“During the thirty years before 1884 the following classes of sugar were made:

“First. White sugar nearly refined, manufactured with the aid of vacuum pans, filtered through bone-black, and purified in centrifugal turbines; and the inferior products of this manufacture.

“Second. White and brown sugar, manufactured and purified in forms. Some estates use vacuum pans for these sugars.

“Third. Muscovado sugars manufactured directly from the cane juice.

“The best sugars of these three classes were exported in boxes, and the inferior in hogsheads.

“Fourth. Raw sugar, made in vacuum pans and crystallised immediately in centrifugal turbines, there being two varieties of this class of sugar, that extracted directly from the juice and the one extracted from the molasses resulting in the purification of the first product.

“In the year 1857 there was a universal crisis and after that time planters considered that the first class mentioned was the most profitable, and machinery was improved at great expense for the purpose of manufacturing this grade of sugar. A plantation with this machinery could be improved only at great cost, and it would have been impossible to do so to any advantage had it not been for the reduced cost of labour owing to slavery, carried on at the time.

“In the meanwhile, the beetroot-sugar industry was progressing both in its agriculture and manufacture. No one in Cuba foresaw the terrible revolution that this industry was to suffer in consequence. It first became apparent in the crisis in 1884, which may be considered the most important event in the history of the sugar industry. This crisis, which came in a most sudden and unexpected manner, caused the reduction in the price of sugar which, though a benefit to the poorer classes of the world, was the ruin of Cuba, as at the same time slavery was abolished without any compensation whatever, direct or indirect, at the time when the losses of a sanguinary civil war were being overcome.

“It may be stated that absolutely no one could foresee, either in the present or in the past generation, the revolution that since 1884 has shaken the industry; though the French colonists, fearing the competition from the start, solicited the protection of their Government.

“The French colonists feared this competition so much that fifty years ago they solicited from the French Chamber of Deputies a law prohibiting the cultivation of beetroot in French territories, offering to indemnify those who had commenced it. Experience has proved how just their fears were at that early date; but the French Government did not grant their petition, because it was adverse to favouring monopolies, and besides, because Germany, having no colonies, could promote that industry without fear of the rivalry which has proved of material benefit to all Europe, including France itself.

“In the course of human events, time alone will cause considerable changes; just as before 1884 all planters firmly believed that greater profit was obtainable by the manufacture of white sugars than lower grades. They then realised that the unexpected improvements in the manufacturing and refining processes in Europe indicated the necessity of changing their system. Those countries which had, up to that time, imported fine grades of sugar from Cuba have been able since then not only to manufacture better sugar at lower cost for their own consumption, but also to export immense quantities of this article both raw and refined to the principal markets of the world. The production is to-day considerably greater than that of Cuba.

“The change is so marked that there are no longer any estates in Cuba where the white sugar is manufactured which was so desirable from 1856 to 1884.

“Instead of this high-grade sugar, planters are manufacturing the fourth of the above mentioned classes. The founding of these estates or centrales requires investing considerable capital for the erection and running expenses of the works. These centrales require excellent machines and apparatus, furnaces to burn the green bagasse, transportation facilities, usually narrow-gauge railroads, and fuel—without counting the necessity of having well-paid superintendents, aided by competent workmen.

“Many will accuse planters of hasty action and imprudence for having invested so heavily in the sugar business, but this would be an unjust charge, since their object was to keep up an industry which was threatened with destruction, and which is the main source of wealth of the country.

“The consequence is that since 1884 the general condition of planters, considering the circumstances, is remarkably better than it otherwise would have been, and had it not been for the numerous obstacles which have always prevented the growth and increase of Cuban wealth there is no reason why their work should not have been crowned with success. It is the obstacles that have been put in their way at the time when these changes were being carried out that made their work so much more difficult, but upon it depends the fortunes of the present generations.

“It is the principle of accumulation of capital produced by work and thrift, put into effect during one century, which has created the colossal fortune and solid civilisation of the United States; and this simple and natural procedure is the only one that can produce in Cuba results of any importance tending to alleviate the present necessities. To organise a sugar factory of any importance it is absolutely necessary to invest a capital of, at the very least, one half a million dollars, and if the work is to be of great importance the first expense must be increased to from one million to two million dollars. The annual expenditure of the sugar estates can be divided into the following groups.

“First. Cost of cane and its transportation to the mills, whether bought from outsiders or grown on the estate itself. This will absorb fifty per cent. of the gross receipts of each crop.

“Second. Salaries and wages, ordinary and extraordinary.

“Third. Interest, whether on mortgages, running expenses, or accounts current.

“Fourth. Management and running expenses, which are so considerable that a statement of them would seem exaggerated.

“Fifth. The redemption of loans invested therein, taking into account the wear and tear of the plant.

“Sixth. The loss of interest of the capital invested in the lands, factories, and other works of the plantation.

“The gross receipts of the crop are the source of the planter’s income, and naturally the six items specified have been deducted therefrom before the net profit can be estimated.

“In the above expenses no repair items have been included, since they are often virtually an increase in the value of the property and therefore merely constitute an additional amount of the capital invested. Although some companies insure parts of sugar estates, they only take limited risks; so many losses by fire, in addition to hurricanes, impair the value of the property. The fire insurance companies charge very high premiums for the insurance that they effect.

“The result of the crop depends naturally on two factors—first, the quantity of sugar made; and second, the price at which it is sold.

“Before the year 1884 the average price was eight rials the arroba (equal to one dollar for twenty-five pounds) of cane sugar, number twelve, Dutch standard; or centrifugal sugar, 96 degrees polarisation; and when sold under this price the planter could not cover expenses.

“Since 1884 the price of sugar has decreased so considerably that it has reached a ruinous figure. During the last ten years, as can be seen by official quotations, 96 degree centrifugal sugars have been quoted from four to five rials, and although from 1889 to 1893 the prices have several times exceeded eight rials, it has only been for a very short while.

“At the end of 1893 and during 1894, the average price has been five and one-half rials, which is simply ruinous for the planters.

“In Europe there are facilities for obtaining money; and besides, it happens that the beetroot only takes five months from its planting to the making of sugar, while sugar cane, besides having to struggle against many obstacles, requires fifteen months.

APPARATUS FOR PACKING SUGAR AT THE SAN JOSE CENTRAL.
APPARATUS FOR PACKING SUGAR AT THE SAN JOSE CENTRAL.

“The consequence is that the periods of high prices are always of short duration, since as soon as the prices commence to rise the sowings of beet increase, thereby causing an obstacle to the continuance of the rise.

“The lack of capital makes the problem insoluble to the Cuban planter, and whatever means he can use to overcome his difficulties, the final result will always be the same, as he cannot reduce the expenses of his plantation beyond a certain limit.

“There is no doubt that to-day (1894) the sugar estates do not cover expenses, and this fact is of immense importance, not only because it explains the present misfortunes, but because in it will be found latent the germs of many future misfortunes.

“The causes of the dangerous situation have been well studied; some will be found in history and in the economic management of the Island and others in the effect of beetroot industry on cane.

“Consequently, the unfortunate situation of the sugar industry in Cuba is due to three principal causes which by a strange coincidence have acted simultaneously, to wit: the economic régime in the Island, the abolishment of slavery without indemnifying the owners, and the great reduction in the price of sugar since 1884.

“The efforts of the planters to save their industry have been interpreted by the Spanish Government as signs of prosperity, and that has based on this misunderstanding of facts the indefinite continuance of a disastrous economic system that is moulded on the old colonial system and is bound to ruin this Island, even if it were as rich and prosperous as the Government states that it is.

“This official optimism is deplorable for more than one reason. It is to be noticed that as Cuba’s poverty increases the pretensions of perpetual exactions are greater, and that the bulk is borne by the planters, who, together with the rest of the Cuban population, are possessors, judging by these exactions, of sources of unlimited wealth.”

This chapter may be fittingly concluded with the following table compiled by Messrs. Willet & Gray, January 5, 1899, giving the entire sugar production of all the countries of the world, including those crops which have heretofore been ignored in statistics. These figures include local consumptions of home production wherever known.

  1898-99. 1897-98. 1896-97. 1895-96.
    United States: Tons. Tons. Tons. Tons.
        Cane 270,000 310,000 282,009 237,730
        Beet 33,960 41,347 40,000 30,000
        Porto Rico 70,000 54,000 54,000 50,000
    Canada—beets 300 300 300 500
    Cuba—crop 450,000 314,009 219,500 240,000
    British West Indies:
        Trinidad—export 50,000 52,000 51,000 58,000
        Barbadoes—exports 47,000 52,000 58,249 47,800
        Jamaica 27,000 30,000 30,000 30,000
        Antigua and St. Kitts 22,000 25,000 29,000 24,000
    French West Indies:
        Martinique—exports 32,000 35,000 35,000 35,000
        Guadeloupe 40,000 45,000 45,000 45,000
    Danish West Indies:
        St. Croix 12,000 13,000 13,058 8,000
    Hayti and San Domingo 48,000 48,000 48,800 50,000
    Lesser Antilles, not named above 8,000 8,000 8,000 8,000
    Mexico—exports 2,000 2,000 2,000 2,000
    Central America:
        Guatemala—crop 9,000 9,000 8,000 7,000
        San Salvador—crop 4,000 4,000 3,000 2,000
        Nicaragua—crop 1,500 1,500 500 500
        Costa Rica—crop 500 500 200 200
    South America:
        British Guiana (Demerara)—export 98,000 98,000 99,789 105,000
        Dutch Guiana (Surinam)—crop 6,000 6,000 6,000 6,000
        Venezuela .... .... .... ....
        Peru—crop 75,000 70,000 70,000 68,000
        Argentine Republic—crop 75,000 110,000 165,000 130,000
        Brazil—crop 165,000 195,000 210,000 225,000
Total in America 1,546,260 1,523,656 1,469,405 1,409,720
    Asia:
        British India—exports 50,000 50,000 50,000 50,000
        Siam—crop 7,000 7,000 7,000 7,000
        Java—exports 635,000 541,581 473,420 605,025
        Japan (consumption 125,000 tons, mostly imported) .... .... .... ....
        Philippine Islands—exports 140,000 165,000 197,000 240,000
        Cochin China 31,000 30,000 30,000 30,000
Total in Asia 863,000 793,581 757,420 932,025
    Australia and Polynesia:
        Queensland 65,000 65,000 70,000 60,000
        New South Wales 30,000 30,000 30,000 30,000
        Hawaiian Islands 240,000 204,833 224,220 201,632
        Fiji Islands—exports 30,000 30,000 30,000 30,000
Total in Australia and Polynesia 365,000 329,833 354,220 321,632
    Africa: Tons. Tons. Tons. Tons.
        Egypt—crop 105,000 85,000 100,000 92,000
        Mauritius and other British possessions 150,000 120,000 150,000 140,000
        Reunion and other French possessions 45,000 45,000 48,000 44,700
Total in Africa 300,000 250,000 298,000 276,700
    Europe:
        Spain 8,000 8,000 8,000 8,000
Total cane-sugar production 3,082,260 2,905,070 2,887,045 2,948,077
Total beet-sugar production(Licht.) 4,790,000 4,825,529 4,916,586 4,285,429
Grand total cane-and beet-sugar production 7,872,260 7,730,599 7,803,631 7,233,506
Estimated increase in world’s production 141,661 .... .... ....

The above table shows the relative importance of the sugar-producing countries of the world. The time will come when Germany and the other continental countries will become tired of paying a bounty on the production of beet sugar. Then Cuba will take her rightful place as the greatest sugar-producing country of the world. If Cuba then belongs to the United States we shall control the sugar market of the world just as we now control the world’s market in so many other staple products.

CHAPTER XXI

TOBACCO

THE companions of Christopher Columbus on the first voyage of discovery in 1492 found what has since been known as tobacco. Two weeks after sighting the first known land in the New West, that is to say, on the 27th of October, the ships of Columbus anchored off the shores of a great land, supposed to be the Kingdom of the Khan, to whose ruler Columbus bore letters of introduction from the King and Queen of Spain. Here—in the Island which is now called Cuba—exploring parties went ashore and proceeded into the interior seeking mines of gold and silver, which they had been told existed. They found no gold or silver, but many strange things, among them natives, with firebrands in their hands, and puffing smoke from their mouths and noses. After investigation into the nature of this peculiar custom the sailors tried it for themselves; but its adoption by the Spaniards was not immediate. The herb bore several names, but tabago, or tobago, or tabaco, seemed to be the one of most general adoption. It was the name of a peculiar-shaped implement, or pipe, which the natives used in smoking, and from this the name tobacco easily grew—though various European writers attempted to fix more romantic or poetic names upon the new narcotic.

Although tobacco was first known to the Spaniards in 1492, it was not until 1560 that it was known at all in Spain, and not until 1586 that it was used in Europe, when Ralph Lane, sent out to Virginia as Governor by Sir Walter Raleigh, returned and smoked the first pipe in England.

PLANTING TOBACCO.
PLANTING TOBACCO.

Thence very quickly the habit grew, until in the middle of the seventeenth century tobacco was sought and fêted in every civilised country of the world.

It may be appropriate in this connection to call the reader’s attention to the fact that, although every known climate and soil of the earth have been tried in the cultivation of tobacco, Cuba, where it was discovered more than four hundred years ago, is still first in the quality produced, and Cuban tobacco need never fear a successful rival in excellence.

The cultivation of tobacco in Cuba was not begun until 1580, when the Spaniards laid out small plantations in the neighbourhood of Havana. Three hundred years later there were over ten thousand tobacco plantations in the Island. These first plantations were located in or near the Vuelta Abajo (Lower Valley) to the south-west of Havana; and although even at that early period these plantations produced the best tobacco in the Island, the product of the Vuelta Abajo did not reach its world-wide fame until two hundred and fifty years later. Having once reached the summit of tobacco glory, however, the Vuelta Abajo product has never lost its proud position, and to-day ranks as the first tobacco in the world.

This is due, of course, to soil and climatic conditions; for that peculiar skill or strange power, or whatever it may be, which the Cuban tobacco grower possesses is not more a characteristic of the Vuelta Abajo farmer than of other growers in the Island. Indeed, the Partidos leaf is larger in size, finer in texture, and richer in colour than its neighbour, the Vuelta Abajo, but it is lacking in the flavour which can only come from water, soil, and air. The Vuelta Abajo district occupies an area of about ninety miles in length by ten in width, and its province (Pinar del Rio) leads in the Cuban tobacco output, both as to quality and quantity.

Tobacco is the second leading industry of Cuba, with sugar first, and its cultivation is considerably in advance of sugar as concerns not only profit to acreage, but conditions of plantations and labour. A sugar plantation is a wide waste of monotony in appearance; while a tobacco plantation, or vega, as it is known, with its kitchen garden, its plantanos for feeding the hands, its flowering and fruit trees, its stone walls, its entrance gates and, pretty houses, is the most charming agricultural sight in Cuba except a coffee plantation. The average acreage of a vega is, say, thirty-five acres, and from a dozen to forty men are employed in each vega, chiefly lower-class whites. More skill, too, is required in the cultivation of tobacco than sugar, and the class of labour is considerably superior to that employed in sugar planting.

Only a small portion of the acreage of Cuba is occupied by tobacco plantations, notwithstanding tobacco is its second product in value. The bulk of it comes from the western end of the Island: the provinces of Pinar del Rio, Havana, and Santa Clara.

The following report on the tobacco product will show the amounts raised in each province, the grade, the amount consumed, and the amount exported:

“The production of leaf-tobacco in the Island of Cuba before the revolution of the year 1894-95 amounted to about 560,000 bales, averaging about 50 kilos each, say 28,000,000 kilos or 62,173,800 pounds. Of this amount about 260,000 bales are harvested in the province of Pinar del Rio, known in the trade as Vuelta Abajo leaf, which is of the finest quality and of which about 140,000 bales are used by first-class cigar and cigarette manufacturers of Havana, the balance being exported to the United States of America and Europe.

“The province of Havana on an average produced, before the war, only about 70,000 bales known as Partido leaf, one-fifth of which is used in Cuba for cheaper grades of cigars and cigarettes and the remainder exported to Key West, New York, and Europe. The quantity of tobacco grown in the province of Matanzas is so very insignificant that it is not known in the market at all.

TOBACCO FARM AND DWELLING.
TOBACCO FARM AND DWELLING.

“The province of Santa Clara produces on an average about 130,000 bales, generally known as Remedios leaf, of which about 30,000 bales are used in that district and the neighbouring cities, and the remainder, 100,000 bales, goes to the United States; that is, the finer grades, for the lower grades are shipped to Germany, etc. The province of Puerto Principe produces little or no tobacco; nothing at least comes to the market.

“El Oriente, or in other words the province of Santiago de Cuba, had a production of about 100,000 bales, generally called tobacco Gibara or Mayari, of which about 40,000 bales are consumed by the inhabitants of the district, and the remaining 60,000 bales are exported to those countries where a government monopoly of the tobacco industry exists, viz.: Austria, Spain, Italy, etc. This tobacco is very coarse and the greater part suitable only for pipe smoking. The price is in proportion to the quality; often not higher than twelve to fifteen cents a pound.”

While the methods of the tobacco grower differ in detail in the various provinces, in a general way one fairly broad description of tobacco raising will apply to all. The activity begins in September, at which time the seed is sown in the semilleros, or planting beds, which ordinarily lie higher than the common level of the farm. About the end of October, or say in fifty days, the young plants are transferred to a field prepared for them, and are set out at intervals of eighteen inches; great care being taken, as they are so delicate that a slight bruise upon their roots will kill them. The plants are removed from the nursery in the morning and set out in the evening. The growing plant is now carefully watched, the ground kept free from weeds, the tops of the plants pruned, and the suckers removed from the roots. The pruning is done with the thumb nail, as its dull edge closes the wound to the stem and prevents its bleeding. The three enemies to the plant are the common tobacco worm, a slug that destroys the leaf, and a butterfly from this slug, which lays its eggs on the leaves and kills them. These insects must be removed by hand, and the work is hard and disagreeable.

The plant is ready for cutting in January, and after being cut the leaves are hung on poles and dried in the open air and in the drying-sheds. When thoroughly dry, the leaves are removed from the poles, sprinkled with water in which tobacco stems have been left until fermentation has taken place, and the tobacco is packed, first into bunches, then into bales of 110 pounds each. In this form it is ready for shipment. The tobacco is classed according to quality, which also fixes the price. Fertilisers are not often used, as they affect the flavour.

One man can attend to 15,000 plants, which is about the product of two acres, and one acre has been known to yield a crop worth $3000, but, of course, quality, rather than quantity, makes such value. It is estimated that 80,000 persons are engaged in cultivating tobacco in Cuba.

Although profits of from ten to thirty-five per cent. have been realised on tobacco-raising in Cuba, very few foreigners, excepting an occasional German, have undertaken it. English and German companies own the majority of the manufacturing establishments in Havana and elsewhere, but they have found that it is more profitable to buy the raw material than to raise it, although an English company, manufacturing in Havana, is reported to have paid $1,000,000 for 18,000 acres in the Vuelta Abajo district.

Among the great Havana companies are the famous Henry Clay and Bock Company, Limited, with a capital of $2,500,000; the Partagos Company, of London, capital $1,500,000; H. Upmann & Company, a German corporation, and many others (120 in all), of varying nationalities; but no American companies.[16] Of the total exports of cigars and tobacco from Cuba, Havana ships by far the largest percentage, estimated at from ninety-five to ninety-nine per cent. of the whole. The largest number of cigars (188,755,000) were shipped in 1888, out of a total shipment to all countries of 219,892,000. In 1896, owing to the high tariff in the United States, the exports dropped to 60,000,000, estimated, and the entire shipments of Cuban tobacco to the United States decreased from 26,771,317 pounds, valued at $10,613,468, in 1896, to 4,410,073 pounds, valued at $2,306,067 for the first nine months of 1897.

The tobacco interests of Cuba have suffered, as all others have, from Spanish greed, dishonesty, and misrule; and now that the new era is at hand, changed conditions for the better will develop at once. No more fitting conclusion to this chapter could be made than to present the following clear and comprehensive statement of Mr. Gustavo Bock, of the Henry Clay and Bock Company, Limited, of Havana, on the production of tobacco in Cuba, its manufacture, its necessities in the present difficult situation, and the quickest and best means of improvement. Mr. Bock prepared this valuable report especially for the author.

“The war, with its sad and distressing consequences, has been the principal cause of the destruction of the farms employed in the cultivation of tobacco and the ruin of the tobacco industry.

“The principal causes of destruction are three: 1st. Depopulation of the country. It is an undoubted and recognised fact that the scarcity of men employed in the country has greatly reduced the production of tobacco, limiting it to small zones, where at great expense and sacrifice a small production has been obtained. This reduction in the population is estimated at sixty-five per cent., as may be seen by the statistics of the districts of Guane, Remates, Grifa, Cortes, and Sabalo, in the province of Pinar del Rio, to which—not to make these notes too long—we will limit ourselves. Before the war there were 36,000 inhabitants in the province named, and the average production of leaf tobacco was 60,000 to 65,000 bales. To-day there are scarcely 6000 inhabitants, and the last crop was barely 6000 bales; and these were produced thanks to the efforts of a foreign syndicate, which, risking its capital, and with few hopes of future compensation, began the work of reconstruction, thereby saving thousands of families from a certain death.

“2nd. Seizure of cattle. Cattle, which are the most important factor in agriculture, have been reduced to such small numbers that in some tobacco districts there are absolutely none, and in the few places where there are any left, they are entirely insufficient for the most urgent requirements. Cattle in this Island are of the first necessity. Without exaggerating the expression, oxen constitute the right hand of the farmer during the crop. Their work commences with the plough and continues without rest until the crop is gathered and taken to the seaboard. They cannot be replaced by any other animal, as has been proved by experience; practice having shown that horses and mules are unavailable in this service, in view of the special topography of the Vuelta Abajo district and the climate of the Island of Cuba. One of the chief reasons of this scarcity is the constant seizure of the cattle by the Government troops, carried on unmercifully. It is not necessary to prove that this state of affairs will bring about the complete annihilation of cattle, leaving the poor labourer and the majority of the inhabitants of the Vuelta Abajo in the most precarious circumstances. The consequence of this unjustifiable measure will affect not only those employed in the fields of that province, but also those who depend exclusively on the tobacco industry in the towns and in Havana. Without a crop, without raw material, the factories will have to close their doors, and the misery with all its horrors, brought about by the system of reconcentration, will only be renewed.

“3rd. Loss of capital and credit. The disappearance of capital, and the consequent absence of credit, are due essentially to the above mentioned causes. It is unnecessary to prove this statement; it has been the inevitable. These are, I repeat, the principal causes which have brought about the disastrous condition of the tobacco industry.

“That the reconstruction be permanent, it is necessary to give ample protection to the farmer, and for this we need:

WETTING THE TOBACCO LEAF.
WETTING THE TOBACCO LEAF.

“1st. The promotion of immigration. All obstacles to the return of the white man to his labour in the fields should be removed. As the existing number of white labourers is entirely insufficient for the needs of the cultivation of tobacco, it is necessary to favour as much as possible the immigration of Canary Islanders, who constituted before the war the majority of the tobacco growers. Their knowledge and condition make them suitable for the working of these fields in preference to others.

“2nd. Free importation of cattle. The immediate free importation of cattle is necessary, as only a few oxen and milchers are left. As I have already stated, oxen are the principal factors in the farmer’s work in this district, and it is necessary to import them without delay, free of duty, as the farmer cannot afford to pay the exorbitant duties now enforced. Immediate attention should be given this subject in view of the fact that work on the next crop must begin in a very short time.

“3rd. Inducement to capital and revival of credit. With the free importation of cattle, immigration of white labourers, and the establishment of a firm and stable government, undoubtedly this district would return to its former prosperous condition. Peace, order, and work would invite capital to lend a vigorous and impulsive hand to regain the district’s lost wealth and credit.

“4th. Construction of roads. The province of Pinar del Rio has always felt the want of communication with the commercial centres. After three years of war, between neglect and destruction, there are to-day practically no roads. This evil has caused an increase in freight rates, and in some cases the rates exceed the value of the goods. To promote the industry of the province, new roads should be built and the old ones reconstructed.

“5th. Establishment of a corps of rural police. The establishment of a corps of police is an important point to the country districts. They should be organised under conditions similar to those now given to the Civil Guards, an armed force for the persecution of bandits and the maintenance of order in the country districts of Cuba. It is not to be expected that all the vagabonds, thieves, and bad characters who existed before the revolution have decreased in number, considering the irregular lives they must have been leading, and that, now peace is restored, they will become honest and good workmen. Protection against this class of people can be afforded the tobacco grower by a well constituted corps of rural police.

“Protection and guarantee of the genuineness of Cuban tobacco. Now that we have pointed out the measures we consider most urgent to re-establish the industry of the tobacco provinces, we will mention what we consider necessary for the protection of the Vuelta Abajo tobacco leaf. It is not enough that the agriculture of the district should rise to its former state of prosperity; it is necessary, besides, to protect in some way the reputation of Cuban tobacco, and especially the Vuelta Abajo tobacco leaf, considered to-day without a rival in the world. These measures are purely economical. They concern an uncommon article, for the production of which means and expenses are used that entitle it to unusual protection, as will be shown by the following calculation:

“To produce 100 bales of tobacco, of 50 kilos each, a farmer would rent one caballeria of land (equalling 33-16/100 acres), one half of which he would employ for tobacco cultivation and the remainder for vegetables.

Rent of land per year$300.00
250,000 plants @ $1.50 per thousand375.00
6250 lbs. of Peruvian fertiliser250.00
Hiring of oxen102.00
Wages and maintenance of 12 men @ $25 per month each3000.00
Yaguas, Majaguas, and expenses300.00
Taxes, physicians bills and medicines, and living expenses of the planter400.00
Total$4,727.00

TOBACCO DRYING HOUSE.
TOBACCO DRYING HOUSE.

“So that a planter would have to sell each 50 kilos of tobacco at $47.27 to cover the cost of production. The foregoing figures show clearly that the production of tobacco in the Island of Cuba is more expensive than that in any other part of the world, special attention being necessary to its raising from the day it is planted to the cutting of the leaf, besides the subsequent treatment necessary to obtain good results; which work goes on night and day, if a good quality is desired. The following measures are therefore necessary for the protection of the industry:

“To insure a planter the sale of his crop at a price in proportion to the cost of production, it is absolutely indispensable that the present regulations prohibiting the importation and reimportation in this Island of all foreign manufactured or unmanufactured tobacco should continue in force; excepting only snuff and chewing tobacco, that have always been imported here and in no way hurt our trade or agriculture. Of the many laws and decrees which the Madrid Government has issued to favour this colony, none has been wiser than this prohibition of the importation of foreign leaf tobacco, thereby avoiding the importation of a leaf of inferior quality by unscrupulous persons, who after manufacturing the cigar in the way usual in this country, made perhaps with a small proportion of Cuban leaf, would export it as genuine Havana; a business which would prove most profitable to the adulterator, but which in time would totally ruin the reputation of our products, both agricultural and industrial, bringing about a decrease in prices which would eventually cause a cessation of the cultivation of tobacco.

“Production of tobacco in the Island, local consumption, exports, particularly those to the United States. The production of tobacco in normal times is estimated at:

In Pinar del Rio, called Vuelta Abajo260,000bales
In Havana, called Partido70,000
In Las Villas Sta. Clara, called Remedios130,000
In the Eastern Provinces, called Mayiri y Gibara100,000
Total560,000

or, on an average of 50 kilos per bale (110 pounds), 28,000,000 kilos, or 62,173,800 pounds.

“Note.—In Vuelta Abajo there is a good deal of uncultivated land, and with permanent peace and a stable government, that could insure protection to capitalists, this production could easily be increased in Vuelta Abajo alone to 500,000 bales. The provinces of Havana, Las Villas, and the Eastern Provinces would increase in the same proportion.

“In the manufacture of cigars, cigarettes, and packages of smoking tobacco for home consumption, the following number of bales of tobacco are used:

Vuelta Abajo140,000bales.
Partido10,000
Sta. Clara30,000
Gibara40,000
Total220,000

and for export as follows:

Vuelta Abajo120,000bales.
Partido60,000
Sta. Clara100,000
Gibara60,000
Total340,000

at 50 kilos per bale, 17,000,000 kilos or 36,956,000 pounds.

“The United States has bought and imported from the Island of Cuba as follows:

In the year 189321,694,881 pounds $8,940,058
In the year 189414,578,248 5,828,954
In the year 189520,175,620 7,271,794
In the year 189626,771,317 10,613,468
In the year 18974,410,073(6 mos.)2,306,067
 
A total value of leaf exported is estimated per annum at$12,000,000
and the 220,000 bales for home consumption are valued at10,000,000
Total$22,000,000

“Manufacturing: its importance and prospects. Having expressed our views concerning the production of leaf tobacco, we will now refer to its manufacture, an industry which has for several years dragged along, and which is of great importance and deserves the utmost attention. It is impossible to estimate how important an industry it would be to-day, if, instead of the setbacks it has received, its energies had been allowed to develop. The universal reputation which this leaf enjoys, owing to the excellency of its quality and the perfection of its manufacture, would increase threefold if the industry were promoted. In importance, it is to-day the second industry in the country, and in the provinces of Havana and Pinar del Rio it is the foremost. With 100,000 cwt. costing $4,000,000 in 1889, the following has been manufactured:

For exportation250,000,000cigars$11,500,000
Local consumption50,000,0002,000,000
Total300,000,000$13,500,000

“In addition to this, the manufacture of cigarettes represents from $3,000,000 to $4,000,000 per annum. However, the importance of this industry must not be gauged by these figures, but by the fact that the proceeds of this industry circulate rapidly and give life and movement to other industries that depend upon it, which in the city of Havana alone employ from 18,000 to 20,000 workmen, who, with their families, represent from 45,000 to 50,000 people.

“We have cursorily glanced over its actual importance: let us study its future. Even if under the auspices of peace, with the adoption of proper measures for the future of the agriculture and production of tobacco a brilliant and promising future is assured, the same cannot be said, unfortunately, of its industry and manufacture. The future of the former is most promising; it has no rival in the world; there is only one Vuelta Abajo district. The latter, besides, handicapped as it is by excessive competition, has the insurmountable obstacle of being taxed by the treasuries of countries burdened by a heavy national debt; while other nations, like the United States, levy heavy duties on cigars to protect their national industry in its various phases. As a proof of what we say, we call attention to the following figures showing the gradual decrease of the manufacture of tobacco in this Island, a decrease which nearly reaches fifty per cent. of normal. The following will show how the exportation of cigars decreased from 250,000,000 in 1889 to 123,000,000 in 1897:

EXPORTATION OF CIGARS IN NINE YEARS
 
In 1889250,467,000
In 1890211,823,000
In 1891196,667,000
In 1892166,712,000
In 1893147,365,000
In 1894134,210,000
In 1895158,662,000
In 1896185,914,000
In 1897123,417,000

“On the other hand, the exportation of leaf tobacco has increased fifty per cent.; from 177,000 bales exported in 1889 by the port of Havana, the exports in 1895 had increased to approximately 250,000 bales. It is easy, then, to understand the actual condition of the tobacco industry and its dependencies, and that of the numerous families who live by the work that this gives them; their future cannot be promising, unless laws are immediately enforced to protect them and raise them from the abject state in which they find themselves.

BALING TOBACCO.
BALING TOBACCO.

“Cause of decline. Besides the high customs tariffs on imported cigars abroad, among which we may mention those of the Argentine Republic, as well as the internal taxes of those countries where tobacco is a source of government revenue, one of the main reasons of the decline of the Cuban industry originated in the McKinley bill, which compelled many manufacturers to move their factories to the United States, owing to the want of protection on the raw material, thereby causing a considerable decrease in the production of the Island, and increasing in the same proportion that of the United States, in which country the manufacture has reached the enormous sum of 5,000,000,000 cigars per annum.

EXPORTATION OF TOBACCO TO THE UNITED STATES
 
In 1889101,698,560cigars$3,970,034
In 189095,105,7604,113,730
In 189152,015,6002,742,285
In 189254,472,2502,859,941
In 189346,033,6602,424,425
In 189440,048,3302,131,981
In 189539,579,4002,050,367
In 189640,601,7502,091,856
In 189734,017,5831,868,610

“Mode of protection. To protect and promote the prosperity of this industry it is necessary: 1st. To maintain the suppression of export duty on cigars ordered by the local Government of this Island on the 31st of last December, both on cigars and cigarettes and packages of cut tobacco, as well as on tobacco in fibre or powdered, which are considered as industrial products thereof.

“2nd. To maintain to its full extent the export duty on leaf tobacco, ordered at the same time, of $12 per 100 kilos for that grown in the provinces of the west and centre of the Island (Vuelta Abajo, Partido, and Remedios). The following data will prove the justice of this step: to manufacture in the United States 1000 cigars weighing 12 pounds, sold in Havana, unstemmed, 25 pounds of filler, and 5 pounds of wrapper, we should arrive at the following results:

For export duty on the leaf in Cuba, 30 lbs. of leaf at $12.00 per 100 kilos$ 3.60
Import duty in the United States on 25 lbs. of filler at 35 cents each8.70
5 lbs. wrapper @ $2 each10.05
Total$22.35

The same 1000 cigars imported from Cuba, weighing 12 lbs., at $4.50 per lb.$54.00
Export duty 25 per cent. ad valorem, valued @ $60 per thousand15.00
Total$69.00

making a difference of $46.65 against our tobacco.

“3rd. It is also indispensable that the prohibition of importing and reimporting all tobacco, whether prepared or in leaf, be maintained, and

“4th. If, as is to be hoped, the commercial relations between this Island and the North American Republic continue in perfect harmony and well directed, we may soon expect to have complete reciprocity and free exchange of trade.”

In this connection it will be interesting to note the relative importance of the tobacco-producing countries of the world. The following table is the latest and most reliable obtainable:

AVERAGE PRODUCTION OF TOBACCO
Countries.Product in Pounds.
United States of America488,000,000
Mexico5,600,000
Cuba62,000,000
Puerto Rico8,800,000
Santo Domingo8,000,000
Brazil33,000,000
Argentine6,000,000
Austria Hungary135,000,000
Russia110,000,000
Turkey80,000,000
Germany72,000,000
France50,000,000
Greece18,000,000
Belgium10,000,000
Roumania8,000,000
Bulgaria7,500,000
Bosnia7,000,000
Netherlands6,300,000
Italy4,000,000
Switzerland3,000,000
Servia3,000,000
Sweden2,200,000
Philippine Islands45,000,000
British East Indies370,000,000
Dutch 66,000,000
Japan50,000,000
Ceylon8,000,000
Cochin China6,000,000
Algiers10,000,000
Australia10,000,000
China}160,000,000
Paraguay
Sundries55,000,000
 1,907,400,000

Thus the primary cost of the world’s tobacco ranges from $200,000,000 to $225,000,000 per annum. It is not in quantity but in quality that Cuba leads the world.

CHAPTER XXII

MINES AND MINING

THE first questions asked the natives of Cuba by Columbus and his company concerned gold and silver, and they heard many tales of the riches of the unknown interior, but all their searching produced nothing of value, nor have the succeeding centuries added greatly to what was first discovered. Some little gold and silver was found, but it amounted to really nothing, and the mineral riches of the Island remained hidden until 1524, when copper was discovered near Santiago de Cuba; and here grew up the little mining town of Cobre (copper). Since that date deposits of asphaltum, iron, manganese, and salt have been found and have been worked, but not as they would have been in a well governed and progressive country.

The mining districts of Cuba are confined almost exclusively to the mountainous or eastern end of the Island, and so far the province of Santiago is the chief producer. Its leading product is iron ore, mined principally by American companies with American corporations. The first real iron-mining in Cuba began about 1884, when 21,798 tons were shipped to the United States. This was the first Cuban iron ore received in this country, and was about one-twenty-third of the total iron ore importation. In 1897 we received 397,173 tons of Cuban ore, which was three-fourths of the ore imported. During the years 1884-1897 we received 3,401,077 tons of Cuban ore.

OLD COPPER MINES AT LA COPERA.
OLD COPPER MINES AT LA COPERA.

The ore is a brown hematite, in large quantities, easy to work, of excellent quality, about sixty-two per cent. iron, and is especially adapted for the making of Bessemer steel. Though there are many mining properties, three American companies, the Juragua Iron Company, the Spanish-American Iron Company, and the Sigua Iron Company, do all the business. The Juragua does far more than all the others. Its shipments to the United States in 1897 were 244,817 (5932 tons, in addition, to Nova Scotia) to 152,356 tons by the Spanish-American Company, which made its first shipment in 1895, and none by the Sigua Company, which has shipped, in all, 21,853 tons. The Sigua began operations in 1892, the Spanish-American in 1885, and the Juragua in 1884. In 1897, the Spanish-American Company shipped 51,537 tons to foreign countries; bringing its total output for the year up to 203,893 tons.

Although iron ore of the best quality outcrops in many places on the estates once devoted to coffee on the southern slope of the coast range, it was not until the year 1881 that the first claim was located, or “denounced.” Since then more than a hundred locations have been denounced in this range (the Sierra Maestro), both to the east and the west of the city of Santiago de Cuba. Of these denouncements the most important, and in fact the only ones that have ever been worked, are to the east of the city, covering a distance of twenty odd miles along the range, a few miles in from the coast. The deposit is not continuous, but there are numerous separate deposits along this distance; some of them very extensive.

In order to encourage the mining of this ore, the Crown of Spain issued, on the 17th of April, 1883, a royal decree to the following effect: That for a period of twenty years from that date, the mining companies should be free from all tax on the surface area of all claims of iron or combustibles; that ores of all classes should be free from all export taxes; that coal brought in by mining companies for use in their work should be free from all import taxes; that combustibles and iron ore should be exempted from the three per cent. tax on raw materials; that mining and metallurgical companies should be free from all other impost; that for a period of five years the mining companies should be exempt from the payment of duties on all machinery or materials required for working and transporting the ore; that vessels entering in ballast and sailing with ore should pay a duty of five cents per ton navigation dues, and that vessels entering with cargo destined for the mining companies should pay $1.30 per ton navigation and port dues on all such cargo, and on the remainder of the cargo as per general tariff.

Under this charter the Juragua Iron Company, Limited, opened mines in Firmeza, laid a railroad twenty miles long from that point to La Cruz in Santiago Bay, where fine docks and piers were built, and, in 1884, shipped the first cargo of iron ore from Cuba. The company has a fine fleet of iron steamers. The mines of this company were extensively and successfully worked, and, encouraged by this, the Spanish-American Company and the Sigua Company purchased mines to the east of the Juragua properties and at once began the work of developing them.

The Spanish-American Iron Company, incorporated under the laws of West Virginia, and owned entirely by American citizens, built four miles of standard-gauge railroad from its mines to Daiquiri Bay, about sixteen miles east of the harbour of Santiago de Cuba. Here the company constructed a steel ore-dock of 3000 tons capacity, a landing-pier, buoys, moorings, and other harbour improvements at a cost of $500,000. The work of preparing this harbour delayed the opening of the mines for shipment, and it was not until May, 1895, that the first cargo was cleared.

The Sigua Iron Company built a standard-gauge road nine miles long from its mines to Sigua Bay, and there constructed a breakwater and a wooden ore-dock. This company during the first two years of operation shipped 21,853 tons. Later, the mines were closed, and during the war between Spain and the Cubans the dock, roundhouse, locomotives, and buildings of the company at Sigua Bay were entirely destroyed in the course of an engagement between the Spanish and the Cuban forces.

The Spanish-American Iron Company and the Juragua Iron Company remained in operation during the entire war between Spain and Cuba, and, although located at the extreme outpost of the Spanish troops, with Cuban forces in the immediate vicinity, maintained throughout a strict neutrality, and continued shipping ore until they were closed by order of the Spanish authorities, after the declaration of war between the United States and Spain.

The three companies, which are the only ones that have ever operated mines in the province, represent an investment of American capital of about $8,000,000, and the two still operating have paid into the Treasury of the United States more than $2,000,000 in import duties on iron ore. The following table shows the production of iron ore in the province from 1884 to 1897:

Years. Production.
Juragua
Company.
Spanish-American
Iron Company.
Sigua Iron
Company.
Total Tons.
1884    23,977 .... .... 23,977
1885 80,095 .... .... 80,095
1886 110,880 .... .... 110,880
1887 94,810 .... .... 94,810
1888 204,475 .... .... 204,475
1889 255,406 .... .... 255,406
1890 356,060 .... .... 356,060
1891 261,620 .... .... 261,620
1892 320,859 .... .... 320,859
1893 334,341 .... 12,000[17] 346,341
1894 153,650 .... .... 153,650
1895 302,050 74,992 .... 377,041
1896 291,561 114,110 .... 405,671
1897 246,530 206,029 .... 452,559
Total 3,036,314 395,131 [17] 3,443,444

It is interesting to note that none of the mines are worked underground. The ore outcrops on the sidehills, and the mining is in the nature of quarrying. Daiquiri, the port of the Spanish-American Company, is the point at which General Shafter’s army landed; and the dock, pier, mooring, buoys, and water supply of the place were of great value to the army and to the vessels of the navy. The Spanish forces, who abandoned Daiquiri when the United States troops landed, set fire to the shops, roundhouse, docks, pier, warehouse, and cars of the company. Through the efforts of the company’s men, who were waiting in the hills and who returned as soon as the bombardment ceased, the fire was partly extinguished; but the locomotives, shops, some cars, and a number of buildings were a total loss. The hospital buildings and a number of dwellings at Daiquiri were afterwards burned by order of the United States officers commanding. At Siboney, the Juragua Company’s village, a number of buildings were also burned by order of the United States officers in command.

Rich deposits of iron ore of several varieties are found in the provinces of Santa Clara and Puerto Principe, and some work has been done in developing, but the war put an end to it.

The following list of the mining properties, all in the province of Santiago, with the number of acres, condition, etc., may be useful as reference:

Dorothea and Recrio4mines,300acresFor sale
Carpintero91300
Bayamitas5925
Guama6950
Cuero6760For sale
De la Plata9975Sigua Company
Uvera and Jaqueca12155710 for sale
Berracoe4502$150,000 refused
Cajobaba8—— For sale
Economia192650
Providencia3—— 
Madalena810004
Demajobo1150
Juragua Group17250011
Sevilla111300