 The United Fruit Company had been formed in 1899 by the merger of two large American corporations . The new company had major holdings of land and railroads across Central America , which it used to support its business of exporting bananas . In 1900 it was already the world 's largest exporter of bananas . By 1930 it had an operating capital of 215 million US dollars , and had been the largest landowner and employer in Guatemala for several years . Under Manuel Estrada Cabrera and other Guatemalan presidents , the company obtained a series of concessions in the country that allowed it to massively expand its business . These concessions frequently came at the cost of tax revenue for the Guatemalan government . The company supported Jorge Ubico in the leadership struggle that occurred from 1930 to 1932 , and upon assuming power , Ubico expressed willingness to create a new contract with it . This new contract was immensely favorable to the company . It included a 99 @-@ year lease to massive tracts of land , exemptions from virtually all taxes , and a guarantee that no other company would receive any competing contract . Under Ubico , the company paid virtually no taxes , which hurt the Guatemalan government 's ability to deal with the effects of the Great Depression . Ubico asked the company to pay its workers only 50 cents a day , to prevent other workers from demanding higher wages . The company also virtually owned Puerto Barrios , Guatemala 's only port to the Atlantic ocean , allowing the company to make profits from the flow of goods through the port . By 1950 , the company 's annual profits were 65 million US dollars , twice the revenue of the Guatemalan government . 
