30 T H E O U B A R E V I E W 



from ln"ij:lit :uid other sources amounted to $1,038,017.83, making a total of operating 

 intonie of .$1,4123,839.47, or 38.26 per cent, increase over last year, wlien our operating 

 incoiiH' amounted to $1,030,495.74, an increase of 150.55 per cent, over 191G-17, wliich 

 was .'i;."..">l.!tS1.07. Should this remarkable increase continue in the same or greater 

 proportion than for the past three years, it is perfectly conservative to estimate that 

 the earnings for the fiscal year 1921-22 should show gross receipts of more than 

 $3,500,U00.0(>, which will verify the judgment that very soon the income per kilometer 

 in operation of this railroad, will surpass that of any other railroad in this country. 

 This is due to the fact that the territory traversed by our line consists of the most 

 fertile lands especially adapted to the growing of sugar cane, fruits and other agri- 

 cultural products of the country. Along the 285 kilometers we now have in operation, 

 the density of sugar production is greater than that of any other line of equal kilo- 

 meters in any other territory. Considering the above and adding thereto the topo- 

 graphical advantage of a grade line of three-tenths of one per cent., there is no doubt 

 but that our company should at least be as prosperous as any other railroad in the 

 Republic. 



It is a fact recognized by all who have visited the territory traversed by the 

 Cuba Nortliorn Railways that it is one of the richest and most fertile on the Island 

 and this united with the progress already obtained and the rapidly approaching 

 future iirospeet. as well as our firm conviction that the future of the company is 

 assured, should justify a feeling of satisfaction to the stockholders. We enclose our 

 general balance ending June 30, 1919, and five plans showing lines, terminals, etc. 



(Signed) J. M. Tarafa, President. 

 GENERAL BALANCE— JUNE 30, 1919 

 ASSETS 

 Cost of road, including warehouses and wharves at our Terminal of 



Puerto Tarafa, Nuevitas $21,739,500.10 



Lands acquired, excluding right of way 145,235.08 



Rolling stock 2,771,235.27 



Floating stock 6,900.00 



Bonds of the U. S. 4th Liberty Loan 8,850.00 



Bonds of the Republic of Cuba 6% 101,300.00 



Cash in treasury and banks 165,063.04 



Cash in hands of Trustees for payment of coupons 4,290.00 



Various debtors and incoming balances 992,166.99 



Material in stock and in transit 352,827.04 



Damages suffered in revolution of February, 1917 30,820.17 



Sinking fund for organization expenses 44,457.92 



$26,363,245.31 

 LIABILITIES 

 Capital 



Preferred stock $1,000,000.00 



Common stock 14,000.000.00 $15,000,000.00 



AfORTf APF" TjTPT'JS 



Authorized bonds 1st mortgage 10,000,000.00 



Less : $2,500,000 pledged and in treasury 5,215,000.00 4,785,000.00 



Loan of Roval Bank of Canada at 6% with guarantee of bonds 2,500,000.00 



Note due September 26, 1919 500,000.00 



Various creditors and credit balances 608,132.54 



Loan of the Republic of Cuba without interest to be paid with freights 

 and net profits in accordance with law of June 21, 1919, and regula- 

 tions of same 2,500.000.00 



Reserve for claims in litigation and various items 41,000.00 



Reserve for depreciation and improvements 284,973.77 



Reserve for damages and transportation, revolution of February. 1917. . .37,264.94 



Balance of profits 100,874.06 



$26,363,245.31 



Havana. June .30. 1919. 



( Signed ) Attested : 



S. AZPEITIA. O. Alonso, 



Auditor. Treasurer. 



