THE CUBA REVIEW 



United Railways of the Havana and Regla 

 Warehouses, Limited 



REPORT OF THE DIRECTORS 

 For the Year Ended 30th June, 1921 



The Directors herewith submit the audited Accounts of the Company for the year 

 ended 30th June, 1921. These cover the working of the amalgamated undertakings 

 of the United Railways of Havana, The Western Railway of Havana and The Cuban 

 Central Railways as from the 1st July, 1920, and for comparative purposes the com- 

 bined figures of the three systems for the previous financial year are given. 



The results of the working of the Railways for the year as compared with the pre- 

 vious vear are as follows: 



1919-1920 1920-1921 



£ s. d. £ s. d. 



Receipts 5,876,074 14 3 6,329,668 15 1 



Expenses 4,255,372 IS 9 4,848,142 5 1 



Balance £1,620,701 !5 6 £1,481,526 10 



Ratio of Expenses to Receipts. 72.42 per cent. 76.59 per cent. 



To this balance of £1,481,526 10s. Od. there has to be added the profit on the work- 

 ing of the Regla Warehouses and other properties, the gain in exchange and Transfer 

 and other Fees, and to be deducted the pajanent in respect of the Marianao Railway 

 leased to this Comimny. These adjustments having been made, there remains a total 

 of £1,810,229 17s. 2d. After payment of interest on Debentures and Debenture Stocks, 

 Sinking Fund Contributions, Dividend oa Preference Stock, providing for British and 

 Cuban Taxation, Stamp Duties, etc., and adding Interest and Dividends on Invest- 

 ments, the value of the coupons on the Bonds of the Havana Central Railroad Com- 

 pany, and the amount brought forward from last account, there remains an available 

 balance of Net Revenue of £501,699 4s. 5d. 



This sum of £501,699 4s. 5d. is dealt with as follows: 



£ s. d. 



The Board recommends a Dividend of 4% (less Income 



Tax at 6s. in the £) on the £6,556,837 Ordinary Stock 



and Shares, absorbing 262,273 9 7 



Carrying forward 239,425 14 10 



£501,699 4 5 



The Reserve Account amounts to £1,000,000. 



The General Renewals Reserve amounts to £244,206 12s. lOd. 



The Equalization of Dividends Account amounts to £300,000. 



The Insurance Account amounts to £80,000. 



The Pension Account amounts to £206,144 17s. 7d. 



The year under review has been one of exceptional difficult}', and under the cir- 

 cumstances your Directors find cause for satisfaction with the results which this report 

 discloses. Unfortunately it has not been possible to collect all the outstanding accounts 

 of the Company and this, together with the uncertain prospects for the current year, 

 prompts your Directors to adopt a conservative policy when dealing with the Accounts 

 under consideration and to recommend a dividend of 4%, although the net earnings 

 would, under normal conditions, justify a higher rate. 



In July, 1920, it was found necessary to grant further increases in wages to all 

 departments in order to retain sufficient labor to cope with the heavy traffic being 

 handled. To meet, in part, the increased wages the Government of Cuba sanctioned 



