THE CUBA REVIEW 23 
CUBAN FINANCIAL MATTERS 
THE PREVAILING PRICES FOR CUBAN SECURITIES 
As quoted by Lawrence Turnure & Co., New York. 
Republic Or Cubasimterior WZoaneoa 7, BONdS..3c. 1. <i oes cae ee ee : a g gts 
Republic of Cuba Exterior Loan 5% Bonds of 1944................... 80% 81 
Republic of Cuba Exterior Loan 5% Bonds of 1949.........5.......... 79 o 81 
Republic of Cuba Exterior Loan 442% Bonds of 1949................. 69 val 
Rawanda, City. Wirst Morteace GZ Bonds. 22.03 2. ec eee ce eee soe 85 95 
Brayana City Second Mortgage 6% Bonds..:.............-.. RTC 85 95 
Cupasivail Tord se rererred— StOCkKeners circ cos cee hess we ha ye ceri eee es 45 52 
Cuba Railroad Co. First Mortgage 5% Bonds of 1952................ FG 7914 
CubaeCompanyvaG7eWebenture: BONIS cece cece elects 2 sem ce det es « 1D a5 
ups Company «7 Cumulative -Preterred Stock yi o5. 52... nse eee ee 75 85 
Havana Electric Ry. Co. Consolidated Mortgage 5% Bonds............ 75 80 
Havana Hlectric Ry., Light & Power Co. Preferred Stock............. 95 100NI 
Havana Electrie Ry., Light & Power Co. Common Stock.............. 85 9ONI 
Cuban-American Sugar C€o: Preferred” Stok: s.....---..-..-2-c2-s.0c. 92 Sale 
Cuban-American Sugar Co; (Common Stock... .....---2- s+ 2--o.+se5e ee 23% Sale 
Guantanamo Sugar Co, Stock......... LS 2 ey amicus keel OG 
CUBAN-AMERICAN SUGAR CO. 
The National City Company, New York, 
is offering $10,000,0GCO in ten-year S per 
cent. sinking fund first mortgage bonds 
of the Cuban-American Sugar Company 
at par. 
The bonds are a direct obligation of 
the Cuban-American Sugar Company and 
are secured by about $16,000,000 in first 
mortgage bonds of subsidiary companies, 
representing property valued at approxi- 
mately $34,000,000. Under the terms of 
the agreement, the company is to main- 
tain a sinking fund of $250,00G quarterly, 
to purchase bonds in the open market up 
to and including 105. Any money pro- 
vided for the sinking fund and not used 
will revert to the company. The issue is 
callable in whole but not in part at 
107%. 
The company further agrees to main- 
tain net quick assets equal to the value 
of outstanding bonds at all times. The 
company’s earnings last year were in the 
neighborhood of $19,116,000, before pro- 
vision was made for Federal taxes, and 
the five-year average of earnings avail- 
able for taxes and dividends was about 
$11,600,000: The smallest earnings re- 
turned in any one year in the last five 
was about $8,000,000. Proceeds of the 
bonds will be used to reduce outstanding 
bank loans and to give the company addi- 
tional working capital. 
UNITED RAILWAYS OF HAVANA 
An issue of $6,000,009 in United Rail 
ways of Havana fifteen-year 7% per cent. 
equipment trust gold certificates is being 
offered by Dillon, Read & Co., New York, 
at 99 and interest. 
This financing is indication of the shift- 
ing of financial burdens from London to 
New York, for the United Railways of 
Havana is owned by British interests and 
all financing has been done in the Lon- 
don market. The certificates will be is- 
sued under the Philadelphia plan and the 
equipment trust will follow the 
general rule the equipment trusts 
created by the Canadian National Railways 
and Grand Trunk Pacific Railway, whose 
equipment issues were sold by the same 
bankers. This plan will provide that the 
company must purchase and retire $200,- 
G00 certificates each six months if avail- 
able in the market at or below 103 for 
the first ten years and thereafter at or be- 
low 102% until maturity. To the extent 
that certificates are not so obtainable the 
company may pay cash to the trustee to 
be invested in United States Government 
securities maturing not later than the 
maturity of the issue, 
Salle 
as 
The certificates will be issued for ap- 
proximately only 55 per cent. of the cost 
of the equipment, all of which was pur- 
chased in the United States. 
