22 THECUBAREVIEW 



GUANTANAMO & WESTERN RAILROAD COMPANY 



ANNUAL REPORT AND GENERAL BALANCE SHEET FOR 1914 



The report to the stockholders by the president, Mr. M. H. Lewis, on the operations of 

 this company for the fiscal year ended June 30, 1914, states as follows: 



Capital expenditures during the year amounted to $30,493.88, principally for an additiona 

 sugar warehouse at Boqueron, and new sidings, station buildings and water tanks. 



Leased equipment was increased by one combination baggage and express coach, fifteen 

 cane cars and ten flat cars. Two passenger coaches were practically rebuilt and twenty 

 flat cars converted into automatic unloading coal cars. These cars and other improved 

 facihties for handling coal have materially reduced that expense. 



A small amount of rock ballasting was done and some new drainage work completed. 

 Extensive renewals of culverts, bridge timbers and ties were continued throughout the year. 

 In fact, more bridge material and ties were used for maintenance than during the previous 

 year. These timbers and ties are all of the most durable quality of native hardwoods. 



Weather conditions during the year were favorable. Cane and sugar traffic both increased. 

 The season's movement of sugar was 396,018 bags, as compared with 351,178 bags the season 

 before, and 326,632 in 1912. 



1914 1913 1912 



Gross operating earnings $465,221.64 $440,774.14 $382,342.16 



Maintenance, transportation and general expenses 316,568.69 377,874.43 328,269.12 



Net operating earnings $148,652.95 $62,899.71 $54,07 3.04 



Percentage of expenses to earnings 68.04 85.73 85.86 



Gross earnings per mile $5,888.88 $5,876.98 $5,097.89 



Operating expenses per mile 4,007.20 5,038.32 4,376.92 



Net earnings per mile 1,881.68 838.66 720.97 



No depreciation charges were made against the year's income, but in order to bring the 

 book value of all rolling stock down to that shown by the very careful appraisal made in 

 June, a considerable difference was charged off, which with other adjustments recommended 

 by the examining auditors, resulted in charges to profit and loss of $56,747.65. Beginning 

 with the current year, depreciation at the rate of 4% per annum on the value of rolling stock 

 will be charged against income, in addition to direct charges to maintenance, as heretofore, 

 for all repairs and replacements. 



The raih-oad and its equipment have been well maintained and are in good condition. All 

 necessary requnements of both freight and passenger traffic are being provided. Additions 

 and betterments during the cm-rent year will cost approximately $50,000. 

 The General Balance Sheet of June 30, 1914, is as follows: 



Assets: 



Road and equipment $6,675,345 



Cash and cash items 80,688 



Bills receivable 50,000 



Materials and supplies 53,138 



Accounts receivable 69,581 



Unextinguished discount on two-year redeemable notes 15,045 



Balance due from other railroads 4,645 



Balance due from agents and customers 144 



Profit and loss 25,388 



$6,973,976 

 Liabilities : 



Capital stock— preferred first $2,750,000 



Capital stock — preferred second 250,000 



Capital stock— common 2,750,000 $5,750,000 



First mortgage bonds (6%), due 1919 '. $600,000 



Car trust bonds (6%), Series 1 135,000 



Car trust bonds (6%), Series 2 20,000 $755,000 



Two-year redeemable notes (6%), due Nov., 1914 395,000 



Bills payable 25,500 



Audited vouchers and wages unpaid 14,289 



Interest accrued on funded and floating debt 11,117 



Employees' hospital fund 3,475 



Accounts payable 2,412 



Mail service for Cuban Government 17,181 



$6,973,976 



