30 T H E C U B A \i i: \ 1 i: w 



Total i:xiK'ns».s- K. O. 1'. .$(U.:!8n.n:!T.ir, $14,908 



M-Avhw rivi;rlit G,05G,108.03 1.402 



Ti.lMl KxiMMiscs I »,-livciv.l .i;70,44r>,44r..lS $1(5.310 



Op.Tiitiii;: riDlil to SciilfUilMT ::<illi. unit $11.<W)0,880.7(; .? 2.563 



This roiiipiircs with an Oiu-rnthiL' Trotii last year of .I^ T,.".!Kt,C.<j:!.98 



and a I'mtit per l)a.i: of $ 2.05 



CAPITAL ACCOrXT 



Your Corporation has lack«'(l working capita! from the start. Of the amount 

 realized from the sale of the stock, all but .i;3,C.(M>.n<iO was required to pay for tlie 

 proiierties orijrinally purchased. It was expected that the shorta^^" in working capital 

 would be made up out of earnings, but most of the surplus earnings of the fir.st year 

 were u.sed in the purchase of the "Stewart" plantation, and the surplus earnings 

 of the following years in defraying the cost of additions and improvements, par- 

 ticularly in increasing the output in tlie Eastern plantations. 



WhiU> the above expenditures increased the production and caining power of the 

 Corporation, tliey deprived it, to that extent, of working capital. To remedy this, 

 your Board of Directors has reconnnended a $2r).04 lO.OOO issue of 7'/? ten-year Deben- 

 ture Bonds convertible into Conmion Stock, as set forih in the Circidar to the Stock- 

 holders dated October .'".0. 191!). 



(iKXERAL REMARKS 



According to the jireceding Receipts and ExiX'Uses Stateiuciit, 11i(> 



Operating I'rotits this year were .$ 1 1 ,000,880.70 



Dedui'tinir disliursements for: 



Interest and Exchange .? 555,810.00 



Taxes ( Reserve ) 979,4!)(i.l 1 



Dividends on I'referred Shares 3.."i00,(l0ii.(i(i 5.0;55,:KMJ.17 



leaves a balanc*' of $0,034,580.59 



This is etiual to about $12.00 per share on the 500,000 shares of Com- 

 mon Stock of the Corporation, before making allowance for Depreciatioti 

 and Doubtful Accounts. 

 After deducting : 



Reserve for Deiireciatioji $1,750,0(10.00 



Reserve for Doubtful Accounts 400,O0O.f»O 2,150,000.00 



the remaining balance of $3,884,580.59 



is equivalent to about $7.77 i)er share on the Connnon Stock. 



Your management has provided a regular and adequate supply of oil for fuel 

 purposes, so that the operations of your factories will not be directly affected by any 

 stoppage of coal deliveries resulting from strikes in the coal industry, such as are 

 now threatening in this country. 



While the "STEWART" did not show up satisfactorily the fir.st year after its 

 purchase, it is gratifying that it now stands first in Operating results for the past 

 fiscal year. 



"MORON," prior to the present crop, did not do as well as had been expected, 

 due to delays in arrivals of uiachinery^which caused late starts in grinding — and also 

 due to low sucrose content in the cane. Much of the cane ground at this plantation 

 in the last two crops came from virgin soil, the cane from which must necessarily 

 have a lower sucrose content during the first two or three years than in the succeed- 

 ing ones. During the coming crop "MORON" may reasonably be expected to produce 

 about 700,000 bags in the period from December to June, which will make it as 

 large as any other plantation on the Island. 



"JAGUEYAL" has maintained its good record. 



"LUGARENO," after two disappointing crops, for the reasons given in last year's 

 Annual Report, has shown up well for the 1918-19 crop. This estate is exceptionally 



