|
CORPORATION
SEPTEMBER 30th, 1918
LIABILITIES
DECLARED CAPITAL.................................. $52,500,000.00
500,000 Shares 7% Cumulative Convertible
Preferred Stock, par value $100.00 each.
500,000 Shares Common Stock, without nom-
inal or par value. ,
BILLS PAYABLE......................... $12,000,000.00 /
DRAFTS OUTSTANDING................. 1,409,497.72
ACCOUNTS PAYABLE AND ACCRUED
CHARGES ........................... 5,864,607.67
PREFERRED DIVIDEND No. 11 (Payable
October 1st, 1918)....................... 875,000.00 20,149,105.39
LIENS ON PROPERTIES-Cash Deposited,
per contra ..............................
CENSOS ON PROPERTIES-Cash Deposited,
per contra ..............................
BONDS OF CIA. CENTRAL MERCEDES,
OWNED BY CORPORATION AND OUT-
STANDING AS GUARANTEE, per contra
RESERVES:
Taxes, etc. ............................
Depreciation ............................
$601,183.50
602,021.57
60,000.00
800,000.00
4,750,000.00
DEFERRED LIABILITIES:
Balances in respect of purchases of addi-
tional lands ....................... 1,194,909.79
Items in Suspense...................... 323,988.49
SURPLUS ACCOUNT:
Balance .................................
CONTINGENT LIABILITY:
Notes Guaranteed...................... $30.000.00
1,263,205.07
5,550,000.00
1,518,898.28
14,292,949.12
$95,274,157.86
the accompanying Profit and Loss and Surplus Accounts for the year ended that
they correctly set forth respectively, the financial position of the Company as
that date.
DELOITTE, PLENDER, GRIFFITHS & Co.
Appended to this report are the Balance Sheet and Profit & Loss Account
as of September 30, 1918. The accounts of your Company were audited by
Messrs. Deloitte, Plender, Griffiths & Co., whose certificate is herewith submitted.
EXPERIMENTS
Realizing the importance of increasing the sucrose in the cane and the
tonnage of cane per acre, your Company has been carrying on experiments,
in a small way for the improvement of the cane seed, in irrigation arid in mechan-
ical devices for cutting the cane (cane cutters being the only class of labor in
Cuba that is really scarce) and for hauling it, in order to discard the primitive
and slow ox-driven carts and to economize in labor employed in driving these
carts.
The experiments have not progressed far enough as yet to warrant any
report being given.
The installations of machinery to which your Management had directed its
efforts, being now about completed, more attention can be given henceforth to
these experiments.
CONTRACT FOR THE SALE OF THE COMING CROP
The whole Cuban crop of 1918-19 has been sold to the United States Sugar
Equalization Board, Inc., at basic prices of 5.50. f. o. b. North Side ports and
5.450 f. o. b. South Side ports, which is .900 per pound increase over last year.
Your Company will reap the benefit of this increase on its quota of sugar.
FUTURE PROSPECTS
The scarcity of sugar being world-wide, prices, whether controlled by the
Government or otherwise, may be expected to be satisfactory for several years
after peace.
Acknowledgment is made of the loyal co-operation of all officers and
employees during the year.
Respectfully submitted,
By order of the Board of Directors,
MANUEL RIONDA,
President.
CUBA CANE SUGAR
BALANCE SHEET
ASSETS
PROPERTIES AND PLANTS.............. $74,522,783.47
MACHINERY AND CONSTRUCTION MA-
TERIAL ON HAND................... 767,665.30 $75,290,448.77
CURRENT ASSETS, ADVANCES TO COLO-
NOS AND GROWING CANE:
Cultivations-Company Cane..........
Materials and Supplies...............
Advances to Colonos less Reserve for
Doubtful Accounts...............
Advances to Stores and Sundry Ad-
vances .........................
Molasses on hand ....................
Accounts and Bills Receivable, less Re-
serve for Doubtful Accounts ......
C ash ..............................
Cash on ,Deposit to meet Preferred Divi-
dend due October 1st, 1918 ......
$2,771,852.99
3,211,158.68
9,052,710.18
214,092.58
261,112.95
1,026,885.76
700,712.06
875,000.00
18,113,525.20
SECURITY FOR REDEMPTION OF LIENS
AND CENSOS ON PROPERTIES:
Cash deposited in Trust Company and
Bank .......................... $1,203,205.07
Bonds of Cia. Central Mercedes de-
posited ......................... 60,000.00 1,263,205.07
DEFERRED CHARGES:
Insurance, Rents and Taxes paid in advance
Interest paid in advance .................
Items in Suspense . . .................
$190,490.90
125,805.38
290,682.54
606.978.82
$95,274,157.86
We have verified the above Balance Sheet as at September 30th, 1918, and
date, with the books in New York and Havana and certify, that, in our opinion,
at September 30th, 1918, and the results of the operations for the year ended
49 Wall Street, New York City,
January 6th, 1919.
CUBA CANE SUGAR CORPORATION
DIRECTORS:
A. S. DE BUSTAMANT.
W. H. CHILDS
W. P. CONWAY
W. E. COREY .
S. B. FLEMING
HORACE HAVEMEYER
ALFRED JARETZKI
JAMES N. JARVIE .
W. J. MATHESON
G. M-P. MURPHY
W. E. OGILVIE .
W. P. PHILIPS
MANUEL RIONDA
MANUEL B. RIONDA
B. BRAGA RIONDA
JOHN D. RYAN
CHARLES H. SABIN .
FREDERICK STRAUSS, Chairman
REGINO TRUFFIN
. Havana
New York
New York
. New York
New York
.. New York
. New York
New York
. New York
New York
. New York
New York
New York
New York
New York
New York
New York
New York
Havana
EXECUTIVE COMMITTEE:
W. E. COREY
HORACE HAVEMEYER
ALFRED JARETZKI
JAMES N. JARVIE
MANUEL RIONDA
B. BRAGA RIONDA
CHARLES H. SABIN
FREDERICK STRAUSS
LOSSES IN MANUFACTURING
Our total losses in milling, molasses, mudcake and undetermined, during the
three crops, were as follows:
1915-16 1916-17 1917-18
3.07% 2.67% 2.36%
By these figures it is seen that we have improved considerably in our manu-
facturing, the losses this year being 0.31% less than in 1916-17 and 0.71% less
than in 1915-16.
The decreased percentage of losses shows the greater efficiency due to the
improvements in the sugar houses and manufacturing control. We hope in time
to reduce the total losses to 2% or under; at present we have only three estates
with losses below 2%. *
In order that the stockholders may appreciate the material importance of a
decrease in percentage of losses resulting from greater efficiency in the work of
the machinery or from gain in the sucrose content of the cane, it is well to point
out that 7% gained in either way, on the quantity of cane estimated for the
coming crop, would mean an additional yield of 100,000 bags of sugar with-
out any outlay other than the cost of the bags, railroad freight and shipping
expenses. Therefore, y~4% decrease in losses in manufacturing or increase in
sucrose in the cane, would mean, at present prices, from $1,500,000.00 to
$1,750,000.00 increased net earnings.
AMOUNTS PAID TO COLONOS FOR THEIR CANE
As our supply of cane increases in the Eastern plantations, where the
colonos receive a smaller percentage of sugar for their cane, the average per-
centage given to all the colonos is naturally lower, as can be seen by the following
figures:
Percentage of Sugar given to Colonos in Payment for their Cane:
1915-16 1916-17 1917-18
6.383% 6.337% 6.254%
YIELD OF 960 CENTRIFUGALS
The yield of the three crops in 960 Centrifugals is as follows:
1915-16 1916-17 1917-18
11.25% 10.76% 11.41%
These figures show an average increase of .65% over last year and .16% over
1915-16, notwithstanding that in the latter crop, the sucrose in the cane was .56%
higher than this year, as already reported, thus proving the greater efficiency of
the sugar houses derived from the improvements recently made to the machinery.
Had the sucrose in the cane this year been the same as in 1915-16, namely,
13.87% instead of 13.31%, the yield of 960 Centrifugals, with the same improve-
0C- ~ 4178) ___
Ry
PPINAR DEL RIO /f'
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GUANTANAMO
84' 83 86261 80" 790 7" 77-' T7
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PINAR DEL RIO PROVINCE
Asunci6n 5 Mercedira
Bramales 6 Orozco
El Pilar 7 San Ram6n
Gerardo HABANA PROVINCE
Amistad 18 Mercedita
Farjardo 19 N S. Carmen
Fortuna 20 Nuevo Paz
Gomez Mena 21 Portugalete
Guira 22 Providencia
Habana 23 Rosario
obo 24 San Augustin
osefita 25 San Antonio
ulia. La 26 Toledo
Loteria
MATANZAS PROVINCE
Aguedita 28 Alava
Angelita
Araujo
Armonia
Australia
Canasi
Carolind
Conchita
Cuba
Dolores
Dos Rosas
Dulce Nombre
Elena
Espafia
Esperanza
Feliz
Flora
Guipozcoa
Jes s Maria
Limone
Luisa
Mercedes
Nueva Luisa
Olimpo
Por Fuerza
Porvenir
Precioa3
Progre rj
Puertc
Reglita
San Cayetano
San Ignacio
S. J. Bautista
San Vicente
Santa Amalia
Santa Gertrudis
Santa Rita
Santo I
Saratoga
Socorro
Soledad
Violets
Adela
Altamira
Andreita
Caracas
Caridad
Carmita
Carolina
Cienegua
Constan
Constan
REFERENCE
Domingo 69 Tinguaro
a 70 Triunfo
71 Triunvirato
72 Uni6n
SANTA CLARA PROVINCE
85 C. de Jesus
86 Covadonga
a 87 Dos Hermtanas
88 Dos Hermanos
89 El Salvador
90 Esperanza
91 Fe
92 Fidencia
93 Gratitud
ita 94 Horrniguero
cia iConst) 95 Juragua
cia (Encruc) 96 Julia. La
Lequeitio
Luisa y Antonia
Lutgardita
Macagua
Manuelita
Mapos
Maria Antonia
Maria Victoria
Narcisa
Natividad
Parque Alto
Pastora
Patricio
Perseverancia
Portugalete
Purio
Romona
Reform
Regla
P.esoluci6n
Result
Rosalia
Rosa Maria
San Agustin (Lajas)
San Agustin (Remedios)
San Antonio
San Cristobal
San Francisco
San Francisco de Asis
San Isidro
San Jose
San Lino
San Pablo
San Pedro
Santa Catalina
Santa Lutgarda (Vel6s)
133 Santa Lutgarda (Mata) 140 Tuin.iui
134 Santa Maria 141 Ullacia
135 Santa Rosa 142 Unidad
136 Santa Teresa 143 Vega, La
137 Stma. Trinidad 144 Victoria
138 Soledad 145 Washington
139 Trinidad .. 146 Zaza
CAMAGUJEY PROVINCE
147 Adehlida 156 Jagu;.yal
148 Agramonte 156 Jattbanico
149 Camagiiey 157 Lugareuio
150 Cespedes 158 Mor6n
151 Ciego de Avila 159 Vertientes
152 Elia 160 Senada, El
153 Florida 161 Stewart
154 Francisco
ORIENTED PROVINCE
162 America 163 Borjita
Boston
Chaparra
Cape Cruz
Confluente
Cupey
Delicias
Dos Amigos
Ermita
Esperanza
Hatillo
Isabel (GuantAnAmo)
Isabel (Media Luna)
Jobabo
Los Caiios
Manati
Niquero
Palma
Palmarito
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Preston
Rio Cauto
Romelie
Salvador, El
San Antonio
San Manuel
San Miguel
San Ram6n
Santa Anra
Santa Cecilia
Santa Lucia
Santa Maria
Sofia
Soledad
Teresa
Tranguilidad
Union
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76 75
T
MAP OF
CUBA
SHOWING ALL WORKING SUGAR ESTATES
Estates owned by
Cuba Cane Sugar Corporation
Shown thus.
*
Scale in Miles
o to 20 N) 4C 50 60
i-- gis----
CUBA CANE SUGAR CORPORATION
EXECUTIVE OFFICERS:
September 30, 1918.
PRESIDENT:
MANUEL RIONDA.
VICE-PRESIDENTS:
REGINO TRUFFIN, HAVANA; FREDERICK STRAUSS, NEW YORK;
ALFRED JARETZKI, NEW YORK; B. BRAGA RIONDA, NEW YORK.
SECRETARY AND TREASURER:
H. F. KROYER, NEW YORK.
ASSISTANT SECRETARIES AND
MANUEL E. RIONDA, NEW YORK;
EDWARD H. GREEN, NEW YORK;
MIGUEL ARANGO;
ASSISTANT TREASURERS:
VICTOR ZEVALLOS, HAVANA;
HIGINIO FANJUL, HAVANA.
RESIDENT AUDITOR:
G. P. BLYTHE, C.A., HAVANA.
GENERAL MANAGERS:
LEANDRO J. RIONDA.
ASSISTANT GENERAL MANAGER:
JOSA B. RIONDA.
GENERAL COUNSEL:
SULLIVAN & CROMWELL, NEW YORK.
COUNSEL IN CUBA:
A. S. DE BUSTAMANTE, HAVANA.
AUDITORS:
DELOITTE, PLENDER, GRIFFITHS & CO., NEW YORK AND HAVANA.
CUBA CANE SUGAR CORPORATION
OFFICES:
No. 112 WALL STREET, NEW YORK, N. Y.
EDIFICIO DEL BANCO NATIONAL DE CUBA, HAVANA, CUBA.
TRANSFER AGENTS:
GUARANTY TRUST COMPANY OF NEW YORK,
No. 140 BROADWAY, NEW YORK, N. Y.
THE TRUST COMPANY OF CUBA, HAVANA, CUBA.
REGISTRARS OF TRANSFERS:
COLUMBIA TRUST COMPANY,
No. 60 BROADWAY, NEW YORK, N. Y.
BANCO NATIONAL DE CUBA, HAVANA, CUBA.
of land, equal to 231,000 acres, the total lands owned and leased being 18,147
caballerias, equal to 604,800 acres.
RAILROADS
Your Company now owns and operates for the transportation of its products
and supplies, 1,061 kilometers (663 miles) of railway, of which 758 kilometers
are standard gauge and 303 kilometers are narrow gauge; together with equip-
ment consisting of 111 locomotives, of which 77 are standard gauge and 34
narrow gauge, and 3,450 cane and other cars, of which 2,213 are standard gauge
and 1,237 are narrow gauge.
PROPERTY ACCOUNT
Original cost of the 17 Plantations, including taxes, Notary
fees, etc ..............................................
Additional Purchases:
Central "Stewart"....................... $8,400,000.00
W arehouses ............................ 159,600.00
Lands ................................. 2,236,330.98
Taxes, Notary fees, etc., thereon .......... 119,371.10
Less sale of Central "Asuncion".
Sale of Machinery, etc.....
Add Improvements, etc.:
Fiscal Year
1915-1916........ .
1916-1917 ....... ..
1917-1918 .........
13 Western
Plantations
$264,603.13
* 2,376,123.95
* 1,835,050.42
$4,475,777.50
$425,000.00
485,267.43
4 Eastern
Plantations
$155,131.08
2,657,229.86
8,246,313.70
$11,(
Total Cost of Properties as at Sept. 30
Machinery and Construction Material or
$48,983,296.68
$10,915,302.08
910,267.43
$10,005,034.65
Total
$419,734.21
5,033,353.81
10,081,364.12
058,674.64 $15,534,452.14 25,539,486.79
1918 ............. .. $74,522,783.47
hand ................. 767,665.30
Total ................ $75,290,448.77
Your mills are now equipped to their full capacity, the construction program
having been practically completed at the date of this report.
RENEWALS, BETTERMENTS AND DEPRECIATION
During the fiscal year your Company has in conformity with its usual prac-
tice made adequate expenditures for renewals, repairs and for making changes
in the location of machinery in some of the plantations, all of which has been
CUBA CANE SUGAR CORPORATION
Profit and Loss Account-September 30th, 1918
Operating Profit for year ended September 30th, 1918.......... $7,390,603.98
Less:
Interest and Exchange....................
Reserve for Taxes, etc., (including Income
Taxes U. S. and Cuba)...............
$679,654.56
834,525.00
Reserve for Depreciation................. 1,750,000.00
3,264,179.56
Balance being Net Profit for the year carried to Surplus Account $4,126,424.42
Surplus Account-September 30th, 1918
Balance at October 1st, 1917...................
Add:
$13,666,524.70
Net Profits for the year, per Profit & Loss Account ........ 4,126,424.42
$17,792,949.12
Deduct:
Dividends on Cumulative Convertible Pre-
ferred Stock, payable:
No. 8, January 1st, 1918............
No. 9, April 1st, ............
No. 10, July 1st, ............
No. 11, October 1st, ............
Balance, September 30th, 1918................
$875,000.00
875,000.00
875,000.00
875,000.00
3,500,000.00
$14,292,949.12
AI740
last year's, the price of cane will also be higher, but this increase in cost will be
offset to the Company by its obtaining a correspondingly higher price for its
sugars.
It is not expected that the other two items of cost will be materially increased.
Careful calculations show that the average cost of producing sugar in many
plantations in Cuba was .500 to .600 per pound greater than in the previous year.
The increased cost to your Company was .5670 per pound. Not having sold
this crop at a materially higher price than the previous crop (only .1510 per
pound, as already stated), it had to bear additional burdens of expense with but
little offset save the increased yield and larger crop.
CAPACITY OF THE EASTERN MILLS
The following table shows the capacity and production of these mills during
the last three crops:
1915-16,
Capacity
Jagueyal ........... 220,000
Moron ............ 200,000
Lugarefio .......... 140,000
*Stewart ........... ......
560,000
1917-18,
Capacity
Jagueyal ........... 320,000
Moron ............ 400,000
Lugarefio .......... 270,000
Stewart ........... 500,000
1,490,000
Bags
Production
233,545
170,262
154,059
557,866
Bags
Production
326,200
315,439
117,200
416,560
1,175,399
i9p6-l7, Bags
Capacity Production
250,000 251,013
200,000 181,045
140,000 67,600
450,000 378,097
1,040,000 877,755
9l18-p9, Bags
Estimated
Capacity Production
450,000 400,000
500,000 475,000
320,000 320,000
600,000 550,000
1,870,000 1,745,000
The "Stewart" mill had not been acquired by your Company at the time of
the crop of 1915-16.
The equipment of the Western plantations has been generally improved.
These improvements are reflected in the reduced losses in manufacturing.
SUPPLY OF CANE
Based on the quantity of cane that we had left over from last year and
the additional plantings made in 1917, the quantity of cane available for the
coming crop is now estimated at approximately 480,000,000 arrobas, which shows
an approximate increase of 70,000,000 arrobas of cane (781,250 tons) over the
quantity ground in the season just ended.
With the same yield as in the case of the 1917-1918 crop the total output for
the coming crop should, with favorable weather and adequate labor, be approxi-
mately 4,200,000 bags.
CUBA CANE SUGAR CORPORATION
THIRD ANNUAL REPORT
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 1918
CUBA CANE SUGAR CORPORATION
112 WALL STREET
NEW YORK, January 6, 1919.
TO THE SHAREHOLDERS OF
CUBA CANE SUGAR CORPORATION:
The third fiscal year of your Company ended on Stptember 30, 1918.
CANE PRODUCTION
Owing to the drought, particularly in the Western section of Cuba, and
because of the cane that was left uncut in our Eastern plantations due to the late
arrival of machinery, we did not grind the amount estimated early in the season,
namely, 442,000,000 arrobas (4,933,000 tons).
The total quantity of cane ground this year, as compared with previous
years, is as follows:
1915-1916 359,955,746 arrobas or 4,017,363 tons of 2,240 lbs.
1916-1917 393,584,058 arrobas or 4,392,679 tons of 2,240 lbs.
1917-1918 409,900,529 arrobas or 4,574,782 tons of 2,240 lbs.
However, with only 16,316,471 arrobas more cane ground during the 1917-
1918 crop, your Company made 351,704 bags in excess of the 1916-17 crop, thus
showing a considerably better yield.
SUCROSE IN THE CANE
The average percentage of sucrose in the cane of the 17 plantations during
the three crops was as follows:
1915-16 1916-17 1917-18
13.87% 13.00% 13.31%
From these figures it will be seen that last year's average sucrose in the cane was
0.31% more than in the previous year, but still 0.56% below 1915-16.
This increase in the sucrose at your plantations was not general throughout
Cuba, many plantations having had a decrease as compared with the previous year.
Of your plantations the one that showed the highest percentage of sucrose
in the cane was "Stewart" with 14.49%, which is quite remarkable as in former
years this plantation was noted for its supposedly poor cane.
last year's, the price of cane will also be higher, but this increase in cost will be
offset to the Company by its obtaining a correspondingly higher price for its
sugars.
It is not expected that the other two items of cost will be materially increased.
Careful calculations show that the average cost of producing sugar in many
plantations in Cuba was .50 to .60# per pound greater than in the previous year.
The increased cost to your Company was .567b per pound. Not having sold
this crop at a materially higher price than the previous crop (only .151( per
pound, as already stated), it had to bear additional burdens of expense with but
little offset save the increased yield and larger crop.
CAPACITY OF THE EASTERN MILLS
The following table shows the capacity and production of these mills during
the last three crops:
1915-16,
Capacity
Jagueyal ........... 220,000
Moron ............. 200,000
Lugarefio .......... 140,000
*Stewart ........... .......
560,000
1917-18,
Capacity
Jagueyal ........... 320,000
Moron ............ 400,000
Lugarefio .......... 270,000
Stewart ........... 500,000
1,490,000
Bags
Production
233,545
170,262
154,059
557,866
Bags
Production
326,200
315,439
117,200
416,560
1,175,399
1916-17, Bags
Capacity Production
250,000 251,013
200,000 181,045
140,000 67,600
450,000 378,097
1,040,000 877,755
1918-19, Bags
Estimated
Capacity Production
450,000 400,000
500,000 475,000
320,000 320,000
600,000 550,000
1,870,000 1,745,000
The "Stewart" mill had not been acquired by your Company at the time of
the crop of 1915-16.
The equipment of the Western plantations has been generally improved.
These improvements are reflected in the reduced losses in manufacturing.
SUPPLY OF CANE
Based on the quantity of cane that we had left over from last year and
the additional plantings made in 1917, the quantity of cane available for the
coming crop is now estimated at approximately 480,000,000 arrobas, which shows
an approximate increase of 70,000,000 arrobas of cane (781,250 tons) over the
quantity ground in the season just ended.
With the same yield as in the case of the 1917-1918 crop the total output for
the coming crop should, with favorable weather and adequate labor, be approxi-
mately 4,200,000 bags.
charged to operating expenses before arriving at the operating profit of the Com-
pany. Part of the improved result in manufacturing was due to these changes in
location of machinery at some of the Western plantations.
Your plants are now in a far better operating condition than they have ever
been. In addition to the cost of repairs and renewals, your Directors have made
a charge of $1,750,000. for Depreciation.
Your properties could not be duplicated at present for their cost to date.
EARNINGS AND EXPENSES
FISCAL YEAR ENDED SEPTEMBER 30, 1918.
EARNINGS:
Sugar Sales ............................... $57,443,014.70
M olasses Sales .............................. 1,056,772.17
Other Earnings.............................. 571,494.03
TOTAL EARNINGS ............... $59,071,280.90
EXPENSES:
Cost of Cane, per 100 arrobas, $7.24..........
Dead Season expenses-Salaries, wages, materials
and supplies, repairs and renewals.........
Crop Expenses (Salaries and wages, materials
and supplies, fuel, maintenance, administra-
tion-Cuba and United States)...........
Fiscal Year Charges:
Fire, tornado, boiler, liability insurance .....
Cuban taxes on sugar....................
Cuban taxes on molasses.................
Cuban taxes on real estate................
Legal Expenses .........................
Sugar Expenses:
Sugar Bags and packing.................
Sugar inland railroad freights............
Sugar Shipping Expenses.................
Sugar insurance.........................
Selling and landing expenses..............
$29,678,146.97
3,936,411.44
6,866,662.81
328,042.37
421,386.50
67,966.15
136,899.34
51,354.35
1,834,642.99
1,428,207.93
629,194.92
423,436.97
881,879.93
TOTAL EXPENSES-F. 0. B ....... $46,684,232.67
Marine Freights ................................ 4,996,444.25
TOTAL EXPENSES-Delivered ..... $51,680,676.92
OPERATING PROFIT, September 30, 1918............ $7,390,603.98
Per Bag
Average
323.18 lbs.
$15.90
.29
.16
$16.35
$8.21
1.09
1.90
.09
.12
.02
.04
.01
.51
.40
.17
.12
.24
$12.92
1.38
$14.30
$2.05
ments in machinery, would have been about 12%, or 186,000 bags over what was
actually made, which would have increased the earnings of your Company by
$2,500,000.00.
CROPS MADE BY THE COMPANY
1918-19
1915-16 1916-17 1917-18 Estimated
Tons Tons Tons Tons
Bags 2240 lbs. Bags 2240 8bs. Bags 22S0 Ibs. Bags S40 Ibs.
3,174,168 452,035 3,261,621 472,542 3,613,325 521,328 4,000,000 580,000
to 4,200,000 to 600,000
These figures show an increase of 351,704 bags for 1917-18 over the 1916-17
crop and of 439,157 bags over the 1915-16 crop, and for 1918-19 an estimated
increase of approximately 1,000,000.bags over our first crop of 1915-16.
COMPARATIVE EARNINGS PER POUND OF SUGAR
For the purpose of comparing the f. o. b. price per pound obtained during the
last three crops, the proceeds from "Molasses" and "Other Earnings" are
included in the following:
1915-16 1916-17 1917-18
4.1120 4.4790 4.6300
From these figures it is seen that your Company only obtained .1510 per
pound f. o. b. more this year than last year for its sugar. This was due to your
Company having sold the previous crop at very favorable cost and freight prices,
with very low rates of marine freight.
COST OF PRODUCTION
The cost of producing sugars on an f. o. b. basis at your factories during the
last three crops was as follows:
1915-16 1916-17 1917-18
2.7480 3.4310 3.9980
The vendors of your properties bore the dead season expenses of the 1915-16 crop,
hence the low cost of production in that year.
The cost of production may be divided as follows:
63% for Cost of Cane-this is paid to the colono in sugar which is subse-
quently bought by the Company at the price fixed by the United States
Sugar Equalization Board, under its contract of purchase of the
season's crop.
26% for Salaries, Wages, Fuel, General Supplies and Maintenance during
the Dead and Crop Seasons and Fiscal Year expenses.
11% for Bags, Inland Railroad Freight, Shipping Expenses and Cost of
delivering the Sugars at the Port of Discharge.
COST OF CANE: The general practice in Cuba is to purchase the cane from the
tenant farmer (colono) by allowing him a percentage in sugar per hundred of cane.
This sugar is then bought. by the mill at a price based on the ruling market price.
As the price of sugar fixed by the contract with the United States Sugar Equaliza-
tion Board, Inc., for the 1918-1919 crop will be about 20% higher than that of
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