934
Profit third year. . . . . . . . . . . . . . . . . . . . . 1,468
Estimated total crop fourth year, 10,530
dozen, sold at 32 cents a dozen. . . . . . . . . . . 3,159
Rent of land, cost of plowing, cultivating,
shipping to market, etc., for fourth year. . 1,853
Profit fourth year. . . . . . . . . . . . . . . . . . . 1,306
Estimated total crop fifth year, 8,910 dozen,
Sold at 32 cents a dozen. . . . . . . . . . . . . . . . 2,673
Rent of land, cost of plowing, cultivating,
shipping to market, etc., for fifth year... 1,691
Profit fifth year. . . . . . . . . . . . . . . . . . . . . 982
Estimated total crop sixth year, 8,100 dozen,
sold at 32 cents a dozen. . . . . . . . . . . . . . . . 2,430
Rent of land, cost of plowing, cultivating,
shipping to market, etc., for sixth year. ... 1,610
Profit sixth year. . . . . . . . . . . . . . . . . . . . . 820
Estimated total profit on pineapples. . . . . . $7,795
There are exceptional cases in which the seventh and eighth
cuttings are possible; then the decrease in yield is less than the
one stipulated.
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BANANAS.
N banana crops cultivated on the same ground with pine-
apples a profit of $200 per caballeria can be made the first
year, $170 the second and $120 the third, making $490 in three
years, after which the bananas are replanted. The proceeds from
the second three-year term is likewise $490, making a total of
$980 for the bananas during the six-year productivity of a com-
bined pineapple and banana plantation.
The total profit on the pineapple and banana crops per cabal-
leria can, therefore, be about $8,775 for six years, an average of
$1,462.50 per year.
ORANGES AND FRUITS.
RANGES are extensively cultivated in the Havana prov-
ince. An orange grove, said to be among the largest in
the world, has been planted there by an American, but no results
from which to gather exact data have as yet been obtained.
Favorable conditions of climate and soil seem to guarantee, with
proper cultivation, better results in orange production than in
any location in the United States, where there is always danger
of frosts, from which Cuba has complete immunity.
The natural fruits of the island, such as cocoanut, mameyes,
pomorosas, guanabanas, maranon, yapotas, mangoes, figs,
plums and many others grow abundantly in almost every
part of the island, but they are not cultivated or grown for
market in any place on the island to any extent, except in the
vicinity of Havana. This industry, if proper freight facilities
are accorded, can be very largely increased. There is one large
concern doing an extensive business in this line.
Cocoanuts, rum and picadura are products that are sold in
small quantities to the States. More rum is exported to England
than elsewhere.
THE CUBAN GOVERNMENT—PAST AND PRESENT.
HE past history of Cuba has been a series of revolutions and
internal wars. During the Ten-Years' War, from 1868
to 1878, when the country was in a state of insurrection, and
when the principal industries of the country were destroyed or
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continually jeopardized by the Insurgent and Spanish armies,
and again from 1895 until the return of peace in 1898, Cuba
endured sufferings of a degree happily unknown in the modern
history of most nations.
The last war, begun in 1895, although led by some of the
popular generals of the Ten-Years' War, was not so thoroughly
supported by the adherents of the popular cause during the first
war as was generally supposed. But, nevertheless, the Cuban
people, as a whole, were unable to endure the restrictions laid
upon them by the Spanish officials in control of the island and
recognized by the Spanish Government. All Cubans felt that
there was but one way to relieve their condition, and that was to
strike for freedom. The result we know.
Then came the period in which the United States Govern-
ment took charge of the island, as a preliminary to transferring
it to a free Cuban government. At the time of making the transfer
there remained unsettled by our Government the very important
questions of our future commercial relations with Cuba, and of a
sound circulating medium of money to be used throughout the
island. The result was that the financial and business affairs of
Cuba were left in an unsettled condition. Difficult and dangerous
problems confront the new Government in consequence; and to
settle them in such a manner as to restore prosperity the friendly
aid of this country is needed.
THE CUBAN REVENUES.
N the collection of customs Cuba has received a maximum
amount of money at a minimum cost, as will be shown by
the receipts and disbursements for the month of June (the least
favorable month), 1899, 1900, 1901 and 1902:
COLLECTION OF CUSTOMS.
June, 1899, Collections, U. S. Government. . . . . . $1,332,168.67
Disbursements . . . . . . . ‘. . . . . . . . . . . . 125,370.14
Net . . . . . . . . . . . . . . . . . . . . . . . . . 1,196,798.53
June, 1900, Collections, U. S. Government. . . . . . 1,413,682.04
Disbursements . . . . . . . . . . . . . . . . . . . . 138,140.80
Net . . . . . . . . . . . . . . . . . . . . . . . . . 1,275,541.24
June, 1901, Collections, U. S. Government. . . . . . 1,216,349.04
Disbursements . . . . . . . . . . . . . . . . . . . 86,313.76
Nº º 1,130,035.28
June, 1902, Collections, Cuban Government. . . . . 1,189,81828
Disbursements . . . . . . . . . . . . . . . . . . . 70,315.33
Net . . . . . . . . . . . º 1,119,502.95
A surplus of over $1,600,000 had been accumulated between
May 20 and November 1st, 1902, to some extent, however, by
reducing outlays for sanitary purposes, thereby endangering the
health of the island.
During the short period which the Cuban Government has
been in control, little, if anything, has been done toward settling
its financial conditions, as to the money required to relieve the
present demands for the payment of the Cuban army, which was
a part of their agreement of settlement with the United States.
There has been pending before the Cuban Congress for
some months a bill to raise four million dollars, introduced by
the former Secretary of Agriculture, to be used as loans among
the cane growers and stock raisers. After considerable opposi-
tion, the Cuban Senate passed the bill authorizing the President
to negotiate a loan at the minimum price of 90, payable at the
end of thirty years, with interest not to exceed 5 per cent., the
Republic of Cuba to have the right to take up the bonds of such
issue at any date of maturity of interest, and to either pay for
them in cash or by bonds of a subsequent issue, at the option of
the bondholders. - &
The same bill also directs the Executive at the end of six
months to negotiate a loan of $35,000,000, of which $4,000,000
shall be applied to canceling the bonds of the first-named issue,
and the remainder to the debts of the revolution and the pay-
ment of the Cuban army.
It is further provided that interest and sinking fund are to
be secured by a part of the customs of the island.
Since the above action in the Senate, the lower House has
passed a bill authorizing a loan of $35,000,000 outright, payable
in forty years, at the same price and rate of interest as is pro-
vided in the Senate bill, with the revenues of the island as
security.
In the meantime the Secretary of Agriculture has resigned,
and neither bill has become a law.
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The payment of the Cuban army is a matter of vital impor-
tance. Dissensions and feelings of revenge are shown at every
opportunity because this payment has not been made. Unless
something is done there is fear among those who are financially
interested in the island that political trouble will arise.
A standard currency circulation throughout the island, which
has heretofore been referred to, might be taken up by the Cuban
Government with advantage.
The question of Government surveys of land, also heretofore
spoken of, is an important factor in the future welfare and happi-
ness of the present inhabitants, and in the prosperity of those
who may hereafter become residents of the island. Economical
management and expenditures are very necessary for the new,
and as yet unsettled, Government. The expenses for carrying
on the government of this island, with a population of about
1,600,000 people, are much greater pro rata than they are in the
United States.
As the revenue for the support of the Government at the
present time is obtained almost entirely through the customs,
it is necessary that reciprocal tariff arrangements between Cuba
and the United States should not be on a basis of reducing the
present duties, indispensable as a source of revenue, but, as has
been suggested, by a high tariff against all foreign countries,
with a rebate in favor of the United States. The Sooner the
Cuban Government takes up the question of direct taxation, the
better it will be, for that will relieve the present necessity of sup-
porting the Government wholly from the customs revenues which
now bear very heavily upon the poorer classes.
Under the present Cuban Government the enormous burden
of taxation which was borne under Spanish rule has been removed.
Cuba is, therefore, no longer compelled to raise revenue to meet
the following former expenditures. The items removed are:
Per Year.
1. Interest on the former debt to Spain. . . . . . $10,000,000
2. Platt Amendment, which makes an army f
unneCeSSary . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000
3. Platt Amendment, which makes a navy un- -
neCeSSary . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000,000
4. Separation of Church and State relieves
Government of the Church Tax, which
amounted to about. . . . . . . . . . . . . . . . . . . 2,500,000
36
With this relief at hand there is no reason why the Cuban
Government should not become prosperous and stable, unless
overthrown by the politician who has at heart his own personal
gain more than patriotism or the welfare of his country.
MUNICIPAL AFFAIRS.
THE affairs of municipalities are arranged by a Mayor and
Aldermen elected by the people. There are several times as
many officeholders in the employ of the municipal government,
in almost every place on the island, as is necessary for the con-
duct of the public business, and the expenses of the municipal
government are excessive.
Municipalities derive their revenue from various sources
and forms of local taxation, such as licenses for horses and car-
riages, taxes on animals slaughtered, on the public market privi-
leges, and on eatables sold in markets. Where there are water-
works and sewers, taxes for their use are laid on consumers.
Income taxes are imposed on real property in use; if it has no
income, it pays no tax.
In several cities I found that the National Government had
cut down the allowances for Sanitation, police, drainage and aque-
duct service made by the military government of the United
States while in power. In some instances the appropriation for
police, to July 1st, had been thrown entirely upon the munici-
pality. The cities, towns and villages themselves had to provide
the means for the local sanitary and police systems, which
11aturally come under local jurisdiction. The cutting down of
the National Government provision for the proper maintenance
of the sanitary conditions of the island is a very serious matter,
which will greatly affect the health of the people if immediate
steps are not taken by the national or municipal governments
to enforce the sanitary measures which prevailed during the occu-
pancy of the island by the United States. -
In Santiago de Cuba, where the streets were cleaned every day,
the National Government cut down the appropriation so that they
are now being cleaned only three times a week. In some other
places on the island the conditions are not as good as at that point.
In Havana, thus far, although things have been in pretty
good shape, the sanitary conditions are not up to the standard
maintained under our Government.
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The City of Havana has arranged for a loan to carry
out a contract, made last year, for paving and sewering
the city, at an approximate cost of $12,000,000. The contract
was entered into between the city of Havana and a banking firm,
previous to the turning over of the Government, for an issue not
to exceed $28,000,000, for the purpose of funding the present
bonded debt and floating indebtedness, and providing funds for
paving and sewering. The present indebtedness is about $13,000,-
000, of which $10,000,000 is in first and second mortgage bonds,
with a floating debt of $3,000,000. The bonds are secured by a
lien on the city waterworks, markets and slaughter-houses, the
revenues of which are more than sufficient for the purpose.
Additional security for the sinking fund and interest on this
loan is provided by real estate and sewer taxes and an annual
contribution by the Republic.
The real-estate tax above mentioned is 12 per cent. on the
income of improved property.
The sewer tax referred to is on improved property, which
must be connected with the sewers, the tax assessed being
according to the character of the improvement, much the same
as water rates are often fixed in the United States.
The security also includes all other property belonging to
the city, together with the income from franchises and licenses.
It does not appear possible that the municipal government
of Havana will be able to secure the necessary income to
provide for this new debt, to provide necessary funds for
the maintenance of the city, and for other necessary improve-
ments, in addition to keeping up the sanitary conditions and
proper policing of the city of Havana, without assistance from
the National Government.
SCHOOLS.
HE system of public schools established by the United States
Government is still continued, but with a lack of attendance,
and in many cases inefficient teachers have been chosen through
political favor to take the places of those who were efficient and
who were employed during the time of the occupation of the
island by our Government. In one place I was informed that
the teacher could not read, and simply held the position through
38
political backing. The law compelling children to attend school
has become a dead letter since the withdrawal of American mili-
tary rule. In most places there are no public school buildings,
but private dwellings, which are very poorly adapted to the pur-
pose, are rented for schools.
LABOR.
HE population of the island at the present time is estimated
at about 1,600,000, of whom 550,000 are colored races,
comprising negroes, mixed breeds and Chinese, the native and
foreign whites numbering about 1,050,000. It is estimated that
about two-thirds of the adults holding family relations are legally
married; about one-third live under the common law, or without
lawful status. Seven-eighths of the population were born in
Cuba, and one-eighth are of Spanish and other nationalities.
The population of the cities amounts to 50 per cent. of the
inhabitants of the island. The voters are about 450,000, and
nearly one-half of these can neither read nor write. With this
condition of affairs it can well be seen how easily the government
of the people could be misled by bad political leaders, as the
ignorant class is subject to the beck and call of the politician.
That there has been distress among the poorer people in the
cities there is no question—more than was ever known in the his-
tory of the island, except during the period of reconcentration
enforced by General Weyler, when such terrible conditions existed
that thousands of people died from starvation.
This condition could be greatly relieved by the government
department of relief, the selection of lands in the different parts
of the island and the locating of these people upon them. With
such initial aid they could raise enough vegetables and fruit to
supply them with food, and, during the busy seasons of the cane,
tobacco and other industries, could find sufficient work to keep
them in comparatively comfortable circumstances.
Labor unions exist in different trades, such as the Steve-
dores, carpenters, bakers, cabmen, cigarmakers and some other
industries. Up to the present time, there has been no union of
field or common laborers, although during my stay in the island,
when the strike of the cigarmakers was going on, circulars were
issued in different parts of the island, asking that a union be
organized among the laboring classes in the sugar districts, but
39
the movement had not taken any definite form up to the time of
my departure.
The price for farm labor on the sugar plantation averages
from $17 to $20 a month, Spanish silver. If laborers board
on the place (which they usually have to do), they are charged
$8 a month for their board, leaving them from $9 to $11 a month
with which to support their families. The demand for this labor
exists only about six months of the year—in the seasons of work.
The skilled laborers employed in the sugar mills are usually paid
better wages, and in Spanish gold.
From investigations made among the laboring classes on the
island, Outside of the cities, I am satisfied that there never was
any cause for saying that starvation existed in the case of most
of the poor people. If any one will work, the soil will produce
sufficient to afford a living, and he can obtain land in all parts
of the island, upon which he can produce enough to prevent him
from starving. The greatest amount of distress I found to exist
among those who do not know how to farm or raise products
of the soil, or who are too proud to do so. But that there is
financial distress among all the common laborers, as well as with
the small farmer, the planter and merchant, there is no doubt.
This condition will continue until the revenues from their prin-
cipal products, sugar and tobacco, are increased.
In conclusion, I would say that the United States should be
liberal in the fulfilment of the duty devolving upon it—to see
to it that the Cuban Government is given the opportunity
to prove its ability to maintain a republic and to govern itself.
This duty, in my opinion, can be fulfilled only by giving to Cuba
reciprocal arrangements and a reduction in the duty and tariff
as hereinbefore stated, and in this way we shall prove to the world
that the spirit which prompted us in liberating the people of the
Island of Cuba and in establishing a government for them still
actuates us in assisting them to obtain sufficient revenues to Sup-
port such a government and to keep the people from bankruptcy
and ruin. Respectfully submitted,
H. D. DUMONT.
Dated February, 1903.
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