THE CUBA REVIEW 



19 



It is a source of gratification to your Directors to be able to submit such an 



: excellent statement because the results have been obtained during a year which 



followed the collapse of the sugar boom in 1920 and the suspension of a number of 



banks in this city, which brought about general adverse conditions and compelled 



I industrial concerns to reduce their scale of operation or shut down altogether. During 



i the period covered by this report the physical condition of your property was greatly 



' improved, and your attention is invited to the accompanying report of the General 



Manager setting forth in full the operations of your Company with a description of the 



most important events and undertakings of the year in order to enable you to fully 



appreciate the value of your property. 



Your Board of Directors authorized the issue of and sale to Messrs. Spyer & Co. 

 of $1,500,000 Five-year Seven Per Cent. Convertible Gold Notes due September 1, 1926, 

 secured by the deposit with the Trustee of $3,000,000, principal amount of Havana 

 Electric Railway, Light & Power Company General Mortgage Five Per Cent. Gold 

 Bonds, dated September 1, 1914, and due September 1, 1954. This sale facilitated the 

 continuation of your construction work then in progress, avoided an increase of the 

 existing large number of unemployed men in this city, and was of great benefit to your 

 Company. The total expenditure for construction account during the year was S2,800 - 

 253.77. 



The Gross Earnings from operation were 12.24% greater than in 1920 and the 

 total operating expenses were 12.25% greater. 



The Net Earnings were 12.22% greater, and after deducting taxes paid to the United 

 States and Cuban Governments the gain over 1920 was 9.48%. 



The Gross Receipts from all sources were $13,005,419.12, and the total deductions 

 for operation, maintenance, and accrued taxes were $7,376,343.65. 



The Electric Light and Power Department maintained its leading position and 

 contributed 61.2% of the total net revenue of your Company, compared with 57.6% 

 in 1920. 



The public lighting throughout the City of Havana was greatly improved during 

 the year by substituting powerful high efficiency incandescent lamps for the 88 arc 

 lamps reported in 1920, 77 additional lamps of the same type and 18 smaller lights being 

 added to the service. 



[ The total public lighting now consists of 1923 high efficiency incandescent lamps 



of 600 to 1000 candle power and 669 incandescents of from 60 to 100 candle power. 



The Gas Department lost slightly in relative importance, contributing 9.1% of the 

 Net Earnings against 12.2% in 1920. It is expected, however, that when the extremely 

 excessive charges made by the Government for pavement repairs are reduced, new 

 installations will be ordered and the growth of the Gas Department will be resumed. 



i In this Department the Gross Earnings ($1,828,355.52) appear to have been more affected 



j by the adverse business conditions than in the two other departments of your Company's 



I business, and it was not possible to institute compensating economies to the same degree 



; as in the others. 



The Hinman drum type station meter referred to as contracted for in the report for 

 1920 was erected and went into service. The total station meter capacity is now 

 6,000,000 cubic feet per day at normal rating. A comprehensive scheme for enlarging 



, the gas manufacturing capacity was adopted and a considerable proportion thereof was 

 carried out. A contract was made with the Western Gas Construction Company for a 



■ new water gas set, which will be ready for operation in April, 1922. 



' New gas washing and cooling equipment was also contracted for and one of the gas 



holders reconstructed. 



The large amount of construction and repair work done during the year is set forth 



j in great detail in the accompanying report, and your perusal is recommended in order 

 that you may appreciate that everything possible is being done to increase the illuminat- 



