The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-10
CUBA CANE SUGAR
EARNINGS SHRINK
Report Shows Rate Is S1.25
A Share on CommOn-Was
S7.63 in 1917.
honda EXPLAINS DROP
Saws High Cost Of Production
snd Late Start Reasons
for Decline.

The third annual report OF the Cuba
tsne Sugar Corporation issued yesterday
,hsrnoon was revelation even TO those
vho have consistently declared that the
Awnings for the year would show n re-
n,rSable falling off This report dis
,,osed that during the year ended Sep
amber 30. 1918, net profits totalled only
ui.s425. against s7.3l5,ol7 in the pre-
m the common. after deduction of pre-
.rsd dividends against $3.50 share
,n ths common in 1917
In a statement accompanying the re-
ort. six reasons for the sharp decline
N earnings were set forth by President
Manuel Rlonda. These causes were as
,ollows:
High salaries and wages
e-Higher cost OF general supplies,
DcA as coal. bags, etc.
Authorization or falling Off in test
o, sugars so long kept in warehouse.
1-Increaae Of % to 80 per cent. in
Cuban railroad freights.
t-"uban taxes OF 90 cents 4 bag.
s--Iate start OF grinding 1t the east
s-n plantations because of late arrival oi
machinery and for the reason that these
,ac,ories are unable to grind at fun ca
wcty.
Operating profit for 1918 was nearly
100000 under that of previous years,
sri .ae chaues for interest and eX-
ohsnse increased moro than S40n,-
100 Taxes were 100000 lighter than
n the previous year, and a cut of $500
900 was made In the amount written of!
FOR depreciation. After deductions col
preferred dividends and all charges. the
surplus for the year applicable to Tho
common was but s626, 49,. against
Ss'5o17 in 1917, decline OF So.
!ssiaa.
The chief difficulty experienced ny
your company" said President EiprdH
n Ms statement to stockholders. dur
ing tne campaign just ended wHs duC
q late deliveries OF some OF tho ma
chirerv ordered and 20 the late sh rmen'
thereof, caused by the war ana the re
rriction imposed upon all manufacture
era In the United States
~ Is owing TO this that the benefits
from the programme inauguratcd by
your company In August. 1915. for In
creasing the capacity of its sugar mills
In the eastern section of Gina were moi
fully realized.
The programme OF August. 1916. FOL
Increasing the capacity of the mills VA
made at a favorable time. but by reason
Of the entry OF the United states Int
the war great difficulties were encoun
tered which, though overcome. neoeSs.
eated larger expenditures than had be"l
anticipated The whole programme vii
b practically completed by the tim
No coming campaign starts"
he In IA nj
mills resulted in production NJ the La
gareno estate OF only 1920 bags
against a forecast OF nearly $50. o00. On
smother estate. the Moron, the prfsiden
stated. total production was about '7o.0o
sags less than had been ant!ctpa ted.
A much larger amount Of cane tor IN
coming years operations Is available M
president declared. and estimated thH
with the same yield "a in the case Of tn
1s17.Isls crop and with favorahl
weather and adequate labor the tot7
output should be approximately 100000
BAGS, q substantial increase from prev
Gus years The cost of production pc
POUND in 1918, according TO the repor
was aces cents against 3.43l cents |
1917 and e74s cents in 1916. The con
Darst!ve earnings a pound for the sam
three years were 1890 cents in 1871
I4-s cents in 1917 and 4.112 cents