THECUBAREVIEW 25 



Improvements — There has been an enormous development in Cuba during the past few- 

 years due to the high price of sugar, and this has made it difficult for your railroad to keep pace 

 with the transportation requirements of the development. These difficulties however, are 

 being overcome and the extra facilities required are being provided as quickly as possible. 

 During the year 61 .7 miles of main track have been relaid with 75-lb. rails, while new sidetracks 

 aggregating 13.4 miles in length have been constructed and yard facilities have been increased. 

 Four bridges aggregating 790 feet in length have been rei)laccd, while the masonry work ha& 

 been completed on ten more aggregating 1,539 feet in length It has been decided to ballast 

 the track throughout with rock and a rock crushing plant is being erected. 



Eqinjrmcril— There were purchased during the year 35 freight and 3 switching locomotives, 

 2 compartment sleeping cars, 2 first-class cars, 10 second-class cars, 2 baggage cars, 3 baggage 

 and mail cars, 9 refrigerator cars, 350 box cars, 400 flat cars, 425 cane cars and 40 tank cars. 



Covslrnctioti — Good progress was made on the construction of the Trinidad lines until 

 February-, when work had to be almost completely suspended, but it has since been resumed 

 and is again progressing well. Very little ])rogress was made on the construction of the Hanta 

 Cruz Branch. 



Additional Common Stack Issue— In order to meet the heavy expenditures incurred on new 

 construction, your directors on May 9 authorized the issue and sale to the Cuba Co. at par of 

 5,500 shares of common stock. The total common stock outstanding at June 30, 1917, there- 

 fore, amounts to $15,500,000. (Compare report of Cuba Co. above.) 



Subsidiary Company— The net earnings of the Camaguey & Nuevitas RR. (all of which 

 stock is owned), for the year, amounted to $120,689. 



Good progress was made on the construction of the Pastelillo extension and terminal at 

 the Port of Nuevitas. These are now being operated and have proved of the utmost benefit 

 to the Cuba RR. and will materially reduce the congestion on your lines, providing, as they do, 

 a deep-water outlet at the center of your system. Your company has advanced $881,257 

 to meet the expenditures on the Pastelillo extension and terminal. 



loan— Under decree of April 19, 1917, the Cuban Government undertook to advance 

 (without interest; to the Cuba RR. $1,000,000 in four installments from April to July, in order 

 to assist it in repairing the railroad and its equipment damaged during the revolution. This 

 advance is to be repaid by services to be rendered by the company from April 19, 1917. 



Dividends. — A half yearly dividend of 3% was declared on the preferred stock of the Cuba 

 RR., payable February 1, 1917. Owing to the delay this year in closing our books, due to the 

 complications arising from the revolution, your directors were unable to authorize the payment 

 on August 1 of the usual semi-annual dividend on the preferred stock, but this has since been 

 declared payable on August 31 , 1917. 



Operations and Fiscal Results for Years Ended June 30. 



Gross Earnings: 1916-17 1915-16 1914-15 1913-14 



Passenger $2,039,227 $2,131,958 $1,673,634 $1,722,452 



MaU 109,230 129,590 123,331 106,768 



Express and baggage 273,742 252,668 183,650 176,893 



Freight 2,883,007 3,442,490 2,583,321 2,610,782 



Car kilometerage 147,355 89,274 70,141 67,313 



Hire of equipment 698,471 434,009 295,631 204,202 



Antilla terminals 193,848 203,732 183,921 210,029 



Miscellaneous 107,227 131,976 93,085 66,232 



Total $6,452,108 $6,815,697 $5,206,714 $5,164,671 



Operating Expenses: 



Maintenance of way and structures. .. . $1,112,725 $656,971 $548,218 $741,370 



Maintenance of equipment 758,703 606,193 355,170 351,943 



Conducting transportation 2,073,359 1,569,883 1,218,958 1,234,009 



General expenses and taxes 356,626 233,106 210,961 220,923 



AntUIa terminals 228,550 232,517 145,867 145,504 



Total $4,529,962 $3,298,670 $2,479,174 $2,693,749 



