THE CUBA REVIEW 



29 



Deduct: 



Additional Reserve against Advances to Colonos 



and other Accounts Receivable $500,000.00 



Reserve for Depreciation 1,750,000.00 2,250,000.00 



, 978,510.55 



Balance, September 30, 1922 $3,757,209.14 



Estimates of Cuban Crop 



Estimates for the coming Cuban crop 

 have been published by both H. A. Himely 

 and Messrs. Guma-Mejer. 



The Guma-Mejer estimate, which was 

 the first to be announced, places the com- 

 ing crop at 4,193,500 long tons, while the 

 Himely estimate forecasts an output of 

 4,102,857 tons, with the addition of the 

 saving clause "with normal conditions." 



Cuba Company 



The Cuba Company, owner of 250,000 

 acres of Cuban sugar land, railways and 

 sugar mills, has announced a plan for the 

 exchange of the present $50,000 par value 

 stock for a no par value issue on the basis 

 of one share for 4,000 shares of the new. 

 This move is to be accomplished through 

 the issue of 640,000 shares of stock which 

 will be exchanged for the company's 

 present 160 shares of $50,000 par value of 

 common stock, and amounts virtually to 

 the declaration of a 4,000 per cent stock 

 dividend. The new stock will be listed on 

 the New York Stock Exchange as soon as 

 the stockholders approve this capitaliza- 

 tion plan of the Directors. The stock- 

 holders will act about the middle of 

 February. 



W. A. Harriman & Co. have been work- 

 ing with the Directors in arranging the new 

 capitalization plan, and it is expected that 

 the banking house will be actively identi- 

 fied with the new stock when it is placed 

 on the market. The present outstanding 

 stock of the Cuba Company is quoted in 

 the neighborhood of $100,000 a share and 

 has sold as high as $210,000 a share. It is 

 closely held by a small group of sixty-five 

 or seventy men. 



It is pointed out that through the new 

 recapitalization scheme the holders of Com- 

 pania Cubana shares, the operating sugar 

 company of the Cuba Company, will re- 

 ceive the privilege of exchanging their 



stock for the new no par value shares of 

 the Cuba Company. This would mean a 

 placing of the entire preferred and com- 

 mon stock of the company as well as the 

 debenture bonds in the hands of the Cuba 

 Company. 



The Cuba Company's history is inter- 

 esting. In 189'8 Sir William Van Home, 

 builder and retired President of the Cana- 

 dian Pacific Railroad, stopped at Havana, 

 Cuba, en route to Guatemala to a vacation 

 with a friend. While tarrying in a cafe in 

 Havana he met Percival Farquhar, builder 

 of Brazilian railroads. The latter pointed 

 out the need of additional railway lines 

 throughout the eastern part of Cuba. Sir 

 William was so impressed by the possibili- 

 ties of the venture that he cancelled his 

 Guatemalan trip, returned to New York 

 and gathered about him the following 

 men, who, with friends, organized the Cuba 

 Company: William C. Whitney, Thomas 

 F. Ryan, Levi P. Morton, General Samuel 

 Thomas, Henry M. Flagler, Thomas Dolow, 

 Henry Walters, E. J. Berwind and Anthony 

 N. Brady. The company was organized 

 in 1900, with 160 shares of stock having a 

 par value of $50,000 a share. 



In addition to the authorized and out- 

 standing $8,000,000 common stock the 

 company has authorized $8,000,000 7 per 

 cent cumulative preferred stock, of which 

 $2,500,000 is outstanding. The preferred 

 stock is traded in almost entirely in 

 London. 



As of Feb. 1, 1918, the Cuba Company's 

 mill properties and plantations were 

 turned over to the Compania Cubana, 

 formed as an operating organization. The 

 Cuba Company formerly owned the entire 

 captital stock of the Compania Cubana, 

 but on Nov. 30, 1918, the common stock 

 was distributed to the common stockholders 

 of the Cuba Company. No dividends have 

 ever been paid on the common stock, al- 

 though the preferred disbursements have 

 been made regularly. 



