24 THECUB A REVIEW 



GUANTANAMO & WESTERN RAILROAD REPORT 



PASSENGER TRAFFIC GROWING NEW ROLLING STOCK NEEDED 



In the annual report to the stockholders on the operations of the Guantanamo and 

 Western Railroad Company for the fiscal year ended June 30, 1912, the following in- 

 formation is given : 



No extensions of the main line or branches were made, although a few new switches 

 were installed, additional tracks laid in the main yards at San Justo, and some new 

 ballasting _ and drainage done. A new administration l;uilding was erected at head- 

 quarters in Guantanamo, and the freight sheds were extended and improved. The 

 machine and car shops also were enlarged, and a considerable amount of new machinery 

 installed in the former. Several additional standard station buildings, section houses 

 and water tanks were erected and others are in process. Expenditures for capital 

 account during the year amounted to $57,323.93, and appropriations for further better- 

 ments and additions now in hand aggregate approximately $50,000 exclusive of additional 

 transportation equipment. The latter as needed will be acquired under equipment lease 

 contracts. 



It is expected that these expenditures for increasing the efficiency of the transportation 

 service and present equipment will enable the company, without additional cars, to 

 take care of an increase in the freight traffic equal to that of last year, and also 

 materially reduce operating expenses and increase net earnings. The latter will be 

 further increased by a substantial revenue from various charges not heretofore collected, 

 particularly for wharfage and storage of sugar, car rentals and demurrage. 



Although many mills practically had to suspend grinding during the negro revolution 

 of last May the road carried 283,293 bags of sugar during the fiscal year ended 

 June 30, 1912, as compared with 248,878 bags to the same date in 1911. Since June 30th 

 last, 43,339 bags have been carried, making a total for the season of 326,632 bags, as 

 compared with the season's total the previous year of 261,107 bags. 



It is not the intention to acquire more freight cars this year, but without doubt 

 considerable new rolling stock will be needed next year for the increase now in sight 

 of nearly every class of freight traffic. Additional equipment for maintenance work 

 also will'be necessary, and some extensions probably will have to be made of the present 

 warehouse and dock facilities at Boqueron. 



The passenger traffic is steadily growing and at present exceeds the capacity of the 

 equipment. While the condition of the main line and branches is not what it shohld 

 be, both are being improved as rapidly as possible. 



The earnings and expenses of the railroad proper during the year under review have 

 been segregated from those of the Boqueron docks and warehouses and other outside 

 operations, and a statement is given of all operating revenues and expenditures in detail. 



The gross railroad earnings for the year under review were $382,342.16 from 75 

 miles of main line and branches, as against $323,107.74 the year before, an increase of 

 18 per cent from the same mileage and with the same equipment. 



Gross railroad expenses were $328,269.12 or $4,376.92 per mile, as against $291,907.16 

 and $3,892.09 per mile the previous year, an increase of 12 per cent. 



Net railroad expenses were $54,073.04 or $720.97 per mile as against $31,200.58 and 

 $416 per mile the year before, an increase of 73 per cent. 



Net earnings, after deducting losses from Boqueron warehouse and dock operations 

 of $13,670.71 (which losses were 34 per cent less than the previous year) amount to 

 $40,402.33, as compared with $14,504.01 the year before, showing an increase in net 

 operating revenues of 178 per cent. 



Interest of funded and floating debt amounted to $56,026.38 or an increase of 12 

 per cent over that of the previous year, and net gain from rentals and miscellaneous 

 revenue amounted to $979.04, making a net charge of $55,047.34 against net earnings 

 of $40,402.33. 



The deficit thus created in the income account for the year of $14,645.01 included 

 payments aggregating $5,634.38 for legal and other expenses and losses and adjustment 

 of claims paid since February, 1912, but incurred prior to June 30, 1911, so that the 

 deficit from the actual operations of the fiscal year ended June 30th last was $9,010.63, 

 or approximately one-third that of the preceding year. This, with $8,250.93 carried 

 forward from the year before, makes the debit blance to the income account $22,895.94, 

 as shown in the balance sheet. This deficit did not have to be financed, however, for 

 bond interest of $36,000 was paid out of the special deposit of $108,000 for the payments 

 of three years' interest, made at the time the bonds were sold, and of which $18,000 

 remained to pay the coupons which fell due November 15th. 



