18 



THE CUBA REVIEW 



better results are likely to be obtained as the new districts opened up are more fully developed. 

 Owing in i)art to the fluctuating character of the traffic, anil in part to the desire of the board 

 to build up a strong financial position, the distribution of profits in the past has been on a 

 very conservative scale. The highest dividend paid is 3 per cent., whilst the average distri- 

 bution since operations were commenced in 1909 has been a trifle under 1 per cent, per annum. 

 A retrospect of the main results of working for the last 11 years, together with the dividends 

 earned and paid on the company's ordinary capital, are set out beneath: 



Gross Net — Dividends — 



Year Earnings Expenses Earnings Earned Paid 



1912-13 £617,603 £352,689 £264,914 8. 5% 3% 



1911-12 499,982 293,900 206,082 4.8% 2% 



1910-11 460,086 281,288 178,798 3.5% 2% 



1909-10 465,310 282,686 182,624 4.4% 2% 



1908-09 434,357 249,523 184,8.34 4. 1% Nil 



1907-08 359,948 214,666 145,282 2.6% Nil 



1906-07 429,310 247,616 181,694 4.8% 2% 



1905-06 406,000 226,000 180,000 4.4% Nil 



1904-05 345,000 193,000 152,000 2. 9% 2% 



1903-04 281,170 170,000 111,000 Nil Nil 



1902-03 254,000 154,000 100,000 Nil Nil 



It should, however, be appreciated that the dividends paid in no sense represent the profits 

 earned. In the last eight years, for instance, the balance available for the ordinary has 

 averaged about £42,000 a year, a sum equal to an average annual dividend of 4^ per cent. 

 By distributing profits so sparingly the directors have been able to greatly add to the company's 

 financial strength. The total reserve funds now amount to about £160,000, of which £60,000 

 constitutes a general reserve, and £77,500 renewal and casualty fund. The position of the 

 company is therefore relatively strong, and although the fortunes of the Cuban sugar industry 

 are certain to fluctuate from time to time with the varying character of the crops, and the 

 earnings and profits of the railway company benefit or suffer as a consequence, the general 

 tendency should be in a forward direction. Especially is this the prospect having regard to 

 the increased area under cultivation and the recent extension of the railway into remunerative 

 cane lands, the full benefit of which has yet to be felt by the company. 



To show the position of the various securities and the margin of profit behind the several 

 debenture and preference issues, we append herewith the income statement of the company 

 for the last four years. The falling off in earnings so far in the current year should not mater- 

 ially affect the position: 



Sugar factories of Cuba. Interior view of Delicias, Oriente Province. 



