The present method of sugar production distinctly separates the operations of cane growing and sugar manufacture. The latter involves by far the greater expense and yields proportionally greater profit. Much the greater proportion of the skill called into play by the industry is also applied to the factory operations. It is still the case that some large estates control and work entire plantations, but there are more centrals that have nothing to do with the cane until it is cut and delivered to their cars. In such cases, a number of plantations, large and small, the average size being about 1500 acres, lie in the vicinity of the central and furnish its material under contract. The usual arrangement is to give the cane planter five per cent. of the sugar produced from his supply. The workings, costs, and returns, of a moderate-sized mill are shown in the following statement which was recently formulated by a thoroughly practical and experienced sugar manufacturer of Cuba. A mill designed to handle 100,000 bags of sugar in a crop season will require about $1,000,000 investment, including $150,000 for running expenses. The area of cane necessary to supply such a mill is 6,000 acres. This, if owned and worked by the mill, would call for an additional $500,000 investment. As has been said, however, the tendency is to secure the supply from independent growers, under contract, in the same way as the beet-sugar mills of our western country deal with the neighboring farmers. In this case, the planters receive five per cent. of the cane in sugar, or its equivalent in money. Sugar cane in Cuba contains from ten to twelve per cent. of sugar, of which the mill retains five or seven per cent. Plantation and mill management are generally separated, in few cases combined. Price of sugar at mill per 325-pound bag $10.27 Railroad freight “ “ “ .56 Wharf expense “ “ “ .025 Ocean freight “ “ “ .39 Landing “ “ “ .055 Duty per pound 1.36 cents “ “ “ 4.42 ------ Expense per bag $15.72 The calculation of returns is based on the very conservative rates of ten per cent. extraction and a price of 2.75 cents per pound. The price of sugar is subject to great and frequent fluctuations, but there are mills in Cuba that produce a twelve per cent. average constantly. The 6,000 acres (180 caballerias) presupposed will produce 325,000,000 pounds of cane, and from this will be extracted 32,500,000 pounds of sugar, or the equivalent of 100,000 bags of 325 pounds each. 32,500,000 pounds of sugar at 2.75 cents $893,750 Due the planters, 5% of total 446,875 CHARGEABLE TO THE PLANTERS