"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.