THE CUBA REVIEW 



17 



raised to 5 per cent the directors have 

 every intention of at least maintaining it. 

 And the only possible way to ensure this is 

 by building up large reserves in good 

 times, for nobody can say when a bad 

 sugar crop may come again, and the 

 United of Havana is still a "sugar" sys- 

 tem. 



Now as to the Cuban Central. The 

 gross increase published for the past year 

 was £113,000, and with the ratio on the 

 same basis as that for 1911-12 the net 

 increase should be not far short of £50,000. 

 One per cent on Cuban Central ordinary 

 shares represents only £:,:00, so that here 

 again the market evidently expects _ the 

 bulk of the net increase to be specially 

 appropriated. And the market is probably 

 right, for the company is now, like its 

 powerful and friendly neighbor, very pru- 

 dently managed. The Cuban Central, even 

 more than the United, is dependent on 

 sugar for its revenue. Moreover, it is 

 engaged in an important extention pro- 

 gram, while there is just the possibility 

 of competition in the future. Big reserves 

 are therefore a necessity. It must not 

 be forgotten, too, that it will have in- 

 creased capital charges to meet this time. 



As regards the current year we hear 

 that everything is going well. It is, of 

 course, the slack season for the railways, 

 but the rains have been abundant and 

 the growing cane looks in splendid condi- 

 tion, while the area under sugar has in- 

 creased. 



THE PORTS COMPANY SHARES 



[From the Loudon Standard of July 29th] 



The $100 shares of the Cuban Ports 

 Company have fallen to under 30, the ac- 

 tual quotation being apparently about 27 

 (the price is a wide one), as against 33 last 

 week, while the Five Per Cent First Mort- 

 gage 25-Year Gold bonds have dropped 1 

 point, to 97. These movements, coming on 

 top of the circular issued in the middle of 

 this month denying the rumors previously 

 current to the effect that the company's 

 concessions might be interfered with by 

 the government, have tended to revive un- 

 easiness in London. Inquiries made in re- 

 sponsible quarters elicited the information 

 that no adverse news has been received tn 

 account for the recent decline in the two 

 capital issues, nor, so far as can ])e 

 gathered, is there any reason to anticipate 

 that fresh developments have taken i)lace. 

 The market for both the bonds and the 

 shares is a very narrow one, and compara- 

 tively trifling transactions arc sufficient to 

 bring about a rise or fall in prices. A first 

 dividend of 1 per cent was declared on the 

 $10,000,000 of (-ommon shares in .April last, 

 and in si')me quarters it has been expected 

 that a furthfT similar distrilmtion wouhl 



be announced at the end of July, but there 

 is no indication at present of the directors' 

 intentions in this connection, and the un- 

 certainty arising out of this matter may 

 possibly have led to realisations by share- 

 holders. The port dues for the first half 

 of 1913 amounted to $1,715,800, an in- 

 crease of $76,800. 



A CUBAN CENTRAL EXTENSION 



[From the Investors' Chronicle, London] 



An interestino- new company registration 

 is to be noted. The Cuban Central North- 

 ern Extension Railway with capital £500,- 

 000 in £10 shares, is an important develop- 

 ment from the view-point of Cuban Central 

 shareholders. A few months ago much was 

 made of the fact that an American syn- 

 dicate had obtained a concession for a rail- 

 way connecting Nuevitas with Caibarien, 

 which would have been partly competitive 

 with Cuban Central. A protest, backed by 

 Sir E. Grey, was made by the latter to the 

 American authorities, and the project has 

 now, apparently, fallen through. The Cu- 

 ban Central's new subsidiary will acquire 

 the section already built to Dolores, and 

 the benefit of the work already done on 

 the new section between Dolores and Ya- 

 guajay, and will complete the work. Cu- 

 ban Centrals, with a possible competitor 

 converted into a friendly feeder, are now, 

 at 4Vj, an attractive speculative purchase. 

 They compare with 5^4 earlier this year, 

 and although yielding only 4% per cent on 

 the basis of last year's dividend, an in- 

 creased distribution is in prospect, probably 

 3 per cent, against 2 per cent. About 6 

 percent is being earned. 



REPUBLIC OF CUBA S FIVE PER CENT 

 GOLD BONDS REDEEMED 



Republic of Cuba 5 per cent gold bonds 

 of 1904, to the amount of $1,020,000, drawn 

 for redemption on September 1, 1913, will 

 be paid on and after that date at the office 

 of Speyer & Co., New York. This is the 

 third annual drawing of bonds of this 

 issue and makes a total of $3,0()0,000 called 

 for redemption to date out of an original 

 issue of $35,000,000. 



The following bonds previously drawn 

 for redemption have not yet been presented 

 for payment : Series "A" for $1,000 each, 

 drawn per September 1, 1912: 5.323, 5326, 

 9733, 10893, 12,347, 20637, 21312, 23345, 26189, 

 27524, 30910, 30915, .30936, 5324, 5327, 97.34, 

 11364, 13351, 20679, 21814, 24165, 26190, 

 :!0790, 30911, .30919, 30939, 5325, 9689, 10199. 

 Interest on these bonds ceased September 

 1, 1912. 



Series "F>" for $500 each, drawn per 

 .Scptcmlx-r 1, 1911. Interest on this Iiond 

 ceased September 1, 1911. 



