THE CUBA REVIEW 



15 



subsequently sold, the condition for the 

 sale being that this Company guaran- 

 teed the principal and interest of the 

 notes, and gave an option to subscribe, 

 at par, for an amount not exceeding 

 £500,000 nominal of five per cent, cumu- 

 lative preference shares of this Com- 

 pany, such option to be exercisable at 

 any time between January 1, 1909, and 

 July 1, 1911. 



in the permanence of these relations has 

 encouraged capital to seek fields of profit- 

 able use in the lands, the railroads, com- 

 mercial facilities at ports and in traction 

 and other pubHc service agencies for Cuban 

 cities. — Wall Street Journal, Nov. 16. 



Cuban Securities. 



As a result of the elections on Nov. 14 

 Cuban securities were firm and nearly every- 

 thing showed a slight strengthening. 



A group of bonds issued by the Republic 

 of Cuba, the City of Havana and railways 

 and traction companies of the island, repre- 

 senting about $70,000,000 outstanding, all 

 bearing rates of interest of 5 or 6%, with 

 annual fixed charges in each case and ap- 

 proximate price with interest, are included 

 in the following table : 



Issued. Charge. Price. 



Rep of Cpba ss of 



1904-44 $35,000,000 $1,050,000 100-105 



Rep. of Cuba 6s of 



1896-10 2,195,350 131. 721 98-103 



Rep. of Cuba inter 



dept. 5s 11,500,000 575,000 90- 92 



Havana City ist 



mtg. 6s 6,200,500 372,000 104-109 



Havana City 2d 



mtg. 6s 2,662,000 159,720 103-107- 



Havana El. Ry. con. 



mtg. 5s 7,908,561 395,428 87- 88 



The Cuba R. R. 



Co. ist mge. 5s.. 7,843,000 392,150 94- 96 



The Republic of Cuba has annual reven- 

 ues of about $34,000,000. The interest on 

 the entire public debt is about $2,500,000. 

 This does not apparently include interest 

 on the interior public debt of tne 5's, of 

 which $11,500,000 are outstanding, making 

 a charge of $575,000. The chief item of 

 public debt charge is that of $1,050,000 on 

 the 5% Cuban Government issues of $35,- 

 000,000, of which $1,000,000 are held in the 

 Cuban treasury. 



The security for this loan is provided by 

 a special tax on the internal trade of the 

 island and by 15% of the customs receipts 

 pledged for the sinking fund and interest. 

 The commerce of the island includes $75,- 

 000,000 exports to the United States alone 

 and imports from the United States of 

 about $35,000,000. 



A factor of security for the debt of the 

 Republic of Cuba lies in the limitations of 

 the Piatt amendment, which guarantees 

 against incurring any debt beyond what 

 the ordinary revenues of the island pro- 

 vide for. The close commercial relations 

 with the United S'tates under the reciprocity 

 treaty also give to Cuba an advantage 

 which works as an insurance of prosperity 

 in the chief industry of the island. Belief 



Camaguey Co.'s Earnings. 



The report of the Camaguey Co. for, the 

 month of September and nine months end- 

 ed Sept. 30, 1908, compares as follows : 



1908. 1907. 



Sept. gross $11,921 $6,772 



Expenses 6,562 3,198 



Sept. net $5,359 $3,574 



Nine mos. gross .... 86,140 56,013 



Expenses 46,513 26,885 



Nine mos. net . . . . $39,627 $29,158 



The Camaguey Company, Ltd. 



INCORPORATED IN CANADA IN 1906. 



The company owns the electric lighting 

 and street railway business in Camaguey, 

 with over 200 acres of land in the city 

 suitable for building lots. The lighting 

 franchise is perpetual; the railway franchise 

 extends to 1968. 



Camaguey is a growing city with a pres- 

 ent population said to be in excess of 35,000. 

 The shops of the Cuba R. R. Co., employing 

 500 men, are located there. Several large 

 sugar mills have recently been established 

 in the vicinity. 



Capital. Authorized. Issued. 



Stock (common).. ..$1,000,000 $700,000 

 First mortgage, 5% 



bonds 600,000 600,000 



The bonds are dated June 1, 1906, mature 

 June 1, 1946. Interest, June and December, 

 in Montreal and Halifax. Denomination, 

 $500. Montreal Trust and Deposit Co. is 

 trustee. After 1910 a sinking fund is an- 

 nually to be paid to the trustee, amounting 

 to not less than 1% of the par value of the 

 bonds outstanding, to be used to purchase 

 bonds in the open market at not exceeding 

 110%, at which price they can be called for 

 redemption. In addition, the available pro- 

 ceeds from the sale of lands will be used. 



The street railway commenced operation 

 in ]\Iarch, 1908. The company estimates the 

 total net earnings for the first year of com- 

 plete operation at $77,000, against which 

 bond interest amounts to $30,000. 



The directorate is as follows : 



W. B. Ross, K.C., president; R. A. Betan- 

 court, W. M. Aitken. F. C. Clarke, secre- 

 tary; R. E. Harris, K.C. ; Chas. Archibald, 

 N. Curry, H. A. Lovett, K.C, T. G. Mc- 

 Mullen, F. W. Teele. 



