THE CUBA REVIEW 27 



FERROCARRILES DEL NORTE DE CUBA 



(CUBA NORTHERN RAILWAYS COMPANY) 



Havana, October 29, 1919. 

 To THE Stockholders : 



I beg to submit herewith a report of the operation and progress of tlie company 

 for the third, fiscal year ending June 30, which has heretofore been submitted on tlie 

 10th of August, 1917, and the 8th of July, 1918. 



On the first of March of this year the Maximo River Bridge, the most important 

 of the line, was completed and on the day of its inauguration the Board of Directors 

 of the United Railways of Havana visited Central Cunagua and the lines of our 

 company on their special train, making the trip to Puerto Tarafa (Nuevitas), the 

 eastern terminus of the railway. 



A few days later the main line was opened from Moron to Puerto Tarafa (Nue- 

 vitas), 168 kilometers, which, added to the main line, Moron to Falla and the Cunagua 

 Branch, put in operation and open to public service 200 kilometers of the newly con- 

 structed line, which, with the 68 kilometers of the Jucai'o and San Fernando Rail- 

 way and 9 kilometers of the Jagiieyal Branch, make a total kilometrage of 285 of 

 main line and branches in operation and open to public service, this exclusive of 35- 

 kilometers of yard tracks and sidings or total kilometers of all tracks — 320. 



The excellent location of our railroad is more evident each day and its im- 

 portance in the development of the natural resources of this rich agricultural terri- 

 tory it traverses is such a factor that it has been recognized by the Cuban Govern- 

 ment to the extent that the Honorable President of the Republic sanctioned on 

 June 21st last a law passed by the Congress granting to the company the necessary 

 financial assistance to complete certain of its important construction work and also- 

 the right to acquire by purchase from the state the railroad line from Jucaro to San 

 Fernando which we have imder lease. This acquisition is of great importance as it 

 was not possible to continue investing in this leased property the large sums of money 

 demanded by increased traffic. The fact of its belonging to the state was an obstacle 

 to its development. At present there is in contemplation the construction of three 

 sugar mills on the line, the production of which will be transported over the railway 

 and exported through our terminal. If these plans are consummated the income 

 should shovz a larger percentage of increase than any of the previous three years. 



The company has entered into a contract with a petroleum company for the 

 erection of a crude petroleum storage tank at Puerto Tarafa for the purpose of using 

 crude oil as fuel for our locomotives. 



The terminal at Puerto Tarafa (Nuevitas) has excellent facilities and conditions- 

 which will increase its importance as a shipping point proportionately to the develop- 

 ment of the railway and the territory adjacent thereto. For the coming sugar crop 

 we shall be able to berth four steamers at a time at the two wharves there. The 

 five sugar warehouses imder construction, when complete, will give us a storage 

 capacity of 820,000 bags and we estimate transporting to and exporting through the 

 terminal more than two million bags of sugar, which is extraordinary when we con- 

 sider that the line from Moron to Puerto Tarafa has not been completed a year 

 yet and that this is the first of sugar shipped through the port. 



Some ideas of the development of the territory can be formed from the com- 

 parative statement of income, by months, for the three years of operation of the 

 company to June -SOth of the current year, which will be foimd in the "Memoria" 

 (Prospectus) attached herewith. The percentage of operating expenses to gross 

 income has varied from 68 to 70 per cent, and there is no doubt but that when our 

 roadbed becomes firmly settled in the course of time this will be reduced. 



