THE CUBA REVIEW. 



FINANCIAL. 



The Cuba Railroad Bonds. 



Some idea of the market for the first 

 mortgage five per cent, bonds of the Cuba 

 Railroad Company, which have just been 

 admitted to list on the New York S'tock 

 Exchange, says the New York Wall Street 

 Journal, is gained by reference to the fact 

 that during the past two or three months 

 they have been quoted on better than a six 

 per cent, basis. In January they were 

 quoted "and interest" at about 80 bid, of- 

 fered at 85. At the present time, in view 

 of the change which has come about in the 

 general bond market conditions, it is pos- 

 sible that they would show some decline 

 from these prices. 



This issue of bonds, made under a mort- 

 gage dated September 18, 1902, appears, 

 from all of the data available, to be one of 

 possibilities in the investment field. The 

 mortgage itself is rather carefully drawn in 

 the interest of the security holders, and from 

 the reported earnings of the past two or 

 three years, the bonds appear to be fairly 

 well protected as to their interest, even 

 though scarcely more than five years have 

 passed since the road was first put in par- 

 tial operation. 



The mortgage securing the bonds is a 

 first lien on all of the property, including 

 branch lines and extensions, with their 

 appurtenances, the rolling stock and equip- 

 ment, the telegraph and telephone systems, 

 all connecting properties, rights and fran- 

 chises. It is provided in the mortgage that 

 any amount of bonds may be issued, but 

 only on condition that the entire issue out- 

 standing at any time shall not exceed $20,- 

 000 per mile of completed standard gauge 

 railroad, including branches and extensions, 

 owned by the company. About 428 miles of 

 road are now owned, against which bonds 

 have been created to the amount of 

 $7,843,000. 



For the fiscal year ended June 30 last, 

 the company's report showed the net earn- 

 in fs as $332,424. 



For the seven months of the current fis- 



cal year, ended January 31, the company 

 reported a surplus after the payment of all 

 charges of $148,278, showing quite satis- 

 factory results, alttough indicating that 

 earnings for the full twelve months will 

 probably fall somewhat below those for the 

 year 1907. The company's total surplus, 

 las of January 31, 1908, was $846,310. 



Report of the Havana Electric Railway. 



The Havana Electric Railway Co., which 

 has recently published its report for the 

 calendar year 1907, exhibits net earnings 

 of $924,951, against which interest on bonds 

 and other fixed charges amounted to $558,- 

 877, thus showing a substantial margin of 

 safety for the company's obligations. 



Its consolidated mortgage 5% bonds, due 

 1952, are selling now at about 81 and ac- 

 crued interest, at which price they yield 

 6^% on the investment. Both principal 

 and interest are payable in New York in 

 United States currency, and the bonds are 

 listed on the New York, Montreal, Ha- 

 vana and London Stock Exchanges. In 

 the past their price has been above 96%. 



According to the census taken in the 

 fall of 1907 the population of Havana is 

 294,583. The street railway (the H. E. 

 Ry. Co.) owns a virtual monopoly, and 

 is now managed very capably. While the 

 control lies in Havana, New York banking 

 interests are influential in the company's 

 management. 



The board of directors of the Havana 

 Electric Railway Company has declared a 

 quarterly dividend of i 1/2 per cent, on 

 the preferred stock, payable at the New 

 York office, 52 Broadway, on April 15. 



A new savings and investment company 

 has been founded in Cienfuegos, under the 

 management of Sefior J. J. Ruiz. 



The American Club declared on March 

 28 a semi-annual dividend of 4 per cent., 

 the fourth in two years. The club has suf- 

 ficient surplus to meet the next dividend in 

 October. 



QUOTATIONS FOR CUBAN SECURITIES. 



Supplied by LAWRENCE TURNURE & CO., New York City, April 14, 1908. 



BID. ASKED. 



Republic of Cuba 5% Bonds loi ^ 102 J4 



Republic of Cuba 6% Bonds . 98 103 



Republic of Cuba 5% Internals 90 91 



Havana City ist Mtge. 6% Bonds 103 106 



Havana City 2d Mtge. 5% Bonds 103 105 J4 



Cuba R. R. ist Mtge. 5% Bonds 90 93 



Cuba R. R., Preferred Stock 37 42 



Cuba Company 6% Debentures 60 None 



Havana Electric Cons. Mtge. 5s ; 80 82 



Havana Electric Cons., Preferred Stock 67^ 68J4 



Havana Electric Cons., Common Stock Nominal. 



