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CUBA CANE SUGAR CORPORATION
FOURTH ANNUAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1919
__ ~ _1~1
_I
CUBA CANE SUGAR CORPORATION
OFFICES :
NO. 112 WALL STREET, NEW YORK, N. Y.
EDIFICIO DE BARRAQU6, XAMARGURA 32, HIAVANA, CUBA.
TRANSFER AGENTS:
GUARANTY TRUST COMPANY OF NEW YORK,
No. 140 BROADWAY, NEW YORK, N. Y.
THE TRUST COMPANY OP CUBA, HAVANA, CUBA.
REGISTRARS OF TRANSFERS:
COLUMBIA TRUST COMPANY,
No. 60 BROADWAY, NEW YORK, N. Y,
BANCO NATIONAL DE CUBA, HAVANAI, CUBA.
I II I
VICE-PRESIDENTS :
REGINO TRUFFIN, HAVANA; FREDERICK STRAUSS, NEW YORK;
ALFRED JARETZKI, New YoRK; B. BRAGA RIONDA, NEW YORK.
SECRETARY AND TREASURER:
H. F. KROYER, NEW YORK,
ASSISTANT SECRETARIES AND AsszsTANT TREASURERS:
MANUEL E. RIONDA, NEW YORK; VICTOR ZEVALLOS, HAVANA ;
EDWARD H. GREEN, New YORK; HIGINIO FANJUL, HAVANA.
COMPTROLLER:
GORDON WILSON.
MIGUEL ARANGO.
RESIDENT AUDITon:
G. P. BLYTHE, C. A., HAvaNA.
GENERAL MANAGERS:
LEA4NDRO J. RIONDA.
Assl5TANT GENERAL MANAGER:
JOSe B. RIONDA.
GENERAL COUNSEL:
SULLIVAN & CROM WELL, NEW YORK.
Counsat sw CUBA:
A. S. DE BUSTAMANTE, HAVANA.
AUDITORS :
DELOITTE, PLENDER, GRIFFITHS & CO., NEW YORK AND HA\VANA.
CUBA CANE SUGAR CORPORATION
EXECUTIVE OFFICERS:
September 80, 1910.
PRESIDENT :
MANUEL RIONDA.
I
DIRECTORS:
. REVBDB
. NeW York
. New York
. New.York
. New YOrk
. NeW YOrk
. New York
. New York
. NeW York
. New York
. NCW Yark
. New York
. New York
. NeW York
. NCW York
. New YOrk
. New York
. New York
. New York
. Havana
A. S. De BUSTAMANTE .
W. H. CHH.DS .
W. E. COREY . .
S. B. FLEMUING ..
HoRACE HAVEMEYER .
CH~ARLES HAYDEN ..
ALFRD JARETZKI .
JAMuES N. JAvRVE ..
HENRY F. KROYER .
W. J. IMATHESON ..
G. M-P. MURPHY .
W. E. OGILVIE .
W. P. Pazzars .
MANUEL RIONDA .
MANUEL E. RIONDA .
B. BRAGA RIONDA .
JoHN D. RYAN .
CHIARLES H. SABNza..
FREDERICK STAUvSs, Chaimrman
RLGomo TnwarIN .
EXECUTIVE COMMITTEE:
W. E. CO~EY
HORACE HAVEMETER
ALRED JAREr2KI
JAMES N. JARVIE
G. M-P. MunravY
MANUEL RIONDA
B. BRAGA RIONJDA
CHARLEs H. SABIN
FREDERICK STRAUSS
CUBA CANE SUGAR CORPORATION
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CUBA CANE SUGAR CORPORATION
I 12 WALL STREET
NEW YORK
November 14th, 1919
TO THE STOCKHIOLDERS:--
Your Board of Directors submits its Annual Report of the business of
the Corporation for the fourth fiscal year ended September 80, 1919.
The preparation of the Annual Financial Statement and the audit of
the year's business involved an immense amount of detail, and this work was
not made easier by the fact that the operations of seventeen different fac-
tories were involved, all of them located in a foreign country. It is a gratify-
ing proof, therefore, of thle improved efficiency of the accounting department
that, despite the hugeness of the task, the Annual Report is now ready for
distribution to the Stockholders.
Notwithstanding the railroad strikes and the generally disturbed con-
ditions of labor, the crop was gathered within the usual time, that is from
December to the end of Jun -with the exception of 'Moron' which finished
on July 9th-and the early estimates of the crop were fully realized.
It is to be regretted that the percentage of sucrose in the cane was
unsatisfactory, being lower at nearly all your plantations than in any other
year since the incorporation of your company; the average for this year was
more than one-quarter of 17o lower than in the previous year.
The variations in the sucrose are due to climatic conditions and beyond
human control. This decrease in sucrose was not limited to your plantations
but prevailed throughout Cuba with very few exceptions.
As there is less demand in the United States for molasses this year,
by reason of prohibition, and as this by-product is no longer needed for
munitions, the financial return from this source is not as great as it was in
the previous year.
Owing to the above two causes, the Profits from Operation of your
Corporation were over $2,000,000 less than they would have been had the
sucrose in the cane been as high as in the previous year and had molaasse
had the same value.
Note: All weights in tons given herein consist of 2240 lbs.
CANE SUPPLY
The estimates made by the General Managers early last season of
the amount of cane available at your Corporation's plantations in the Western
and Eastern sections of the Island were more than realized, as appear by
the following tables:
Western estates ........... 294,000,000 arrobas (3,281250 tons)
Eastern .. .. .... 198,000,000 (2,209,821 )
492,000,000 arrobas (5,491,071 tons)
The actual quantity of cane ground by your Corporation was as follows:
Western estates ........... 307,329,091 arrobas (3,430,012 tons)
Eastern .... .. .. 194,267,464 (2,168,164 )
501,596,555 arrobas (5,598,176 tons)
In addition to the 307,329,091 arrobas (3,430,012 tons) of cane ground at
the Western plantations there were sold to outside plantations 8,557,477
arrobas (95,505 tons). This was made necessary by strikes. Your manage-
ment, realizing that because of the time lost thereby all the cane could not
be ground at your factories, deemed it best to sell this cane to outside planta-
tions rather than have it left in the fields uncut. Mention of this is made
merely to show that your Western mills had more than an adequate supply
of cane for their capacity.
In the East your Company, for the same reason, sold 9,554,281 arrobas
(106,685 tons), chiefly from 'Moron'.
The sugar made from the above mentioned 18,111,758 arrobas (202,140
tons) of cane delivered to outside plantations is not mecluded in the report
of the company's production of sugar.
CANE GROUND
The following table gives a comparison of the cane ground at your mills
during the four years since the incorporation of your Company:
1915-1916 359,955,746 arrobas or 4,017,363 tons
1916-1917 393,584,058 " 4,392,679 "
1917-1918 400,900,529 " 4,574,782 "
1918-1919 501,596,555 " 5,598,1716 "
The above figures show an increase of 141,640,809 arrobas (nearly 1,600,000
tons) of cane from 1915-1916 to 1918-1919. This increase was divided by
sections, as follows:
Western estates ........... 12,460,826 arrobas or 139,071 tons
Eastern .. .. . . 120,1719,983 1,441,741 "
The above total increases in the cane supply of this company exceed the total
amount of cane produced in the entire United States for the coming crop.
L
RATES PAID TO COLONOS FOR THEIR CANE
The average percentage of sugar per 100 of cane paid to the Colonos
(tenant farmers) for their cane continues to diminish as the Cane supply
in the Eastern plantations increases. In order to show the percentages paid
to the Colonos in each section, the following figures for the last four crops
are given ----
1815-16 1916-17 1917-18 1918-15
Western Estates. 6.713%6 6.849%0 6.891%0 6.9017@
Eastern . 5.079 5.029 5.] 15 5.130
Averages . .. ... 6.3837o 6.337%i 6.2547o~ 6.1687o
SUCROSE IN THE CANE
The average percentage of sucrose in the cane at the 17 plantations for
the four crops was as follows:
1915-1916 Il191691 1917-1918 1918-1919
13.87540 18.00c/o 13.3170 18.02#
The sucrose in the cane has not been high for the last three crops. Such
continuously low sucrose in the cane is most unusual. In Cuba it is rare
indeed to have low sucrose for so many consecutive years.
The sucrose content depends much upon the temperature and seasonable
rains ,but, above all, the cane needs cool and dry weather during the grinding
season. Weather conditions up to the present have been most satisfactory
for the growing crop.
The highest percentage of sucrose this year was at "Perseverancia"
13.72%t~, and the lowest at 'Socorro' 12.052/o.
LOSSES IN MANUFACTURE
The Losses in manufacturing, which have been decreasing year by year,
showed a still further, though slight, improvement during the last campaign,
as may be seen by the following figures:
1916-1916 1916-1917 1917-1918 1&18-191
3.07fo 2.67fo 2.36 oa 2.32ef
Your management had hoped to show a still greater improvement, but it is
difficult to maintain a high state of efficiency of operations with labor troubles
in the fields and sugar houses, and with railroad strikes.
Whenever there is a railroad strike, the quantity of cut cane in the fields
waiting for transportation accumulates and- there is a constant loss in sucrose
content from the time the cane is cut until it is finally milled.
When strikes of cane cutters or other laborers occur, the mills cannot
be supplied daily and regularly with the required amount of cane; conse-
quently grinding cannot be uniform and the mill work must suffer.
The machinery in your plantations was in far better condition than in
any previous year and would have been able to further diminish the losses
in manufacturing had the cane gone to the mills freshly cut with the usual
daily regularity. Any irregularity in feeding the mills with sumfcient cane
not only causes bad mill work and increased bagasse losses, but necesitates
the consumption of more fuel, thereby further increasing the cost of pro-
duction.
YIELD OF 96" CENTRIFUGALS
The yield of the four crops in 96" centrifugals was as follows--
1915-1916 1916-1917 1917-1918 1918-1919
11.257. 10.767o 11.417 11.157ob
These figures show that the yield this year is .26fo under that of last year
but only .10fo under that of 1915-1916 notwithstanding that the sucrose
content during that year was .859o higher than this year. This is due to
the higher efficiency attained in the factories since the first crop.
COMPARATIVE RECEIPTS PER POUND OF SUGAR
For the purpose of comparing the f. o. b. price, per pound manufactured
obtained during the last four crops, the proceeds from "Molasses" and "Other
Earnings" are included in the following:
1915-1916 1816-1917 1917-1918 1918-1919
4.112# 4.479# 4.6306 5.3984
The small increase of .1514 per pound for 1917-1918 crop, the first year of
Governmental control, over the price obtained the preceding year of 1916-
1917, was not sufficient to cover the extra cost of manufacturing as was
shown in last year's Annual Report, thus proving conclusively that the crop
of 1917-1918, sold to the International Sugar Committee at 4.60t f.o.b. was
disposed of at too low a figure. The price obtained from the U. S. Sugar
Equalization Board for the crop just completed, although .909 per pound
higher, was none too high, in view of the poor sucrose in the cane, an im-
portant factor in the cost of production. The difference indicated between
the average price of 5.898/ obtained for last crop, and the basic price of 5.509
f.o.b. Northside ports paid by the U. S. Sugar Equalization Board, represents
the reduction of .056 per lb. in the price of the 1,824,049 bags shipped from
the Southeide, as well as losses in weight and polarization on the portion
of the Corporation's production held in Cuba after the crop was finished,
in conformity with shipping provisions of the contract.
COST OF PRODUCTION
The cost per pound of producing sugar including cane on an f.o.b. basle
at your factories during the last four crops was as follows---
191WB19 118-1817l 1917-1918 1918-1919
2.7481 8.4316 8.9984 4.606#
The above figures show increases in cost of:-
.6834 per pound in 1916-1917 over previous year
.567# 1917-1918" "
.608 # "1 1918-1919 "
The greater portion of these increases is due to the higher cost of cans.
As is known, Cane is paid for in sugar which, in turn is usually bought back
by the Company from the Colonos at the fixed price obtained for the whole
crop sold to the Government, or, in the absence of governmental control,
at the market price. The Company selling its own sugar and also that pur-
chased from the colons, at the ruling price, neither gains nor loses by the
purchase of sugar from the colons. The best way therefore, to state the
actual increase in the cost of production would be by excluding the cost of
cane. On this basis, the cost of transporting the cane to the mills, mann-
facturing the sugars therefrom and the delivery of the sugars on board
steamer would be as follows, per pound:--
1915-1916 1&16-191 1817-1918 1918-1919
0.7159 1.0729 1.456# 1.555#
The increases were, consequently:
0.357 cents per pound increase 1916-1917 over 1915-1916
0.384 " "' 1917-1918 1916-1917
0.099 "' " 1918-1919 1917-1918
From the above table it is gratifying to note that the cost of manufacturing
for the last crop shows only a slight increase over that of the previous crop,
an increase of 6.870 as compared with an increase of 364o for the year 1917-18
over 1916-17. The increase would have been even less had the sacrose in
the cane not been so disappointing.
OPERATING PROFITS PER POUND OF SUGAR
If from the preceding f.o.b. prices at which the sugars of the last four
crops were sold, we deduct the Cost of Production including the Cane, it
will give as the Operating Profits made per pound, as followo--
1916-16 1816-17 1817-18 191181
Receipts ................... 4.1124 4.479d 4.6806 5.898d
Production Cost ........... 2.748 8.431 8.998 4.606
Operating Profit ........... 1.364/ 1.0486 0.6326 0.792#
It is interesting to note that during the two years of Governmental
control of sugar, the Operating Profits were smaller than during the pre-
coding years of open market.
From the above statements it can be easily seen that as the Colono
shares the benefits of high prices of sugar because he is paid for his cane
in sugar, so he will bear the corresponding share of the burden of lower
prices whenever they may prevail.
Lower prices, whenever they do come, will therefore mean not only
cheaper cane (which is the largest item in our costs), but it will also mean
lower salaries, wages, cost of fuel, packages and general supplies. In other
words, any decrease in price must be offset by decrease in cost.
Cuba, in the future as in the past, will continue to be the country pro-
ducing sugar at the lowest cost.
As stated above, the increases in Cost per pound of sugar during the
last crop were-
0.5096 in cane,
(This extra cost in cane, however, is recovered by the extra
price obtained for the sugars, as already explained.)
0.099C In wages and other expenses.
These figures confirm the prediction made in last annual report that the items
other than cane would this year show but little increase.
COMPARISON OF CROPS MADE BY YOUR COMPANY
Boga Tons
1915-16..............,.. 3,174,168 or 452,035
1916-17................., 3,261,621 or 472,542
1917-18. .. . .. ., . ,613,325 or 521,328
1918-19................,,. 4,319,189 or 624,101
This production has been divided between the Western and Eastern Estates
as follows:
WBBTBRN BABTBIRN
Bage Tons Bags Tons
1915-1916 2,616,301 or 372,589 557,867 or 79,446
1916-1917 2,383,866 or 345,873 877,755 or 127,169
1917-1918 2,437,926 or 351,742 1,175,399 or 169,586
1918-1919 2,653,620 or 382,783 1,665,560 or 241,318
These figures show the large increase of 161,872 tons In the Eastern planta-
tions between the first and latest crops.
Owing to the competition for cane in its locality, the small size of the
Plantation and the consequent higher cost of production, your Board of
Directors decided to sell the lands of the "Jobo" plantation and transfer the
machinery to plantations in the Eastern section of the Island. The major
portion of said machinery is being installed at "Moron", thereby increasing
the capacity of that Central, as referred to elsewhere.
PRODUCTION AND CAPACITY OF THE EASTERN MILLS
The following table shows the production of the Eastern mills during
the last four crops and the estimated production for 1919-1920:
1915-1918 1916-1917 1917-1918 1818-1919 1910/1020 est~mated
Moron . ... 170,263 181,045 315,439 524,940 650/700,000 bags
Stewart .... ...... 378,097 416,560 506,494 575/625,000 "
Jagueyal .. 233,545 251,013 326,200 353,168 425/450,000 "
Lugareno . 154,059 67,600 117,200 280,967 300/325,000 "
557,867 877,755 1,175,399 1,665,569 1950/2,100,000 bags
This increase of over 1,400,000 bags--(200,000 tons)--in the Eastern mills
in the four years, between the first crop of your corporation and the estimated
crop of 1919-1920, is the greatest achievement of your Cuban management.
Your management has increased the capacity of 'M~oron' more than any
other Eastern plantation, because of its favorable location for the acquisition
of large quantities of cane. With a great deal of the machinery from 'Jobo'
now installed at 'M~oron', the coming crop at the latter estate is expected to
be from 650,000 to 700,000 bags (90/100,000 tons) during the usual crop
months, December to June inclusive.
There is only one corporation in Cuba, i.e. the Cuban-American Sugar
Company, which began its operations after the Culban War of Independence,
whose production in its two Eastern Plantations of 1,252,768 bags sugar
last crop, compares with that of your Corporation in the same section.
Your production in the East will not have reached its maximum even
with the next campaign. If the plans of the management are carried out
for the transfer of some of the smaller Western mills to favorable locations
in the East, where your Corporation has options on ample and suitable
cane lands, the production in the East can easily be raised, in two or three
years, to 2,500,000 bags during the usual grinding period. Your Company
is therefore in a good position to make increasing quantities of sugar in the
East while maintaining the usual quantity in the West.
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SUPPLY OF CANE FOR 1919-1920
The present estimate of the cane supply for the coming crop is as follows.
Western estates ....... 800,000,000 arrobas or 8,350,000 tons
Eastern ....... 250,000,000 2,790,000 '.
550,000,000 arrobas or 6,140,000 tons
Although somewhat early to make estimates of cane, the above figures are,
however, believed to be conservative. The percentage of sucrose in the cane
la the unknown factor.
Particular attention is called to the enormous increase in cane for the
Eastern estates from 1916-1917 to 1919-1920, namely, over 145,000,000 arrobas
(1,600,000 tons). In order to obtain that additional quantity of cane about
80,000 acres of timber land had to be cleared and planted in cane within the
last three years.
ESTIMATE OF SUGAR CROP FOR 1919-1920
It is not easy to estimate the amount of sugar that your Corporation
will make during the coming crop as the total depends largely upon the per-
centage of sucrose in the cane. Even with as low sucrose in the cane as last
year--which is unlikely after three years of low sucrose-the total crop for
1919-1920 should be:
In the Western estates 2,600,000 bags (377,000 tons)
In the Eastern 2,100,000 (803,000 )
4,700,000 bags (680,000 tons)
With a higher percentage of sucrose inl the cane, the total production will
be correspondingly increased.
LANDS
Your Company having sufficient lands to supply cane for its present
needs, made no additional purchases or leases this year. This account, there-
fore, remains unchanged from last year's figures which show that the cor-
poration owns 11,216 caballerias (373,800 acres) of land, and holds under
lease, many of these leases being for long periods, 6,932 caballerias (231,000
acres) of land. The total lands owned and leased amount to 18,148 caballerias
(604,800 acres). Land values have increased very much during the last four
years, especially in the East where they had been much lower than in the
West, and with this new virgin soil in greater demand values are drawing
nearer to those of the more densely cultivated portion of the Island.
RAILROADS
Your Company now owns and operates for the transportation of its
products and. supplies, 1,000 kilometers (683 miles) of railway, of which 781
kilometers are standard gauge and 809 kilometers are narrow gauge; together
with equipment consisting of 121 locomotives, of which 87 are standard gage
and 84 narrow gauge, and 3,504 cane and other cars, of which 2,219 are
standard gauge and 1,285 are narrow gauge.
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PROPERTY ACCOUNT
Original Cost of the 17 Plantations, Including Taxes, Notary
Fees, etc. . . . . . . . . . . .
Additional Purchases:
Central "Stewart" ................... .. $ 8,400,000.00
Warehouses .......................... 159,600.00
Lands ................................ 2,197,276.59
Taxes, Notary Fees, etc., thereon........ 125,599.48
$48,9838,96.68
$10,882,476.07
1,482,758.28
$ 9,899,722.84
Toalo
$ 419,784.21
5,083,353.81
10,081,866.12
4,089,839.00
$19,573,791.14
$28,973,513.98
1,200,000.00
Less:
Sale of Central "Asuncion".. $425,000.00
Sale of Lands, Machinery,
etc. .................. 1,057,758.23
Additional Improvements, aet.:
Western
Pnlanai~ons
$ 264,603.13
2,376,123.95
1,835,050.42
730,004.32
$5,205,7181.82
Western
Plantaltons
$ 155,131.08
2,657,229.86
8,246,313.70
3,809,334.68
$14,368,009.82
P~laSt Pear
1915-1916 . ... .
1916-1917 .. . .
19171-1918. .. .
1918-1919. .. .
Less amount written off Property Account to
cover dismantling and relocation of ma-
chinery ...............................
Machinery and Construction Material on hand
Total as per Balance Sheet.............
271,778,518.98
$78,756,810.g6
681,808.21
$77,388,206.87
RENEWALS, BETTERMENTS AND DEPRECIATION
Following the customary practice, your Company has made adequate
expenditures for renewals, repairs and changes in the location of machinery,
all of which have been charged to operating expenses before arriving at the
oeaIng addition~ldtn to the cost of above renewals and repairs, your Bo.ard of
Directors have made a charge of $1,750,000 for Depreciation.
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RECEIPTS AND EXPENSES
FISCAL YEAR ENDED SEPTEMBER SO, 1919.
RECEIPTS--
Production, 4,819,189 Bags
Sugar Sales ................... ..........
Molasses Sales ................... .......
Other Earnings .........................
Total Receipts ................... ...
EXPENSES--
Cost of Cane per 100 arrobas $8.50........
Dead Season Expenses (Salaries and
Wages, Materials and Supplies, Repairs
and Renewals) ......................
Crop Expenses (Salaries and Wages, Ma-
terials and Supplies, Fuel, Maintenance,
Administration--Cuba and United
States) .............................
Fiscal Year Charges:
General Insurance ...................
Cuban taxes on Sugar ...............
Cuban taxes on Molasses .............
Cuban taxes on Real Estate ... .. .. .
Legal Expenses ................... ..
Total Fiscal Year Charges.. .. .
Sugar Expenses:
Sugar Bags and Packing ............
Sugar Inland Railroad Freights. .. .. .
Sugar Shipping Expenses ... .. . ..
Sugar Insurance ....................
Selling and Landing Expenses. ... ..
Total Sugar Expenses. .. .. .. .. .
Total Expenses--F. O. B........
Marine Freight .........................
Total Expenses--Delivered .. . ..
Operating Profit to September 30th, 1919..
This compares with an Operating Profit last
year of .................................
and a Profit per bag of. ................
PerBa
.112
.130
$18.873
$ 9.877
1.028
2.003
.076
.077
.018
.060
.013
$ .244.
$ .719
.376
.221
.049
.301
$ 1.666
$14.908
1.402
$16.310
$ 2.563
$80,470,542.48
484,414.89
560,368.62
$81,515,825.94
$42,658,281.93
4,440,048.62
9,038,523.33
828,109.94
335,391.07
15,997.10
260,349.84
58,404.51
$ 1,054,252.48
$ 3,106,313.13
1,626,931.29
953,741.07
210,639.85
1,300,605.47
$ 7,198,230.81
$64,389,337.15
6,056,108.03
$70,445,445.18
$11,069,880.76
$ 7,390,603.98
$ z.05
_ ~C-l.lll~-i.li i.~~9-O~rll~
CAPITAL ACCOUNT
Your Corporation has lacked working capital from the start. Of the
amount realized from the sale of the stock, all but $3,600,000 was required to
pay for the properties originally purchased. It was expected that the short-
age in working capital would be made up out of earnings, but most of the
surplus earnings of the first year were used in the purchase of the 'Stewart'
plantation, and the surplus earnings of the following years in defraying the
cost of additions and improvements, particularly in increasing the output
in the Eastern plantations.
While the above expenditures increased the production and earning
power of the Corporation, they deprived it, to that extent, of working capital.
To remedy this, your Board of Directors has recommended a $25,000,000
issue of 70Jo ten-year Debenture Bonds convertible into Common Stock, as
set forth in the Circular to the Stockholders dated October 80, 1919.
GENERAL REMARKS
According to the preceding Receipts and Expenses State-
ment, the Operating Profits this year were .................
Deducting disbursements for:
Interest and Exchange...........,..... $ 555,810.06
Taxes (Reserve) ...................... 979,490.11
Dividends on Preferred shares. .. ... .. 3,500,000.00
leaves a balance of.......................................
This is equal to about $12.00 per share on the 500,000 shares
of Common stock of the Corporation, before making allow-
ance for Depreciation and Doubtful Accounts.
After deducting:
Reserve for Depreciation ........... $ 1,750,000.00
Reserve for Doubtful Accounts.. .. 400,000.00
the remaining balance of. ................... .............
is equivalent to about $7.77 per share on the Common Stock.
$11,069,880.76
5,035,300.17
$ 6,034,580.50
2,150,000.00
$ 8,884,580.59
Year management has provided a regular and adequate supply of oil
for fuel purposes, so that the operations of your factories will not be directly
affected by any stoppage of coal deliveries resulting from strikes in the
coal industry, such as are now threatening in this country.
__ _II ~ ___~__
Y,.
While the "STEWART" did not show up satisfactorily the first year
after its purchase, it is gratifying that it now stands first in Operating results
for the past fiscal year.
"MORON", prior to the present crop, did not do as well as had been
expected due to delays in arrival of machinery---which caused late starts
in grinding--and also due to low sucrose content in the cane. Much of the
.cane ground at this.plantation in the last two crops came from virgin soil,
Ithe cane from which must necessarily have a lower ancrose content during
-the first two or three years than in the succeeding ones. During the coming
crop "MORON" may reasonably be expected to produce about 7100,000 bags
in the period from December to June, which will make it as large as any
other plantation on the Island.
"JAGUEYAL" has maintained its good record.
"LUGARENO", after two disappointing crops, for the reasons given
in last year's Annual Report, has shown up well for the 1918-19 crop. This
estate is exceptionally well located, with an abundant supply of cheap cane
and a low rate of railroad freight to the shipping port.
The program adopted in 1916 by your Board of Directors to increase
the capacity of the Eastern plantations is now completed.
The four Eastern plantations, as well as the twelve Western, are now
all well equipped, but some capital expenditures must necessarily be made
eaceh year in order further to develop efficiency in operation.
EXPERIMENTS
Your Company is still carrying on its experiments for the improvement
of the cane seed, and mechanical devices for cutting the cane. It cannot
be said that much has been accomplished in the improvement of cane seed,
as years are required to obtain results. Considerable progress has been made
in the development of the cane cutter which, however, is not yet a practical
-success, and in mechanical means for transporting the cane to the mills.
CONTRACT FOR COMlING CROP
So far no contract has been entered into with the United States Sugar
CEqualization Board, or any other similar Corporation, for the whole or any
portion of the next Cuban crop.
The scarcity of sugar and the great European demand, because of which
there is a fear that the United States may be left with insuf~fIcient sugar, are
~factors that are attracting the attention of the Administration in Washington.
While the whole Cuban crop might have been bought last summer it would
Inow be dificult to do so, owing to the large sales that have already been
anade for future deliveries.
-*~eU----CCI- ---
STOCKHOLDERS
To show the distribution of the stock of your Company, the number of
Stockholders at the end of the last three fiscal years is given in the table
below :-
1917 1918 1919
Holders of Preferred stock. .. 3,840 4,494 4,880
" Common . .. 1,848 1,860 2,584
Total .................... 5,683 6,354 7,464
The continuous increase in the number of holders is gratifying.
GENERAL INFORMATION REGARDING SUGAR AND
SUGAR STATISTICS
(All general statistics given herein are compiled from figures published
by Willett &r Gray unless otherwise credited.)
Sugar being a topic of general interest at present, the stockholders may
desire to know the respective production of Cane and Beet sugar in various
producing countries, as well as other data relative to the article. For that
reason we are appending the following--
Exhibit 1--Statement and Chart of the sugar crops of Cuba from 1894
to 1919 showing the amounts of each crop produced in the Western
and Eastern sections of the Island respectively.
This shows the tremendous drop in production in 1895 by reason
of the Cuban war of independence and the rapidity with which
Cuba recuperated, which is without parallel in the history of any
other sugar producing country. This recuperation by Cuba occurred,
moreover, during years of very low sugar prices.
Exhibit 2--Statement and chart of the proportion of Cuban sugar pro-
duction controlled by American companies, including Cuba Cane
Sugar Corporation, during crop 1918-1919.
Exhibit 3--Sugar Production of the world (cane and beet) by countries,
for the six crops 1913-1914 to 1918-1919 inclusive.
By this statement it is seen that Cuba was the only country that,
notwithstanding high prices, largely increased its production during
those years. India, whose sugars are all consumed locally, comes
next to Cuba in the production of sugar but by reason of unfavor-
able weather this year's crop was so reduced that it shows less in-
crease over the 1913-1914 crop than Java does, although still making
about 700,000 tons more sugar than the latter.
Exhibit 4i-Statement and Chart showing a comparison by countries of
the world's Cane and Beet sugar production for the crop of 1918-14,
Immediately prior to the world war, and the last one, 1918-19.
I I I II
L
Exhibit 5-Statement and Chart showing a comparison of the portion
of the world's cane and beet sugar production contributed by differ-
ent countries for the crop of 1918-1919
Exhibit 6--Chart showing a comparison of the wholesale prices of re-
fined sugar in various countries before and after the world war,
years 1914 and 1919.
Exhibit 7-Statement of sources of sugar consumed in the United States
during the years 1914 to 1919 inclusive.
Exhibit 8--List of Cuban Centrales Producing over 280,000 bags of
Sugar during the crop 1918-19.
The scarcity of sugar, to which attention was called in the last Annual
Report, is now being felt by the entire world. It, therefore, may be of
interest to enumerate some of the causes for this world-wide sugar scarcity:
(a): Smaller production of European beet sugar during the four years
of the war.
(b): Only a comparatively small increase in the Cane sugar production
throughout the world, outside of Cuba, during the last five years,
notwithstanding the high prices prevailing (see Exhibit 3).
(c) : The large increase in sugar consumption in the United States,
particularly since the enforcement of prohibition (see Exhibit 7
showing the consumption in U. S. for five years along with an
estimate for 1919).
(d): A very active foreign demand from all quarters after the cessation
of hostilities, particularly from European countries whose con-
sumption had been temporarily restricted by Governmental ration-
ing during the World War. Notwithstanding that Europe has
received fully one-third of the 1918-19 Cuban crop the demand
from that source continues unabated, as a result of which large
sales of new crop Cubas have already been made and are still
being made for delivery as late as June, 1920.
(e): The increase in the World's potential demand, which, having been
restrained by Governmental control during the four years of war,
is now asserting itself. Had there been no war, the probable in-
crease in consumption would have been 400,000 to 500,000 tons
per annum, requiring an increase in production of about 2,500,000
tons of sugar during that period as compared with an actual de-
crease of about 2,300,000 tons.
(f) : Last, probably the additional consumption arising from the uni-
vrersal war-time advertisement of the fact, previously known to
those who had thoroughly investigated the subject, that, for the
same price, sugar contains more calories of nutritive value tharr
any other article of food.
II I _, __
The present scarcity of sugar in the United States may be relieved some-
what by diverting to the Northeast and Southwest some of the domestic
beet sugar now being harvested, but the scarcity will probably not be com-
pletely overcome even when the new crop Cuba sugars are available in large
quantities, say in January and February. The advent of the new crop sugars
will, of course, relieve the acute situation now prevailing, but the demand
and the high prices will doubtless continue until production catches up with
consumption.
A glance at Exhibit 7, shows that the main sources of supply of sugar
for the United States are Cuba, Porto Rico, Hawaii, Philippines, domestic
beets and Louisiana.
If there was no European demand to be satisfied, the above mentioned
countries could furnish more sugar than the United States can now consume,
but with the Eastern hemisphere clamoring for sugar, it is natural that a
great deal of Cuban sugar will find its way there. The other sources of
supply enjoy an advantage over Cuba of entry into the United States free
of duty, but they cannot compete with Cuban sugar in other countries where
they have no such advantage.
In reply to the question as to what countries can largely increase their
production, the following might be answered: first, Cuba; second, Russia,
and third, United States (beet). It is not to be expected that Germany or
Czecho-Slovakia will be able to increase their production appreciably unless
theyr again resort to the old system of Cartels and Bounties, which is unlikely.
Cuba's capacity for producing sugar is dependent upon labor supply and
mechanical devices for cutting cane. Lands in the Eastern section of Cuba
are ample to permit of a material increase in the sugar production of the
Island. The increases shown by Exhibit 1 demonstrate the fertility of the
soil and the suitability of the climate for sugar cultivation, two advantages
which Cuba enjoys in a greater degree than any other sugar producing
country.
The Balance Sheet as at September 30th, 1919, together with the Profit
and Loss and Surplus Accounts for the year ended that date, certified by
the Corporation's Auditors, Messrs. Deloitte, Plender, Grilliths & Co., and
the Comparative Financial Statement, will be found appended hereto.
Acknowledgment is made of the loyal co-operation of all officers and
-employees during the year.
Respectfully submitted,
By order of the Board of Directors,
MANUEL RIONDA,
President.
Exhibit A
CO RP ORATIO N
SEPTEMBER 30th, I9I9
ABILITIES
Exhibit A
CUBA CANE SUGAR
BALANCE SHEET
ASSETS
$76,756,810.66
631,396.21 $77,388,206.87
DECLARED CAPITAL: ...............................
500,000 Shares 75o Cumulative Convertible Preferred
Stock, par value $1~00.00 each
500,000 Shares Common Stock without nominal or par
PROPERTIES AND PLANTS............
MACHINERY AND CONSTRUCTION
MATERIAL ON HAND..............
CURRENT ASSETS, ADVANCES TO
COLONOS AND GROWING CANE:
Cultivations-Company Cane ,. .. ... .. .
Materials and Supplies ....,,...........
Advances to Colonos less Reserve for
Doubtful Accounts ................
Advances to Stores and Sundry Advances
Sugars on hand at Net Contract Prices
/Pledged to Bankers as security for
~oans. The major portion of these
I taredhar simce been Lahiped ald
Molasses on hand at Net Contract Prices
Accounts and Bills Receivable less Re-
serve for Doubtful Accounts........
Cash . . .. .. .. .. . .
Cash--Special Deposit--Rental Guarantee
Cash on deposit to meet Preferred Divi-
Sdend due October 1st, 1919.........
$52,500,000.00
value
BILLS PAYABLE ....................,...
ACCEPTANCES--Loans against Sugars
(Since Paid) ..........................
SHORT TERM DRAFTS OUTSTANDING
ACCOUNTS PAYABLE AND ACCRUED
CHARGES .........................,..
PREFERRED DIVIDEND NO. 15 (Payable
October 1st, 1919) ................... ..
LIENS ON PROPERTIES--Cash deposited
per contra ............................
CENSOS ON PROPERTIES--Cash de-
posited per contra.....................
$15,000,000.00
11,000,000.00
1,541,081.86
2,512,438.98
875,000.00 80,928,520.84
$ 567,911.44
886,629.98 954.541.42
$ 2,656,023.61
2,634,600.23
6,850,872.94
263,145.83
11,692,000.36
420,029.46
1,245,107.59
4,303,188.17
63,000.00
875,000.00
RESERVES:
31,002,968.19
954,541 .42
636,228.45
$109,981,944.93
Taxes and Contingencies ..............
Depreciation .. .. .. .. .. .. .. .. ... .. ..
DEFERRED LIABILITIES:
Balances in respect of purchases of lands.
$ 1,439,089.43
6,500,000.00
7,989,089.43
947,490378
16,712,302.51
CASH DEPOSITED FOR REDEMPTION OF LIENS
AND CENSOS ON PROPERTIES--per contra.......
DEFERRED CHARGES:
Insurance, Rents, Taxes, Etc., paid in ad-
vance ............... 299,913.43
Interest paid in advance ................ 305,688.49
Items in Suspen se............. ,....... 30,626.53
SURPLUS ACCOUNT:
Balance ""
$109,981,944.93
)the accompanying Profit and Loss and Surplus Accounts for the year ended
)opinion, they correctly set forth respectively, the financial position of the
i the year ended that date.
Deloitte, Plender, Griffiths & Co.
We have verified the above Balance Sheet as at September 30th, 1919, and
that date, with the books in New York and Havania and certify, that, in our
Company as at September 30th, 1919, and the results of the operations for
49 Wall Street, New York City,
November 13th, 1919.
CUBA CANE SUGAR CORPORATION
PROFIT AND LOSS ACCOUNT AS OF SEPTEMBER 80th, 1919
Operating Profit for Year Ended September 30th, 1919.....
$11,069,880.76
Less:
Interest and Exchange .................
Reserve for Taxes, etc., Including Income
Tax, United States and Cuba.......
Reserve for Depreciation ...............
Reserve for Doubtful Accounts . .... .
$ 555,810.06
979,490.11
1,750,000.00
400,000.00
3,685,300.17
$ 7,384,580.59
Balance, being Net Profit for the Year Carried to Surplus
Acceun t . .. .. .. .. .. . .. .. ..
SURPLUS ACCOUNT AS OF SEPTEMBER 80th, 1919
Balance at October 1st, 1918. ................... ..........
Add:
Net Profits for Year, as per Profit and Loss Account..
$14,292,949.12
7,384,580.59
$21,677,529.71
Deduct :
Appropriations of Surplus:
Amount written off Property Account to
cover dismantling and re-location of
machinery ........................
Sundry Adjustments and Charges......
Dividends on Preferred Stock:
No. 12, January 1, 1919 $875,000.00
No. 13, April 1, 1919.. 875,000.00
No. 14, July 1, 1919. .. 875,000.00
No. 15, October 1, 1919 875,000.00
$1,200,000.00
265,227.20
3,500,000.00
4,965,227.20
$16,712,302.51
Balance, September 30, 1919 .......... ,...................
~~~~9.:1~~1~1~111Exhibit Cl~
CUBA~;" CANE UGAR ORPORTION
ComaraiveFinancialO:~11 Statement.:. Yers191,11,198 9
PRO~~~~~.irr'~: Al OSACONsMS.YAR 95-MW HIT-ta 19I~ilfB;: 88-
Production (Bage) ~ ~:............. 8,174168 8901,21 8,18,85 4,89,18
Oasons:~i'i~~i~~:i:::: :::.::iiiil'~iiii~:;ia~~a
Gros peatng roita............ $8,89,YSSA $1,98,7988 $ ,08,5597 $1, 1,18ff
Total....L .... 8,918.8 $ 150,01. $ 66,1.99 $ 6(1,18801
Taxe Caia tc ;8...... 000,0 8 8,7.0 $ 84600 $ %401
Beev o a t.~............a...... d 9858 500,000.00 400,000.00"" :i~~Ij~
Amout wrttenof Popety Asonn to ove
dismantling ~~~~- an eoainofmciey.2.120000
Budr Adutet adCags.......ssat
Deprciaion..............1.... ..1 $1,28,00.00 1,70,00.00 1,70,00.00 1,70,00.0
Diviend ........ 3 .. ,..... 987552 ,500,000.9 8,50,000.00 8,0000. 00.
Surplus~ ...........1......o, 9,5,0.8 ,1,178 2,444 ,49888
GrndTta ....... 1889,7.9 1194,188 806,559 $176,189
BALA~~cs SIZE~l
188Wra.)~~~
Proeriesan Pant..............,...5Y,3611568 $6,89,04.0 7,59,88.7 7075081.6
MacinryandCostuctonMaeriI n and..14,18,8 154088,7 76,0&8 6889.8
ntvain -omayGna. ...... 11358.0 184,8.1 ,7,599 ,56086
Maeil adS ple........... .1,0,014 807150 1,5 8964609
Advncs t Glons les 1see)1:.. .2 8,59,1949 ,59,70.2 ,05,70.1 885087.9
Adacst trsadSInr dacs.... 2,0.8 11948 1,9.828158
Sua nhnj.....i...11. .. 3j,1.1 8,9,2.7. 189008
Molasses~~~~~~~~~~ on an...... ..... .... ... 5556.8520,19.5 9002.4
Acconts nd illsRecevabe....11........ 160#9886 .,83018176 1026,8001,94,10759
Cash.....................1...1.. 1... 1,27,72AS 19,84.72 10,71.06 4808;88.1
one, Secil Dpoit-etl urnee...6800
Cah o Dvded.......1 ........ 87,000 85,0.0 7500.087,000
Snourrr ~------ so ameo rLix n as
Cas deostedwit TustCo....... .,.. 146948.18 1,88,08.9 190,20.0798,54.4
Ands ~~~ ~ ~ ~ Iliii~~ ofaGnra ecds....:.... 000.0 6,0.0 0000
a~':ls:(lL rnimanOnnons
Insurane, et ldTxspid navne,..2704.0 8936.9 104090 2998&
Inteentpaidin dvane......... ......... 125, 05.8 805,688.
Itm nSupne............... ,0 .00 iC~ 4,075:~::: l.95",1~:;:::a 290:,iil,, i~,~,682::~!.5 8069.58~..l~.:~:R~ l~tj::
Total. ...... ..........$#2,17,813.5 $88,82,481.8 $95,97,157.88 $100,98,944.9
Inazz".il'i~~rrzze:;;w ~
Declare Caita................5,0,0,0 $250000 $5950 ,000.00 $52,00,00.
Bill Payble. .......:........ .......... 8,88,22957 .. 1,00,00, 00 1800,000
AcetacsLon gantBua.. ...__ ........ 1,0,000
Drafts~jj~ Ousadn...4.......... 0,0.0 105,8.9 14949.2 15101
Accounts 1Payab~~i~~~le ad eoredCharges.......~l~~i~~~1~~~ 9,4009-7 ,54,8076586,07.7 19,488.98~ii
Preferred: p~l Diien ue............. 87,0 .00 ~ :;~~l~875lr:~i lLl,00.0 875r.c~$l:~ :il~'ls,000''.".l.;.00 ~ 87,0
Lien on ropeties--Gah deposit, pr cotra 937688.9 84,81886 01,18.40 07,91.&
Geneosi~~i~ I on iro rtis-Osh epoite, pr cntr .e 78119881 54,851 80,01.1 8669.9
Bod f i etrlMrcds ercnr ..... 60,00.0 60,00.0 60,00.0
REBREVES: ~~~~I'~l~l
Taxes Eto....... ...L...............i 00,00.00 1286,4 1.00800,00.00 ,489,89.4
Dep~~~~~,~~~recration........... .. .... ,2000.0 ,00,0.0 470,000 650,000
DEFERRED LumilTIES :~,
Balances~ ~ ~ ~~ ~~j- for-I- puchss fAdiioalLnd.1,9,99.9 94,907
~~1: i~~~~l~~Items in Suspense .. _86,577432398.4
SurlusAcoun. ..... ... 9,51,07.2 3,66,54.0 1,29,99.1 1671,30.5
I~FI;::~':: r::Notes Guaranteed (not included in total) 30,000.00 ~I.s : r ,.i''~-~ ":::" . ~~: ::als:.I~;. i.,:: *l.:~s
Toa E;_r.~~ 7,7733.5 $3,4,418 $627,5.8 10,8,949
*Cuban Taxes on Real Esate, Sugar and Molasse
~~~Fliil~l~ ~ ~ not Deductedliii.~ ~ 11:~...:
4004000
SUGAR CROPS OF CUBA
FROM 1894 TO 1919
CHIRT SHOWING THE PORTION OF EACH CROP PRODUCED IN THE
WESTERN AND EASTERN SECTIONS OF THE ISLAND
0 / /r
,eoorco
1 l i a ta I I I
CROP YERS
111 11 I
L
Exhibit 2
Comparison of the Portion of the Cuban Sugar Production Con-
trolled by American Companies for the Crop of 1918-10.
(Willett & Oray)
CUBA OANE BITGAR CORPORATION........... (17 mills.. 4,319,189 bags..15.59
RIONDAlfANAGEMENT .................... ....... 1,827,663 ...... 6.60
Rionda's Estates .......... 1,124,871 4.064
Taonjo ................... 195,392 1 0.714
Manati................... 507,800 1 1.83#
Otnsix--AMEBJOAN BUGAR Co ............... 6 ....... 1,038,868 ...... 7.00
I)eliolas .................. 701,768
Ohaparra................. 551,000
Tinguaro................. 271.000
Constancia................ 201,600
hiercedita................. 128,000
Unidad................... 85,000
Wasr INDIES SUGAR FINANCE CORP.........( ....... 619,204 ...... 2.23
Palma Sugar Co.......... 256,540 ( 0.93
Alto Cedro 8. C. .......... 212,376 (1 0.77
Onpey Sugar Co........... 150,288 (3) 0.544
GUANTAMAno ScoAn CoxPANY..............(3)....... 359,203 ...... 1.80
Soledad ........ ...... .... 153,000
leabel.................... 108,500
Los Canos ................ 97,703
PUNTA ALzoan Scan CoxPAxr.............(3)....... 594,521 ...... 2.15
Florids................... 264,300
Punta Alegre ............. 215,721
Trinidad ................. 114,500
ES.ATKIN8 & CR). (801edad) ..................(1)....... 141,522 ...... 0.51
UNITED FRUIT CoxPANY....................(2)....... 776,045 ...... 2.80
Boston ................... 468,200
]Preston .................. 307,755
4)UBA CkarPANT.............................(3)....... 587,800 ...... 2.12
Jobabo ................... 327,000
Jatibonico ................ 260,800
BARAGUA Soon CoxPANY..................(1)....... 332,300 ...... 1.20
Oentr. Elormagnero ........ 255,000 (1) 0.92
North Amer. 8. O. ........ 907,000 (1) 0.75
M[iranda Sugar Co......... 186,482 (2) 0=.67
Rio 10auto 8. 0............ 169,600 (1) 0.61
Ertnita Sugar IDo.......... 133,099 1) 0.48
Dape Cruz Do............. 122,000 1) 0s.44
Central 8. Corp ........... 112,000 1) 0.40
Matanzas-Amer. 8. 0....... 110,000 (1) 0.40
La PasS, Ck>.............. 101,300 (1) 0.3?
Havana 8. 00.............. 101,200 (1) 0.37
Ouba 8. Ifills............. 97,626 1) 0.35
Hershey Corp............. 93,388 1) 0.34
8ta. Decilia B. 0........... 93,800 1) 0.34
Dent.Tereas 8.0.......... 7tl,000 1) 0.28
Sts. Clara 8. O. ........... 68,000 0.25
8ta. Maria 8. 0............ 63,000 0.23
Oardenas-Anner. S.C....... 45,000 0.16
Mapon.................... 28,229 1) 0.10
IDentr. Natividad.......... 27,800 (1) 0.10
if O 57 AL At If ERIOA If..............(65).......18,587,733 ......49.04
NON-AMERICAN INTERESTS.......... 130).......14,159,971 ......50.96
if O 17 At L........................ 195).......27,747,704 .....100.400
Comparison of the por- o SUGAR CORP.(17)
tion of Cuban Sagar
production controlled a
by American cow a
pansies. Crop of 1918-
'19. 9 .
(Accouling to Meeers. Guma- %
Majer, Production Reports.) C &
2.88% West Indies 093
Bugar Fin. Corp. (B) 077% 51/4 ft
854% cuP& oRosuong
m 1.30% GUANTANAMO SUGAR C .(
9.86% Atkin's 2.15% PUNTA ALEGRE SUGAR CO.(3)
Management (4)
e.e god co- 50.96% NON-AMERICAN INTERESTS (130)
Total Production of t*\t a 646 op'
Cuba-BT,767,704 bags. LyOofo
Total number of 9
Centrales---195.
The number of Hills con- alo
trolled in each case is *,6
indicated by the 8gure in -
parentheels.
_ _
America-...--............. 4,085,601 96.86 86,55,400 40.06
British India................~... 2,8901,0 15.a6 2,887,000 14.20
Jav .. ... .. ..... ... .. .. ,2 2,4 7 .80 1,000,687 10.21
F~ormosa.... ....... .........- 204,000 1.09 415,678 3.54
Philippines-.....-.........-~ .....2,000 1,so loo,ooo o.es
Aesia- .......--............ 8,002,917 31.36 4,572,815 27l.96
Australia and Fiji...-......... 855,000 1,00 580,000 1.871
Africa ............. ........- 4741,664 a.4 5178,000 8.58
Span............. .. .. 18,231 0.071 6,000 0.04
TOTAL CANE, 9,821.413 52.53 12,014,724 73.48
Czeco-Bovaks............ ,68,443 0.0 70,41,000 48
United Statsee............ ..... 655,298 3.50 674,802 4.18
Oanada....----- .... ..... .......1,6756 0.07 99,300 0.14
America...................~ 606,073 3.571 697,102 4.27
TOTAL BEET, 8,875,918 47.47 4,339,856 26.54
I _
Production, the Year before the War and at the
Present Time.
1018-14 1918-10
Tons. 4 Tons.
899,187 3.20 687,957 a.eo
550,925 2.05 520,000 8.18
2,507,782 18.80 4,000,000 24.40
304,640 1.68 446,580 2.78
152,000 0.81 70,000 0.48
181,168 4.18 877,002 5.87
OANE-U. 8,, Porto Rico and St. Croix..
Hawaii........................
Onbs........ .... ...... .......
Other West Indies..............
General America and Mexico.....
Boath America.................
Exhibit 4
GRAND TOTAL,
18,67,31 10.00 16,354,580 100.00
.I*l.r;^r;*YY*Il*~iiilL
___
by Countries, of the World's Cane and Beet Sugar Production, the Year before the War and
Compari son,
Crop 1918-1919
Crop 1918-1914
NOTE-Th ram Ma t th circle in e "~to en the teal pmaluations.
II. &i St. Croiz. ..............~~.... 6 ,2 .0
Ponerto leo~................~...~....... 375,000 18.1
Rawii,._..__, ...................... 20, 000 4.84
C bUs..... ..... .. .. ....... 4000,000 88.99
Maouithnsmerica..~.............. 877,002 7.81
natral America & Mexico _.....---- ... ,000 0.58
Wtest Indiesn .nriench.~. 201,000 918,000 2.618
BFRIBitis 60,0000 .4
Btsan Domingo & Hayti............... 184,680uo 19.54
Fo Ausralia...............~......~.... 296,000 1.88
Fhiijpi.. s. ..-................. ... .80,000 0.67
AUSTAIA & FIJI 30600 28.5
AFRICA 57si)8,000 0. 4.8
Comparison of the Portion of the WJorld's Sugar Production Contributed by Different Countries
.CAN W
Toe Z
Tons
Gera~lny_~.____~.__................_ 1,411,000 88.88
Ozieho-Sloakia (Austria-. -~~~-Hugr). 800,000 10.61
R us iad. .... ... ... ... --- --. . Too,000 8.618
Hola d .. .. .. .. .. .. 6 7184 98 1 .80
B HET
Comparison of the portion of the world's sugar production contributed by different t countries
for the crop of 1918-'19.-
C AN E BEET
GERMANY 32.53 96
C' tJ BA 3349
CF.EOl0-SLOVAKlA 16.1896 UN ED 6TATES IS.5596
SA (AUSIRIA-HUNSARY)
agro 8 satib to some
us.astcRoix 2.1994
ggK8tSIES LIPPINES (2596
World's Production of-
PE cane suser-14014,ts4 tons Ta.
1- Beet 4,889,850 Sm54
18,854,586 tons
NOTE 'rs...... 4 de dedes are 's wronoman to so respeare areandear d c.ne and d beer ansors in do wedd
Duties and Taxes on Refined Sugar
1914 .400 1.080 1.860 ( 9.880 8.070 2.080 4.090 j ( | 1014
1919 5.570 2.080 1.860 | (?) (?) (?) (?) | ( 1010
NOTE-Double line indicates pre-war prices
Heavy " post-war prices
Exhibit 6
Exhibit 8
Cubso Contrales of More than 280,000 Bags Output, in their
Order' of Production.
(As REPORTED BT MESSB6. GTHA-MEJEB FOR 1918-19.)
ORDB
87AR T FINISH
ICU CINTRAI. PM
r0TAL CAME W BAGS Nov Dee, Jan. Feb. Mar. May Jun. Jul. Aug Sept
--NUMIBER OF CENTRlAI.ES W1 EACH MONFTH--
2
Deliaise, 701,TO
Ohaparra, 561,00
Moron, 554,040
Espana, 595,000
Manati, 507,800
Stewart, 506,494
Boston, 468,200
Ganagua, 450,000
Francisco, 449,690
Mercedes, 870,240
Gomes-Mena, 870,ooo
Boeorro, 867,861
Jagueyal, 858,168
B. Lucia (In) 850,000
Baragua, 882,800
Jobabo, 827,000
Toledo, 819,001
Alava, 819,400
Preston, 807,785
Conehits, 200,408
LugareSo, 280,067
StCetrle, otl,8,s,4a n 1 .. 5 s
Sources of the Sugar Consumed in the United States
TEABB 1914 TO 1919, INCLUBIVE.
Estimated
1914 1915 1916 1911 191B 1919
Tone Tone Tone Tons Tone Tons
Louisians and Texae (Cane) 148,996 224,708 SS4,978 258,443 226,275 250,000
Hawail............ 510,385 509,268 533,000 502,088 420,771 500,000
St. Croix.......... .... .... .... 5,084 8,608 7,000
Porto Rico........ 274,149 800,810 392,788 481,202 381,524 800,000
Philippines........" 150,887120,202111,182 79,830 40,587 00,000
Varione (Maple Eto.) sosoo istoo 14,000 soa ls so,50s agooo
1,069,617 1,169,948 1,276,869 1,886,160 1,067,855 1,179,000 2:"
U. S. Beet......... 624,998 769,257 700,256 185,070 557,704 650,000 a
Total Domestic ............ 1,698,915 1,989,900 1,077,118 2,171,948 1,505,050 1,822,000
Cuba.............. (Cane) 2,018,854 1,841,609 1,606,548 1,500,876 1,881,244 5,000,000
Foreign.... .... ... 46,088 14,505 11,160 2,051 19,808 25,000 i
Total Raws (Cane & Beet) 3,758,807 8,795,807 3,654,826 8,681,075 3,495,600 4,847,000
Foreign ReSned................ 2,020 6,224 8,781 2,524 .... ....
Total Consumption......... 8,700,827 3,801,581 3,658,607 8,688,500 8,495,606 4,847,000
Per Capita (Ibs.) 84.99 83.88 70.84 78.58 78.86 99.00
Exhibit 3
(CANE AND BEET) BY COUNTRIES
-1913-14 to 1918-19.
Decrease.
Tons
30,925
10,535
3,875
76,000
COUNTRIES.
Cuba
Hawaii
Porto Rico
Louisiana
Texas
St. Croix
Philippines
&:GRAY)
1917-18
Tons
3,446,083
515,035
405,174
217,499
2,009
5,400
216,260
1,361,377
682,867
2,044,244 1,982,819 .... Net 47,541
10,625
81,679
78,902
96,744
397,220
211,678
103,336
830,534
18,650
82,000
49,000
Net
---- 1,306,040
.- 985,443
---- 671,237
---- 151,200
---- 64,276
.--- 1,040,000
.... 355,316
---.... 4,573,512
.... Net 2,388,251
45,500 ....
.... Net 2,342,751
U. S. Cane and Beet. Total
Canada-Beet
British West Indies
French West Indies
San Domingo and Hayti
Mexico and Central America
South America
Java
Formosa and Japan
Australia and Fiji
Africa (Mauritius, Egypt, etc.)
Various-Total
European Beet:
Germany
Czecho-Slovakia (Austria)
France
Belgium
Holland
Russia
Other European Countries
Europe. Total
Total Cuba, U. S., Various, Europe
British India (All CO8MUlmll lOCally)
Grand Total
.. --- Decrease from preceding crop
...--- Increase on "
---- 976,805
348,410 .--
Changes between
1913-14 and 1918-19
-... 67,135 U. S. Cane Total
19,594 .... U. S. Beet
Increase.
Tons
1,402,268
50,000
3,200
1918-19
Tons
4,000,000
520,000
375,000
250,802
3,125
9,000
150,000
1,307,927
674,892
11,250
179,786
.48,881
143,430
65,000
691,240
1,791,064
397,618
396,700
511,166
4,236,135
1,570,578
668,250
200,265
131,000
,199,295
1,028,580
495,955
4,293,923
14,020,385
3,311,000
17,331,385
22,300
201,900
60,000
184,680
70,000
877,902
1,669,637
415,678
306,000
578,000
4,386,097
1,411,900
700,000
109,783
75,000
164,981
700,000
487,000
3,648,664
14,017,580
2,337,000
16,354,580
COST OF PRODUCTION
The cost per pound of producing sugar including cane on an f.o.b. basis
at your factories during the last four crops was as follows-
1915-1916 1916-1917 1917-1918 1918-1919
2.7480 3.431f 3.998 4.6060
The above figures show increases in cost of:-
.6830 per pound in 1916-1917 over previous year
.567# 1917-1918 "
.6080 1918-1919 "
The greater portion of these increases is due to the higher cost of cane.
As is known, Cane is paid for in sugar which, in turn is usually bought back
by the Company from the Colonos at the fixed price obtained for the whole
crop sold to the Government, or, in the absence of governmental control,
at the market price. The Company selling its own sugar and also that pur-
chased from the colonos, at the ruling price, neither gains nor loses by the
purchase of sugar from the colonos. The best way therefore, to state the
actual increase in the cost of production would be by excluding the cost of
cane. On this basis, the cost of transporting the cane to the mills, manu-
facturing the sugars therefrom and the delivery of the sugars on board
steamer would be as follows, per pound:-
1915-1916 1916-1917 1917-1918 1918-1919
0.715f 1.072# 1.456f 1.555#
'Ae increases were, consequently:
0.357 cents per pound increase 1916-1917 over 1915-1916
0.384 1917-1918 1916-1917
0.099 1918-1919 1917-1918
From the above table it is gratifying to note that the cost of manufacturing
for the last crop shows only a slight increase over that of the previous crop,
an increase of 6.8% as compared with an increase of 36% for the year 1917-18
over 1916-17. The increase would have been even less had the sucrose in
the cane not been so disappointing.
OPERATING PROFITS PER POUND OF SUGAR
If from the preceding f.o.b. prices at which the sugars of the last four
crops were sold, we deduct the Cost of Production including the Cane, it
will give us the Operating Profits made per pound, as follows-
1915-16 1916-17 1917-18 1918-19
Receipts ................... 4.112f 4.4790 4.630f 5.3980
Production Cost ........... 2.748 3.431 3.998 4.606
Operating Profit ........... 1.3640 1.0480 0.632# 0.7920
11
CANE SUPPLY
The estimates made by the General Managers early last season of
the amount of cane available at your Corporation's plantations in the Western
and Eastern sections of the Island were more than realized, as appear by
the following tables:
Western estates ........... 294,000,000 arrobas (3,281,250 tons)
Eastern ........ 198,000,000 (2,209,821 )
492,000,000 arrobas (5,491,071 tons)
The actual quantity of cane ground by your Corporation was as follows:
Western estates ........... 307,329,091 arrobas (3,430,012 tons)
Eastern .......... 194,267,464 (2,168,164 )
501,596,555 arrobas (5,598,176 tons)
In addition to the 307,329,091 arrobas (3,430,012 tons) of cane ground at
the Western plantations there were sold to outside plantations 8,557,477
arrobas (95,505 tons). This was made necessary by strikes. Your manage-
ment, realizing that because of the time lost thereby all the cane could not
be ground at your factories, deemed it best to sell this cane to outside planta-
tions rather than have it left in the fields uncut. Mention of this is made
merely to show that your Western mills had more than an adequate supply
of cane for their capacity.
In the East your Company, for the same reason, sold 9,554,281 arrobas
(106,635 tons), chiefly from 'Moron'.
The sugar made from the above mentioned 18,111,758 arrobas (202,140
tons) of cane delivered to outside plantations is not included in the report
of the company's production of sugar.
CANE GROUND
The following table gives a comparison of the cane ground at your mills
during the four years since the incorporation of your Company:
1915-1916 359,955,746 arrobas or 4,017,363 tons
1916-1917 393,584,058 4,392,679 "
1917-1918 409,900,529 4,574,782 "
1918-1919 501,596,555 5,598,176 "
The above figures show an increase of 141,640,809 arrobas (nearly 1,600,000
tons) of cane from 1915-1916 to 1918-1919. This increase was divided by
sections, as follows:
Western estates ........... 12,460,826 arrobas or 139,071 tons
Eastern .......... 129,179,983 1,441,741 "
The above total increases in the cane supply of this company exceed the total
amount of cane produced in the entire United States for the coming crop
8
4000000
3.800.000
3.600,000
3.400,000
3,200,000
3.00ooooo
Z 2,800,000
2,600,000
2,400.000
2,200.000
Z 2.000.000
0 .soo.ooo
U 1,600.000
S,400o000
0 1,200.000
1.000o000
800.000
600.000
400.000
200.000
0
oo
SUGAR CROPS OF CUBA
FROM 1894 TO 1919
CHART SHOWING THE PORTION OF EACH CROP PRODUCED IN THE'
WESTERN AND EASTERN SECTIONS OF THE ISLAND
/ C
____ _- -
---- ------- --I --i -/...
--4- --' .. -I- O ._ _
........^. ^ ^ -- ---_?':;" ...
tA 01 0 a N 0v '1 If 0 N 0 QI
01 0 0 0 0 0 0 0 0 0 0 0
S* *CROP YEARS
CROP YEARS
1 10 (0 sN
7 I 7 I
(l q 1i n
a oi 5>
0 M1
I i
20
CUBA CANE SUGAR CORPORATION
PROFIT AND LOSS ACCOUNT AS OF SEPTEMBER 80th, 1919
Operating Profit for Year Ended September 30th, 1919..... $11,069,880.76
Less:
Interest and Exchange.................
Reserve for Taxes, etc., Including Income
Tax, United States and Cuba .......
Reserve for Depreciation...............
Reserve for Doubtful Accounts ........
$ 555,810.06
979,490.11
1,750,000.00
400,000.00
Balance, being Net Profit for the Year Carried to Surplus
A account ............................................
3,685,300.17
$ 7,384,580.59
SURPLUS ACCOUNT AS OF SEPTEMBER 30th, 1919
Balance at October 1st, 1918 ..............................
Add:
Net Profits for Year, as per Profit and Loss Account..
Deduct:
Appropriations of Surplus:
Amount written off Property Account to
cover dismantling and re-location of
m achinery ........................
Sundry Adjustments and Charges ......
Dividends on Preferred Stock:
No. 12, January 1, 1919 $875,000.00
No. 13, April 1, 1919.. 875,000.00
No. 14, July 1, 1919... 875,000.00
No. 15, October 1, 1919 875,000.00
$14,292,949.12
7,384,580.59
$21,677,529.71
$1,200,000.00
265,227.20
3,500,000.00
4,965,227.20
Balance, September 30, 1919 ............................... $16,712,302.51
Exhibit 8
Cuban Centrales of More than 280,000 Bags Output, in their
Order of Production.
(As REPORTED BY MESSRS. GUMA-MEJER FOR 1918-19.)
ORDr6kb
START FINISH
CUBA CENTRAL Production STAR_ FINISH
rOTAL CANE IN BAGS Nov Dec. Jan. Feb. Mar. May Jun. Jul. Aug Sept
Delicias, 701,768
Chaparra, 551,000
Moron, 524,940
Espafia, 522,900
Manati, 507,300
Stewart, 506,494
Boston, 468,290
Cunagua, 450,000
Francisco, 449,590
Mercedes, 376,246
Gomez-Mena, 370,000
Socorro, 357,361
Jagueyal, 353,168
S. Lucia (Est) 350,000
Baragua, 332,300
Jobabo, 327,000
Toledo, 319,601
Alava, 319,400
Preston, 307,755
Conchita, 290,405
Lugareflo, 280,967
I 21 .. .. .. 16 ...__
-NUMBER OF CENTRALES IN EACH MONTH-
21 Centrales, Total, 8,666.485 .__ 15 5 1 .. 2 12 2 2 2
174 Other Centrales, 19,081,219 2 74 84 10 4 47 93 29 4 1
195 GRAND TOTAL, 27,747,704 2 89 89 11 4 49 105 31 6 3
When strikes of cane cutters or other laborers occur, the mills cannot
be supplied daily and regularly with the required amount of cane; conse-
quently grinding cannot be uniform and the mill work must suffer.
The machinery in your plantations was in far better condition than in
any previous year and would have been able to further diminish the losses
in manufacturing had the cane gone to the mills freshly cut with the usual
daily regularity. Any irregularity in feeding the mills with sufficient cane
not only causes bad mill work and increased bagasse losses, but necesitates
the consumption of more fuel, thereby further increasing the cost of pro-
duction.
YIELD OF 960 CENTRIFUGALS
The yield of the four crops in 96* centrifugals was as follows-
1915-1916 1916-1917 1917-1918 1918-1919
11.25% 10.767% 11.419% 11.15%
These figures show that the yield this year is .26% under that of last year
but only .10% under that of 1915-1916 notwithstanding that the sucrose
content during that year was .85% higher than this year. This is due to
the higher efficiency attained in the factories since the first crop.
COMPARATIVE RECEIPTS PER POUND OF SUGAR
For the purpose of comparing the f. o. b. price, per pound manufactured,
obtained during the last four crops, the proceeds from "Molasses" and "Other
Earnings" are included in the following:
1915-1916 1916-1917 1917-1918 1918-1919
4.1120 4.4790 4.6300 5.3980
The small increase of .151# per pound for 1917-1918 crop, the first year of
Governmental control, over the price obtained the preceding year of 1916-
1917, was not sufficient to cover the extra cost of manufacturing as was
shown in last year's Annual Report, thus proving conclusively that the crop
of 1917-1918, sold to the International Sugar Committee at 4.60S f.o.b. was
disposed of at too low a figure. The price obtained from the U. S. Sugar
Equalization Board for the crop just completed, although .900 per pound
higher, was none too high, in view of the poor sucrose in the cane, an im-
portant factor in the cost of production. The difference indicated between
the average price of 5.398# obtained for last crop, and the basic price of 5.50#
f.o.b. Northside ports paid by the U. S. Sugar Equalization Board, represents
the reduction of .050 per lb. in the price of the 1,824,049 bags shipped from
the Southside, as well as losses in weight and polarization on the portion
of the Corporation's production held in Cuba after the crop was finished,
in conformity with shipping provisions bf the contract.
10
Exhibit 3
SUGAR PRODUCTION OF THE WORLD
FOR THE SIX CROPS
(WILLETT
COUNTRIES. 1913-14 1914-15 1915-14 1916.17
Tons Tons Tons Tons
Cuba---------------------...... 2,597,732 2,592,667 3,007,915 3,023,720
Hawaii-------.. .......------------------ 550,925 577,186 529,896 575,510
Porto Rico --------------------- 325,000 308,178 431,335 448,567
Louisiana.---...-------------------.. 261,337 216,696 122,768 271,339
Texas---....---------- ------- ---... 7,000 3,500 1,000 6,250
St. Croix ---------------------- 5,800 4,500 14,750 7,787
Philippines ------ -------------- 225,000 243,000 332,158 202,655
U. S. Cane Total ----- ...-----.... ---- 1,375,062 1,353,060 1,431,906 1,512,108
U. S. Beet -------------..------- 655,298 646,257 779,756 734,577
U. S. Cane and Beet, Total--- 2,030.360 1,999,317 2,211,662 2,246,685
Canada-Beet -..------ ----------- 11,675 13,979 17,641 12,500
British West Indies -------------.... 120,221 120,748 179,745 194,678
French West Indies ------------ 78,650 80,000 74,036 70,603
San Domingo and Hayti ---- ---- 105,778 108,267 126,058 130,171
Mexico and Central America -- 152,000 132,000 100,000 75,000
South America -----..---.---- 781,158 879,465 749,930 652,b28
Java.--..--...-..-----...----.-----------.... 1,272,417 1,303,045 1,198,567 1,596,174
Formosa and Japan --------.-----... 204,000 262,000 405,227 436,026
Australia and Fiji -------------. .---355,000 348,408 249,681 288,731
Africa (Mauritius, Egypt, etc.)--- 474,664 523,788 521,573 522,513
Various-_Total ------------ 3,555.563 3,771,700 3,622.458 3,979,224
European Beet :
Germany -...--.-----.---.-------... 2,717,940 2,500,000 1,400,000 1,603,920
Czecho-Slovakia (Austria).-- 1,685,443 1,602,315 1,011,400 944,500
France -------------------- 781,020 302,961 135,899 184,191
Belgium ..------------------- 226,200 203,608 113,097 135,031
Holland -------------------...... 229,257 302,458 242,758 269,180
Russia ------------.---.------... ... 1,740,000 1,967,336 1,467,090 1,321,600
Other European Countries. 842,316 711,913 713,874 551,924
Europe. Total ---.--------------.. 8,222,176 7,590,591 5,084,119 5,010,346
Total Cuba U.S. Various, Europe.16,405,831 15,954,275 13,926,154 14,259,975
British India (All constmed locally).-- 2,291,500 2,460,573 2,634,000 2,728,000
Grand total ---------...--.....---18,697,331 18,414,848 16,560,164 16,987,975
Decrease from preceding crop ---- ------ 282,483 1,854,694 ..1
Increase on ------ ----- 497,821
32
Total Island
Tons of 2240 lbe.
1,087,496
1,081,097
281,180
218,603
314,000
845,261
808,548
685,856
850,181
008,878
1,040,228
1,163,258
1,178,740
1,427,678
961,958
1,513,582
1,804,340
1,483,451
1,895,984
9,428,587
9,597,739
2,502,667
3,007,915
3,023,720
3,446,088
*8,968,987
Western
Portion
074,377 = 90
916,178 = 89
174.668 = 76
218,664 = 100
310,802 = OO
805,910 = 80
255,617 = 83
546,003 = BO
000,917 = 82
885,841 = 84
866,048 = 88
954,812 = 82
960,688 = 82
1,120,408 = 78
687,708 = 71
1,082,796 = 72
1,278,094 = 71
1,020,488 = 69
1,880,045 = 70
1,685,206 = OO
1,600,401 = OS
1,711,785 = 60
1,989,158 = 04
2,006,249 = 66
1,998,500 = 68
2,145,768 = 54
production estimated.
Eastern
Portion #
118,119 = 10
114,919 = 11
66,517 = 24
SO = ..
8,117 = 1
80,843 = 11
52,926 = 17
80,258 = 14
150,264 = 18
168,087 = 16
178,580 = 17
208,046 = 18
209,061 = 18
807,265 = 22
274,100 = 20
430,786 = 28
596,325 = SO
408,013 = 31
565,339 = 80
748,241 = 81
991,381 = 38
880,882 = 34
1,068,757 = 86
1,017,471 = 34
1,452,493 = 42
*1,818,189 = 46
1808-04
1894-96
1805-96
1896-07
1897-08
IB08-90
1800-1900
1000-01
1001-08
1902-03
1908-04
1904-05
1905-06
1906-07
1907-08
1908-09
1909-10
1010-11
1911-12
1010-18
1918-14
1914-16
1916-16
1910-17
1917-18
1918-10
* **Santa Lucia"
NOTEa:-The falling off in production from 1,031,097 tone in 1804-95 to 218,608 tons in 1806-97
was caused by the Cuban War of Independence, then in progress, It fe interesting
to note the continue growth from the time peace was restored in 189u until last
year, with the two exceptions of 1907-08 and 1910-11, when the productions were
curtaIled by drought during the growing season.
28
Exhibit 1
Sugar Crops of Cuba for the Years 1894 to 1919
MOWING THE FORTIox or Exca Caor PaoDUCED BY THE ESTERN AND Essranx
SEOTTONS OF THE ISLAND.
(made up from Willett & Gray statistics)
Exhibit 6
WHOLESALE PRICES OF GRANULATED SUGAR
In Various Countries
Before and After the World War
Duties and Taxes on Refined Sugar
1914 1 .40c 1.08c 1.36c 2.88c 8.67c 2.03c 4.02c (?) 1914
1919 5.57c 2.080 1.36c 1 (?) (?)(??) (?) (?) 1919
NOTE-Double line indicates pre-war prices
Heavy post-war prices
Directors decided to sell the lands of the "Jobo" plantation and transfer the
machinery to plantations in the Eastern section of the Island. The major
portion of said machinery is being installed at "Moron", thereby increasing
the capacity of that Central, as referred to elsewhere.
PRODUCTION AND CAPACITY OF THE EASTERN MILLS
The following table shows the production of the Eastern mills during
the last four crops and the estimated production for 1919-1920:
1915-1916 1916-1917 1917-1918 1918-1919 1919/1920 estimated
Moron ..... 170,263 181,045 315,439 524,940 650/700,000 bags
Stewart .... ...... 378,097 416,560 506,494 575/625,000 "
Jagueyal ... 233,545 251,013 326,200 353,168 425/450,000 "
Lugareno .. 154,059 67,600 117,200 280,967 300/325,000 "
557,867 877,755 1,175,399 1,665,569 1950/2,100,000 bags
This increase of over 1,400,000 bags-(200,000 tons)-in the Eastern mills
in the four years, between the first crop of your corporation and the estimated
crop of 1919-1920, is the greatest achievement of your Cuban management.
Your management has increased the capacity of 'Moron' more than any
other Eastern plantation, because of its favorable location for the acquisition
of large quantities of cane. With a great deal of the machinery from 'Jobo'
now installed at 'Moron', the coming crop at the latter estate is expected to
be from 650,000 to 700,000 bags (90/100,000 tons) during the usual crop
months, December to June inclusive.
There is only one corporation in Cuba, i.e. the Cuban-American Sugar
Company, which began its operations after the Cuban War of Independence,
whose production in its two Eastern Plantations of 1,252,768 bags sugar
last crop, compares with that of your Corporation in the same section.
Your production in the East will not have reached its maximum even
with the next campaign. If the plans of the management are carried out
for the transfer of some of the smaller Western mills to favorable locations
in the East, where your Corporation has options on ample and suitable
cane lands, the production in the East can easily be raised, in two or three
years, to 2,500,000 bags during the usual grinding period. Your Company
is therefore in a good position to make increasing quantities of sugar in the
East while maintaining the usual quantity in the West.
PROPERTY ACCOUNT
Original Cost of the 17 Plantations, Including Taxes, Notary
Fees, etc. ..........................................
Additional Purchases:
Central "Stewart" ................... $ 8,400,000.00
W arehouses .......................... 159,600.00
Lands ............................... 2,197,276.59
Taxes, Notary Fees, etc., thereon........ 125,599.48
$10,882,476.07
Less:
Sale of Central "Asuncion".. $425,000.00
Sale of Lands, Machinery,
etc. .................. 1,057,753.23
Additional Improvements, etc.:
Fiscal Year
1915-1916 ......
1916-1917 ......
1917-1918 ......
- 1918-1919 ......
Western
Plantations
$ 264,603.13
2,376,123.95
1,835,050.42
730,004.32
$5,205,781.82
Eastern
Plantations
$ 155,131.08
2,657,229.86
8,246,313.70
3,309,334.68
$14,368,009.32
Less amount written off Property Account to
cover dismantling and relocation of ma-
chinery ..............................
Machinery and Construction Material on hand
Total as per Balance Sheet.............
1,482,753.23
$ 9,399,722.84
Total
$ 419,734.21
5,033,353.81
10,081,364.12
4,039,339.00
$19,573,791.14
$28,973,513.98
1,200,000.00
$48,983,296.68
27,773,513.98
$76,756,810.66
631,396.21
$77,388,206.87
RENEWALS, BETTERMENTS AND DEPRECIATION
Following the customary practice, your Company has made adequate
expenditures for renewals, repairs and changes in the location of machinery,
all of which have been charged to operating expenses before arriving at the
operating profit. r
In addition to the cost of above renewals and repairs, your Board of
Directors have made a charge of $1,750,000 for Depreciation.
Exhibit 5-Statement and Chart showing a comparison of the portion
of the world's cane and beet sugar production contributed by differ-
ent countries for the crop of 1918-1919
Exhibit 6-Chart showing a comparison of the wholesale prices of re-
fined sugar in various countries before and after the world war,
years 1914 and 1919.
Exhibit 7-Statement of sources of sugar consumed in the United States
during the years 1914 to 1919 inclusive.
Exhibit 8-List of Cuban Centrales Producing over 280,000 bags of
Sugar during the crop 1918-19.
The scarcity of sugar, to which attention was called in the last Annual
Report, is now being felt by the entire world. It, therefore, may be of
interest to enumerate some of the causes for this world-wide sugar scarcity:
(a) : Smaller production of European beet sugar during the four years
of the war.
(b) : Only a comparatively small increase in the Cane sugar production
throughout the world, outside of Cuba, during the last five years,
notwithstanding the high prices prevailing (see Exhibit 3).
(c): The large increase in sugar consumption in the United States,
particularly since the enforcement of prohibition (see Exhibit 7
showing the consumption in U. S. for five years along with an
estimate for 1919).
(d) : A very active foreign demand from all quarters after the cessation
of hostilities, particularly from European countries whose con-
sumption had been temporarily restricted by Governmental ration-
ing during the World War. Notwithstanding that Europe has
received fully one-third of the 1918-19 Cuban crop the demand
from that source continues unabated, as a result of which large
sales of new crop Cubas have already been made and are still
being made for delivery as late as June, 1920.
(e) : The increase in the World's potential demand, which, having been
restrained by Governmental control during the four years of war,
is now asserting itself. Had there been no war, the probable in-
crease in consumption would have been 400,000 to 500,000 tons
per annum, requiring an increase in production of about 2,500,000
tons of sugar during that period as compared with an actual de-
crease of about 2,300,000 tons.
(f): Last, probably the additional consumption arising from the uni-
versal war-time advertisement of the fact, previously known to
those who had thoroughly investigated the subject, that, for the
same price, sugar contains more calories of nutritive value thar
any other article of food.
RECEIPTS AND EXPENSES
FISCAL YEAR ENDED SEPTEMBER 30, 1919.
RECEIPTS-
Production, 4,319,189 Bags
Sugar Sales .......................... $80,470,542.43
Molasses Sales .......................... 484,414.89
Other Earnings .........................
Total Receipts ......................
EXPENSES-
Cost of Cane per 100 arrobas $8.50........
Dead Season Expenses (Salaries and
Wages, Materials and Supplies, Repairs
and Renewals) ......................
Crop Expenses (Salaries and Wages, Ma-
terials and Supplies, Fuel, Maintenance,
Administration-Cuba and United
States) .............................
Fiscal Year Charges:
General Insurance ...................
Cuban taxes on Sugar...............
Cuban taxes on Molasses.............
Cuban taxes on Real Estate..........
Legal Expenses .....................
Total Fiscal Year Charges .......
Sugar Expenses:
Sugar Bags and Packing ............
Sugar Inland Railroad Freights ......
Sugar Shipping Expenses ............
Sugar Insurance ....................
Selling and Landing Expenses........
Total Sugar Expenses............
Total Expenses-F. 0. B........
M arine Freight .........................
Total Expenses-Delivered ......
Operating Profit to September 30th, 1919..
This compares with an Operating Profit last
year of .................................
and a Profit per bag of...................
16
560,368.62
$81,515,325.94
Per Bag
$18.631
.112
.130
$18.873
$42,658,281.93 $ 9.877
4,440,048.62
9,038,523.33
326,109.94
335,391.07
75,997.10
. 260,349.84
56,404.51
$ 1,054,252.46
$ 3,106,313.13
1,626,931.29
953,741.07
210,639.85
1,300,605.47
$ 7,198,230.81
$64,389,337.15
6,056,108.03
$70,445,445.18
$11,069,880.76
$ 7,390,603.98
1.028
2.093
.076
.077
.018
.060
.013
$ .244
$ .719
.376
.221
.049
.301
$ 1.666
$14.908
1.402
$16.310
$ 2.563
$ 2.05
SUPPLY OF CANE FOR 1919-1920
The present estimate of the cane supply for the coming crop is as follows.
Western estates ....... 300,000,000 arrobas or 3,350,000 tons
Eastern ....... 250,000,000 2,790,000 "
550,000,000 arrobas or 6,140,000 tons
Although somewhat early to make estimates of cane, the above figures are,
however, believed to be conservative. The percentage of sucrose in the cane
is the unknown factor.
Particular attention is called to the enormous increase in cane for the
Eastern estates from 1916-1917 to 1919-1920, namely, over 145,000,000 arrobas
(1,600,000 tons). In order to obtain that additional quantity of cane about
80,000 acres of timber land had to be cleared and planted in cane within the
last three years.
ESTIMATE OF SUGAR CROP FOR 1919-1920
It is not easy to estimate the amount of sugar that your Corporation
will make during the coming crop as the total depends largely upon the per-
centage of sucrose in the cane. Even with as low sucrose in the cane as last
year-which is unlikely after three years of low sucrose-the total crop for
1919-1920 should be:
In the Western estates 2,600,000 bags (377,000 tons)
In the Eastern 2,100,000 (303,000 )
4,700,000 bags (680,000 tons)
With a higher percentage of sucrose in the cane, the total production will
be correspondingly increased.
LANDS
Your Company having sufficient lands to supply cane for its present
needs, made no additional purchases or leases this year. This account, there-
fore, remains unchanged from last year's figures which show that the cor-
poration owns 11,216 caballerias (373,800 acres) of land, and holds under
lease, many of these leases being for long periods, 6,932 caballerias (231,000
acres) of land. The total lands owned and leased amount to 18,148 caballerias
(604,800 acres). Land values have increased very much during the last four
years, especially in the East where they had been much lower than in the
West, and with this new virgin soil in greater demand values are drawing
nearer to those of the more densely cultivated portion of the Island.
RAILROADS
Your Company now owns and operates for the transportation of its
products and supplies, 1,090 kilometers (683 miles) of railway, of which 781
kilometers are standard gauge and 309 kilometers are narrow gauge; together
with equipment consisting of 121 locomotives, of which 87 are standard gauge
and 34 narrow gauge, and 3,504 cane and other cars, of which 2,219 are
standard gauge and 1,285 are narrow gauge.
CAPITAL ACCOUNT
Your Corporation has lacked working capital from the start. Of the
amount realized from the sale of the stock, all but $3,600,000 was required to
pay for the properties originally purchased. It was expected that the short-
age in working capital would be made up out of earnings, but most of the
surplus earnings of the first year were used in the purchase of the 'Stewart'
plantation, and the surplus earnings of the following years in defraying the
cost of additions and improvements, particularly in increasing the output
in the Eastern plantations.
While the above expenditures increased the production and earning
power of the Corporation, they deprived it, to that extent, of working capital.
To remedy this, your Board of Directors has recommended a $25,000,000
issue of 7% ten-year Debenture Bonds convertible into Common Stock, as
set forth in the Circular to the Stockholders dated October 30, 1919.
GENERAL REMARKS
According to the preceding Receipts and Expenses State-
ment, the Operating Profits this year were.................
Deducting disbursements for:
Interest and Exchange................. $ 555,810.06
Taxes (Reserve) ...................... 979,490.11
Dividends on Preferred shares.......... 3,500,000.00
leaves a balance of........................................
This is equal to about $12.00 per share on the 500,000 shares
of Common stock of the Corporation, before making allow-
ance for Depreciation and Doubtful Accounts.
After deducting:
Reserve for Depreciation ........... $ 1,750,000.00
Reserve for Doubtful Accounts ..... 400,000.00
the remaining balance of ................................
is equivalent to about $7.77 per share on the Common Stock.
$11,069,880.76
5,035,300.17
$ 6,034,580.59
2,150,000.00
$ 3,884,580.59
Your management has provided a regular and adequate supply of oil
for fuel purposes, so that the operations of your factories will not be directly
affected by any stoppage of coal deliveries resulting from strikes in the
coal industry, such as are now threatening in this country.
17
RATES PAID TO COLONOS FOR THEIR CANE
The average percentage of sugar per 100 of cane paid to the Colonos
(tenant farmers) for their cane continues to diminish as the Cane supply
in the Eastern plantations increases. In order to show the percentages paid
to the Colonos in each section, the following figures for the last four crops
are given:-
1916-16 1916-17 1917-18 1918-19
Western Estates.. 6.713% 6.849% 6.891% 6.901%
Eastern .. 5.079 5.029 5.115 5.130
Averages ........ 6.383% 6.337% 6.254% 6.168%
SUCROSE IN THE CANE
The average percentage of sucrose in the cane at the 17 plantations for
the four crops was as follows:
1915-1916 1916-1917 1917-1918 1918-1919
13.87% 13.00% 13.31% 13.02%
The sucrose in the cane has not been high for the last three crops. Such
continuously low sucrose in the cane is most unusual. In Cuba it is rare
indeed to have low sucrose for so many consecutive years.
The sucrose content depends much upon the temperature and seasonable
rains ,but, above all, the cane needs cool and dry weather during the grinding
season. Weather conditions up to the present have been most satisfactory
for the growing crop.
The highest percentage of sucrose this year was at "Perseverancia"
13.72%, and the lowest at 'Socorro' 12.052%.
LOSSES IN MANUFACTURE
The Losses in manufacturing, which have been decreasing year by year,
showed a still further, though slight, improvement during the last campaign,
as may be seen by the following figures:
1915-1916 1916-1917 1917-1918 1918-1919
3.07% 2.67% 2.36% 2.32%
Your management had hoped to show a still greater improvement, but it is
difficult to maintain a high state of efficiency of operations with labor troubles
in the fields and sugar houses, and with railroad strikes.
Whenever there is a railroad strike, the quantity of cut cane in the fields
waiting for transportation accumulates and- there is a constant loss in sucrose
content from the time the cane is cut until it is finally milled.
9
II I I I II I
Li C
&LC.RAY)
: 1917-18
Tone
8,446,088
515,085
405,174
217,490
2,000
5,400
810,200
1,861,877
682,807
2,044,244
11,250
170,786
48,881
143,480
65,000
691,240
1,701,004
807,618
300,700
511,160
4,236,185
1,570,678
668,250
200,966
181,000
,100,295
1,028,580
405,955
4,998.923
14,020,885
3,811,ooo
17,881,885
COUNTRIES.
Ouba
Hawaii
Porto Rico
Louisiana
Texas
St. Croix
Philippmes
U. B. Cane Total
U. S. Beet
U. S. Cane and Beet. Total
Canada-Beet
British West Indies
French West Indies
San Domingo and Bayti
Mexico and Central America
South America
Java
Formosa and Japan
Australia and FIji
Africa (Mauritine, Egypt, eco.)
Varione-Total
European Beet:
Germany
Czecho-81ovakia (Austria) *
France
Belgium
Holland
Rueein
Other European Countries
Europe. Total
Total Cuba, U. S., Various, Europe
British India (All COIllilid 1001117)
Grand Total
Decrease from preceding orop
Increase on "
Changes between
1913-14 aml 1918-19
Increase. Dm.
Tone Tone
1,402,268 ....
.... 80,025
50,000 ....
.... 10,585
.... 3,875
3,200 ....
.... 26,000
.... 67,185
10,504 ....
.... Net 47,541
10,625 ....
81,679 ....
.... 18,650
78,002 ....
.... 89,000
06,744 ....
307,220 ....
211,678 ....
.... 49,000
103,336 ....
830,584 Net
.... 1,300,040
.... 085,448
.... 071,287
.... 151,200
.... 64,270
.... 1,040,000
.... asssle
--.. 4,578,612
.... Net 2,888,251
45,500 ....
.... Net 2,842,751
COUNTRIES. Isla.14
Tons
Cubs...........................2,507,782
Hawaii........................ 550,025
Porto Rico..................... 825,000
Louisiana.... ......... ......... 201,887
Texas............. ....... ... 7,000
St. Croiz...................... 5,800
Philippinee...... .............. 226,000
U. 8. One Total.. ... .. .... 1,875,069
U. S. Beet..................... 655,208
U. 8. Cane and Beet, Total... 2,030,800
Oanada-Beet......... ......... 11,675
British West Indies............. 120,921
French West Indies............. 78,650
San Domingo and Hayti .... .... 105,778
Mexico and Central America .... 152,000
Bonth America................. 781.158
Java.... ...................... 1,272,417
Formosa and Japan.... ......... 204,000
Anotralia and Faji.............. 855,000
Afrion (Mauritine, Egypt, etc.)... 474,664
Various---Total............. 3,555.568
European Beet :
Germany.................. 2,717,040
Czecho-81ovakia (Anotria)... 1,685,448
France .................... 781,020
Belgium................... 226,200
Holland ................... 299,257
Russia..................... 1,740,000
Other European Countries... 842,816
Europe. Total................. 8,222,176
Total Cuba U. S. Various, Europe.16,405,831
British India (All [0181@811008111).-- 2,291,500
Grand total.... ............18,897,331
Deeresse from preceding orop.... ......
Increase on " .. - -
1918-19
Tone
4,000,000
590,000
375,000
250,802
8,125
9,000
150,000
1,807,027
674,892
1,082,819
22,800
201,000
60,000
184,680
70,000
877,902
1,669,687
415,678
300,000
578,000
4,386,097
1,411,000
700,000
100,788
75,000
104,981
700,000
487,000
3,648,664
14,017,580
sas?,ooo
10,854,580
1914-15
Tons
2,502,667
577,186
808,178
216,606
3,500
4,500
243,000
1,868,000
646,257
1,999,817
18,970
120,748
80,000
108,267
182,000
870,405
1,808,045
262,000
848,408
593,788
8,771,700
191518
Tons
8,007,018
529,808
481,888
122,768
1,000
14,750
382,158
1,431,000
770,768
2,Sll,66S
17,041
179,745
74,088
196,058
100,000
749,080
1,198,567
405,997
240,681
521,578
3,622.468
3918.17
Tone
8,028,700
575,510
448,567
271, 889
6,250
7,787
sonase
1,519,108
784,577
2,240,685
12,500
194,078
70,003
180,171
75,000
65Sb28
1,596,174
486,026
288,731
assala
8,079,924
1,608,000
944,500
184,101
185,081
260,180
1,891,000
551,994
5,010,346
14,959,975
syseooo
16,087,975
.....
487,821
9,500,000 1,400,000
1,60sals 1,oll,4oo
802,961 186,800
208,608 118,097
809,458 242,768
1,967,886 1,467,000
711,918 713,874
7,500,591 5,084,11e
15,954,975 13,996,184
5,400,573 s,6a4,ooe
18,414,848 10,560,154
289,488 1,854,896
.... .....
... 970,806
88::
Exhibit 3
Exhibit 3
SUGAR PRODUCTION OF THE WORLD (CANE AND BEET) BY COUNTRIES
FOR THE SIX CROPS -1913--14 to 1918-19.
__________
--~` --- WILI..-ETT ~
Comparison, by Countries, of the World's Oane and Beet Sugar Production, the Year before
at the Present Time.-Memrs. Willett & Gray.
Oron 1913-19i 1A Crop 1918-1919
Cane-9,821,413 tons-59.58%
Beet-8,875,918 -47.47%
18.607,. 1 tons
Cane--12,014,724 tons-78.46%
Beet 4,889,856 -26.54W
16,854,580 tons
the War and
NOTE-The areas of the circles are in pronortioa to the rmeective total productions.
BLACK represents CANE and RED represents BEET.
Vertical watching includes countries in AMERICA.
Hriontal EUR FAR EAST.OPE.
Diagonal AFRICA and FAR EAST.
Exhibit 4
Comparison, by Countries, of the World's Cane and Beet Sugar
Production, the Year before the War and at the
(WILLETT & GRAY)
1913-14
Tons. %
CANE-U. S., Porto Rico and St. Croix-- 599,187 3.2(
Hawaii-------.----------------.....................550,925 2.95
Cuba --.---------.. -------------.. 2,597,732 13.8
Other West Indies--------.-----............ 304,649 1.63
Central America and Mexico --..... 152,000 0.81
South America-_.--------------- 781,158 4.18
America ------------------- 4,985,601 26.6(
British India------------------.......... 2,291,500 12.21
Java-..........------------------------ 1,272,417 6.8(
Formosa ------------- --------- 204,000 1.0O
Philippines ----.--------- -.............------...... 225,000 1.2(
Asia ..--------------------............ 3,992,917 21.3(
Australia and Fiji-..........-----------.. 355,000 1.9(
Africa.---.-------------------...................... 474,664 2.5'
Spain ------------------------ .............13,231 0.0'
TOTAL CANE, 9,821.413 52.5
BEET-Germany ......--..------------------- 2,717,940
Czecho-Slovakia --------------- 1,685,443
Russia ----..-...-........--...-------..----- 1,740,000
Other European Countries -....-- 2,065,562
Europe -------------------.... 8,208,945
United States------------------ 655,298
Canada......-----..---..--------...----..- 11,675
America ----.----..------- 666,973
TOTAL BEET, 8,875,918
14.54
9.01
9.31
11.05
43.90
3.50
0.07
3.57
47.47
Present Time.
1918-19
Tons.
0 637,927 3.90
520,000 3.18
9 4,000,000 24.46
446,580 2.73
70,000 0.43
877,902 5.37
6 6,552,409 40.06
6 2,337,000 14.29
0 1,669,637 10.21
9 415,678 2.54
0 150,000 0.92
6 4,572,315 27.96
306,000 1.87
4 578,000 3.53
7 6,000 0.04
3 12,014,724 73.46
1,411,900
700,000
700,000
830,764
3,642,664
674,892
22,300
697,192
4,339,856
8.63
4.28
4.28
5.08
22.27
4.13
0.14
4.27
26.54
18,697,331 100.00 16,354,580 100.00
GRAND TOTAL,
Sources of the Sugar Consumed in the United States
YEARS 1914 TO 1919, INCLUSIVE.
Louisiana and Texas (Cane)
Hawaii------------ 4"
St. Croix ---------- "
Porto Rico ------..... "
Philippines -------- "
Various (Maple Etc.)
U. S. Beet---------
Total Domestic --.......-------
Cuba..-----..-----......... (Cane)
Foreign..---.----- "
Total Raws (Cane & Beet)
Foreign Refined ..-------------.............
Total Consumption..-......--.
Per Capita (lbs.)
1914
Tons
143,996
510,385
274,149
120,887
20,200
1,069,617
624,298
1,693,915
2,018,854
46,038
3,758,807
2,020
3,760,827
84.29
1915
Tons
224,768
509,263
300,310
120,202
15,400
1,169,943
769,257
1,939,200
1,841,602
14,505
3,795,307
6,224
3,801,531
83.88
1916
Tons
224,978
533,969
392,733
111,182
14,000
1,276,862
700,256
1,977,118
1,666,548
11,160
3,654,826
3,781
3,658,607
79.84
1917
Tons
258,443
592,088
5,084
431,202
72,839
26,513
1,386,169
785,079
2,171,248
1,506,876
2,951
3,681,075
2,524
3,683,599
78.58
1918
Tons
226,275
429,771
3,693
331,524
46,587
29,505
1,067,355
527,704
1,595,059
1,881,244
19,303
3,495,606
3,495,606
78.36
Estimated
1919
Tons
250,000
500,000
7,000
300,000
90,000
25,000
1,172,000 5
650,000 41
1,822,000
2,500,000
25,000
4,347,000
4,347,000
92.00
STOCKHOLDERS
To show the distribution of the stock of your Company, the number of
Stockholders at the end of the last three fiscal years is given in the table
below:-
1917 1918 1919
Holders of Preferred stock.... 3,840 4,494 4,880
Common .... 1,843 1,860 2,584
Total .................... 5,683 6,354 7,464
The continuous increase in the number of holders is gratifying.
GENERAL INFORMATION REGARDING SUGAR AND
SUGAR STATISTICS
(All general statistics given herein are compiled from figures published
by Willett & Gray unless otherwise credited.)
Sugar being a topic of general interest at present, the stockholders may
desire to know the respective production of Cane and Beet sugar in various
producing countries, as well as other data relative to the article. For that
reason we are appending the following-
Exhibit 1-Statement and Chart of the sugar crops of Cuba from 1894
to 1919 showing the amounts of each crop produced in the Western
and Eastern sections of the Island respectively.
This shows the tremendous drop in production in 1895 by reason
of the Cuban war of independence and the rapidity with which
Cuba recuperated, which is without parallel in the history of any
other sugar producing country. This recuperation by Cuba occurred,
moreover, during years of very low sugar prices.
Exhibit 2-Statement and chart of the proportion of Cuban sugar pro-
duction controlled by American companies, including Cuba Cane
Sugar Corporation, during crop 1918-1919.
Exhibit 3-Sugar Production of the world (cane and beet) by countries,
for the six crops 1913-1914 to 1918-1919 inclusive.
By this statement it is seen that Cuba was the only country that,
notwithstanding high prices, largely increased its production during
those years. India, whose sugars are all consumed locally, comes
next to Cuba in the production of sugar but by reason of unfavor-
able weather this year's crop was so reduced that it shows less in-
crease over the 1913-1914 crop than Java does, although still making
about 700,000 tons more sugar than the latter.
Exhibit 4-Statement and Chart showing a comparison by countries of
the world's Cane and Beet sugar production for the crop of 1913-14,
immediately prior to the world war, and the last one, 1918-19.
19
Comparison of the por- SUGAR CORP.(17)
tion of Cuban Sugar "
production controlled 4P "
by American com- /
panies. Crop of 1918- I
'19. o 1i\
(According to Messrs. Guma- C
Mejer, Production Reports.)
2.28% West Indies 0. 93% P/c
Sugar Fin. Corp. (8) 0.77% ALA o CO
1.30 % GUANT"AAMOUGA
2.66% Atkin's 2.15% PUNTA ALEGRE SUGAR COA3)
Management (4) N
.5 .. oLED CO 50.96% NON-AMERICAN INTERESTS (130)
Total Production of 9-
Cuba-27,747,704 bags. ofo 0
Total number of V
Centrales-195.
The number of Mills con- oo
trolled in each case is 5
indicated by the figure in
parenthesis.
It is interesting to note that during the two years of Governmental
control of sugar, the Operating Profits were smaller than during the pre-
ceding years of open market.
From the above statements it can be easily seen that as the Colono
shares the benefits of high prices of sugar because he is paid for his cane
in sugar, so he will bear the corresponding share of the burden of lower
prices whenever they may prevail.
Lower prices, whenever they do come, will therefore mean not only
cheaper cane (which is the largest item in our costs), but it will also mean
lower salaries, wages, cost of fuel, packages and general supplies. In other
words, any decrease in price must be offset by decrease in cost.
Cuba, in the future as in the past, will continue to be the country pro-
ducing sugar at the lowest cost.
As stated above, the increases in Cost per pound of sugar during the
last crop were-
0.5094 in cane,
(This extra cost in cane, however, is recovered by the extra
price obtained for the sugars, as already explained.)
0.0990 In wages and other expenses.
These figures confirm the prediction made in last annual report that the items
other than cane would this year show but little increase.
COMPARISON OF CROPS MADE BY YOUR COMPANY
Bags Tons
1915-16................... 3,174,168 or 452,035
1916-17................... 3,261,621 or 472,542
1917-18................... 3,613,325 or 521,328
1918-19................... 4,319,189 or 624,101
This production has been divided between the Western and Eastern Estates
as follows:
WESTERN EASTERN
Bags Tons Bags Tons
1915-1916 2,616,301 or 372,589 557,867 or 79,446
1916-1917 2,383,866 or 345,373 877,755 or 127,169
1917-1918 2,437,926 or 351,742 1,175,399 or 169,586
1918-1919 2,653,620 or 382,783 1,665,569 or 241,318
These figures show the large increase of 161,872 tons in the Eastern planta-
tions between the first and latest crops.
Owing to the competition for cane in its locality, the small size of the
Plantation and the consequent higher cost of production, your Board of
12
Comparison of the Portion of the World's Sugar Production Contributed by Different Countries
for the Crop of 1918-19.
(Willett & Gray)
CANE
U. S. & St. Croix..-------------
Porto Rico ------------------------
Hawaii. -------- -----------
Cuba-------------------- ----
South America ----------------------
Central America & Mexico. -------- --
West Indies French 201,900
British 60,000
San Domingo & Hayti..-------------
AMERICA
a Australia ---- ----------------------
Tons %
262,927 2.19
375,000 3.12
520,000 4.34
4,000,000 33.29
877,902 7.31
70,000 0.58
261,900 2.18
184,680 1.54
6,552,409 54.54
226,000 1.88
Fiji --------.-----........-----------....... 80,000 0.67
AUSTRALIA & FIJI 306,000 2.55
Mauritius. ---..------------ --- 252,000 2.10
Natal ...------------------------- 144,000 1.20
Other African Countries ------------- 182,000 1.51
AFRICA 578,000 4.81
British India.........-------------- 2,337,00 19.45
Java -------- ------------- --- -....-- 1,669,637 13.90
Formosa--------------------------- 415,678 3.46
Philippines. ----------------- ----- 150,000 1.25
ASIA 4,572.315 38.06
EUROPE (Spain) 6,000 0.05
GRAND TOTAL CANE 12,014,724 100.00
BEET
Tows %
Germany ------------------------- 1,411,900 82.53
Czecho-Slovakia (Austria-Hungary) -- 700,000 16.13
Russia--------.. ------- -----------... 700,000 16.18
Holland.------------ -------.------- 164,981 3.80
Spain .....---------- ----- -- -------- 135,000 3.11
Sweden .. ------ 119,000 2.74
Denmark .. ----------------------- 115,000 2.65
France -------.----- --------.. 109,783 2.53
Italy ------------..-------...----------100,000 2.30
Other European Countries.---- ---- 87,000 2.01
EUROPE 3,642,664 83.94
United States ----------------------- 674,892 15.55
Canada.. ---------------------------- 22,300 0.51
AMERICA 697,192 16.06
GRAND TOTAL BEET 4,339,856 100.00
Total Cane
Beet
SUMMARY
12,014,724 Tons (73.46%)
4,339,856 (26.54%)
16,354,580 "
Exhibit 2
Comparison of the Portion of the Cuban Sugar Production Con-
trolled by American Companies for the Crop of 1918-19.
(Willett & Gray)
CUBA CANE SUGAR CORPORATION --.--..-..... (17) mills--.. 4,319,189 bags..15.59%
RIONDA MANAGEMENT ----------------........ (7)....... 1,827,563 ------ 6.60
Rionda's Estates ---------- 1,124,871 (5) 4.06%
Tacajo --.------------.............-..---. 195,392 (1) 0.71%
Manati------------------.................. 507,300 1) 1.83%
CUBAN-AMERICAN SUGAR CO --------............... (6) .......------- 1,938,368 .-..--... 7.00
Delicias .----------------- 701,768
Chaparral ----------------- 551,0u0
Tinguaro ----------------- 271.000
Constancia--------.---.---..201,600
Mercedita --------------- 128,000
Unidad..--...-.....--....---------.... 85,000
WEST INDIES SUGAR FINANCE CORP.---........----(3) ....... 619,204 ...... 2.23
Palma Sugar Co ---------- 256,540 (1) 0.93%
Alto Cedro S. C. ---------- 212,376 (1) 0.77%
Cnpey Sugar Co----------- 150,2S8 (3) 0.54%
GUANTANAMO SUGAR COMPANY.----.-------..........(3)------- 359,203 ------ 1.30
Soledad .----------------153,000
Isabel -------------------- ........108,500
Los Caflos ----....-----------.......... 97,703
PUNTA ALEGRE SUGAR COMPANY-----------(3)-.....-----.. 594,521 ------ 2.15
Florida--.----.-----------.............264,300
Punta Alegre ------------- 215,721
Trinidad -----...........--------- 114,500
E. ATKINS & CO. (Soledad) -----...-.......------..---(1).---.--..... 141,522 .----..... 0.51
UNITED FRUIT COMPANY---.....------.....--------...(2)------ 776,045 -----. 2.80
Boston ------------------- 468,290
Preston ....---.--..--------- ----307,755
CUBA COMPANY.---------------------------............--...........(2)------- 587,800 ..--.--.. 2.12
Jobabo ....------------------ .....327,000
Jatibonico ---------------- 260,800
BARAGUA SUGAR COMPANY--------.--.-----.........(1)------- 332,300 --..-.... 1.20
OTHERS (Below 1%) ....................-------------------...(20)------- 2,092,018 ..----.... 7.56
Center. Hormiguero ..--.---.... 255,000 (1) 0.92%
North Amer. S. C.--------....... 207,000 (1) 0.75%
Miranda Sugar Co.---.......---. 186,482 (2) 0.67%
Rio Cauto S. C0.----------- 169,600 (1) 0.61%
Ermita Sugar Co ---------- 133,099 (1) 0.48%
Cape Cruz Co ------------ 122,000 (1) 0.44%
Central S. Corp ...-------........ 112,000 (1) 0.40%
Matanzas-Amer. S.. ....------ 110,000 (1) 0.40%
La Paz S. Co.-------------........... 101,300 (1) 0.37%
Havana S. Co-----....-----....-... 101,200 (1) 0.37%
Cuba S. Mills------------- 97,626 1) 0.35
Hershey Corp........-----------.. 93,38 1) 0.34%
Sta. Cecilia S. 0. -..------- 93,300 1) 0.34%
Cent. Teresa S. C ......--------- 78,000 (1) 0.28%
Sta. Clara S. C ..........----------. 68,000 (1) 0.25%
Sta. Maria S. C0.----.--.------..... 63,000 1) 0.23%
Cardenas-Amer. S. C..----.... 45,000 (1) 0.16%
Mapos---..------------................. 28,229 1) 0.10%
Centr. Natividad----.....----. 27,800 1) 0.10%
TOTAL AMERICAN ------------. (65)-------13,587,733 ------ 49.04
NON-AMERICAN INTERESTS --------(1... 30)..---..--- 14,159,971 .....------50.96
TOTAL ..........---.----------------- 195)------.....27,747,704 ....-----100.00
Comparison of the portion of the world'ssugar production contributed by different countries
for the crop of 1918-'19.-(Messr. Willett & Gray.)
BEET
World's Production of-
Cane Sugar-12,014,724 tons 78.46%
Beet 4,889,856 26.54%
16,854,580 tons
NOTE-The areas of the circles are in proportion to the respective productions of cane and of beet sucars in the world.
CANE
Exhibit A
CORPORATION
SEPTEMBER 30th, 1919
LIABILITIES
DECLARED CAPITAL: ...............................
500,000 Shares 7% Cumulative Convertible Preferred
Stock, par value $100.00 each
500,000 Shares Common Stock without nominal or par
value
BILLS PAYABLE ...................... $15,000,000.00
ACCEPTANCES-Loans against Sugars
(Since Paid) ......................... 11,000,000.00
SHORT TERM DRAFTS OUTSTANDING 1,541,081.86
ACCOUNTS PAYABLE AND ACCRUED
CHARGES .......................... 2,512,438.98
PREFERRED DIVIDEND NO. 15 (Payable
October 1st, 1919) ..................... 875,000.00
LIENS ON PROPERTIES-Cash deposited
per contra ........................... $ 567,911.44
% CENSOS ON PROPERTIES-Cash de-
posited per contra..................... 386,629.98
$52,500,000.00
30,928,520.84
954,541.42
RESERVES:
Taxes and Contingencies...............
Depreciation ..........................
$ 1,439,089.4;
6,500,000.0(
3
0
DEFERRED LIABILITIES:
Balances in respect of purchases of lands ...............
SURPLUS ACCOUNT:
Balance .............................................
7,939,089.43
947,490.73
16,712,302.51
$109,981,944.93
the accompanying Profit and Loss and Surplus Accounts for the year ended
opinion, they correctly set forth respectively, the financial position of the
the year ended that date.
Deloitte, Plender, Griffiths & Co.
CUBA CANE SUGAR CORPORATION
EXECUTIVE OFFICERS:
September 30, 1919.
PRESIDENT:
MANUEL RIONDA.
VICE-PRESIDENTS:
REGINO TRUFFIN, HAVANA; FREDERICK STRAUSS, NEW YORK;
ALFRED JARETZKI, NEW YORK; B. BRAGA RIONDA, NEW YORK.
SECRETARY AND TREASURER:
H. F. KROYER, NEW YORK.
ASSISTANT SECRETARIES AND
MANUEL E. RIONDA, NEW YORK;
EDWARD H. GREEN, NEW YORK;
COMPTROLLER :
GORDON WILSON.
GENERAL MA
MIGUEL ARANGO.
ASSISTANT TREASURERS:
VICTOR ZEVALLOS, HAVANA;
HIGINIO FANJUL, HAVANA.
RESIDENT AUDITOR:
G. P. BLYTHE, C. A., HAVANA.
%NAGERS:
LEANDRO J. RIONDA.
ASSISTANT GENERAL MANAGER:
JOSP' B. RIONDA.
GENERAL COUNSEL:
SULLIVAN & CROMWELL, NEW YORK.
COUNSEL IN CUBA:
A. S. DE BUSTAMANTE, HAVANA.
AUDITORS:
DELOITTE, PLENDER, GRIFFITHS & CO., NEW YORK AND HAVANA.
Exhibit 1
Sugar Crops of Cuba for the Years 1894 to 1919
SHOWING THE PORTION OF EACH CROP PRODUCED BY THE WESTERN AND EASTERN
SECTIONS OF THE ISLAND.
(made up from Willett & Gray statistics)
Western
Portion %
1893-94 974,377 = 90
1894-95 916,178 = 89
1895-96 174,663 = 76
1896-97 218,664 = 100
1897-98 310,892 = 99
1898-99 305,919 = 89
1899-1900 255,617 = 83
1900-01 546,603 = 86
1901-02 699,917 = 82
1902-03 835,841 = 84
1903-04 866,648 = 83
1904-05 954,312 = 82
1905-06 969,688 = 82
1906-07 1,120,408 = 78
1907-08 687,798 = 71
1908-09 1,082,796 = 72
1909-10 1,278,024 = 71
1910-11 1,020,438 = 69
1911-12 1,330,645 = 70
1912-13 1,685,296 = 69
1913-14 1,606,401 = 62
1914-15 1,711,785 = 66
1915-16 1,939,158 = 64
1916-17 2,006,249 = 66
1917-18 1,993,590 = 58
1918-19 2,145,768 = 54
* "Santa Lucia" production estimated.
Eastern
Portion <%
113,119 = 10
114,919 = 11
56,517 = 24
29 = ..
3,117 = 1
39,342 = 11
52,926 = 17
89,253 = 14
150,264 = 18
163,037 = 16
173,580 = 17
208,946 = 18
209,061 = 18
307,265 = 22
274,160 = 29
430,786 = 28
526,325 = 29
463,013 = 31
565,339 = 30
743,241 = 31
991,331 = 38
880,882 = 34
1,068,757 = 36
1,017,471 = 34
1,452,493 = 42
*1,818,189 = 46
Total Island
Tons of 2240 lbs.
1,087,496
1,031,097
231,180
218,693
314,009
345,261
308,543
635,856
850,181
998,878
1,040,228
1,163,258
1,178,749
1,427,673
961,958
1,513,582
1,804,349
1,483,451
1,895,984
2,428,537
2,597,732
2,592,667
3,007,915
3,023,720
3,446,083
*3,963,957
NOTES :-The falling off in production from 1,031,097 tons in 1894-95 to 218,693 tons in 1896-97
was caused by the Cuban War of Independence, then in progress. It is interesting
to note the continuous growth from the time peace was restored in 189.1 until last
year, with the two exceptions of 1907-08 and 1i10-11, when the productions were
curtailed by drought during the growing season.
28
CUBA CANE SUGAR CORPORATION
FOURTH ANNUAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1919
Exhibit C
CUBA CANE SUGAR CORPORATION.
Comparative Financial Statement, Years 1916, 1917, 1918, 1919.
PROFIT AND Loss ACCOUNT: FISCAL YEAR,
Production (Bags) ........--------------------..
CREDITS :
Gross Operating Profit -...----------.-----...........
DEIBITS :
Interest...-...------......----------------------
Real Estate.----------------..................
TaxesCuba Sugar..----...--..............------------...
Taxes-Cuba Molasses---- ... .... .
Total.---..........---..
Taxes Capital Stock U. S............
8 (Reserve)
I(Reser income U. S. and Cuba.........
Total........-.....
Reserve for Bad Debts -.....----............------------
Amount written off Property Account to cover
dismantling and relocation of machinery ....
Sundry Adjustments and Charges ........---
Depreciation.-------..-......-.....------.--..........-------
Dividends ------....-------........----............---------
Surplus ....-..............------------..........-------------.--
Grand Total -....-........-
1915-16
3,174,168
1916-17
3,261,621
$13,899,672.24* $11,246,172.88*
91,385.85
$ 89,273.82
$ 89,273.82
$ 10,000,00
280,000.00
$ 290,000.00
$ 1,250,000.00
2,327,505.25
9,851,507.32
$13,899,672.24
BALANCE SHEET:
ASSETS.
Properties and Plants.----....----------....----..--.... $57,636,115.65
Machinery and Construction Material on hand. 140,156.37
Cultivations-Company Cane -..------------.....--. 1,122,568.90
Materials and Supplies ..---....-----.......--.--------... 1,703,706.14
Advances to Colonos (less Reserve) -..-..-....--------- 3,659,019.49
244,042.97
$ 150,641.53
$ 150,641.53
1917-18
3,613,325
1918-19
4,319,189
$ 8,016,855.97* $11,741,618.77*
679,654.56
$ 136,899.34
421,386.50
67,966.15
$ 626,251.99
36,471.00 $ 34,525.00 $
1,250,000.00
$ 1,286,471.00
$ 500,000.00
1,750,000.00
3,500,000.00
3,815,017.38
$11,246,172.88
$62 898,964.66
1,540,866,76
1,845,732.11
3,077,125.60
5,502,720.02
800,000.00
$ 834,525.00
$ 1,750,000.00
3,500,000.00
626,424.42
$ 8,016,855.97
$74,522,783.47
767,665.30
2,771,852.99
3,211,158 68
9,052,710.18
555,810.06
$ 260,349.84
335,391.07
75,997.10
$ 671,738.01
54,490.11
925,000.00
$ 979,490.11
$ 400,000.00
1,200,000.00
265,227.20
1,750,000.00
3,500,000.00
2,419,353.39
$11,741,618.77
$76,756,810.66
631,396.21
2,656,023.61
2,634,600.23
6,850,872.94
Advances to Stores and Sundry Advances ------ 26,208.98
Sugar on hand .----...-...------------.--.----........... 3,421,414.71
Molasses on hand..................---------------....
Accounts and Bills Receivable---------------- 760,793.36
Cash..--.-----....-.....................-------..-------.------------ ,527,723.42
Cash, Special Deposit-Rental Guarantee .....--
Cash for Dividends .-------. --------------- 875,000.00
SECURITY FOR REDEMPTION OF LIENS AND CENSOS :
Cash deposited with Trust Co..---------------... 1,669,482.13
Bonds of Cia Central Mercedes --..-..------------.. 60,000.00
DEFERRED CHARGES:
Insurance, Rents and Taxes paid in advance..-----... 267,624.60
Interest paid in advance....................----------
Items in Suspense..----..--------------------... 7,500.00
Total...----------...------...........$72,877,313.75
LIABILITIES :
Declared Capital .---------..---..-..-------.....$52,500,000.00
Bills Payable ..------..-------........-------------. 3,836,229.57
Acceptances-Loans Against Sugar ------------ ----
Drafts Outstanding --....---....---------------- 405,000.00
Accounts Payable and Accrued Charges ------- 2,140,094-78
Preferred Dividend due ---..---..---------.----- 875,000.00
Liens on Properties-Cash deposited, per contra. 937,688.82
Censos on Properties-Cash deposited, per contra. 731,793.31
Bonds of Cia Central Mercedes, per contra ..- 60,000.00
RESERVES:
Taxes, Etc.--.....--.- .-----.--.....-........-----------------.... 290,000.00
Depreciation ----.---.---.--------..--..--..----- 1,250,000.00
DEFERRED LIABILITIES :
Balances for purchases of Additional Lands.....
Items in Suspense .......................------
Surplus Account....-..-............-----------.---......... 9,851,507.32
Notes Guaranteed, (not included in total) -----......
Total...................--------------- $72,877,313.75
*Cuban Taxes on Real Estate, Sugar and Molasses
not Deducted.
151,244.30
3,427,624.87
155,562.35
1,330,131.76
739,348.72
875,000.00
1,303,698.77
60,000.00
389,326.49
45,075.95
$83,342,421.86
$52,500,000.00
1,059,682.89
9,504,286.76
875,000.00
649,313.36
654,385.41
60,000.00
1,286,471.00
3,000,000.00
86,757.74
13,666,524.70
$83,342,421.86
214,092.58
261,112.95
1,026,885.76
700,712.06
875,000.00
1,203,205.07
60,000.00
190,490.90
125,805.38
290,682.54
$95,274,157.86
$52,500,000.00
12,000,000,00
1,409,497.72
5,864,607.67
875,000.00
601,183.50
602,021.57
60,000.00
800,000.00
4,750,000.00
1,194,909.79
323,988.49
14,292,949.12
30,000.00
$96,274,157.86
263,145.83
11,692,000.36
420,029.46
1,245,107.59
4,303,188.17
63,000.00
875,000.00
954,541.42
299,913.43
305,688.49
30,626.53
$109,981,944.93
$52,500,000.00
15,000,000.00
11,000,000.00
1,541,081.86
2,512,438.98
875,000.00
567,911.44
386,629.98
1,439,089.43
6,500,000.00
947,490.73
16,712,302.51
$109,981,944.93
The present scarcity of sugar in the United States may be relieved some-
what by diverting to the Northeast and Southwest some of the domestic
beet sugar now being harvested, but the scarcity will probably not be com-
pletely overcome even when the new crop Cuba sugars are available in large
quantities, say in January and February. The advent of the new crop sugars
will, of course, relieve the acute situation now prevailing, but the demand
and the high prices will doubtless continue until production catches up with
consumption.
A glance at Exhibit 7, shows that the main sources of supply of sugar
for the United States are Cuba, Porto Rico, Hawaii, Philippines, domestic
beets and Louisiana.
If there was no European demand to be satisfied, the above mentioned
countries could furnish more sugar than the United States can now consume,
but with the Eastern hemisphere clamoring for sugar, it is natural that a
great deal of Cuban sugar will find its way there. The other sources of
supply enjoy an advantage over Cuba of entry into the United States free
of duty, but they cannot compete with Cuban sugar in other countries where
they have no such advantage.
In reply to the question as to what countries can largely increase their
production, the following might be answered: first, Cuba; second, Russia,
and third, United States (beet). It is not to be expected that Germany or
Czecho-Slovakia will be able to increase their production appreciably unless
they again resort to the old system of Cartels and Bounties, which is unlikely.
Cuba's capacity for producing sugar is dependent upon labor supply and
mechanical devices for cutting cane. Lands in the Eastern section of Cuba
are ample to permit of a material increase in the sugar production of the
Island. The increases shown by Exhibit 1 demonstrate the fertility of the
soil and the suitability of the climate for sugar cultivation, two advantages
which Cuba enjoys in a greater degree than any other sugar producing
country.
The Balance Sheet as at September 30th, 1919, together with the Profit
and Loss and Surplus Accounts for the year ended that date, certified by
the Corporation's Auditors, Messrs. Deloitte, Plender, Griffiths & Co., and
the Comparative Financial Statement, will be found appended hereto.
Acknowledgment is made of the loyal co-operation of all officers and
employees during the year.
Respectfully submitted,
By order of the Board of Directors,
MANUEL RIONDA,
President.
CUBA CANE SUGAR CORPORATION
DIRECTORS:
A. S. DE BUSTAMANTE
W. H. CHILDS
W. E. COREY
S. B. FLEMING
HORACE HAVEMEYER
CHARLES HAYDEN
ALFRED JARETZKI
JAMES N. JARVIE
HENRY F. KROYER
W. J. MATHESON
G. M-P. MURPHY
W. E. OGILVIE
W. P. PHILIPS
MANUEL RIONDA
MANUEL E. RIONDA
B. BRAGA RIONDA
JOHN D. RYAN
CHARLES H. SABIN
FREDERICK STRAUSS, Chairman
REGINO TRUFFIN
Havana
New York
New York
New. York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
New York
Havana
EXECUTIVE COMMITTEE:
W. E. COREY
HORACE HAVEMEYER
ALFRED JARETZKI
JAMES N. JARVIE
G. M-P. MURPHY
MANUEL RIONDA
B. BRAGA RIONDA
CHARLES H. SABIN
FREDERICK STRAUSS
Exhibit A
CUBA CANE SUGAR
BALANCE SHEET
ASSETS
PROPERTIES AND PLANTS............
MACHINERY AND CONSTRUCTION
MATERIAL ON HAND..............
CURRENT ASSETS, ADVANCES TO
COLONOS AND GROWING CANE:
Cultivations-Company Cane ...........
Materials and Supplies.................
Advances to Colonos less Reserve for
Doubtful Accounts ................
Advances to Stores and Sundry Advances
Sugars on hand at Net Contract Prices
(Pledged to Bankers as security for
Loans. The major portion of these
Sugars has since been shipped and
collected for, and the Loans paid).
Molasses on hand at Net Contract Prices
Accounts and Bills Receivable less Re-
serve for Doubtful Accounts........
Cash .................................
Cash-Special Deposit-Rental Guarantee
Cash on deposit to meet Preferred Divi-
dend due October 1st, 1919.........
$76,756,810.66
631,396.21 $77,388,206.87
$ 2,656,023.61
2,634,600.23
6,850,872.94
263,145.83
11,692,000.36
420,029.46
1,245,107.59
4,303,188.17
63,000.00
875,000.00
CASH DEPOSITED FOR REDEMPTION OF LIENS
AND CENSOS ON PROPERTIES-per contra .......
DEFERRED CHARGES:
Insurance, Rents, Taxes, Etc., paid in ad-
vance ............................ $ 299,913.43
Interest paid in advance................ 305,688.49
Items in Suspense ..................... 30,626.53
31,002,968.19
954,541.42
636,228.45
$109,981,944.93
We have verified the above Balance Sheet as at September 30th, 1919, and
that date, with the books in New York and Havana and certify, that, in our
Company as at September 30th, 1919, and the results of the operations for
49 Wall Street, New York City,
November 13th, 1919.
CUBA CANE SUGAR CORPORATION
112 WALL STREET
NEW YORK
November 14th, 1919
To THE STOCKHOLDERS:-
Your Board of Directors submits its Annual Report of the business of
the Corporation for the fourth fiscal year ended September 30, 1919.
The preparation of the Annual Financial Statement and the audit of
the year's business involved an immense amount of detail, and this work was
not made easier by the fact that the operations of seventeen different fac-
tories were involved, all of them located in a foreign country. It is a gratify-
ing proof, therefore, of the improved efficiency of the accounting department
that, despite the hugeness of the task, the Annual Report is now ready for
distribution to the Stockholders.
SNotwithstanding the railroad strikes and the generally disturbed con-
ditions of labor, the crop was gathered within the usual time, that is from
December to the end of June-with the exception of 'Moron' which finished
on July 9th-and the early estimates of the crop were fully realized.
It is to be regretted that the percentage of sucrose in the cane was
unsatisfactory, being lower at nearly all your plantations than in any other
year since the incorporation of your company; the average for this year was
more than one-quarter of 1% lower than in the previous year.
The variations in the sucrose are due to climatic conditions and beyond
human control. This decrease in sucrose was not limited to your plantations
but prevailed throughout Cuba with very few exceptions.
As there is less demand in the United States for molasses this year,
by reason of prohibition, and as this by-product is no longer needed for
munitions, the financial return from this source is not as great as it was in
the previous year.
Owing to the above two causes, the Profits from Operation of your
Corporation were over $2,000,000 less than they would have been had the
sucrose in the cane been as high as in the previous year and had molasses
had the same value.
Note: All weights in tons given herein consist of 2240 lbs.
While the "STEWART" did not show up satisfactorily the first year
after its purchase, it is gratifying that it now stands first in Operating results
for the past fiscal year.
"MORON", prior to the present crop, did not do as well as had been
expected, due to delays in arrival of machinery-which caused late starts
in grinding-and also due to low sucrose content in the cane. Much of the
cane ground at this plantation in the last two crops came from virgin soil,
the cane from which must necessarily have a lower sucrose content during
the first two or three years than in the succeeding ones. During the coming
-crop "MORON" may reasonably be expected to produce about 700,000 bags
in the period from December to June, which will make it as large as any
other plantation on the Island.
"JAGUEYAL" has maintained its good record.
"LUGARENO", after two disappointing crops, for the reasons given
in last year's Annual Report, has shown up well for the 1918-19 crop. This
estate is exceptionally well located, with an abundant supply of cheap cane
and a low rate of railroad freight to the shipping port.
The program adopted in 1916 by your Board of Directors to increase
the capacity of the Eastern plantations is now completed.
The four Eastern plantations, as well as the twelve Western, are now
tall well equipped, but some capital expenditures must necessarily be made
each year in order further to develop efficiency in operation.
EXPERIMENTS
Your Company is still carrying on its experiments for the improvement
of the cane seed, and mechanical devices for cutting the cane. It cannot
'be said that much has been accomplished in the improvement of cane seed,
as years are required to obtain results. Considerable progress has been made
in the development of the cane cutter which, however, is not yet a practical
success, and in mechanical means for transporting the cane to the mills.
CONTRACT FOR COMING CROP
So far no contract has been entered into with the United States Sugar
Equalization Board, or any other similar Corporation, for the whole or any
portion of the next Cuban crop.
The scarcity of sugar and the great European demand, because of which
there is a fear that the United States may be left with insufficient sugar, are
factors that are attracting the attention of the Administration in Washington.
While the whole Cuban crop might have been bought last summer it would
now be difficult to do so, owing to the large sales that have already been
anade for future deliveries.
CUBA CANE SUGAR CORPORATION
OFFICES:
No. 112 WALL STREET, NEW YORK, N. Y.
EDIFICIO DE BARRAQUE, AMARGURA 32, HAVANA, CUBA.
TRANSFER AGENTS:
GUARANTY TRUST COMPANY OF NEW YORK,
No. 140 BROADWAY, NEW YORK, N. Y.
THE TRUST COMPANY OF CUBA, HAVANA, CUBA.
REGISTRARS OF TRANSFERS:
COLUMBIA TRUST COMPANY,
No. 60 BROADWAY, NEW YORK, N. Y.
BANCO NATIONAL DE CUBA, HAVANA, CUBA.
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