New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-03-09
RAILROAD INTERESTS.
HOW THE NEW ENGLAND WAS WORKED
n,vs,nrxr p,nsoSs,s REPORT SEVERE on
rorvrn Observation-Disclosures
or ACCOUNTS

OF ACCOtNIS.
The annual report Of TIE Ncw'forN ana Ny"
England Railroad has just been issued bS 'h'r'''
con. III. president, who ha, already handed In lis
.os,r,o,,o, IN take effect at the annual meeting 81
tho stockholders on March H. Mr.. Parsons. VINO Do
came president In March, 1892. docs not h"si'"" !"
ryliIcisc the results Of previous mnine'm'h'S anu "
hiring ont the effects o. the warfare wagd aca '"'
New. England Read By the New-,or" "'"''
and Hartford The fnancsl statement gives th'Se r.
.ul,s for the year ended December 81. lsH. Earnings
5000. 1875 operating expenses st.4i2.i4' net earn
,pos 81 sOs34s: fixed charges. si.S74,l33; deficit
s657s5: income from operation OF Boston i'arDot
transfer 1854 net deficit, s'ofJl Inc 'o'"' NV
Increase IN fixed charges In the year was sh''o'-'
For the frs; three months Of aSa. the net ear'''s
decreased slOs si2: for the last nine monts ,h'rc
was an increase Of eS04T'.
President Parsons says that In III" autumn ana
winter Of Isol-J2 the operation Of the road WAS ne
norallzed lv Inca pablo management and Yet. In ihe
mid, ,f thi, Generalization With sXly hhlE We
management IVES CHANGED twice. In pointing ou' no"
The read his been managed In ih" past Mr Parsons
SAYS: 1.-The cApeu-c Of advertising tie Lone Isahl
and Eastern states Liue during III" year lsoi'
amounting 30 Ss.lt2, was charged IN the expense, "
1902 lie adds
During the year I50i the car accounts OF 'o"H
oompany were deliberately fnlslh,d In manner
which your manarj ncnt believes. wiai p"Th'p' one
execution l. unique ~ IA" operation OF i'"'"'u'
During that year. month By month. tn" amount que
oth.r roads for U.s., Of their were sysicmatl'hln
reduced The nmCnnt which was thus SIMPLY S'o'n
from, other railroad comlanies during the year io'i
,,oa sso eIao; I'm any comilrlson OF the hgu"'
'or In. two years this amonnt must bc added '" 'h'
cxpcnsrs for the year 1891, ana tD"rcby rc"c' '"'
actual net earning. for that year b. %o'-'. ~ III"
freight car service expenses fer ls.@ show an increase
Il s3i.l77 ~. In which Is Included an amount WIN
held for January, 1-92. Of s,.s7G a. Dednc'ihs
not repDrt,d 10 other rO1us,
and withheld from them In Ir0l. the actual car ser
vice EXPENSES fQi the y'nr show decrease "i ~
GA o. IL wns not discovered unci long ait'r 'h'
n,esent management assumed control ~ your ROAD
that the entire mileage had not been reporso ana u
uos deemed advisable 10 keep the amounts retained
,,,or IN 1909 by themselves. and " make profit
and loss charge Of them when restttnuon was nAae'
The PRESIDENT SAYS that the time the dividend on the
stock was declared In the spring OF lsJ. Inc
management was ignorant OF the suppression IN looi
Of large amount which should have been charged 10
ncrattng expenses, and thereby decreased the net
,,,cs NJ tba, wear Mr. Parsons says that the
nrouoscd issue OF consolidated fifty year per cent
tonds (se5 900 Coo will provide for all outstanding
| bonds and give n snrpas Of assets much needed 10
enable the company to make Judi; Ions expenditures
which will insure return in earnings more Than e1nn
10 tho increased charges Mr. Parsons Is severe IN MS
| remarks regarding the New England Terminal Com
,ony md Its contrac: with the New-iorN hho W"
England The original coutfact provided that II inc
| rates mid for freight business handled by the Ter
| minal Company did not provo sufficient 10 pay IL
opcrntins expenses, Interest and 10 per cent o'Vi
| drnds, the rites should be her'h'cu "o" "' " ~
PRESIDENT Parsons adds;
"Thc rates frat established were almost lmme"'
| ,teIv changed so as 10 increase the New'Ensahn
| Terminal Company's revenue. but at no time n"nhf
| the period OF the operation OF the line dia IL cara
lts operating expense In lieu OF Increasing 'h'
Terminal Companys proportion OF The rates again 'h'
uousatonic and Neyv-York and New'Enginnd Ralr0hd
companies each made advances OF equal amount, i,I
' npn , ,S bends shaking ind charges. and the debit
| 81 The Terminal Company. This, whether in!enlola
| or olbcrwi.c vas fraud upon the Nv YORK nlio
| New. Eneland linilr0ad Company. I'M bialn"'- OF
the IIonsa,o nic Railroad Company via the I,rihn
| 1nmnanv was several times that OF the New ort
| and Sew. England kallrind Company. ana All dcn
ccncirs I'm tho revenue Of the Terminal Company shon
| have been made good by the raroad companies ~
| proportion 10 the business done by cach WIN IN.
Terminal Company. was provided by the contiIct
MIR Parsons ADDS the total loss TO the New Enginlo
| road growing out OF the New England Terminal Tom
| nqny's affairs was S3t0.6i2. lie snys: Many
additional facts ceuld bc cit TO show the INJURY
which the formation and operation of the Ions
Isiard and Eastern states Line was TO your company
and The unfair why In which contracts were made
| and The operation Of the line conducted TO favOl
| The IIousatonic Railroad Company. at the expense o
| vnur