THECUBAREVIEW 21 



Cruz Branch during the past year, as the woik has been suspended for the present on account 

 of the shortage of labor and the difficulty of obtaining the necessary construction materials. 



The Directors on July 25th, 1917, authorized the issue and sale to The Cuba Company, at 

 par, of 2,500 shares of common stock. The total common stock outstanding at June 30th, 

 1918, therefore amounts to $15,800,000. 



The not earnings of the Camaguey & Xuevitas Railroad (all of which stock is owned by 

 The Cuba Railroad Company), for the year ended June 30th, 1918, amounted to $295,736.02. 

 Many improvements have been carried oat on this railroad since the purchase of it in Novem- 

 ber, 1915. The 45 miles of old track have been relaid with heavier rail, with the exception of 

 5 miles which will also be relaid in the immediate future. During the past year 18 miles of 

 track have been rock ballasted, while ballast has been distributed alongside of track for a 

 further 22 miles and a large percentage of ties have been renewed. Thirty-one bridges, aggre- 

 gating 4.52 feet in length, have been replaced with native hardwood, while 27 bridges and cul- 

 verts, aggregating 960 feet in length, have been replaced with permanent work, either steel, 

 masonry, concrete or filling. There have been built 3 section hoiLses, 3 shelter sheds and plat- 

 forms and 5 miscellaneous structures. 



The line has been extendea 5 kilometers from the old port of Xuevitas to Pastelillo, where 

 a deep water terminal of large capacity has been constructed. Here 4 large sugar warehouses 

 have been built and tanks i)iovided for the storage of 3,000,000 gallons of molasses, while 

 buildings have been erected for custom house, freight house, restaurant and for the company's 

 employes. A fine water supply has been provided for the terminal involving the construction 

 of pumps, water tank and 14 kilometers of pipe line. The total expenditure on the Pastelillo 

 Terminal to date amounts to $1,758,.505.16, of which $557,150.16 was expended during the 

 past fiscal 3'ear. 



The Government of the Republic of Cuba, in order to assist The Cuba Railroad Company 

 to carry out the various improvement works outlined above, has generously advanced a further 

 sum of $2,000,000 in addition to the $1,000,000 advanced under Decree of April 19th, 1917. 

 Of this sum $500,000 was received in cash and the balance, $1,500,000, in Government of Cuba 

 6/0 Treasury Bonds. These advances aie to be repaid by services to be rendered by the com- 

 pany from April 19th, 1917. 



Half yearly dividends of 3% were declared on the preferred stock of The Cuba Railroad 

 Company, payable February 1st, 1918, and August 1st, 1918. These dividends were paid in 

 3-year warrants, carrying Q% interest. This was deemed advisable by the Directors because 

 of the difficulty of selUng any of the company's securities under the present financial condi- 

 tions prevailing throughout the world on account of the War. While the improvements under 

 construction at the piesent time are neaily complete, there will nevertheless be considerable 

 expenditures necessary from time to time in order that the railroad may efficiently handle the 

 ever increasing traffic, and it is therefore necessary that the companv should conserve its cash 

 resources as far as possible in order that it may meet these expenditures when they arise. 



THE CUBA RAILROAD COMPANY 



INCOME STATEMENT FOR YEAR ENDED JUNE 30, 1918 



Gross earnings $11,645,097.80 



Operating expenses 7,784,854.36 



Net earnings $3,860,243.44 



Other Revenue: 



Income from rents $15,522.53 



Interest on Cuban Gov. bonds 25,944.34 



Interest on miscellaneous loans 35,367.87 



76,834.74 



Gross income $3,937,078.18 



