Why does a chocolatier build a railroad? For Milton S. Hershey, it was a logical response to a sugar shortage brought on by World War I. The Hershey Chocolate Co. was by then a chocolate-making powerhouse, having refined the automation and mass production of its products, including the eponymous Hershey’s Milk Chocolate Bar and the bite-size Hershey’s Kiss. To satisfy its many customers, the company needed a steady supply of sugar. Plus, it wanted a way to circumvent the American Sugar Refining Co., also known as the Sugar Trust, which had a virtual monopoly on sugar processing in the United States.
Why Did Hershey Build an Electric Railroad in Cuba?
Beginning in 1916, Hershey looked to Cuba to secure his sugar supply. According to historian Thomas R. Winpenny, the chocolate magnate had a “personal infatuation” with the lush, beautiful island. What’s more, U.S. business interests there were protected by a treaty known as the Platt Amendment, which made Cuba a satellite state of the United States.
Like many industrialists of the day, Hershey believed in vertical integration, and the company’s Cuban operation eventually expanded to include five sugar plantations, five modern sugar mills, a refinery, several company towns, and an oil-fired power plant with three substations to run it all.
A 1943 rail pass entitled the holder to travel on all ordinary passenger trains of the Hershey Electric Railway. Hershey Community Archives
The company also built a railroad. To maximize the sugar yield, the cane needed to be ground promptly after being cut, and the rail system offered an efficient means of transporting the cane to the mills, and ensured that the mills operated around the clock during the harvest. By 1920, one of Hershey’s three main sites was processing 135,000 tonnes of cane, yielding 14.4 million kilograms of sugar.
Initially, the Hershey Cuban Railway consisted of a single 56-kilometer-long standard gauge track on which ran seven steam locomotives that burned coal or oil. But due to the high cost of the imported fuel and the inefficiency of the locomotives, Hershey began electrifying the line in 1920. Although it was the first electrified train in Cuba, rail lines in Europe and the United States were already being electrified.
In addition to powering the various Hershey entities, the generating station supplied Matanzas and the smaller towns with electricity. F.W. Peters of General Electric’s Railway and Traction Engineering Department published a detailed account of the system in the April 1920 General Electric Review.
Hershey’s Company Towns
The company town of Central Hershey became the headquarters for Hershey’s Cuba operations. (“Central” is the Cuban term for a mill and the surrounding settlement.) It sat on a plateau overlooking the port of Santa Cruz del Norte, about halfway between Havana and Matanzas in the heart of Cuba’s sugarcane region.
... continue reading