T H E C U B A R E \- I E W 



11 



CUBAN-AMERICAN SUGAR COMPANY 



The annual report of the Cuban-Amer- 

 ican Sugar Company for the twelve months 

 ended September 30, 1911, was somewhat 

 unfavorable. Xet proceeds amounted to 

 only $273,477, a decrease of $1,503,705. in 

 other words, the company earned 3.4 per 

 cent on the $7,893,800 preferred stock out- 

 standing. This compares with 7 per cent 

 earned on the $(3,295,000 preferred stock 

 the previous year, and an additional 20. G per 

 cent on the $6, 49(5, 100 common stock then 

 outstanding. 



The income account compares as follows : 

 Sales and miscellaneous 1911 1910 



incomes $15,397,645 $15,817,667 



Prod, and rf. costs, sell. 



and gen'l expenses 13,854,820 12,971,235 



Gross profit $1,542,825 $2,846,431 



Int., disc, and depre 1,269.349 1,069,249 



Net profits $273,477 $1,777,182 



Dividends 524,587 550,812 



Deficit $251,110 *$1, 226,370 



Previous surplus 2,227,789 1,435,841 



Miscellaneous credits 11815,500 



Total surplus $2,792,179 $2,662,211 



Miscellaneo^is debits fl, 020,647 434,422 



Profit and loss surp. $1,771,532 $2,227,789 



* Surplus. t Includes common stock issued in 

 respect of San ^Manuel property, $639,500; special 

 reserve, $250,000; sinking fund. $131,147. 11 In- 

 cludes surplus from San Manuel property, $639,- 

 500; bonds cancelled, $176,000. 



The net profits in 1909 were $1,150,545. 



In his report to the stockhol'ders Presi- 

 dent R. B. Hawle}^ says : "While the year's 

 operations are disappointing, a recurrence 

 of the unfavorable conditions during the 

 coming year seems not impossible : on the 

 contrary, the reversal of last season's situa- 

 tion is practically assured. With normal 

 weather conditions, our total output for 

 1911-12 should exceed 1.225,000 bags of 

 sugar, or an increase of 30 per cent. The 

 outlook indicates better returns for our 

 product than experienced in many years. 

 and every guarantee of a successful future 

 is offered." 



The report further says : 



"During the period when rains were most 

 necessary for the growing crops, there pre- 

 vailed a serious drouth throughout the is- 

 land of Cuba, causing a reduction in the 

 total crop of 18 per cent, and in the estates 

 of this compan3^ excluding output of the 

 San Manuel house, a reduction of 17 per 

 cent is shown, as compared with the pre- 

 vious year. With the factories operating 

 practically the same number of days, but 

 producing 17 per cent less raw sugar, and 

 the low prices prevailing during the sum- 

 mer months when the crop was being har- 



vested, the net profit amounted to but $27.3, - 

 476, as compared with $1,777,182 for 1909-10. 



"In October, 1910, the company acquired 

 the capital stock of the San Manuel Sugar 

 Company, owning an estate located in the 

 vicinity of Puerto Padre, Cuba, adjoining 

 the Chaparra estate, comprising about 

 92,000 acres of land, sugar factory, rail- 

 road lines, wharves and other accessories, 

 as well as the greater part of the town of 

 Puerto Padre. 



"The Chaparra Railroad Company was 

 organized October 14, 1910, with a nominal 

 capital stock of $10,000 to take over the 

 railroad properties of the Chaparra and 

 San ]Manuel Sugar Companies. Subse- 

 quently the authorized capital stock of the 

 railroad company was increased to $2,000,- 

 000 to conform with the laws of Cuba, of 

 which $224,000 is owned liy the Cuban- 

 American Sugar Company, the balance re- 

 maining unissued. 



"To provide funds for the purchase and 

 development of these properties, erecting 

 a modern sugar factory, extending the rail- 

 road and constructing a deep water ship- 

 ping terminal, the stockholders at their 1910 

 annual meeting authorized the directors to 

 issue for cash 15,988 shares of preferred 

 stock and to deliver to the subscribers 40 

 ner cent of the amount of their subscrip- 

 tions — the equivalent of 6.395 shares — in 

 full paid common stock. In addition to 

 the capital acquired in this manner, $1,800,- 

 000 ten-year 6 per cent collateral trust 

 Iionds have also been sold. 



"As the full effect of the drouth cannot 

 !)e ascertained until the current crop is har- 

 vested, a fund of $250,000 has been set 

 aside as a special reserve." 



-A.t a recent meeting George E. Bush was 

 elected controller of the company, and 

 James H. Post, treasurer, w^is made a 

 vice-president. 



CUBA S PROSPERITY 



Commercial signs point to increasing 

 prosperity in Cuba. The population, which 

 in 1908 was 2,048,980, is now 2.220.278, the 

 increase over last year being 58,612. Im- 

 ports in 1910-11 were $108,090,000, against 

 $103,446,000 the previous year. Exports 

 were $129,179,000, against $144,139,000 the 

 previous year. This is regarded as a 

 "favorable balance of trade." 



Since the establishment of the republic 

 in 1902 the railways have been doubled in 

 length. The Spaniards left about 600 

 miles of railway : these have since grown 

 to about 1,200 miles. — Jl'al! Street Journal. 



