THE CUBA REVIEW 



17 



FINANCIAL AND RAILROAD MATTERS 



CUBAN TELEPHONE COMPANY REPORT 



The report of the Cuban Telephone Com- 

 pany for 1913 states that the long distance 

 lines specified in the concession have been 

 entirely completed with the exception of the 

 branch from Empahne to Sabana de Robles a 

 distance of 4 kilometres, and from Guan- 

 tanamo to Baracoa, a distance of 135 kilo- 

 metres. By Presidential Decree, dated January 

 30, the company was granted an extension of 

 one year from ]\Iarch 9th of the present year, 

 for the completion of these lines, which gives 

 ample time to do the work economically and 

 advantageously. The new automatic plant 

 at Matanzas was opened for local service in 

 November, 1913, and on March 31st, had 

 603 telephones in operation, a gain of ap- 

 prox mately 350 telephones over the number 

 of subscribers installed in the old system 

 operated under a former concession. That 

 the gain was not larger was due to the im- 

 practicabiUty of completing during the year 

 the new automatic plants at Santiago and 

 Sagua. Estimates of the prospective increase 

 in subscribers and earning capacity in former 

 reports have been very accurate. It is now 

 believed that there will be an increase of 

 3,500 telephones in the present year, thus 

 bringing the system to 20,000 subscribers 

 one year hence. 



After deducting all interest charges and 

 writing off S18S,300 against depreciation, the 

 accounts of the company for the year show a 

 net profit of S150,700. To this'is added a 

 sum of S1S6,900, being an adjustment of 

 depreciation in respect of past years, while 

 there was brought forward from 1912, 

 $498,400, giving a surplus at December 31st 

 last, of $836,000. For the first quarter of the 

 year a dividend at the rate of 4% per annum 

 was forthcoming on the common shares, while 

 for the second, third and fourth quarters the 

 rate was raised to 5%. During the year an 

 issue of cumulative 6% convertible preferred 

 shares was made and the proceeds of this 

 emission have enabled the directors to greatly 

 extend the scope of their operations. Since 

 the commencement of 1914, business has 

 continued to expand. 



The statement of the Cuban Telephone 

 Company for April, 1914, shows an increase 

 over the same month of 1913. The earnings 

 were $94,251.23 as compared with $71,638.53 

 last year. 



Subscribers in April of this year were 

 16,752 as against 12,956 last year. 



As showing the growth of the compan}', it is 

 sufficient to call attention to the figures for 

 1909, when the net earnings were $195,369, 

 and the number of subscribers 3,975. For 

 1913, the net earnings were $566,725. 



The entu-e system completed up to date 

 contains 2,294 kilometers of long distance 

 pole hnes and connects with one hundred and 

 ninety-two cities and towns, or 434 kilometres 



of pole lines and 98 cities and towns more 

 than required under the company's concession. 



ENGLISH CAPITAL SEEKING INVESTMENT 



The Cuban charge d'affaires in London, in 

 a note to the State Department, assures his 

 government that a large number of Enghsh 

 capitahsts are watching developments in 

 Cuba, showing their disposal to invest large 

 amounts in the sugar and tobacco industries 

 on the gi-ound that they find no better return 

 for their money in any other country. 



The Cuban diplomat adds that the effect 

 produced in Enghsh financial circles by the 

 unification of nearly all the railroad lines 

 under the control of the United Railways of 

 Havana, and the purchase by that company of 

 .several sugar mills, has been most excellent 

 and gi'eat is the hope being exjoressed for the 

 future. 



FORTY MILLIONS INVESTED 



When it is considered that more than fortj^ 

 milhons of British capital is invested in Cuban 

 industries it will be reahzed how very im- 

 portant the prosperitj' of the island is to 

 people in this country. 



The general economic situation of Cuba, it 

 is claimed, cannot be better; the tobacco crop 

 promises to be one of the best recorded; the 

 sugar crop will break the record of the previous 

 year and the coffee will have a rise of 30 "J^- 

 Railway development, in which the British 

 capitalist is particularly interested, is making 

 rapid strides. — London Outlook. 



THE SANTIAGO ELECTRIC LIGHT 

 AND TRACTION CO. 



Earnings: 1914 1913 



April gross $38,661 $34,972 



April net 19,213 15,023 



First four months, gross . $150,274 

 First four months, net. . . 73,546 



$149,104 

 66,493 



CUBAN PORTS COMPANY 



A Liverpool correspondent of the London 

 Financial News understands that a new 

 London stockholders' committee of the Cuban 

 Ports Co. has been formed to bring pressm'e 

 on the Government of Cuba to deal in an 

 equitable manner with bond and stock 

 holders. 



The fii'st committee received a verbal 

 promise of protection from the Cuban Gov- 

 ernment on the imderstanding that a loan 

 would be raised, but in the meantime, Cuba 

 received financial assistance from J. P. 

 Morgan & Co. The new state of affairs ia 



