“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.