26 



THE CUBA REVIEW 



summer which prevented the regular cuttmg and hauhng of cane to tlie railroads, thus necessi- 

 tating the closing of the mill at frequent intervals. As this condition has existed for the past 

 two seasons it seems reasonable to hope that, under the law of averages, better results wiU be 

 realized next year. 



The company's cultivations were purposely situated near a range of hills with a view to 

 overcoming the shortage of water which is experienced at some of the neighboring plantations. 

 The results obtained to date in ordinarily dry seasons have been good, but in order to insure a 

 regular supply of cane for the mill every season, future planting will be so located that it will 

 be available when the present fields are not workable. Additional planting contemplated for 

 the commg year will, it is believed, afford sufficient cane for the future under all contingencies. 



The machinery necessary for the mstallation of the third unit in the company's mill 

 originally contemplated, has been ordered a^nd should be working in time for the 1918 crop. 

 Necessary improvements to the two units now in operation to bring them up to the same stand- 

 ard of efficiency as the new third unit wll also be made so that by 1918 the company should 

 be in a position to produce from 160,000.000 to 190,000.000 pounds of sugar each year. 



INVESTMENTS. 



During the period the company acquired from the United Fruit Company a one-half 

 interest in the Revere Sugar Refinery, which company is at present constructing a new lefinery 

 on land owned by it, situated at tidewatei, on the Mystic River in CharlestouTi, Mass. This 

 refinery will have the most modern machinery that can be installed and wdll have capacity 

 sufficient to handle the greater part of the sugar which mil be produced at both Pieston and 



Banes, Cuba. i j • • 



A charge was made against Income Account during the year to cover special depreciation 

 on cultivations and plantation equipment in Cuba, in conformity to conservative inventories 

 adopted by this company and the United Fruit Company and its subsidiaries. 



STOCK AND DEBT. 



Under the plan submitted to the stockholders on March 5, 1915, for the retirementof the 

 preferred shares through an exchange for common shares, only 121 preferred shares remained 

 outstanding on September .30, since when five additional .shares have been exchanged. 



On June 1, 1916, $200,000 6% debentuies were redeemed, leaving a balance outstand- 

 ing of $2,766,000 which mature on June 1st, 1917. 



COMPARATIVE STATEMENT OF INCOME ACCOUNT FOR THE FISCAL YEARS 

 ENDED SEPTEMBER 30, 1916, AND JUNE 30, 1915. 



1916 1915 



Incovie Accowil 15 Months 12 Months Increase 



Net earnings ftaxes deducted) .$2,687,966.78 .$2,164,717.84 $523,248.94 



Miscellaneous income 34,568.31 9,264.99 25,303.32 



Total income $2,722,535.09 $2,173,982.83 .$.548,552.26 



Less : Interest charges 4 37,200.00 389,769.11 47,430.89 



Balance net income $2,285,335.09 $1,784,213.72 .$501,121.37 



Dividends declared • . 383,034.00 360,-508.00 22,,526.00 



Surplus for fiscal year $1,902,.301.09 $1,423,705.72 $478,595.37 



Surplus income at close of previous year 1,178,059.74 134,644.79 1,043,414.95 



Total surplus $3,080,360.83 $1,558,350.51 $1,-522,010.32 



Xess: Direct charges to profit and loss 871,298.49 380,290.77 491,007.72 



Balance surplus $2,209,062.34 $1,178,059.74 $1,031,002.60 



