The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1876-09-26
DELAWARE AND HUDSON COMPANY.
Statement by President Dickson.

canal company
DELAWARE AND HUDSON CANAL Co..
New YORK, Sept. ~, 1865
AS unwarranted attacks upon the prop
erty and securities Of this company may
lead holders to take counsel of their fears
and sacrifice their property, the managers
feel justified in departing from the usual
course, and submitting q brief statement of
the condition of the company.
The general balance sheet of the COM
pany submitted to the stockholders in May
last, gives the assets and liabilities, aud
can be verified in detail by stockholders
who desire to examine the accounts.
In the year 1878 the net income appi-
cable to DIVIDENDS on the capital stock, az
ter deducting all charges to the business,
including interest upon the funded debt and
rentals upon leased lines was. So, 020,605 20
In 1874 Observation-Disclosures. 2, 049, S32 "A
In OBSERVATION-DISCLOSURES. 1929, 042 80
and there remains to the credit of profit
and loss, after the payment of the August
dividend, s745,904 03.
The financial position of the company is
strong one. Its cash assets are large, its
floating obligation small, and the managers
see nothing in the future likely to place
the property in hazard
to the leased lines and losses thereon. The
following statement gives the facts
1S73-Lo,s on leased lines, in
GLIDING interest on stock ia
sued Tor improvements, and
held by this company, the in
teres, going into its Golfers. S270,245
1S74-Do., do do............... 5t6,923
1S15--Do, do, do, Gncuding
dividend New York IL Canada
railroad) ...................... 623,GG2
IOiaL...........---..S ,4lO,S3O
While there has been falling of in the
gross receipts of the leased lines for the
current year, the expenses have been re-
duced in still greater ratio, and the i'm
provements made ia the substitution of
steel for iron rails, and iron for wooden
bridges, are having their legitimate effect
| upon the economies and 1t is safe to say
| that the loss upon the leases, including the
| New York and Canada, will net exceed
| those of 1875.
BY the terms OF the leases, stock or
bonds are issued by the lessons for i'm
provencUta made by this company, and it
is a euilici' mt warrant no improper Charge
are made to construction, that the proper ty
| OF the lessor il eIcumbered BY the new
| itsuts. WillNil liitJ alt BNl lihtlN " Dtibl
| for other than permanent addition to he
| property.
The cenal company il essentially coal
company and on the prosperity Of the coal
lrOde its ability TO remunera'e it's stock
holders largely depends. / has IA produc
tive capacity OF az least 4 100000 tons per
annum Ii owns its coal land, and owns
and controls lines for the transportation
and distribution Of its prcduc', witch SUI
ticiently demonstrates the fact that mod
crate profit upon ita tonnage will yield a
| handsome return to its stockholders.
| That the business of the present year
| promises to he unsatisfactory it would be
idle to deny, yet the managers can hardly
conceive condition of things that would
reduce the net earnings below the fixed
annual charges. The property, therefore,
may be regarded as perfectly secure and
with an intrinsic value of certainly double
the present market price.
The net profit upon coal sold upon these
lines and their connection. and which
could not have been realized but for thcir
possession, was:
| In 1S13........ ................... SJ69,4.S %
In 1874. 62J, 29J 10
In 1875 .................,.....,..".1 ,0S006l &C
Total. .........$2, ia, S34 80
A net gain from the leased lines OF S764, ;.
0O4 30.
This result fully justfies the policy of
selecting these lines, and the managers
| have every reason that IL will tell in in.
creased gains in the future.
| The New York and Canada railroad was
| opened for business in December, 1875,
the cost of the line being $4,000 81
| 600, 900 of which was realized from the
sale of mortgage six per centum gold
| bonds, and the balance was subscribed and
paid for by the company, of which they
hold the stock so that the fixed annua
charges which the canal company mus
provide for is $40, 600 in gold and ir
this first year of its opening, it is safe &c
say that one-h half that amount will be real
lied from the net earnings, without taking
into account the incidental advantages t.
to the Saratoga and Susquehanna divisions
and we venture to predict that when tht
end prosperity this line will produce yer,
satisfactory results.
With this statement Of the condition o
the company, the stockholders are left t.
draw their own conclusions. Respectful,
submitted,
THo5. DICKSON, President.
The balance sheet of which Presiden
Dickson speaks is as follows:
CONDENSED balance sheet Deld,caYe and Hud
son Canal company, Dec. 81, 1875.
DR..
Cost OF canal. ,339, 81
| Cost Of railroad and eQuiDmout.. q OOl "a