22 THECUB A REVIEW 



NINTH ANNUAL REPORT OF THE NIPE BAY CO. 



The Board of Directors submits the following report for the fiscal year ended September 

 30, 1917. In comparing the figures, it should be borne in mind that the previous fiscal year 

 covers a period of fifteen months. 



INCOME 



Not earnings from tlio sale of suaiar .Sl,S97,(j08.8.3 



Miscellaneous inconie 2GG, -376.0-1 



Total income $2,103,984.87 



Lfss: Interest charges 301,-565.24 



Balance inconie $1,862,419.63 



Less: Taxes paid and accrued 20.5,662.97 



Balance net income $1,6.56,756.66 



Against income there have been charged dividends aggregating 360,168.50 



Balance for fiscal year $1,296,588.16 



Balance brought forward from tlie close of the previous year 2,209,062.-34 



Total $3,.505,650..50 



Less: Direct charges to profit and lo.ss 629,006.64 



Balance at credit of profit and loss, September 30, 1917 $2,876,643.86 



DEPRECIATION 

 Before arriving at the net earnings, depreciation of .$394,350.02 on the company's planta- 

 tions, railways and sugar mill was included in operating expenses. 



INVESTMENTS 



Owing to the prevailing shortage of sugar during the year, the price has been somewhat 

 higher than during the previous year, but the increased yield has been more than offset by an 

 increase in the cost of production and transportation. As a result, profits for the year, although 

 fairly satisfactory, judged by ordinary conditions, did not reach last year's high mark. 



The production for the year amounted to 112,052,800 pounds of raw sugar and 2,822,940 

 gallons of molasses, as compared to 146,262,400 pounds of sugar and 3,223,906 gallons of 

 molasses produced during the preceding fiscal year of fifteen months. Heavy and almost con- 

 tinuous rainfall was again experienced during the height of the grinding season, and production 

 was further affected by a shortage of labor occasioned to a large extent by unrest caused by the 

 revolution in Cuba. 



Additions and improvements in the mill mentioned in our previous report should be com- 

 pleted in time for the 1918 crop, thereby very materially increasing the daily capacity. 



Through a judgment of the Supreme Court of Cuba during the past year your company 

 lost title to 17,674 acres of land after litigation extending over a period of several years. A 

 direct charge to Profit and Loss was made to cover the book value of this land. 



The company's investment in the Revere Sugar Refinery has proved profitable, and its 

 proportion of the net earninggs of that company accounts for the increase in miscellaneous 

 earnings. 



A new refinery, with a daily capacity of 3,500 barrels of refined sugar, is being constructed 

 in Charlestown on the Mystic River. It is expected that it will be completed and in operation 

 by June, 1918. All of the stock of the Revere Sugar Refinery is owned jointly by the United 

 Fruit and Nipe Bay Companies. 



STOCK AND DEBT. 

 During the year the remaining preferred stock of the company has been exchanged for 

 common stock. The .1;2,766,000 of ten-year 6% gold debentures maturing on June 1 were 



retired. 



UNITED FRUIT COMPANY. 



A special meeting of the stockholders has been called for Wednesday, December 12, 1917, 

 to consider the sale to the United Fruit Company of all the assets of the company, subject to 

 of the United Fruit Company. 



After a careful analysis of the standing of both companies, their respective properties 



