| Type | Bond |
|---|---|
| Security Number | M3216 |
| Represented Quantity | 1 |
| Nominal | 1000 US-$ |
| Coupon Rate | 7.5% |
| Place of Issue | Cuba |
| Date of Issue | September 1, 1922 |
| Printing Firm | American Bank Note Company |
| Language | English |
| Year of Acquisition | 1991 |
| Condition | EF |
Description
Eastern Cuba Sugar Corporation had been incorporated in 1920 as a Cuban corporation. It operated the Velasco mill built in 1923 in Camagüey province. It was effectively controlled by the Cuban Cane Company in its various incarnations to 1936/37 when Central Violeta Sugar Company became the controlling company as a consequence of the reorganisation of the prior parent. Given the poor situation in the industry the mill was idled from 1930. In 1932 the mill was severely damaged by a cyclone and not put back in operations as the nearby Violeta mill was sufficient for requirements. Bondholders received either shares in Central Violeta Sugar Company or some cash for their bonds.
Typical Mortgage Sinking Fund Gold Bond certificate for the period. Unusually the company name does not make any reference to its Cuban nature. Stamp as evidence that a payment had been received on the bonds. The bonds were issued to finance ia the construction of the Velasco mill.
This was incidentally one of the first pieces in my collection acquired as a student in London.