28 



T H E C U B A li E J' I E JV 



trade has picked up somewhat; in Havana, however, we are faced with serious competition 

 by road, a large tonnage of stone, sand, and bricks entering the city in motor lorries, from 

 quarries and kilns in the vicinity." 



"Group V. — Coal and Oil forms 3.67% r f the tonnage moved and 5.64% of the earnings." 



"As was to be expected, there has been a further decrease in the tonnage of coal moved 

 and an increase in the amount of fuel oil, as conversion to this system of combustion contirues 

 to be carried out." 



"Group VI. — General Merchandise forms \\.2T^c of the tonnage moved and 35.75% of 

 the earnings." 



"There is no comparison possible between the twelve new classes and the five old, as the 

 classification of merchandise has been modified throughout, and brought up to date." 



"The decrease, as a whole, is due to the financial condition of the country, and stag- 

 nation of business generally, owing to withdrawal of credits. During July, 1920, for instance, 

 the average number of goods trains leaving the Havana Terminal daily was 123^, whereas, 

 in June, 1921, it had fallen to 4. The total number of cars loaded at the Terminal in July, 

 1920, was 6,576, compared with 2,826 only in June, 1921, and the conditions at Matanzas 

 and Cardenas were about the same. 



"Practically all live stock comes from the Cuba Railroad Company's lines, and during 

 April-May the through traffic was interrupted owing to a strike on that Company's road." 



Expenditure 



"The total expenditure amounted to £4,848,142, or £592,769 more than in the previous 

 year. The major portion of the excess was due to the increases in salaries and wages of from 

 10 to 15%, which were forced upon us from the 1st of July by the excessive increase in the 

 cost of living, and unfortunately it was not possible to commence any reduction in wages 

 before the completion of the sugar crop at the end of May. The higher cost of materials 

 for both maintenance and operation has also contributed largely to the increase, and the 

 severest economy in the use of materials of all kinds became necessary from the date of the 

 Moratorium." 



■'An analysis of the expenditure, compared \vith that of the previous year, will be found 

 in the followii g tables: 



" Pertnanent Way. — The total maintenance of the Permanent Way increased by £109,- 

 742, being 15% higher than last year. There was considerable activity in the Engineering 

 Department during the first few months of the Financial Year, both on Capital Works and 

 on Ordinary Maintenance. Owing, however, to the sudden change in the financial situa- 

 tion towards the end of 1920, practically all Capital Works were closed down, and Main- 

 tenance was restricted to works that were found absolutely necessary. 



"Locomotive Mainlerumce. — There was an increase of £43,361 in the total maintenance, 

 which is largely due to the increase in the rate of wages. As stated in my last Annual Report, 

 an increase of 15% was given to the employees of the Locomotive Department as from 1st 

 July, 1920, in order to prevent a general strike. This did not satisfy the Boilermakers and 

 Foundrymen who demanded a 60% increase, and remained out on strike until December 15th. 

 The fortunate arrival of new locomotives in August was the death-blow to the strike, but the 

 men did not return and accept the terms we offered until the end of the dead season when 

 financial crisis had paralyzed all outside work. These engines were a most valuable rein- 

 forcement to our stock, which had become depleted and worn out due to the heavy traffic 

 in recent years, and enabled us to carry out our Main Line hauling of this year's sugar crop 

 without the least difficulty." 



"Gonchimj Slock. Maintenance. — The increase amounts to £17,601, of which £13,593 

 represents increases in salaries and wages, the balance being increased cost of materials. 



"There were no interruptions due to strikes throughout the year, so work was carried 

 out according to programme. In the second half of the year, how'ever, owmg to the finan- 

 cial conditions, it was necessary to limit expenditure as far as possible." 



