Compañia Azucarera Atlantica del Golfo

In 1934, in the middle of the great depression, the Cuban sugar industry was going through tumultuous times laborwise, was in a dire financial crisis and the Cuban political scene was no less critical.  On January 15, 1934 President Ramón Grau San Martín resigned his office and the presidency passed to Carlos Mendieta a week later on January 23, 1934. 

Under Cuban law at the time, a bankrupt entity's property had to be auctioned three times.  The first two times a minimum price would be set by the court, if that price was not met, it would be sold to the highest bidder at the third auction.  On January 30, 1934, the third auction was set for the eleven sugar mills owned by the Cuba Cane Products Co., the successor to Cuba Cane Sugar Corp.  The result of the auction was that the properties of the Cuba Cane Products Co. passed to to the hands of four New York banks through the Compañia Azucarera Atlantica del Golfo in a forced sale to satisfy their encumbrances amounting to some $4.125 million.  The banks agreed that the bondholders would have until May 15, 1934 to buy the properties from the banks at a price not to exceed the price paid plus interest and expenses.

The ​Compañia Azucarera Atlantica del Golfo was organized in December 1933 as a Cuban corporation with an initial capital of $6 million with the idea to take charge of all of Cuba Cane's properties. Its organizers were Lawrence Crosby of Sullivan & Cromwell in representation of Cuba Cane's bondholders, Tom Garrett in representation of Guaranty Trust and Henry Kelley in representation of Central Hanover Bank & Trust Co. which would later be Manufacturers Hanover Trust Company. Eugene Stetson, Vice President of Guaranty Trust wanted the Cuban Trading Co., the subsidiary of Czarnikow-Rionda, to be in charge of the new venture.  That being the case, Higinio Fanjul was named president and three of the Cuban Trading Company's senior managers were named officers of the new corporation.  Fanjul was replaced three months later by Guaranty Trust VP John J. Sample and appointed Vice President.  

Of the sugar mills owned by Cuban Cane Products Co. at the time of the court mandated sale, Central Lequeito, Central La Julia, Central Socorro, Central Santa Gertrudis, Central Maria Victoria, and Central Velasco were dismantled and the administration of Central Violeta was ordered by the court to E. G. Miller who managed it until Octubre 27, 1936 when it was acquired at public auction for $3,000,000 by Central Violeta Sugar Company S. A. In the 1958 it was acquired by the Sucn. de Falla Gutiérrez.  The ​six sugar mills acquired by Cia. Azucarera Atlantica del Golfo were the following: 

  1. Central Álava - Established in 1836 as Trapiche Regalado by Spaniard Ignacio de Mendiola, was acquired by Julián de Zulueta Amondo in 1845 who converted it into a central sugar mill. Was acquired by Cuba Cane Sugar Co. in 1915 from the Zulueta family.

  2. Central Conchita- Established in 1823 by Bartolomé Casañas, by 1880 under the ownership of Domingo Aldama was one of the largest sugar mills in Cuba, in the early 1900s it belonged to Juan Pedro Baró who sold it for 3,500,000 pesos to José (Pote) Rodriguez in the 1910s who sold it to Cuba Cane Sugar Co. in 1915 for 6,000,000 pesos.

  3. Central Mercedes - Established in 1855 by Antonio Carrillo Albornoz, was acquired in 1901 by Cia. Cubana Central Mercedes whose principal shareholders were Miguel Arango, Regino Truffin and Ignacio Almagro.  Was acquired by Cuba Cane Sugar Co. in 1915.

  4. Central El Lugareño - Was established in 1891 by Dr. Merchol Bernal Barona and Bernabé Sanchez Adán, between 1908 and 1917 was owned by Sociedad Anonima Central Lugareño owned by Galbán & Cia., was acquired by Cuba Cane Sugar Co. in 1916. 

  5. Central Morón - 

  6. Central Stewart - Established with Cuban capital in 1906 with financing from the Duncan Stewart Co. of Scotland, manufacturer of its machinery, it was a financial failure so it was shortly thereafter acquired by The Stewart Sugar Co. who sold it in 1915 to Cuba Cane Sugar Co.  ​​

  7. Central Soledad - Established ca. 1820, acquired by E. Atkins & Co. in 1884 who sold it in 1916 to Cuba Cane Sugar Co.

  8. Central San Ignacio -

  9. Central Perseverancia -

  10. Central Jagüeyal -

Fourteen months after its establishment, on March 1, 1935 Compañia Azucarera Atlantica del Golfo became a 96.5% owned subsidiary of the recently organized Cuban Atlantic Sugar Co.  Cia, Azucarera Atlantica del Golfo would eventually own twelve of Cuba Cane's fifteen sugar mills which included 292,389 acres of land, about 600 miles of railroad lines, a distillery and a 50% interest in Cuba Cane's subsidiary, Cia. Agricola Ceballos.  Beginning in 1950 Cia. Azucarera Atlantica del Golfo started selling sugar mills retaining only six owned at the time it was nationalized.

On January 2, 1958 Compañia Azucarera Atlantica del Golfo announced a liquidation plan.  This prompted a battle between several of its stockholders, among them Julio Lobo, Fulgencio Batista, Francisco Blanco and the Sucn. de Falla Gutiérrez, being the latter who gained controlling interest.  After the liquidation in 1958 of the Cuban Atlantic Sugar Co., Compañia Azucarera Atlantica del Golfo continued to operate as an independent company until it was nationalized by the Fidel Castro regime on August 6, 1960.