i 
26 THE CUBA REVIEW 
I 
Your attention is invited to the accompanying detailed report of the general manager, 
from which you will see that the growth of your company’s business was greater than 
in any preceding year, notwithstanding that all departments suffered from scarcity of 
labor of all kinds, and from the difficulty of obtaining an adequate supply of materials 
for both current consumption and permanent installation. 
The uncertainty and irregularity in the receipt of materials, especially of anthracite 
coal, have been a cause of anxiety throughout the year. 
The prevalence of high prices and increase in the rate of wages paid to labor have 
also increased the operating expenses; nevertheless, the gain in net earnings has been 
larger than ever before. The gross earnings from operation of the entire property were 
22.14% greater than in 1919; the total operating expenses 32.9% greater; the total net 
earnings from operation 11.9% greater, and after deducting United States and Cuban 
taxes the gain was 13.8%. These figures must impress upon you the fact that the results 
obtained speak most highly of the efficiency, loyalty, and hearty cooperation of the officers 
and personnel of your company, to whom we express our sincere appreciation and thanks. 
The unrest among wage-earners that led to the two short sympathetic strikes during 
1919 continued in 1920, and increased as the year advanced, notwithstanding the fact 
that your company voluntarily increased wages by 29% in the first seven months of the 
year. In the latter part of July, 1920, the carmen presented demands which could not 
be granted, as the terms were so unreasonable that they really amounted to transferring 
ownership of the company from you to the Carmen’s Union; and on August 7th they 
declared a strike. Rumors were put into circulation that the strike had been pre- 
arranged between the company and the Carmen’s Union to force the government to 
consent to increase the rate of fare. The absurdity of the possibility of such an agree- 
ment was communicated by your general manager to the authorities both in person and 
in writing. All carmen on strike were considered to have left your company’s employ, 
and steps were taken to replace them. Progress along this line was made daily and 
complete service reestablished on August 21st. All but about three hundred of the old 
carmen, considered undesirable, were taken back at the rates of pay they had rejected— 
convinced that increasing wages and the increasing prices, with the public bearing the 
burden, cannot go on forever, and cannot bring about reduction in the high cost of living, 
which latter was the basis for their demands. 
This was the first strike against your company since its organization, and the first 
in the history of the railway division since 1906. It is to be regretted that the gross 
earnings of the railway decreased during the strike period, but it is hoped that the old 
employees of the company are now aware of the danger of letting strangers run their 
organization. The cry for increased wages had become a semi-annual habit, and a two- 
cent increase in fare would only have satisfied the demands of about 50% of your 
employees, for the time being, and the remainder were only awaiting the outcome of the 
struggle to make like requests. 
We recognize that the same reasons which induced the authorities in the United 
States to permit street railway, electric light and gas companies to increase their rates 
are much more applicable in Cuba on account of the higher costs due to ocean freights 
and import duties. The desire of your company, however, to contribute in bringing 
about cheaper living costs is the primary reason why we are still working on a five-cent 
fare with right to one transfer, and why we are still charging the same rates for electric 
light and gas as were established twenty years ago. 
From the report of the general manager you will note that— 
Gross receipts from all sources for 1920 were............. $11,525,721 .12 
The total deductions for operation, maintenance, and ac- 
CIDR Gases Were eo 2), Lee yee eee 6,448,451 .78 
The total expenditure for construction account was........ 1,150,653 .35 
Customs duties on Imports into Cuba were............... 172,675.11 
Other Cuban taxes paid amounted to.................... 136,962.28 
MHMediates tAxen pald. oe. See ce eee 219,361.49 
