THE CUBA REVIKW 23 



SANTA CECILIA SUGAR CORPORATION 



ANNUAL REPORT AND GENERAL BALANCE SHEET 



YEAR ENDED JULY 31. 1918 



New York, November 21, 1918. 



The following report of operations of the Corporation during the last fiscal year 

 has been submitted, with General Balance Sheet annexed. 



Weather conditions as a whole were not favorable. Insufficient rainfall the latter 

 part of the growing season retarded development and reduced tonnage of the cane, 

 and 10 x 2 9c of the company's fields were not cut. Unseasonable rains throughout last 

 half of the harvesting season considerably delayed and likewise increased the cost of 

 that work, with a similar effect upon the work and cost of manufacture. All costs in 

 every department were very high, due to the abnormal conditions affecting labor, 

 materials and shipping, and the aggregate increase in these costs was not compen- 

 sated by the increase in the Government fixed price of sugar. 



Grinding began December 12, 1917, and ended June 11, 1918, during which period 

 the factory ground 79,940 Spanish tons of cane of 2,500 lbs. each, and made 71,645 

 bags of sugar of 325 lbs. each, the yield of sugar being 11.60% and the average 

 polarity 95.647. The molasses output was 511,774 gallons of an average polarity 

 of 30.20. 



Gross revenue from all sources, including proceeds of sugar on hand at the begin- 

 ning of the year, amounted to §1,232,275.23. Operating expenses of all kinds, includ- 

 ing repairs and replacements, aggregated $911,142.72. 



The gross earnings for the year, including $47,058.12 net from sugar on hand 

 above mentioned, amounted to $319,824.03. The profit, after deducting $21,760.86 for 

 interest on current debt, $42,272.33 for bond interest and $76,091.99 for depreciation 

 provisions, amounted to $181,007.38. The amount written off represents 5% on manu- 

 facturing plant and plantation railroad, 10% on railroad rolling stock and buildings 

 other than factory, and 20% for exhaustion of cane plantings, all as recommended by 

 the auditors, and considered by the management to be ample. 



The Excess Profit Tax and Income Taxes referred to in Balance Sheet are esti- 

 mated at $20,000 to $30,000. 



Since July 31 the funded debt has been reduced to $700,000 by the purchase and 

 cancellation of $50,000 of the company's bonds under the sinking fund provisions of 

 the mortgage. 



Capital expenditures for the year amounted to $85,083.19, the important items 

 being $35,387.56 for extensions and betterments of the railroad and its equipment; 

 $21,579.01 for additions to the manufacturing plant; $13,327.28 for planting 225 acres 

 of new cane; $4,640.53 for other field improvements, and $8,486.74 for additions to 

 live stock. 



The property has been well maintained and is in good condition. The rainfall 

 thus far has been seasonable, the growth of the cane satisfactory and it is expected 

 that grinding will begin the middle of December. 



The United States Sugar Equalization Board, Inc., has contracted for the entire 

 Cuban sugar crop for the ensuing season at an advance over last year's price of 90c 

 per 100 pounds. 



