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PROSPECTUS
OF THE
FLORIDA EAST COAST DRAIN-
AGE AND SUGAR COMPANY.
Incorporated under the laws of the
State of Florida.
Capital Stock, $5,000,000.
50,000 Shares. $100 each.
HOME OFFICE
ST. AUGUSTINE, FLORIDA.
OFFICERS
JAMES S. MURRAY. President.
RUFUS E. ROSE, Secretary,
JAMES E. INGRAHAM, Vice-President.
GUY R. PRIDE, Treasurer.
DIRECTORS
JAMES S. MURRAY,
RUFUS E. ROSE.
JAMES M. SCHUMACHER.
E M. ASHLEY.
M. FICHTENBERG, Milwaukee, Wis.
and
HENRY BBMEDICT, Orlando, Fla.
JAS. E. INGRAHAM.
GUY R. PRIDE.
J. R. PABROTT.
Financial Agents
S*
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PROSPECTUS
TERRITORY.
Eight hundred thousand acres of lands, situated in the
southeastern portion of the State of Florida, acquired by
purchase from the State of Florida.
STOCK ISSUES.
All stock shall be sold for cash or its equivalent, and
when issued shall be fully paid and non-assessable.
DISTRIBUTION OF STOCK.
$1,ooo,ooo.oo par value, io,ooo
shares, shall be paid for the fran-
chises ....................... io,ooo shares, $1,ooo,ooo
$4,000,000.00 par value, 40,000
shares, shall be disposed of by the
Board of Directors for cash, or its
equivalent; or so much thereof as
may be necessary for the proper
expenses of the company ........ 40,000 shares, 4,000,000
50,000 shares, $5,000,000
No certificate of stock shall be issued until the said stock
has been paid for in full in cash, or its equivalent. All values
of lands, labor, machinery, services, charter privileges, or
other things of value received in payment of stock, shall be
fixed by the Board of Directors.
4
LANDS.
The lands acquired by the company are generally known
as the "Everglades of Florida," an elevated basin, separated
from the Atlantic Ocean by a ridge of limestone, being an
average of five miles from tide water, on the eastern
boundary.
The surface of the Everglades above tide water on their
eastern edge averages eleven feet, with a slope on their sur-
face from tlhir eastern border to their apex of nine feet,
making a total fall of twenty feet for drainage purposes.
The Everglades basin is filled with a soil of extreme fer-
tility, being composed of drift or alluvium, mixed'with de-
cayed vegetable matter (muck), and is generally underlaid
by a deposit of marl, a source of much fertility and a cor-
rective of acidity.
The bottom of this basin is practically above tide water,
rendering the drainage a simple process.
NATURAL DRAINS.
The limestone ridge on the eastern edge of the glades
has been pierced to the waters of the glades by numerous
streams-the Hillsborough, Miami. Cypress, Middle, Little,
New, Arch and Snake Rivers, all of which streams cross the
ridge into the territory controlled by this company.
These rivers have penetrated through the rocky ridge to
the ocean. Their falls or rapids at their heads are gradually
working westwardly, and in time would, by natural means,
effect the drainage of the Everglades.
ARTIFICIAL DRAINS.
The object of this company is to remove the barriers at
the heads of the various rivers, and from thence run canals
or channels into the body of the Everglades, with necessary
laterals to quickly remove the impounded water and prepare
the soil for agriculture.
SOIL.
The soil of the glades is noted for its extreme fertility
and productiveness. Where drained by natural causes and
where reclaimed by artificial means, these soils have pro-
duced phenomenally heavy crops of sugar cane, corn, oats,
rice, tobacco and fruits.
The soil is from two to twelve feet deep-a black mould,
underlaid with marl. The natural growth is saw grass, flags,
rushes, willows, cypress, gum, maple and oaks, together with
palmetto, rubber trees, ferns and tropical jungle. Much the
largest part of the territory is covered with a rank growth
of saw grass, with no timber or stumps.
CLIMATE.
The territory owned by this company is situated on both
sides of the 26th parallel of latitude, extending some thirty
miles on either side thereof. Frosts are practically unknown
in this territory. The great freezes of 1886 and 1894-95
failed to kill the most tropical plants, as is evidenced by the
enormous size of purely tropical trees, such as the rubber
tree, the sapadillo, maume apple, lime, lemon and mango,
now growing on these lands.
SUGAR CANE.
The prime agricultural crop of the company will be
sugar. The soil is particularly adapted to this plant. The
lands being level are peculiarly fitted .for sugar fields and for
the use of modern appliances-the steam plow and culti-
vator. Cane is now growing in this district planted ten years
since. Cane averaging 17 per cent. sucrose has been pro-
duced on similar lands in Florida, 136 miles north of this
section.
CROPS.
On similar soil, reclaimed by the same process (136
miles north of these lands, 2J degrees), crops of cane aver-
aging 40 tons of cane per acre have been made; at different
times, these crops, owing to the possibility of frost, were not
fully matured. Had they been allowed to grow to full ma-
turity and ripeness, their yield would have been one-third
greater. Fifty bushels of rice, fifty bushels of corn, and
forty bushels of oats, per acre, have been frequently made
on large areas of similar lands, and are now being made.
OBJECTS.
The prime objects of the company will be the drainage
of and sale of lands, the erection of sugar mills, and growing
of sugar cane. It will promote all other industries-agri-
cultural, mechanical and commercial.
The purchase of sugar cane delivered at central mills
will be one of its prime objects.
The following estimates of cost of drainage, erection of
mills, field drainage and cost of growing cane, have been
carefully compiled by eminently practical and successful
drainage engineers, and successful sugar plantation man-
agers.
The cost of each item of expense has been fixed at maxi-
mum rates, while the result in value of lands reclaimed, and
yield of crops per acre, have been fixed at the minimum
figures, as shown by years of experience in similar work in
Florida, Louisiana and Cuba.
CONTRACT CANE.
Small growers who desire to plant small areas of cane,
io to Ioo acres, will find the company disposed to pay the
highest price possible for sugar cane. As the "season" is
not crowded, the grower can expect the best results.
The canals will afford the most direct and economical
method of transportation. The owner of a small farm will
be greatly benefitted as the heavy expenses for mules and
horses are greatly diminished.
A close inspection of the proposals and the character of
the management is requested.
To investors of large sums, and those of smaller
amounts, attention is called to the following estimates of
costs and results for both the drainage and agricultural de-
partments.
These estimates are prepared by men competent and
thoroughly familiar with both classes of work.
The drainage department, at the end of two years of ac-
tive work, shows a reclamation of 80,ooo acres of land,
which, at the very low valuation of $5.00 per acre, repays
the entire outlay, with a surplus in cash assets of a sum
greater than the entire cost.
The agricultural department, at the close of the third
year, shows a cash balance, after returning the entire prin-
cipal sum expended, of $18i,ooo.oo.
A careful and critical examination of the estimate is in-
vited.
HEALTH AND TEMPERATURE.
The health of this region is acknowledged to be equal to
any in the United States. Statistics show a wonderful ab-
sence of disease. Fevers and epidemic diseases are practi-
cally unknown. The climate is similar to that of Cuba and
other islands, the average maximum temperature being 85
in summer, and in winter the average minimum temperature
being 50, with a mean temperature for the year of 78. The
lowest temperature recorded in 1895 was 34. The dry
months are November. December, January and February-
the grinding season.
FINANCIAL PROSPECTUS.
RECLAMATION DEPARTMENT
embracing the following territory:
"All of the unsurveyed lands granted to the State of
Florida by the Act of Congress of September 28, 1850, lying
and being situated south of the township line dividing town-
ships forty-six (46) and forty-seven (47) south, and east
of the range line dividing ranges thirty-six (36) and thirty-
seven (37) east, and north of the township line dividing
townships fifty-eight (58) and fifty-nine (59) south, and
west of the range line dividing ranges forty-one (41) and
forty-two (42) east, to the north line of township fifty-two
(52) south, and thence west of a line following the exterior
lines of the government survey, as shown by the State map
furnished by the Commissioner of Agriculture, to the divis-
ion line between townships fifty-eight (58) and fifty-nine
(59) south," the territory being in the extreme southern
part of Florida, within the sub-tropics, entirely free of frost,
and embracing the most valuable portion of the Everglade
region.
Transportation is provided by the Florida East Coast
Railway and East Coast Canal; also direct water transpor-
tation from Miami to eastern cities and Europe by sail or
steamer from Miami. The lands are extremely fertile, and
readily drain an average of 13 feet fall in six miles to tide
water.
ESTIMATED AMOUNT OF WORK REQUIRED
AND COST OF SAME.
Eight lateral canals, each 50'xi2' by 12 miles... 96 miles
One canal, 50'x12' by 48 miles.............. 48 miles
Total canals ....................... 144 miles
Cubic yards.
Estimated yardage to complete drainage systein. 17.ooo,ooo
Excavation required to complete State contract.. 8,000,000
EXCAVATION.
117,287 cubic yards per mile:
Average cost of excavation, 5c per cubic yard.
Average cost of excavation, $5,864.35 per mile.
Total cost of completed drainage system, $845,ooo.oo.
DREDGE WORK.
One dredge will average 60,oop cubic yards. per month.
One dredge will average y2 mile lineal canal per month.
One dredge will average .6 miles lineal canal per year.
One dredge will average 24 square miles, 15,360 acres
of reclaimed territory, per year.
Five dredges will average 12o square miles per year.
Five dredges will reclaim 76,800 acres per year.
Five dredges will average 30 lineal miles of canal per
year.
Time required to complete the work, using five modern
dredges, 5 years.
ESTIMATED COST.
FIRST YEAR.
(Time required to build and equip, four months.)
Two dredges, complete, at $20,ooo each.......$40,000 oo
Operating 2 dredges, $1,500 each per month, 8
mos............................... 24,000 oo
Office and field work:
Superintendent ................ $5,o000 oo
Assistant Superintendent ......... 3,600 oo
Engineer....... ....... . 2,400 oo
Assistant Engineer. ........ 1,2o0 oo
Field crew ..................... 3,600 00
Advertising and incidentals....... 5,200 oo
$21,000 00
Total expenses first year............. .$85,000 oo
RESULT FIRST YEAR.
Eight months'. work, two dredges:
Eight lineal miles canal, 940,ooo cubic yards.
32 square miles drained, 20,000 acres reclaimed.
Actual cost (including value of dredges) ......$
Cost per mile of canal, $10,500 oo.
Cash to State, 25c per acre, 2o,oo000 acres......
Estimated value of lands reclaimed,
at $5 ... ............... ..$ioo,ooo
Net profit, deducting all expenses.
85,000 00
5,000 00
I0,000 00
$00,000 $oo00,000 00
BALANCE SHEET.
FIRST YEAR.
Cr.-
By cash expended ...................
By 6 per cent. interest on cash.........
By cash to State ....................
Net profit in lands reclaimed ..........
Dr.-
To value of lands ...................
To value of two dredges ..............
Balance (value of drained lands).
....$ 85,000 oo
5,100 00
.. 5,000 00
.... 44,900 oo
$140,00oo oo
....$Ioo,0oo 00
.... 40,000 oo
$140,ooo oo
....$ 44,900 oo
NOTE-The value fixed for these lands, $5.00 per acre,
is but nominal, similar lands in this locality, but partially
drained, readily sell for from $20.00 to $50.00 per acre. The.
drainage on the plan indicated will be perfect, insuring the
farmer against damage by rainfall or overflow.
ESTIMATED COST AND RESULTS.
SECOND YEAR.
Cost, three dredges, complete, $20,000 each. ..$
Operating 2 dredges 12 months ($I,500 each).
Operating 3 dredges 8 months ($1,500 each) ..
Office and field work expenses ..............
60,000 00
36,000 oo
36,000 oo
21,000 00
Gross expenses ................... ..$138,000 oo
RESULTS.
SECOND YEAR.
Two dredges, 12 months, 12 lineal miles canal.
Three dredges, 8 months, 12 lineal miles canal.
Total, 24 lineal miles canal.
Total, 2,814,888 cubic yards excavation.
Total, 96 square miles reclaimed.
Total, 61,44o acres reclaimed.
Cost per cubic yard (including cost of three dredges), 5c.
Cost per mile of canal (including cost of three dredges),
$5,750.00.
Average cost per acre (deducting dredges), $i.io.
BALANCE SHEET.
SCrTJn VYEAR
Cr.-
Gross expenses ...................
Six per cent. interest..................
Net profit 61,ooo acres reclaimed @ $5.00
Dr.-
Value of reclaimed lands..............
Value of three dredges ................
RECAPITULATION.
DRAINAGE WORK.
Cr.- FIRST AND SECOND YEAR.
Total cash expended first year..........
Six per cent. interest two years.........
Total cash expended -second year........
Six per cent. interest one year..........
Amount paid State, 6.00oo acres @ 25c..
....$138,ooo oo
.. 8,280 oo
.... 218.720 oo
$365,0oo oo
... .$305,000 oo
.. 6o.ooo oo
$365,000 oo
....$ 85,000
.... o10,200
.... 138.000
. ... 8,280
15,250
Net value of lands reclaimed, less total expenses 223,270 oo
$48o,ooo do
Dr.-
Value of 20,000 acres reclaimed, first year.... .$1oo.ooo oo
Value of 61,ooo acres reclaimed, second year.. 305,000 oo
Value of five dredges (less 25 per cent. wear).. 75,000 oo
$480,000 oo
Net value of reclaimed lands, all cost prepaid, $223,270.
Average cost 6f reclamation, per acre, $2.75.
ASSETS, LAND DEPARTMENT, END OF
SECOND YEAR.
81,ooo acres reclaimed land at $5.00 ........
Equipment (less 25 per cent. wear) ........
294,000 acres earned under State contract
@ $ I . ....... .... ...........
425,000 acres still unearned @ 25c.........
Total expenditures .................. .
Net profits second year .............
.$405,000 oo
S75,000 oo
S294,000 oo
S106.250 oo
$880,250 00
S256,730 oo
.$523,520 oo
NOTE-Each subsequent year the five dredges should cut
30 miles canal (3,500,000 cubic yards), finishing the State
contract during the fourth, (8,000,000 cubic yards). The
total reclamation, 144 miles (average canal). 17,000,000 cu-
bic yards, completing the system of drainage, during the
fifth year.
DETAILED COST.
RECLAMATION DEPARTMENT.
PER DREDGE
C aptain ..................
M ate ..................
Cook....................
2 engineers ...............
2 leverm en ................
2 firem en .................
6 laborers.. ..............
6 cords wood per day, 120
cords per month, at $3...
Provisions, 15 men, at 40c. 30
S days ..................
Wear and tear of dredge, 20
per cent ..............
Oils, etc..................
Cost per month......
Cost per year ........
PER MONTH.
$100 00
75 oo
45 oo
50 oo
50 oo
40 oo00
30 oo00 J
able
!rew
$100
75
45
100oo
100oo
80
i8o
360 oo
i8o oo
250 oo
30 oo
$1,500.oo
$r8,ooo oo
Average 1,500 cubic yards, 10 hours.
Average 3,000 cubic yards per day, 24 hours.
Average 20 working days per month.
Average 60,ooo cubic yards per month.
Average 720,000 cubic yards per year.
Average actual cost of excavation, 2yc per cubic yard.
*
FINANCIAL ESTIMATE.
AGRICULTURAL DEPARTMENT.
FLORIDA EAST COAST DRAINAGE AND SUGAR COMPANY.
First Year-
Assumed value of o10,oo acres of land, drained,
$5.00 ................................. $50,000 oo
Field ditches and lateral drains on I,ooo acres,
ample in size and number for maximum rain-
fall, estimated 200 cubic yds. per acre, at
7Y2c per yd....... .................... 15,000 oo
Grubbing, leveling, and subduing I,ooo acres... 5,000 oo
Plowing, harrowing, and preparing for seed.... 5,ooo.00
Seed cane for 200 acres, at $4 per ton, 4 tons per
acre ....... .......................... 3,200 00
Planting and cultivating, I,ooo acres, at $7.50. 7,500 00
Harvesting 200 acres cane, 30 tons per acre, at
$I per ton, 6,ooo tons.................... 6,000 oo
$91,700 oo
6 per cent. on investment .............. 5,520 00
Gross expense..................... $97,220.00
Permanent investment, lands...... $50,000 oo
I,ooo acres ditched, grubbed, plowed,
etc ........................ 32.500 oo
Cost of 6,ooo tons cane (average cost
per ton of cane $2.45) ........ 14,720 oo
$97,220 oo
Average cost per acre for drains, preparation and culture
(less seed and harvest) $32.50.
200 acres plant cane.
8oo acres other crops.
j.ooo acres total.
NOTE-No credit is taken for crops grown on 8oo acres
prepared and planted first year, in rice, corn, oats, etc., these
crops should pay the cost of preparation of land, etc., though
no credit is taken therefore.
*
FINANCIAL ESTIMATE.
AGRICULTURAL DEPARTMENT.
Second Year-
Cost, drainage, preparation and culture of 3,000
acres new land, at $32.50 per acre.........$ 97,500 oo
Cost culture I,ooo acres, old laid ............ 7,500 oo
Harvesting r,700 acres cane, 30 tons per acre,
$i per ton ............................ 51oo000 oo
Complete sugar house, i,ooo tons daily capacity,
3,000 acres per season. ................ 300,000 oo
$456,000 oo
Interest at 6 per cent ................ 27,360 oo
Gross expenses. 2d year............. $483,360 oo
RESULTS, SECOND YEAR.
I.500 acres cane to mill, 30 tons
per acre; 160 lbs. sugar per
ton, 7,200,000 lbs. Standard
granulated sugar, at 5c per lb. $360,000 oo
Cost of manufacture, Y4c per lb.. 54,ooo oo
Cash net value of sugar........ $3o6,ooo oo
Net cost to date. all expenses.... 274,580 oo
$580,580 oo
Gross cost to date, first year..... $ 97,220 oo
Gross cost to date, second year.. 483,360 oo
$580,580 oo
Cost per ton of.cane delivered at mill, $1.35.
Lr-e. *-- *'.
FIELDS.
200 acres first year rattoons.
1,5oo acres plant cane.
2,300 acres other crops.
1,7oo acres in cane.
4,000 acres total crops.
ASSETS END SECOND SEASON.
Lands ..........................
4,000 acres in cultivation, at $32.50. .
Complete sugar factory .............
Net cash from sugar crop..........
Total assets ................
Total expenses .............
.......$ 50,000 oo
....... 130,000 oo
....... 300,000 oo
....... 306,000 oo
.......$786,000 oo
....... 580,580 oo
N et profits.......................
*
.$205,420 00
No extra credit is given here for 1.7oo acres in cane, a
valuable asset.
*
FINANCIAL ESTIMATE.
AGRICULTURAL DEPARTMENT.
Third Year-
Cost drainage, preparation and culture 2,000
acres new land, at $32.50 per acre ........$ 65,0oo oo
Cost culture 3,oo000 acres old land, at $7.50 per
acre ................................ 22,500 00
Harvesting 4,000 acres cane, $I per ton, 30 tons
per acre, 2o,ooo tons .................. 120,000 oo
$207,500 00oo
6 per cent. interest .................. 12,450 oo
Gross expense, third year............. $219,950 00
RESULTS, THIRD YEAR..
3,500 acres cane to mill, 30 tons
per acre, 160 lbs. sugar per
ton, 105,000 tons cane, 16,-
8o0,000 lbs. sugar, at 4/4c
net .....................$714,ooo oo
Gross expenses third year...... 219,950 00
Net cash over all expenses, third
year ........ ............
Cost per ton of cane delivered at mill $1.18.
FIELDS.
$494,050 oo
$714,000 oo00
200 acres second year's rattoon.
1,500 acres first year's rattoons.
2,300 acres plant cane. 4,000 acres in cane.
2,000 acres other crops.
6,ooo acres total crops.
NOTE-Having four thousand acres in cane the cane
fields will not require re-planting until the fourth year sub-
sequent to first seeding. Cane in this latitude "rattooning"
successfully from four to six years after planting.
*
AGRICULTURAL DEPARTMENT.
Cr.- SUMMARY, END OF THIRD CROPS.
Total expenditure Ist year. ..........
6 per cent. interest three years.........
Total expenditure 2d year............
6 per cent. two years.................
Total expenditure 3d year............
6 per cent. interest one year...........
Total expenditure wtih interest..
Net cash over all expenses......
Dr.-
To net cash Ist crop......... .$36,000 oo
To net cash 2d crop....... .. 714,000 00
.... $ 91,700 00
.... 16,560 oo
.... 456,000 oo
.... 54,726 oo
.... 207,500 00
.. 12,450 oo
....$ 838,930 oo
.... 181,070 oo
$1,0,ooo 00
$1,020,000 00
$1,020,000 00
c7
AGRICULTURAL DEPARTMENT.
ASSETS END OF
Net cash, all expenses repaid. $
4,000 acres uncultivated land,
at $5.00o .. ............
6,000 acres cultivated land, at
Coi
THIRD YEAR.
181,o7o 00
20,000 00
cost ............. .. 195,ooo 00
mplete sugar factory..... 300,000 oo
Net profits, all expenses repaid ...... $ 696,070 oo
RECAPITULATION AGRICULTURAL DEPARTMENT.
Total expenditure with inter-
est ....... ..........
Net cash received for two
crops ...... ... .. $,,00,0 00
Value of plantation at cost.. 515,000 00
Profits on investment......
$ 838,930 oo
696,070 00
$I,535,0oo 00 $1,535,000 00
Or, $1,o20,ooo net cash dividend, in three years, after
paying 6 per cent. interest on total investment of $755,200.
Dividend on actual investment (after paying 6 per cent.),
averaging 45 per cent. per annum dividend.
The plantation still representing the full investment.
DEDUCTIONS FROM AGRICULTURAL
ESTIMATES.
CANE GROWN BY MANUFACTURER-GANG SYSTEM.
Cost of culture and delivery of cane, per ton......$1 25
Cost of culture and delivery.of sugar, per 1oo lbs.. 786
Cost of manufacture of sugar, per 100oo Ibs........ 75
Cost of fixed charges on factory, per 1oo lbs....... 48/'
Cost to produce and manufacture 1oo Ibs.
granulated sugar .................. $2 o01
Net profit at 5c per lb ................. ..... $2 989
$5 oo
Cost to produce and manufacture Ioo lbs.
Net profit, at 4c per lb.................
<* *
Cost to produce and manufacture Ioo lbs.
Net profit, at 3c.................. ....
*
. .... 2 01
. ... I 98si
$4 oo
........ 2 o01
... .... 98A
$3 oo
STANDARD GRANULATED SUGAR CROP OF 16,000,000 POUNDS.
Net at 5c per 11. ......................... $477,o00 oo
Net at 4c per lb.......................... 317,0oo oo
Net at 3c per lb.......................... 157000oo oo
NOTE-Fixed charges ($78,oo) on factory is excessive,
while 75c per ioo lbs. for manufacture is 50 per cent. greater
than allowed by numbers of practical sugar manufacturers of
large experience; with latest and most improved apparatus,
40c per Ioo lbs. is considered ample.
*
ESTIMATE FOR SMALL FIELDS OF CANE SOLD TO CENTRAL
FACTORY.
20 acres of land,' at $20 .......................$ 400 oo
Cost of ditching, grubbing and preparing, $32.50. 650 oo
Seed cane. 4 tons per acre. at $4............... 320 oo
Permanent investment ................ $1,370 oo
ANNUAL EXPENSES.
ANNUAL EXPENSES.
Cultivation, at $7.50 per acre...............
Harvest 30 tons per acre. at $1...............
6 per cent. on permanent investment..........
Cost of 600 tons cane delivered at mill..
Net value of cane, at $4 per ton........
Cross value of cane at 5c per lb. for sugar
$8 per ton, $4,8oo, one-half gross value paid
grower ............... .................
..$ 150 oo
600 oo
82 20
S.$ 832 20
. 1.567 8o
$2.500oo
. $2,400 oo
Gross value per ton to grower........ $4.oo
Net cost of cane per ton.......................$ 1 37
Net profit per ton of cane.............. ...... 2 63
$ 4 oo
Cost of cane culture, and delivery .............. $ 41 o1
Net value per acre, at $4 per ton................ 78 90
Gross value per acre .................$120 oo
NOTE-After first year the charge for seed, $16 per acre,
is eliminated, seed being furnished by "tops" each acre of
"plant cane" affording seed for one and one-half additional
acres, one man can easily cultivate twenty acres in cane.
ESTIMATE COST OF MANUFACTURING SUGAR
IN CENTRAL FACTORY.
Cane purchased from individual growers by the ton, pay-
ing one-half the gross value of the sugar obtained, from the
cane delivered, calculation based on 160 lbs. granulated sugar
per ton of cane (8 per cent.), sugar selling 'at 5c per lb.
Value of cane delivered at mill, $4 per ton.
Capacity of factory, I,ooo tons cane per day (24 hours).
Season ioo days, crop 1oo,ooo tons cane.
Factory complete, permanent investment...... $300,000oo oo
ANNUAL EXPENDITURES.
6 per cent. on investment. .................. $ I8,ooo oo
io per cent. insurance, taxes, incidentals...... 30,000 oo
ro per cent. depreciation of plant............ 30,000 oo
ioo,ooo tons cane, at $4.................... 400,0o 00o
Manufacturing 16,ooo,ooo lbs. sugar, at 4c... 120,000 oo
Net profit per season....................... 202,0o oo
$800,000 oo
16,ooo,ooo lbs. sugar at 5c ...... $8o0,ooo oo
6o per cent. dividend on investment ($3oo,ooo) $i80,ooo oo
Undivided profits ........................ 22,000 00
$202,000 oo
Cost of sugar at factory, packed for ship-
ment................ ......... $3 75 per ioolbs.
Net profit ........................... I 25 per Ioo lbs.
Market value ................. $5 oo per Ioo lbs.
NOTE-The figures here given are minimum yields and
maximum costs, sugar should be manufactured and barreled
at 4oc per Ioo Ibs., cane as indicated should yield 200 lbs. per
ton, the price of granulated sugar averages more than 5c per
lb. and has for 10 years.
DEDUCTIONS FROM MANUFACTURING
ESTIMATES.
CANE PRODUCED BY GROWERS ONLY.
CENTRAL FACTORY SYSTEM.
Paying producers one-half the gross value of sugar, esti-
mates based on standard granulated sugar.
Sugar at 5c per lb.-
Paid growers per Ioo lbs. sugar... .
Manufacture...................
Fixed charges on factory..........
Net profit to factory ..............
Selling price..............
*
Sugar at 4c per lb.-
Paid growers per 1oo lbs.....:.
Manufacture and fixed charges..
Net profit per Ioo Ibs. to factory.
Selling price...........
..... $2 50
..... 75
..... 48Y4
..... I 26/4
.....$5 oo
............... 2 00
. .. ............. I a3
...............$4 oo
Sugar at 3c per lb.-
Paid growers per ioo lbs. sugar ................. $I 50
(Or $2.80 per ton of cane.)
Manufacture and fixed charges ................. i 234
Net to factory .............................. 26/4
Selling price ..... ................. $3 oo
At 5c per-lb. crop of 16,ooo,ooo lbs. nets
factory ............................. $202,000 oo
At 5c per lb. crop of 16,ooo,ooo lbs. nets
growers ................ ........... 125,000 oo
At 4c per lb. crop of 16,ooo,ooo lbs. nets
factory .............................. 92,000 oo
At 4c per lb. crop of 16,ooo,ooo lb. nets
growers ............................. 75,000 oo
At 3c per lb. crop of 16,ooo,ooo lbs. nets
factory .............................. 42,000 oo
At 3c per lb. crop of 16,ooo,ooo lbs. nets
growers .................. .......... 25,000 oo
These figures are net profits, deducting all costs of pro-
duction and manufacture.
YIELD OF CANE PER ACRE.
Authentic statistics show that yields of 65 tons of cane
per acre have been made on this character of land in Florida.
An average of 47/2 tons over a field of 420 acres was
made in 1888, without fertilizing.
A yield of 60 tons per acre is recorded for 1901-2 on sim-
ilar lands.
ANALYSIS OF CANE.
Thirty-seven samples of Florida cane analyzed by Prof.
Wm. C. Stubs, Ph. D., director of the Louisiana Sugar Ex-
periment Station, shows as follows:
Sucrose .................. .5.04 per cent.
Glucose................... 1.78 per cent.
Coefficient of purity .........81.68 per cent.
Equal to 187.53 lbs. granulated sugar per ton of cane.
Thirteen samples of purple or striped cane by same au-
thority show:
Sucrose .................. 17.12 per cent.
Glucose ................. I.o8 per cent.
Coefficient of purity......... .88.o2 per cent
Equal to 13 per cent. or 260 lbs. pure sugar per ton of
cane.
A recent analysis by Prof. H. W. Wiley, chief chemist
U. S. Dept. of Agrl., shows:
Sucrose .................. 12.20 per cent.
Glucose .................. .50 per cent.
Coefficient of purity ........ .8.90 per cent.
Equal to 9.17 per cent. or 183 lbs. pure sugar per ton of
cane.
The estimate of thirty tons of cane per acre, with a yield
of I60 lbs. of granulated sugar per ton, is therefore well
within the limits for practical work.
STATISTICS OF SUGAR.
PRODUCED AND CONSUMED IN THE UNITED STATES.
Taken from the report of the U. S. Agricultural De-
partment, 1900.
Total sugar produced in the United States
including Hawaii and Porto Rico.
Beet sugar 75,859 tons, cane sugar
66i,ooo tons (of 2,240 hbs.) ....... 1,65o,563,96o lbs.
Total importation ............. 4,018,086,530 Ibs.
Total American consumption, 1900.5,668,650,490 lbs.
Five thousand six hundred and sixty-eight million pounds.
Total produced in America, including that of the islands,
Hawaii and Porto Rico, z9 per cent. of the American con-
sumption.
Cost of the sugar imported in 19oo, was $ioo,250,ooo.
An average of 2 4-Ioc per lb. for raw sugar.
The wholesale price of refined, or "Standard Granulated-
Sugar" has averaged above 5c per pound for to years.
The cost of manufacturing refined sugar direct from the
cane (as in beet sugar making) is less than the cost of mak-
ing raw or brown sugar, using modern apparatus with all the
latest economical devices "Multiple effects," "Bagasse Burn-
ers," etc., the yield is increased, and the cost lessened.
DISPOSITION OF STOCK.
One-half the treasury stock ($2,5oo0ooo.oo) is offered
for sale, for cash at par, payable 25 per cent. on subscription,
15 per cent. each 30 days thereafter until fully paid.
The stock to be sold carries with it, as a bonus, one mil-
lion dollars ($I,ooo,ooo) of land warrants or debentures;
these debentures to be received by the company as cash at par
in the purchase of lands, Ioo,ooo acres of land to be set aside
to meet these debentures or land warrants; and are to be
held, and are to be sold only to the holders of said land war-
rants or debentures, and at an average price of $Io.oo per
acre. The maximum price of these lands to debenture hold-
ers, to be paid in debentures, is $20.00 per acre; and the min-
imum price to debenture holders, to be paid in debentures, is
$5.oo per acre, to-wit:
Io,ooo acres @ $20.00................... $200,000 oo
20,000 acres @ 15.00 ................... 300,000 oo
30,000 acres @ o.oo .................... 300,000 oo
40,000 acres @ 5.00 .................. 200,000 00
Ioo,ooo acres ...................... .$1,ooo,ooo oo
Fifty (o5) per cent. of all lands-acquired from the State
shall be set aside, as they are earned, until the ioo.ooo acres
required to meet debentures are provided for and set aside.
- 1:
a .---- 2 --
HISTORY OF THE ENTERPRISE.
The first authentic description of the Everglades of
Florida, with maps, profiles and levels, was doubtless the
"Memoir to accompany a military Tap," compiled by Lieut.
A, i J.'C.: is, topographical engineersunder the general direc-
tion of Capt. A. A. Humphreys, .--j topographical npgi-
neer, by order of the HON. JgFFERSON DAVIS, Secretary of
War, published in 1856, and commonly known as the "Davis
"Mapo"lhe following quotations are taken therefrom:
Sf "The Everglades of Florida cover an aea of about 4,000
square miles* embracing more than hal the portion of the
SState south of Lake Okeechobee. The sub-soil of this vast
region is S cora ne limestone. 4 0 Upon thgesurface ]I
lies an immense accumulation of sand, alluvial deposit .y a
Sdecayffd vegetable matter, forming a mass o sand andf
from ~eet to o1 feet or more in depth, thaoverspreads
all but a few points of the first stratWdr4 \ 7 f
z 'tTpon the mud rests a sheet of water, the depth varying
'0.. with the conformation of the bottom! but seldom at dry sea-
sons, greaterthan three feet. The whole is filled'witha rnk
growth of coast &rassl o io feet high, having rgd .t Ied
e-dge like a saw fromwMhich it obtains its name of "aw
Krass.' In many portions of the Everglades this saw grass
is so thick as to be impenetrable, but it is intersected by num-
erous narrow and tortuous channels that form a kind of laby-
rinth, where outlets present themselves in every direct
however terminating, at longer or shorter distances I a
peiate -barrierrof grass. (The surface of water is quMdCy L r
S affected by rain)ithe alternated rising and falling during, wet. 'i** ,
Seasons being ve'ry rapid. The difference of level between
highest and lowest stages of water is from two to three feet.
The general surface of the Everglades is -the siubj To"-ni
great changes' t..mall keys are here and there met with
wi a. t all seasonspon thil he soil is very rich.
here are many such, Undoubtedly t ~are often made the
sitesof Indian yards. *
.c. -
~ ICA~IS~ Ma.~ *rnL -cc t wi' *id
S Extensive reconnoissances were made along th as
and in the interior during the years 1841 and 18 at which
time the southeastern and southwestern sres, the Ever-
glades, the Big Cypress, Lake Okeech e, and the adjacent
regions, were traversed in vario u directions by the officers
of the army and navy, and ch accomplished towards the
topographical develop t of the State."
"Many si r explorations have recently been made un-
der thed* action of Colonels Monroe and Brown of the Sec-
rtillery, by the officers of their commands. *
In the year 1855, Captain Dawson. First Artillery, made two
explorations into the Everglades. The jrst was undertaken
during the month of March, which i2Ir dryest of the year,
June and OctQber being ordinarily the rainy months. *
The water wY-firsiv"ry shallow, but in five miles increased
,, in depth to 2o inch.. I
A,1 &.A4V/ LThe general direction was west, though the route was
extremely winding and circuitous. At the end of
18 miles it was found the usual course to the western side
was impracticable long mud banks were encounter i
which the men sanki to their middles The course
through the intervening ponds was greatly obstructed by
clumps of trees and ushes and innumerable keys could be
seen in all directions n fourth day all the dithculti
increased; breaks ocu Tring two or three hundred yards in j
length, grown up with old saw grass and without water.! t~b,
the end of the(fdurthday the command had reached a poinr-
43 miles b'Yrail and 27Y miles in a direct line, from 'Adams
Landingl'ohedall progress was barred by a sea of tall saw
grass, extending as far as the eye could reach occasional
small keys wr being seen, but no water. /
"A second exploration by Capt. Dawson was undertaken
during the month of June, at which time t" ftW'r was more
than a foot deeper than before. After sixiays of difficult
and labor*us exertion he succeeded in obtaining a point a
few mileAilbt of Prolt Landing, where further advance was
'A
--- -_ -W Wr -LI.W-
- *
'j
'
r
i,
stopped the want f water, For i8 miles the canoes had
to be dragged througl#flud an saw grass, '
"The Indian guide who accompanied Capt. Dawson
stated that the country was greatly changed since he had
crossed it 16 years before, and that the keys were larger and
more numerous. Settlerswho have resided upon the Miami
river for ro or 12 years assert that the gradual filling up of
the Everglades has been very perceptible. It would be reas-
onable to infer from the nature of the country that this must -
have been the case. 5e ate examinations wou
seem to establish the fact thatat present, during tedry sea- p4 4
sons, theEverglades are impassable. Only duL Ighe high AC 7A
sta es of 'ter would it be possible to cross.' i L
ou bess a s en to a large iV-.- 'i -
extent filled up by the enormous vegetable growth, the drain- _.-
f ^ age by the various streams, whose heads or rapids are gradu-
ally working farther into the body of the glades, has had
1/.3 much to do with this apparent filling up. The evidence is
1 .2 that the drainage has had more effect on the apparent altitude
A, A.of the surface than has the filling up.
;F 0 Large areas covering many square miles which but a few
years ago were marshes covered with saw grass and rushes,
are now open meadows, dry at all seasons, excepting the
rainy months, affording pasture for many thousand heads of
cattle. The falls or rapids at the heads of all streams running
from the glades have evidently receded towards the center
of the glades and Lake Okeechobee several miles since the
report above quoted was made.
7- The islands in many cases have joined, field notes, made .
S by early surveyors showing open glades of saw grass and
j} rushes, where now are found tropical jungles of custard
apple, cocoa plum and similar timber. The removal of the
water from the wonderfully fertile soil is at once followed
S I by an enormous growth of all kinds of tropical and semi-
Ltropical vegetation.
Excepting a few reports by surveyors and explorers little
new information as to the Everglades was procured until
z881, when the State of Florida contracted with the late
i t, .. ; .
'75
4 Hamilton Disston to drain a large area of lands bordering
Lake Okeechobee and including part of the glades. This
company, known generally as "The Okeechobee Drainage
Company," or the "Disston Drainage Company," had
numerous surveys and levels made by its engineers. In
1880-2 a line of levels was made by General Gilmore,
under direction of the U. S. Senate, to discover a^5rac-
tical route for a ship canal across the peninsula of Florida.
These and other surveys by Col. Chas. Hopkins, Maj. Wirtz,
'.w.V ?W V. P. Keller, J. W. Newman and others, established the alti-
-r~j4 .tude of Lake Okeechobee, "the head of the glades," at 21 to
v.4 23 feet above tide level, the difference in levels being ac-
; 'i 0-counted for by the different seasons at which, the surveys
Ilvv.'a were made. A reconnaissance under Col. Hopkins was made
during 1883, from Lake Okeechobee to Shark river; another
expedition under Jas. E. Ingraham across the glades in 1892,
occupying 22 days in crossing. The reports of these and
others confirm the early reports by the officers of the U. S..
Army and Navy, quoted as to character of soil, depth of
water, and extreme fertility of the region, the report of Col.
Jas. M. Kreamer, chief engineer of the Okeechobee Drainage
Company, made in 1886, accompanied by detailed maps and
profiles, states: "As before noted, the surface of this soil is
at times exposed, and it is only during or subsequent to a
heavy rainy season that it is possible to penetrate with a light
skiff, and then advantage must be taken of the natural drains
of this vast area. If there was an absence of the dense saw
/ rass.,no difficulty would be experienced in traversing this
county in any direction. A four-foot reduction of the sur-
face of the waters of this region would be sufficient for the
purpose of cultivation, etc."
S"The surface of the country is generally unbroken by
ponds or sloughs, and, due to natural causes, is becoming
more and more elevated, and consists of one vast expanse of
rich soil which nature has been storing up for ages. There
is a marked difference of the characteristics of the lower Ev-
I erglades. It is made up of numerous rich islands with saw
7 grass borders, separated by sloughs, which later afford ave-
M'I
rI'"
-Iw~'E- t A
ii(^i .1'.
-. Al
gi .
,I'
28
nues for traversing the country. In other words, the lower
SEverglades is a saw grass region, cut up by numerous natu-
ral water avenues, having a course generally southerly and
dotted by thousands of islands. The surface of the lower
glades is well elevated above tide level, but, due to the rim
of outcropping lime-rock extending along the gulf and At-
lantic borders, the waters are, to a great measure, impounded
and retained at varying elevations above the tide. Levels
and measurements taken at Lake Worth establish the surface
of the fresh water of the Everglades to be o10o feet above
the tide waters of the Atlantic, and that a canal ioo feet
long would afford relief for a vast area westward. Examin-
ations at Miami and other points disclose the presence of this
rocky ridge, whose crest was elevated above the normal level
of the waters of the interior. It would be perfectly feasible
to cut this rim at frequent intervals and permit the impound-
ed water to flow into the gulf or Atlantic. This would re-
sult in exposing great tracts of soil, now practically value-
less. From these points drainage canals could be projected
into the interior."
The annexed extracts from a letter written by Gen. Thos.
S. Jes up, to the Hon. J. D. Westcott, U. S. Senator, dated
Feb. 12, .1848, shows that intelligent observation had been
made by the United States officers engaged in the Seminole
War. He says: "From my own observation, when com-
manding the army operating in that country ten years ago,
-as well as from reports made by and information derived
from intelligent officers, who operated near and who explored
the Everglades and the large lake, Okeechobee, north of
them, I have no doubt the glades are about 30 feet above the
level of the sea. The practicability of draining
both, I take for granted. The effect of the meas-
ure would be to reclaim many hundreds of thousands of acres
without including the bed of the Everglades, now subject to
inundation for several months every year. Were
the surface of the lake and the glades lowered, these fine
lands would be reclaimed, and would soon be converted into
valuable sugar plantations, as rich as any in the wbrld. The
hammocks of this country are exceedingly rich. These re
29
claimed lands would be converted into olive, lime and orange
plantations, and would be cultivated by a numerous white
population. *"
Buckingham Smith, in a report to the U. S. Senate, dated
June I, 1848, on -the feasibility of draining the Everglades,
made use of the valuable information conveyed in a letter
written by Gen. Wm. S. Harney of the U. S. Army, dated
Jan. 23, 1848. Note the following extracts:
"During the late Seminole War I was repeatedly in the
Everglades and on the rim or margin at different points, and
crossed it from Miami to Shaik river. Of the
practicability of draining them I have no question. That
such work would reclaim millions of acres of highly valuable
lands, I have no doubt. My plan for doing the work would
be to dig a large and deep canal from Lake Okeechobee into
the Caloosahatchee river, on the west side, and a light canal
from the lake to the Locahatchie, on the east side, and small-
er canals from the glades into the head of the Ratones, Little
river, Arch creek, Miami, Shark river, and other outlets on
both sides of the peninsula. I am satisfied that these canals
and drains once opened, the glades would become dry. No
person could say with positive certainty. what the soil of the
Everglades, when drained, would or would not produce. But
it is my opinion it would be the best sugar land in the south.
and also excellent for rice and corn. It could, in that lati-
tude, be made valuable for raising tropical fruits, and it is
the only region of the present United States in which they
can be raised. I do not know of project that I
regard as more calculated to benefit the country than this.
It affords the Union the best kind of cultivated
land that is wanted to render us, to a great extent, independ-
ent of the West Indies. "
Gen. Gilmore, in his report of June, 1882, to the Senate
Commite, on the feasibility of constructing.an inland canal
across the peninsula of Florida. from St. Johns river to
S- Charlotte harbor, and whose observations were made largely
Within the limits of the drainage district, in speaking of the
nature of the soil, remarks:
: W.
rr,
Yr f i~o
S30
"The sub-soil is a well stocked receptacle and storage
magazine, from which, by innumerable veins and rivulets,
the lakes and ponds are fed. An open and com-
paratively deep cut would soon cause a very active flow of
the subterranean waters to its bed, which would probably be
abundantly supplied with water from this source for a certain
length of time. But gradually the level of these subterran-
ean waters will be lowered by the unceasing drain, while the
swamps may be reclaimed by the operation, their usefulness,
as direct or indirect feeding reservoirs to the canal will be
destroyed, or very materially impaired."
Prof. H. W. Wiley, chief chemist of the U. S. Agricul-
tural Department, in his report on these lands, published in
the report of the Secretary of Agriculture for 1891, says:
"The origin of the muck soil is of course vegetable mat-
ter. There are no data for estimating the length of time re-
quired for the formation of these muck deposits. It is known
that it must have been of great duration."
"In regard to the depths of the soil, it varies from the
merest covering at the edges of the sand to from 15 to 16
feet in its deepest portions. The greater part of the muck
lands, as before indicated, will vary from 3 to 6 feet deep,
while along the Okeechobee the average is much greater, the
soil varies in color from almost jet black to black brown.
The Okeechobee muck, however, is underlaid
with a thick stratum of shell marl, containing pebbles very
Srich in phosphorous, and this rests upon a coraline or lime-
/ stone formation."
"The question of climate is also one of prime importance,
especially in the consideration of the culture of sugar and
rice.' The climate of Florida is divided dis-
tinctly into a rainy and dry season. The rainy season begins
early in the summer, the latter part of May or June, and con-
tinues until about the middle of September or Ist of October.
From October to June the climate of the central peninsula
Sof Florida is essentially dry, although showers may frequent-
ly occur. There is also an advantage to the grow-
ing cane crop in having the rainfall come during the hot
31
months at the period of most rapid growth. It is equally
advantageous, however, during the manufacturing period,
to have a dry season. For this reason the period of the man-
ufacture of sugar in Florida has many advantages over the
same time of year in Louisiana."
"In Louisiana, especially after November, the planter is
exposed to frequent and protracted rains, rendering the fields
muddy, and the roads over which the cane is to be hauled
almost impassable. The Florida planter can confidently
count on a continuous manufacturing season, being rarely
interrupted by rains. ** In regard to temperature,
equally favorable conditions obtain. The climat-
ic conditions of temperature, therefore, in this respect ap-
proach those of the island of Cuba. This being true of the
central portion of the peninsula, it is true in a much greater
degree of the lower portion, viz., the Okeechobee section. In
this region frosts are almost entirely unknown. The cocoa-
nut and date palm flourish, and tropical plants of every de-
scription predominate over the sub-tropical. In this region
the sugar cane is absolutely free from any danger of frosts,
although occasionally light frosts have been known to injure
more delicate plants. It may be said then with confidence
that in the region of the Lake Okeechobee the lands which
may be recovered for sugar making purposes have all the ad-
vantages of the climate of Cuba."
"The manufacture of sugar from the cane in this region
may be postponed with perfect safety until the beginning of
February, and the months of February, March and April be
of greatest activity in sugar manufacture."
"Another important consideration in connection with
the muck lands of the Okeechobee country is found in the
method contemplated for their cultivation. These lands will
be intersected by numerous drainage canals, and by means
of these canals not only can the land be cultivated by steam
from engines carried on boats in the canals themselves, but
also the products of the fields can be transported on the same
canal, with an economy which will render the competition of
mule or horse power methods of cultivation almost impossi-
ble."
32
"Competent engineers have made estimates for the actual
cost of steam cultivation, on the canal system indicated above,
and allowing for all contingencies for unexpected expense,
it appears reasonable to say that, with the yield of cane which
can be secured on such lands, it will be possible to place the
cane at the doors of the factories by means of a system of
canals used in irrigation and cultivation at an expense which
will fall below $2.oo per ton. This expense includes all the
cost of cultivation, harvesting and transportation."
"It is not necessary to dwell upon the fact that with cane
produced upon such a cost, even the Island of Cuba could
not compete with Florida in the production of sugar. There.
is practically no other body of land in the world which pre-
sents such remarkable possibilities of development as the
muck lands bordering the southern shores of Lake Okee-
chobee. With a depth of soil averaging, perhaps, eight feet,
and extent of nearly a half million acres, with a surface al-
most level, it affords promise of development which reaches
beyond the limits of prophecy."
These reports and conclusions of eminent scientists and
agriculturists, made ten years or more since, have been most
positively verified by time and the experience of practical
growers, the crops now growing in this region on the lands
described, more than justify their conclusions. The won-
derful fertility and productiveness of these soils are evi-
denced by the enormous crops now being produced thereon.
Until 1896 there were no means of transportation into the
region now under consideration. The building of the Florida
East Coast Railway to Miami, that year, opened up a new
territory, unknown previously to any but a few surveyors,
pioneers, hunters and explorers. The exceeding productive-
ness of these lands became at once'apparent. The margins
of the Everglades where drained naturally by the streams,
small areas cut off and artificially drained, have proved
wonderfully fertile and productive. Enormous crops of
vegetables and fruits are produced on these lands at present.
Many thousands of settlers are now in the territory adjacent
S. I
33
to the lands of the company. The demand for these lands,
properly drained, is now great and rapidly increasing.
HEALTH.
No region in the United States has a better health record.
The absence of malaria and fevers incident to a new country
is remarkable. The climate is at all times equable and
salubrious. The summers, while long continued, are not
oppressive. The trade winds, constantly blowing from the
southeast, make this one of the most perfect summer climates.
The nights are particularly pleasant and free from the still
torrid heat of the western plains.
SOCIETY, SCHOOLS AND CHURCHES.
The class of people who have settled in this region are
progressive and intelligent to a degree seldom found in a
new territory. Men and women of education and talent,
many of them noted for their wealth and social standing,
others for their talent as authors and scientists.
First-class public schools are found in all neighborhoods
equal to those of any older communities.
Churches equal in all appointments to any, with fine
buildings and large congregations, are plentiful, all denom-
inations being represented.
First-class public'roads are now built in many sections,
and rapidly covering the most remote districts.
All the necessities and luxuries of older countries are
provided, first-class transportation, daily mails and express
service. The stocks of merchandise carried by the merchants
will compare favorably to those of any portion of the coun-
try, while prices are as reasonable.
St. Augustine, Fla., 1902.
FLORIDA EAST COAST DRAINAGE & SUGAR CO.
A L-" I
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