Morning journal and courier., 1893-03-09
NEW RNGLANDss REPORT,

II Says That the Road Has Been in {
Demoralixed Condition - Busine
Was Driven Away-Accounts Were
Deliberately Falsined-Managers OF
Rival Road disappointed.
NEW YoRK, March s.-The pamphlet re.
port of the New York and New England
for the year ending December 81, 1892,
just issued shows:
Gross earnings of 1920, 4s4 "a, opsrat.
ing expenses of 81, AIS, 148 76; net So, $685.
BATS; fixed charges 81 ,s74. 1872 %; deficit
$65, 7S5, 20. Income from Boston harbor
transfer 81, 354 90 and net deficit $50, 49,
81. During the year there was Q net In
crease in fxed charges of $33 .07s.3O. Gross
earnings decreased IS, 6s5 10, operating e1-
psnses increased SOC, 5000 and net de-
creased $107, 1856 80. The heaviest loss
was made In the first quarter of the year.
The report says;
During the first quarter of 1891 q de-
duction was arbitrarily made from the
operating expenses to the amount of sx-
penses, although incurred In the first quar-
ter was charged into the remainder Of the
year. The suppressed car mileage for Jam
uaEy, 1890 "bb G,Sto Or. Inle WAS not
charged until December, 1892, as the dis
covery of the suppression was not made
until late In 1892" The report further
says:
Correcting the above figures by the
restoration of these amounts to the periods
in which they belonged the result will be:
Decrease net increasings first three months,
$149, $50. II; increase net earnings last nine
months, $40. 353. 81. During the fall and
winter of 1919 operation of the road can
be said to have been in q demoralized con-
dition. The irregularities in the service
drove business away. In the midst of this
decentralization the management was
changed twice. In some cases the ralaries
of officers of the two arrangements had to
be paid twice. The Improbable Long
Island and Eastern States line was being
run at heavy loss, and large amount Of
expenses of this line was charged In the
first quarter of 1892.
''Dnring the year 1891 the car accounts
of your company were deliberately falsifed
In a manner which your management be.
heves with perhaps one exception is unique
in the operation Of railroads. During that
year month by month the amounts due
other roads for use of their cars were sys-
tematically reduced. The amount which
was thus simply stolen from other COM
Pohioo SukAA6 thO yCoA 3osL Voo WV
S12.A. In any comparison of the figures
for the years this amount must be added
to the expenses for 1891.
"The freight car service expenses for
1892 show an increase of $50, III 90, In
which is included an amount withheld for
January, 1892, of s., S76 "a Deductipg
this from the amounts not reported to
other roads, and withheld from them in
1891, the actual car service expenses for
the year show q decrease of see, 634 90.
"It was not discovered until after the
present management assumed charge of
your road that the entire mileage had not
been reported and 1t WAS deemed advisable
to keep the accounts of the amounts re-
tanned prior to 1892 by Themselves and to
make profit and loss by themselves. This
has been done since the close of the fiscal
year and arrangements made to pay the
amounts due with the exception of small
amount due one company.
During the sum of 1892 your company
was threatened with embarrassment by the
calling in of loans made by q Boston bank
which had stood by your company, but the
liberal advances made by one of the Off
GERS enabled 1t to meet all Indebtedness
promptly, and to dissppoint the managers
of rival road"
The report concludes with review of
its struggles with the New York. New Hs-
ven and Hartford. 1t Ii signed by Charles