. The Cuba review. 18 THE CUBA REVIEW better results are likely to be obtained as the new districts opened up are more fully developed. Owing in i)art to the fluctuating character of the traffic, anil in part to the desire of the board to build up a strong financial position, the distribution of profits in the past has been on a very conservative scale. The highest dividend paid is 3 per cent., whilst the average distri- bution since operations were commenced in 1909 has been a trifle under 1 per cent, per annum. A retrospect of the main results of working for the last 11 years, together with
. The Cuba review. 18 THE CUBA REVIEW better results are likely to be obtained as the new districts opened up are more fully developed. Owing in i)art to the fluctuating character of the traffic, anil in part to the desire of the board to build up a strong financial position, the distribution of profits in the past has been on a very conservative scale. The highest dividend paid is 3 per cent., whilst the average distri- bution since operations were commenced in 1909 has been a trifle under 1 per cent, per annum. A retrospect of the main results of working for the last 11 years, together with the dividends earned and paid on the company's ordinary capital, are set out beneath: Gross Net —Dividends— Year Earnings Expenses Earnings Earned Paid 1912-13 £617,603 £352,689 £264,914 3% 1911-12 499,982 293,900 206,082 2% 1910-11 460,086 281,288 178,798 2% 1909-10 465,310 282,686 182,624 2% 1908-09 434,357 249,523 184, Nil 1907-08 359,948 214,666 145,282 Nil 1906-07 429,310 247,616 181,694 2% 1905-06 406,000 226,000 180,000 Nil 1904-05 345,000 193,000 152,000 2% 1903-04 281,170 170,000 111,000 Nil Nil 1902-03 254,000 154,000 100,000 Nil Nil It should, however, be appreciated that the dividends paid in no sense represent the profits earned. In the last eight years, for instance, the balance available for the ordinary has averaged about £42,000 a year, a sum equal to an average annual dividend of 4^ per cent. By distributing profits so sparingly the directors have been able to greatly add to the company's financial strength. The total reserve funds now amount to about £160,000, of which £60,000 constitutes a general reserve, and £77,500 renewal and casualty fund. The position of the company is therefore relatively strong, and although the fortunes of the Cuban sugar industry are certain to fluctuate from time to time with the varying character of the crops, and the earnings and profits of the railway company benefit o
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