THE CUBA REVIEW 



Transport expenses: 



Running expenses 181,804 159,485 142,072 148,816 



Traffic expenses *228,680 162,030 156,320 152,796 



Electric working 24,053 21,793 21,908 



Total transport £434,537 £343,308 £320,300 £301,612 



Ferry boat service 15,173 14,621 11,629 8,497 



General charges 54,317 53,128 51,653 47,814 



Miscellaneous 31,185 27,626 25,006 19,694 



Total expenses £891,056 £778,247 £734,744 £685,289 



*Including £72,312 for terminal charges. 



On the assumption that in respect of the past year there has been no saving in expenses, 

 and that there is a net loss of £50,000, the profit available for the ordinary would be equal 

 to a dividend of over 7%% on the stock. Last year the distribution was 5%, and if this 

 rate is maintained there would be a balance of as much as £163,000 with which to augment 

 the reserve and other funds. 



To show the strength of the various capital issues and the relatively large margin behind 

 the 5% dividend on the ordinary capital, notwithstanding the set-back which has occurred 

 in the past twelve months, we give the following statement: 



Years *1913-14 1912-13 1911-12 1910-11 1909-10 



Gross earnings £1,585,000 £1,635,250 £1,422,098 £1,224,775 £1,250,204 



Expenses 891,000 891,056 778,247 734,744 685,289 



Ratio 56.21% 54.49% 54.72% 59.98% 54.81% 



Net earnings £694,000 £744,194 £643,851 £490,031 £561,915 



Miscellaneous 260,000 260,465 244,081 89,959 94,934 



Net income £954,000 £1,004,659 £887,932 £579,990 £659,849 



5% "A" irred. deb. stock 



5% cons, irred. deb. stock 



5% irred. deb. stock (1906) 



4% red. debs, and deb. stock 



4:}4% red. debentures 



Miscellaneous 



Total charges £384,000 £384,100 £370,024 £310,948 £316,034 



Net profit for preferred stock 570,000 620,559 517,908 269,042 343,815 



Div. on 5% cum. preferred stock .. . 114,000 114,110 114,028 38,500 38,500 



Profit for ordinary £456,000 £506,449 £403,880 £230,542 £305,315 



Dividend on ordinary 293,000 293,000 263,700 190,400 190,400 



Rate per cent 5% 5% 4^% 4% 4% 



Surplus £163,000 £213,449 £140,180 £40,142 £114,915 



Transferred to 



Reserve 



General renewals account ..... 



Insurance fund 



Pension account 



Expenditures on works ..... 



Total to reserve funds ? £215,000 £135,000 £40,000 £115,000 



Balance ? Dr. 1,551 5,180 Cr. 142 Dr. 85 



Brought forward 18,000 17,881 12,701 12,559 12,644 



Carried forward ? £16,330 £17,881 £12,701 £12,559 



*Estimated. 



It is true that in respect of the past year dividend will have to be provided on a larger 

 amount of stock, owing to the recent purchase of the ordinary shares of the Cuban Central 

 Railway; but as the profits of the latter concern now belonging to the United Company, 

 the additional sum needed to pay the dividend is small. We dealt with the position of the 

 Cuban Central last week, and showed that a profit of £57,000 was likely to have been earned 

 in respect of the past year. The price paid for the property was £7 10s. nominal in ordinary 

 capital of the United Railways Company for each £10 share of the Cuban Central Company, 

 and the amount of money involved in the transaction was £675,000. This raises the ordinary 

 stock of the United Railway to £6,515,000, and as the estimated profit of the two companies 



