THE CUBA REVIEW 23 



submarine tolophonp (•al)lo from lfav:uia to Key Wost, and, later on, from tlio oastcrn end of 

 Cti])a to Haiti, wliich will in turn connoct with land lines across Haiti and Santo Domingo, and 

 again with a submarine telephone ral)le from Santo Domingo to Porto Rieo, to be ronneoted 

 with the telephone system of Porto Kico. 



The Havana-Key West cable is naturally of prime importance and of particular interest 

 to the i)eople of Cuba and the United States, as it is expected to be able to connect practically 

 any point in Cuba with any place in the United States and Canada. Tliis service will be in- 

 vahiable to business activities l)etween the United States and Cul)a, and tbc early cf)mi)]ciioii 

 of this project will be hastened in every possible way. 



The connection l)y telephone ])etween Cuba, Haiti, Santo Domingo and Porto Rico is not 

 so urgently needed as with the United States, l)Ut such connection will be quite profitable to 

 this company, as all calls from Porto Rico, Santo Domingo and Haiti will be made over some 

 500 miles of long distance lines of the Cuban Telephone Company, wliich will collect a reason- 

 able and fair toJl for this service. Furthermore, we can justly expect that, by reason of such tele- 

 phone connection with the adjoining islands, the present relatively unimportant business re- 

 lations })etween Cul)a, Santo Domingo and Porto Ri(;o, will receive a decided impetus 



CUBAN TELEPHONE COMPANY. 

 Coii'lenietl General Baltnce Sheet, December 31, 1916. 

 ASSETS. 



Plants, Properties and Conces.sion $13, 03.'>, 199.49 



Investments in vSecurities of Havana Subway Company 7.57,016.87 



Advances to Havana Subway Company 316,794.4.'5 



Advances on account Merchandise Purchases 23, .522. 19 



Current Assets: 



Cash on hand and in banks $913,49,5.51 



Accounts Receivable 68,082.01 981,.577..52 



SuDplies, Office Furniture, etc 308,139.58 



Deferred Debit Items: 



Discount on Bonds Sold 1,215,408.84 



Insurance Prepaid 2,648.64 



Total Assets $16,640,307.58 



LIABILITIES. 



Common Stock $5,000,000.00 



Preferred Stock 2,000,000.00 



First Mortgage 5% Convertible Bonds, Issued $7,665,000.00 



Less: Bonds deposited as collateral for Collateral Trust Bonds in Treasury .... 2,652,430.66 



Outstanding $5,012,569.34 5,012,.569.34 



Convertible Collateral Trust 5% Bonds 2,-500,000.00 



Current Liabilities: 



Accounts Payable $16,412.79 



Coupons Outstanding 178,728.50 



Dividends Outstanding 108,164.50 



Taxes Payable 58,043.57 



Subscribers' Deposits 65,793.00 



427,142.36 



Reserves : 



Depreciation on Plant and Supplies 796,014.05 



Surplus, December 31, 1916 904, .581. 83 



Total Liabilities $16,640,307.58 



Condensed Statement of Income and Profit ani Loss for the Year Endini Deremher 'Mst, 1916. 



Gross Operating Revenue $1,492, .570. 77 



Less Cancellations, Reductions, etc 43,110.25 



Net Operating Revenue $1,449,460 52 



Deduct: 



Operating Expenses and Taxes $521,099.33 



Depreciation on Plant, Equipment, Supplies, etc 234,262.00 755,361.33 



Net Operating Income $694,099.19 



Non-operating Income: 



Intirest on Ssourities Owned, etc., and Profit on Outside Contracts 142,189.78 



Gross Income $836,288.97 



Less: 



Intsrest on Bonds Loans and .\ccounts 397.983.82 



Net Income for Year $438,305.15 



Suolus December 31st 1915 895,649.42 



Profit and Loss Adjustments, Prior Periods 64,188.15 



Total $1,398,142.72 



