THE CUBA R E \' I E W 



LONDON NEWS OF CUBAN MATTERS 



[Exclusive correspondence 



THK CUr.A REVIEW 



On June 10th the Cuban Central Rail- 

 ways. Ltd., announced the issue of $2,750.- 

 000 debenture stock at par to the existing 

 proprietors. The stocks bear interest at 

 live per cent, and as part of the proceeds 

 will be used to retire the present second 

 six per cent debenture stock, it will rank 

 next to the outstanding debentures of the 

 old Cuban companies and the 4:^-2 per cent 

 mortgage debentures, amounting together 

 to approximately $4,731,000. The stock 

 is redeemable in whole or part at any time 

 on six months' notice. The net earnings 

 of the system have progressiveh" increased 

 from $783,000 in 1905-6 to $S53,000 in 

 1909-10, save for one season, when drought 

 was prevalent, and as the whole debenture 

 service, including that of the stock ottered, 

 but omitting that of the second debenture 

 stock to be paid ott, requires only $427,500, 

 it will be observed that there is ample 

 margin for contingencies. Holders of the 

 second debenture stock can exchange into 

 the new stock on a par basis plus a cash 

 payment of 5^4 per cent, the redemption 

 terms providing for amortisation, at 105. 

 Little difficulty was found in placing the 

 whole amount of the new stock with the 

 present debenture stockholders and share- 

 holders. 



Messrs. J. Henry Schn.der and Company 

 offered for sale $4,943,750 4^-2 per cent 

 debentures of the United Railwa\s of the 

 Havana and Regla Warehouses, Ltd., at 

 99^2 per cent. Messrs. Schroder in this 

 instance are acting in conjunction with the 

 Societe Generale and the Comptoir Xa- 

 tionale d'Escompte de Paris, and as the 

 bonds have their values expressed in both 

 sterling and French currency-, they will 

 enjoy an international market. The de- 

 bentures rank after the existing debentures 

 of the company, but there is a high margin 

 behind them. Last year, after payment 

 of all fixed charges ranking before the de- 

 bentures now offered, there remained a 

 net revenue of $1,719,000, while the an- 

 nual amount required for interest and re- 

 demption of the present issue will be about 

 $259,500. The debentures are repayable 

 within fifty years by means of a cumu- 

 lative sinking fund, either by half-yearly 

 drawings at 103 per cent, commencing the 

 1st of January, 1917, or by the option to 

 redeem the whole or any part of the issue 

 after three vears at 103. It is noteworthy 

 that the interest will be paid free of both 

 English and French income tax. 



For further and special London cor- 

 respondence see page 26. 



How the lower classes live in Cuba: Scene in a tenement house. This mode of living 



has been very much criticized by the Havana Board of Health, as being unsanitarj' 



and unhealthy, because of too much crowding. 



