30 THE CUBA REVIEW 



Special Reserves 



Decline in Value of Unsold Sugar. — Reference to the Balance Sheet and to the Surplus 

 Account will show the establishment of a Reserve of $225,000 against a possible decUm 

 of ^c. in the price of sugar, from 2 3'^2C. per lb. c. & f . at which the unsold sugar was taken up 

 in the Balance Sheet at October 31, 1921. This reserve applies only to the Company's 

 share of the unsold sugar, the loss in the Colonos' share being borne by them. 



Materials and Supplies. — A Reserve of $150,000 has been created to provide for any 

 possible shrinkage in the value of Materials and Supplies, as these have not been reinven- 

 toried. It is expected that an inventory will be taken during the current fiscal year. 



Colonos' Accounts. — A Reserve of $250,000 has also been created against possible 

 losses in Colonos' Accounts. 



Dividends 



Preferred Stock. — Regular quarterly dividends of 1^% have been paid on the Preferred 

 Stock since January 1, 1915. 



Common Stock. — On the Common Stock a dividend of 20% was paid in Common Stock 

 November 8, 1916. 



From December 1, 1916, to June 1, 1921, quarterly dividends of 2}^% were paid. An 

 extra dividend of 1% (Red Cross) was paid on July 23, 1917; and an extra dividend of 7/4% 

 (23^% cash and 5% Common Stock) was paid September 8, 1919. 



Since June 1, 1921, owing to the low price of sugar, your Board deemed it advisable to 

 discontinue payment of dividends on the Common Stock. 



Capitalization 



The Capital Stock of your Company is as follows: 



Authorized Issued 



$5,000,000 7% Cumulative Preferred Stock $3,500,000 



15,000,000 Common Stock 10,000,000 



20,000,000 $13,500,0001 



Statements 



Attention is called to the annexed Balance Sheets as at October 31, 1921, and the 

 Profit and Loss and Surplus Accounts for the year ended that date, certified by the Com- 

 pany's Auditors, Messrs. Marwick, Mitchell & Co. There are also appended a Statement' 

 showing changes in Assets and Liabilities for the fiscal year ended October 31, 1921, a 

 Comparative Financial Statement and Statement of Comparative Operating Results for the 

 eight years of the Company's operation. 



Acknowledgment is made of the loyal co-operation of all oflicers and employees during 

 the year. 



Respectfully submitted by order of the Board of Directors. 



R. TRUFFIN, President. 



Profit and Loss Account for the Year Ended October 31, 1921 I" 



Sales of Centrifugal Sugar, f. o. b. Basis $5,493,860.37 



Molasses Sales 40,000.00 



Miscellaneous Operating Income 314,010. 05 



Total Income $5,847,870.42 



Operatinc; Expenses — t. o. b. Basis 5,199,438.67 



Profit on Operation $648,431 .75 



Add: 



Interest on Current Accounts 252,308.89 



$900,740.64 



