Sweet Cuba

Cuba, shaped like a Dill pickle, sweetens the world with its sugar. But Cuba's politics do not sweeten its foreign relations. Aside from the small matter of the Cuban lottery, which occasioned the temporary return of our Ambassador, General Crowder, to consult with the State Department (TIME, Aug. 13, Aug. 27) there is the Tarafa Railroad Bill.

The Tarafa Bill was passed in the Cuban House of Representatives and awaits action in the Cuban Senate. It would consolidate all Cuban railways aside from those that are the property of certain privately managed railroads which transport their sugar to private seaports, and would place a heavy tax on the use of these private roads. The sugar industry is in large part American-owned, and American interests protested to the State Department that the proposed tax would practically confiscate their railways and port facilities. At that stage of the proceedings Colonel Jose Miguel Tarafa, author of the bill, left Cuba and went to Washington to defend his measure.

Thus Colonel Tarafa arrived on the American scene, Tarafa the " empire-builder," "the Stinnes of Cuba." He made his case clear to Secretary Hughes. His bill, he said, was not to close the private ports, but to consolidate the railways of Cuba. As long as the sugar companies use their private railroads the "public" roads are at a disadvantage. He declared: " It is not difficult for any one to see that if the 180 sugar centrals in Cuba shall be allowed a private or sub-port . . . there can be no industry in Cuba except the American sugar industry." He proposes to tax the private roads to compensate for the additional profit made by sugar companies by having their own roads. Under these conditions the consolidated public roads could compete, improve their service, reduce freight rates perhaps 20%.

Against Colonel Tarafa's apparent disinterestedness it can be pointed out that he is President of the Cuba Northern Railroad, and expected to become President of the consolidated railroads. Until comparatively recently Matanzas was the greatest sugar port in the world, but it now has been succeeded by a port in Camaguey, unknown only a few years ago -- Puerta Tarafa, a private port, developed as an outlet for Tarafa's railway. Not long ago it was made a national or public port; consequently it will benefit by the new bill.

The main facts of the situation seem to be that Cuba's railway troubles are caused by the Island's attenuated shape. It is cheaper for sugar companies to build a short road to the coast and put their sugar directly aboard ship than to patronize the " public" railways which run lengthwise of tile country, whose freight rates are expensive and whose service is inadequate. The Tarafa bill would improve the railways at the expense of the Cuban sugar industry. As Colonel Tarafa himself pointed out, Americans are about equally heavily interested in both industries. In Cuba it is sometimes said that the National City, Bank (New York) runs the sugar industry and the Rockefeller-Morgan interests run the railroads. Colonel Tarafa's interests lie with the latter. Cuban industry, much more honest than Cuban politics, is beginning to rise in protest against Colonel Tarafa's steamroller tactics in putting his bill through.

The Colonel, after calling at the State Department in Washington, went to New York to confer with the sugar interests. It is quite possible that the two groups of interests may reach a compromise. Such an outcome would thoroughly suit the State Department.