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THE CUBA RAILROAD COMPANY 



STATEMENTS TO JUNE 30TH, 1919 



September 2nd, L919. 

 To Tin-; Shareholders : 



Your Directors beg leave to submit the following report of operations r< >r the 

 year ended June 30th, L919, and a General Balance Sheel al thai date: 



The gross earnings of the railroad for the year wore $12,236,245.81 ; the ael earn- 

 ings after deducting taxes wore $3,310,231.32, while the gross income was $3,466,960.42. 

 The operating expenses of the railroad were still maintained at a high level throughout 

 the year by the prevailing high prices of materials and supplies and the high cost of 

 labor. Fuel for locomotives for the year cost $1,660,290.56, as compared with $1,359,- 

 858.02 the previous year. Charges amounting to $879,969.12 for depreciation of prop- 

 erty have been made against operation during the year as compared with $790,956.12 

 the previous year. The reserve for this purpose now amounts to $1,936,475.23, while 

 the value at which the Marine and Industrial Company's capital Stock is carried on 

 your balance sheet has been reduced by $30,000. 



During the year $400,371.44 has been charged against operation to cover the 

 amount of taxes payable for the year, as against $343,342.72 for the previous year. 

 The reserve for this purpose now stands al $498,026.88. 



The Surplus Account has been increased by the amount of the subsidies received 

 during the year on account of the construction of the Trinidad Lines, while a charge 

 has been made against Surplus of $63,032.00 to cover the amount of the depreciation 

 on ties and bridges on the Trinidad Lines from Fomento to Casilda incurred during 

 the period of construction which included the 1917 Revolution. 



Turning to the Balance Sheet you will see that the advances to the Camagiiey 

 & Nuevitas Railroad Company for the construction of Pastelillo Terminals have been 

 reduced during the year from $1,329,636.13 to $692,8S2.73. 



The Republic of Cuba 6% Treasury Bonds, which had been held in your Treasury, 

 were sold at a satisfactory price. 



On the completion of the Trinidad Lines there were issued on this extra mileage 

 $1,140,000 of the Company's First Mortgage Bonds, making a total of $13,170,000 of 

 these bonds outstanding. 



The $3,000,000 Three-Year Five Per Cent. Secured Gold Notes of the Company 

 were redeemed on November 15th, 191S, and in their place there were issued $2,000,000 

 Two- Year Six Per Cent. Secured Gold Notes due November 15th, 1920. 



On June 1st, 1910, the $000,000 of Notes Payable were redeemed, while Equipment 

 Trust Certificates have been reduced during the year from $3,158,000 to $2,7 42,000. 



Loans Payable, which at the end of the previous fiscal year amounted to $1,750,000, 

 have been entirely paid off, while advances from the Republic of Cuba against services 

 to be rendered have been reduced from $1,974,437.77 to $1,673,953.38. 



The work of track and other improvements has been carried on vigorously through- 

 out the past year. Six new passing tracks and 5 business tracks were built. In the 

 main line 30.3S miles of track have been relaid with 7."» lb. rails, while 31.36 miles were 

 supplied with rock ballast. Including the Camagiiey & Nuevitas Railroad there were 

 renewed during the year 127,789 ties, representing 6.16% of all ties in the track, while 

 32,127 w-ere provided for the construction of the Trinidad Lines. Thirty-nine bridges, 

 aggregating 3,409 feet in length, were replaced with permanent work, either steel, 

 masonry, concrete or filling, while 68 bridges, aggregating 3,621 feet in length, were 

 replaced with native hardwood. There were built during the year 1 standard station, 

 6 provisional stations, 3 shelter sheds and platforms, 2 freight houses, 3 section houses, 

 8 water tanks, 1 pump house, 1 general storehouse, 13 switchmen's shelters, and various 

 miscellaneous structures. 



