The Montgomery advertiser., 1908-12-20

ated May l, 1902 The two companies are closely connected, and Sir William c. Van Horne Is president of both The first portion of the road was open December 1 1902: the Autiila branch (Nipe Bay.) April 5,1s05, and the Holquin branch. October 15. 1908. In It's inception the road encountered the Forager law. which prohibited the granting of any concessions during the term of American occupation. IL has been asserted that the work was an evasion of that way but the com- pany declares that 1t asked for ne- concession, and in all ways compiled with the existing law.
 The Foraker law prohibited any new enterprises which were dependent for their existence upon governmental or municipal franchises. It was not and could not be operative as against prI- wate enterprise. The Cuba Company, therefore purchased a continuous strip of land some $50 miles in length and thirty metres (about 100 feet) in width, taking legal title thereto, and proceedea with the construction of a railway upon the land thus acquired. This was in strict accordance with the laws of the island. A revocable license was obtained, which gave the right to cross streams and highways subject to modi- fication or revocation by any succeeding government.
 Extent of Operations.
 Upon its surface the. enterprise ap- peared little better than gigantic speculation with a doubtful founda- ton and there was, 1t Is alleged, some Juggling with the Foraker law with. and by the connivance of the eauthorl- ties in Washington. The work was, however. very rightly regarded as of vast importance to the island. Several millions of dollars were put Into im- mediate and active circulation at c time when money was very scarce, indeed, and In an area which had suffered most disastrously by the pro- cesses of the law.
 Under the existing laws the com pany could have no right of expropria- ton. Obstacles were encountered in the shape of landowners who refused to sell except at eKtrotIonate figures, and areas were found to which no owners could be discovered and others of doubtful and complicated titles. Newspapers. too, attacked the enter prise. some of them hoping to be paid for silence or approval. and the same tactics were employed by petty politl- clans. but the company proceeded with it's work. overcoming both opposition and obstacles until 1t finally won an almost unqualified support throughout the entire length of the line.
 It was aided in it's work by the ordor known as No. 34, issued February !, 1909. from the headquarters of the Military Governor, which really created new railroad law for the island. It had been drafted by able Cuban and American lawyers and passed upon and approved by the Secretary of War Concise and comprehensive, 1t safe. guards both public rlshts and private interests. and all objections that could be urged against 1t were offset by the great advantages accuring to the is- land. It gave to legitimate and on. cially approved railways lines any where in the island the right of legal appropriations and under It's provisions the Cuba Company was enabled to com plete the construction of rafyyay system which opened to settlement and productive cultivation an area of twelve to nrteen million acres or nearly pne-ha1f Of the entire island which had previously been of little or no value.
 There are now 40 1s2 miles in opera- tion not including sIdings and spurs, of which 356 miles constitutes the main line from Santa Clara to Santi- ago There are seven branches vary ing in length from four to thirty-olle miles. The company, at the end of their fiscal year. June 30. 1908, had forty-seven locomotives, ffty-six pas senger train cars, 1201 frieght cars fifteen conductors cars, twenty-afx auxiliary cars and three steam shovels. In addition to these are four steam tugs and seven lighters. The gross earnings in 1904 were s53l.O41.sO, and the operating expenses 3566,19s.24. showinE a deficit of sl2.07ze4. or a little over i've per cent. In 1905, the earnings were $I.03s.25e.5S and the operating expenses s733.635.16, leaving the net earnings $2s5,e23.37. There has been an annual increase in the gross earnings, and for the year ending June 90. 1908. they were S2.03s, 4e7s5, and the operating expenses were 3I,31s, 1s0.se, or 646s per cent of the gross earnings, leaving the net earn ings $72i, ,2sT.59, and. after deducting
 s365, ,Se3.34 for interest on the funded debt and loans 8 net income of s355,- 424.25.
 Under the wise administration of the