THECUBAREVIEW 23 



HAVANA ELECTRIC RAILWAY, LIGHT & POWER CO. 



SIXTH ANNUAL REPORT OF THE DIRECTORS 



FOR THE YEAR ENDED DECEMBER 31. 1917 



The gross earnings for the years 1913, 1914, 1915, 191ti and 1917 were as follows: 



1913 1914 1015 1910 1917 



$5,417,054.27 $5,396,713.78 $5,541,302.72 $0,017,708.59 $0,989,599.33 



A condensed statement of the result of the operations of the company during the same five 

 years is : 



•^ 1917 1910 1915 1914 1913 



Gross earnines ... $6,989,599.33 $0,017,708.59 $5,541,302.72 $5,390,713.78 $5,417.0.54.27 



Operating Expenses and taxes. ., . 3,385,469.83 2,443,885.33 2,337,506,05 2,595,.321.59 2,012,952.80 



Net income ■ . $3,004,129.50 $3,573,823.20 $3,203,790,07 $2,801,392.19 $2,804,101.41 

 Miscellaneous' income 149,754.70 144,561.49 147,874.95 102,119.18 140,087.60 



Total net income $3,753,884.20 $3,718,384.75 $3,351,071.02 $2,903, 511. .37 $2,944,189.01 



First charges 1,138,623.30 1,297,093.23 1,115,413.99 1,094,139.97 1,096,085.82 



Net prof, from oper. & mis. inc... $2,615,260.90 2,421,291.52 $2,230,257.63 $1,809,371.40 $1,848,103.19 



Out of the net profits from operation and miscellaneous income for the year under review, namely . . $2,615,260.90 

 There has been set aside as reserve for depreciation and special charges 211,843.94 



Leaving net profit ^I'fR^Al^At 



The balance at credit of profit and loss account .lanuary 1, 1917 was 2,024,501.78 



$4,427,918.74 

 and the following disposition was made thereof : 



Dividends paid during the year (6% on the preferred and common shares) ._ $1 .976.254.23 



Pro\-ision for sinking fund in respect to English bonds of the Compania de Gas y Electricidad de la 



Habana •■•■•■••■ u,' • •. 12,506.65 



Provision for sinking fund in respect to the consolidated mortgage bonds of the Havana Electric 



Railway Company ^9f '^Sn«I 



Reserve for bad and doubtful debts 64,000.00 



Profit and loss account — -balance carried forward to 1918 2,270,290.19 



Total $4,427,918.74 



To comply with the Tax Laws of Cuba, separate accounts are kept of the vaiious Depart- 

 ments of the Company and the following is a summary of the operation thereof during 1917: 



Departments 



Electric railway $3,499,011.04 



Electric light 



Gas 



Stage lines 



Electric omnibuses 



Gasoline omnibuses 



*Loss. 



There has been an enormous increase in the cost of materials required for the maintenance 

 of the property, but nevertheless the net earnings from operation increased 5.24:% over those 

 of 1916, so it is apparent that the improvements in construction and operation are bearing fruit. 

 This satisfactory result was brought about through the loyal co-operation and efficient services 

 of the officers and employees of the Company, to whom thanks and appreciation are due and 

 rendered. 



Although maintenance and operation have been attended by difficulties and hardships, 

 owing to the great delays in receiving necessary material and suppUes, yet the gross earnings 

 from operation were 16.16% greater than in 1916, and although operating expenses increased 

 33.8%, after deduction of both the United States and Cuban taxes, there still remains an 

 increase of 1.57% in net earnings over the preceding year. 



The gr^ss receipts from all services were $7,139,354.03. 



The total expenditures for construction account were S777,629.51. 



Customs duties paid amounted to $142,486.89. 



