T H E C U B A R E V I E W 17 



THE CUBAN CENTRAL RAILWAYS 



THE COMPANY'S EARNINGS, EXPENSES. PRESENT AND FUTURE PROSPECTS. 

 ADEQUATELY RECORDED — ITS ALLIANCE WITH THE 

 UNITED RAILWAYS 



The London Statist devotes considerable space in a recent issue to a very comprehensive 

 description of the Cuban Central Railroad in Santa Clara Province, which is as follows: 



The world-wide financial depression of the last twelve months has not been without its 

 influence on Cuban ti-ade; and this, combined with the relatively low price of sugar still 

 ruling, has caused a temporary halt in the country's progress. The general economic situation 

 of the Republic is, however, reported to be excellent; the tobacco crop promises to be one of 

 the best recorded, and the sugar harvest is expected to break all previous records. Meanwhile 

 the railways of the island, particularly the sugar carrying lines, are experiencing a falling 

 off in earnings. The Cuban Central, which is essentially a sugar line, is perhaps the most 

 severely hit by the existing state of affans, its traffic receipts to date showing a decline of 

 *£31,610, compared with the corresponding period a year ago. This diminution in earnings, 

 although relatively heavy in prpoprtion to the total revenue, is nevertheless insignificent 

 when compared v;ith the previous growth, the expansion in 1912-13 having been as much as 

 £117,000, or 23.5 per cent. Whilst, therefore, last year's record is not being maintained, 

 the company is still securing infinitely better results than in any preceding year, and will, 

 we imagine, have no difficulty in again distributing 3 per cent, on its ordinary shares, despite 

 the fact that somewhat higher capital charges have to be provided. In the twelve months 

 to June last, it will be recollected, the company earned a profit of £76,875; and as this was 

 equal to something like 9 per cent, on the shares, the distribution of 3 per cent, absorbed, but 

 little more than a third of the sum available. Even were the whole of this year's diminution 

 in earnings so much loss of profit, a substantial dividend would still be earned, and the margin 

 behind a distribution of 3 per cent, would be sufficiently large to enable the financial resources 

 of the company to be further considearbly augmented. 



In any case, the set-back now being experienced may be regarded as purely temporary; 

 and if good sugar and tobacco crops are harvested this year, as now seems probable, a sharp 

 recovery in earnings next year should be experienced. It is unfortunate, of course, that the 

 company depends so largely upon one industry, and that of a naturally fluctuating character; 

 but a noteworthy feature of the last few years has been the greater diversity of traffic over 

 the system, for although some SO per cent of the freight handled still consists of sugar, sugar 

 cane, and molasses, the companj' now has a fair general traffic which is steadily growing in 

 importance, and also a good and steadily increasing passenger business. The nature of the 

 freight traffic will be appreciated from the summary appended: 



1912-13 



T071S 



Sugar cane 2,230,551 



Sugar 416,019 



Molasses 82,555 



Timber and firewood 75,650 



Building materials 115,185 



Tobacco.;. 20,282 



Machinery 9,510 



Rum 8,874 



Maize 4,910 



Fruit and vegetables 8,973 



General goods, etc 271,243 



Total goods traffic 3,243,752 2,610,988 2,090,^48 2,350,340 2,001,185 1,402,453 



Receipts £447,669 £350,554 £318,913 £328,371 £308,805 £28^,169 



The improvement in the coaching traffic in the last few years will be seen from the following 

 statement: 4=/ 



Pass- Re- 



engers. ceipts. 



1912-13 1,006,73B £168,968 



1911-12 894,043 148,348 



1910-11 851,902 140,198 



1909-10 809,210 135,515 



1908-09 763,713 122,387 



1907-08 773,785 121,469 



A fair amount of capital has been spent in recent years on extending and improving the 

 system; and whilst the new extensions are already producing a remunerative traffic, much 



Passri^ Re- 



engef^ ceipts. 



1906-07 805,378^ 129,251 



1905-06 797,36(r 113,207 



1904-05 703,062 • 93,851 



1903-04 531,183 75,590 



1902-03 498,127 65,232 



