“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.
“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.