THE CUBA REVIEW 17 



owing to the stoppage of Continental supplies as a result of the war, the price of sugar has 

 risen appreciably, and values now range at between 50' o and 100% higher than at this time 

 last year. All the indications therefore point to the conclusion that Cuba is in for a period 

 of unexampled prosperity. In this prosperity the railway' companies will fully share. la 

 the first place they will have to carry the bumper sugar crop from the plantations to the 

 factories, and the big output from the factories to the ports. Secondly, the companies will 

 obtain a considerable additional revenue from the transport of materials in connection with 

 the sugar trade; and thirdly, they will Ijenefit from the general all-roimd expansion in business 

 which the increased wealth and prosperity of the country will create. 



The United Railways of Havana, with its numerous lines and branches, forms a network 

 of rail communication ramifymg from Havana, Matanzas, and Santa Clara, and into Pinar 

 del Rio, embracing in the territory they cover some of the richest sugar cane lands in the 

 island, besides some of the choicest fruit and vegetable raising districts and tobacco regions 

 of equal character. As its name implies, the system has been built up by the amalgamation 

 of several small lines, including in recent years the Cardenas and Jucaro Railway, acquired 

 in January, 1906, followed later in the same j'ear by the acquisition of the Matanzas Railway. 

 It now owns and operates 681 miles of railway, besides which it works the lines of the Marianao 

 and Havana Railway Co. and controls the undertaking of the Havana Central Railroad, 

 and, jointly with that company, holds all the issued capital of the Havana Terminal Rail- 

 road. It also holds about 9S% of the share capital of the Western Railway of Havana, and 

 in December last acquired over 93% of the ordinary' shares of the Cuban Central Railways. 



Despite the fluctuating character of the crops, the average profits of the company come 

 out remarkably well. For the past three seasons the crops have been good, and the profit- 

 earning capacity of the line has been raised appreciably. Last year, owing to the world- 

 wide financial depression, some faUing off in earnings was experienced; Ijut, having regard 

 to the striking improvement of the two preceding years, the set-back has Ijeen relatively 

 slight, amounting to only £.50,000, or about 3%. If the whole of this decline in gross receipts 

 represents loss of profit the balance for dividend will amount to approximately £4.56,000, 

 as against £361,000, the average profits of the four preceding years. A retrospect of the main 

 result of working for a decade shows how the company's earnings fluctuate from period to 

 ])eriod, accorchng to the varying fortunes of the sugar industry. At the same time it will 

 be noticed from the accompanying comparison that over a series of years the average profits 

 earned are relatively large: 



Gross Net Profit for 



Year: Earnings Expenses Ratio Earnings Ordinary 



1913-14* £1,585,000 £891,000 56.21%, £694,000 £458,000 



1913-13 1,635,250 891,056 54.49% 744,194 506,449 



1911-12 1,422,098 778,247 54.72% 643,851 403,880 



1910-11 1.224,775 734,744 59.98 %o 490,031 230,542 



1909-10 i;250,204 685,285 54.81% 564,915 305.315 



1908-09 1,093,394 639,745 58.51% 453,649 183,040 



1907-08 929,828 637,155 68.52%, 292,673 71,804 



190<3-O7 1,220,731 668,197 54.74% 552,534 312,037 



1905-06 840,831 443,101 52.70% 397,730 234,4.53 



1904-05 554,-587 251,025 45.26% 303,562 198,681 



1903-04 437,590 212,981 48.67% 224,609 125,755 



*See letterpress. 



We do not put forward the figures for 1913-14 as a considered estimate of the probable 

 results for the year, but merely give them to indicate the relative strength of the position 

 on the hjT^othesis that the company has been unable to effect any savings whatever in ex- 

 penditure. As the system is well "and economically managed, and its physical condition 

 was never better, the probabilities are that a material saving has been brought about in the 

 cost of working, and that the loss profit compared with the record year 1912-13 has been 

 insignificant. Last year, it will be recollected, an expansion of £212,000 in gross receipts 

 was accompanied by an increase of £113,000 in working expenses; but of this addition no 

 less than £72,300 was traceable to terminal charges in connection with the new station in 

 Havana. Ehminating this special item, the extra cost of moving the large traffic was ex- 

 ceedingly small. Indeed, the condition of the property has been so vastly improved in the 

 last few years that it is now possible to work with greater economy than ever previously. 

 To show the relatively large sums which have been devoted to maintenance, and the course 

 of transportation and"^ other expenses in recent years, we give the following statement: 



Mairitenance expenses: 1912-13 1911-12 1910-11 1909-10 



Permanent wav and works £188,816 £172,888 £156,891 £146,101 



Locomotives.: Sl,l^-i 71,098 70,712 69,185 



Coaching stock 28,847 27,339 22,181 24,087 



Goods stock 59,037 68,239 76,572 69,299 



T-otal maintenance £355,844 £339,564 £326,156 £308,672 



