THE r U B A R E V I E W 21 



CENTRAL SUGAR CORPORATION 



FIRST ANNUAL REPORT FOR FISCAL YEAR ENDED OCTOBER 31. 1917 



The company was incorporated Deceml)er 22, 1916, the first fiscal period covering ten 

 months. The plantation at Central Fe was acquired as a going concern, free and unencum- 

 bered, as of Deceml)er (>, 1916, with all i:lle season expenses up to that date paid bj' the vendor. 



The production of raw sugar for the year was 1()1,02.t bags of 325 lbs. or 23,363 tons. 

 The re-duction in output from the estimate was principally due to the disturbed political con- 

 ditions, rendering it impossible to construct a railroad into the Luisa section, thereby making 

 it necessarj' to allow a considerable amount of cane in that section to remain uncut. While 

 harvesting operations were somewhat .hampered at various times, the company's physical 

 properties suffered no serious damage. 



Tjie company now ownis and has under lease t,he following acreage: 



0\\Tied 503 Caballerias (16,683 acre?) 



Leased 490 Caballerias (16,252 acres) 



Total 993 Caballerias (32,935 acres) 



Tlie lands actually owned and leased by the company are so located as to give it control 

 •of a large additional zone, the cane from which is tributary to Central Fe. These owned, leased 

 and controlled lands insure to the company an adequate supply of cane for its future require- 

 ments at reasonable prices. Practically all the cane of the company is produced by the 

 colono system, which is the general custom in Cuba, whereby the tenant faimers are paid 

 in raw sugar or its cash value an agreed per cent oi tbe weight of all cane respectively delivered 

 to the factory. The effect of a system of this kind is to give the colono the benefits of 

 market prices. 



Extensions: 



The plan contemplated at the organization of the company was to gradually increase 

 the capacity of the plant to 350,000 baes, and in accordance -R-ith such plan the lar^e mill 

 added this year provides this full crushing capacity. Construction of other units of the factory 

 has been proceeded with so that its normal capacity has been increased to 250,000 bags. 



T.he total estimated cost of these additions to factory, railroad, rolUng .stock and other 

 propert}', nearly completed at the beginning of the new crop, is 81,275,000. Of this amount, 

 $632,994.14 has been charged to improvements and additions at the date of the balance sheet 

 and an additional amount of machinery and construction material included in the estimated 

 total cost is showTi in the balance sheet mcluded in inventory of mateiials and supplies. 



Certain apparatus included in the equipment of the property at the time of its purchase, 

 having become obsolete on account of iinprovements, was retired. The consequent net re- 

 duction in inventory value after allowing for salvage is 375,917.28. Of this amount, 838,417.28 

 has been charged off against t.he year's surplus and the remainder is shown on the balance 

 s.heet as a deferred charge. 



Unfortunately, the pohtical conditions pre\'iouslj' referred to prevented expected planting 

 last Spring, and this, combined with unfavorable climatic conditions, indicates that t.he crop 

 this year, according to latest reports from the operating officials in Cuba, will show an increase 

 of but about 40,000 bags, or a total estimated production of something over 200,000 bags. 



Additional cane plantings have been made or contracted for w'lich .should substantially 

 increase t.he supply of cane for the year 1919. 



Railroads : 



There were eight miles of standard gauge railroad track originally on the property, to 

 which have been added during the past season fourteen rmles. To the rolling stock of t.he 



