18 THE CUBA REVIEW 



The following retrospect of the main results of working since 1903-1904 shows the rapid 

 and continuous advances made from year to year in the earnings and profits of the line: 



Year. 



1913-14 



1912-13 



1911-12 



1910-11 



1909-10 



1908-09 



1907-08 



1906-07 



1905-06 



1904-05 



1903-04 



*Lo,ss. 



At the present time, therefore, the company is earning profits equal to a dividend of over 

 10M% on the common stock. Since July 1, 1913, the pohcy has been discontinued of setting 

 aside $8,000 a month for "extraordinary displacement." It may be explained that owing to 

 the rapid construction of the hne a large amount of betterment work has had to be accom- 

 plished ever since the railway was opened some twelve years ago, and as recently as 1907 

 nearly £160,000 a year was being charged to expenses for betterment purposes. Since 1908 

 the annual charge has been £96,000, and as the special replacements for which the money 

 was needed are now completed there is no necessity to make any further allocation from 

 revenue for the purpose. The large profits which the company is earning and the existing 

 margin behind the O'Jc dividend on the common will be apparent from the following statement 

 of the profits earned and dividends paid for the last nine years: 



Betterments Dividend Earned Dividends 



Net Charged to Total On Preferred On Common Paid. 



Year. Profit. Expenses. Profit. Stock. Stock. Pref. Com. 



$ $ S % Amount. % Amount. % % 



1913-14 1,651,000 1,651,000 6 $600,000 lOJ^ $1,050,000 6 6 



1912-13 1,414,000 96,000 1,510,000 6 600,000 9 900,000 6 4 



1911-12 1,060,000 96,000 1,156,000 6 600,000 514 550,000 5}4 . . 



1910-11 797,000 96,000 893,000 6 600,000 3 300,000 A^ ■■ 



1909-10 672,000 96,000 768,000 6 600.000 1% 175,000 33/^ .. 



1908-09 551,000 96,000 647,000 6 600,000 J^ 50,000 l}4 . . 



1907-08 355,000 156,000 511,000 bVs 512,000 



1906-07 288,000 158,000 446,000 43^ 450,000 



1905-06 37,000 114,000 151,000 VA 150,000 



The capital of the company consists of $10,000,000 of preferred stock and $10,000,000 of 

 common, and there is a bonded indebtedness of $16,030,000. The bonds are very well secured, 

 the total fixed charges absorbing only about one-third of the existing net income of the line. 

 The 5% first mortgage bonds are quoted at 104, and, allowing for accrued interest and exchange, 

 a yield of about £5 per cent, is forthcoming. The 5% improvement and equipment bonds, 

 issued in 1912 at 95% (New York terms), are now obtainable at 99, and the yield is conse- 

 quently about £5 6s. 5d. per cent. The price of the 6% non-cumulative preferred stock is 

 101, and the yield afforded is as much as £6 3s. 9d. per cent. 



The capital of the company and the prices of its securities are recapitulated beneath: 



Security. Amount. Interest. Price. Yield.* 



$ % £ s. d. 



5% first mortgage 50-year gold bonds 12,030,000 5 104 5 



5% improvement and equipment bonds 4,000,000 5 99 5 6 5 



6% non-cumulative preferred stock 10,000,000 6 101 6 3 9 



Common stock 10.000,000 6 ... 



Total authorized capital 36,030,000 



♦Allowing for accrued interest and exchange. 



"It's an iU wind that blows nobody good," maj' be justly applied to the island of Cuba, 

 the Statist says further. Immediately war was proclaimed the supply of sugar from the 

 Continent, whence we derive most of our requirements, was entirely cut off, and having regard 

 to the fact that stocks both in this countrj' and in the United States are unduly low, the 

 demand for Cuban sugar is hkely to be great. Fortunately the Cuban crop this year is ex- 

 ceptionally large — the largest, indeed, on record, the production to the end of July having 

 reached 2,468,528 tons, as against 2,267,094 tons in 1913, the previous record. The greater 

 portion of these supplies are exported mainly to the United States. As regards this country 



