New-York tribune., 1905-08-03
SHAKES OUT DIVIDENDS.
President MeIJep Stops Leaks in
Operating Nesc-HaUeas Road.

New-Haven, Aug. (SpeciaD-The State
press is commenting freely on the remarkable
change in financial conditions of the New
Haven road from the March to the June quar-
ter. The report for the first quarter of the
present year, ended the last of March. showed
a deficit of $417,224. The net earnings for
April, however, were approximately 100000
more than the previous April; May showed an
increase of about 10000. and June the same.
This is of course, a notable change from the
showing made in the first quarter and the evil
dent reason has been found. according to sew
eral reports, in the personal attention given by
President Mellen to the June quarter. 1t is
understood that Mr. Mellen went to the rescue
of his operating department less Wig
orously, with the result shown, At least that
is the assumption among those who say they
have intimate knowledge of the situation
among the officials Of the road to-day.
The deficit of the March quarter OF over $780,
600 was surprising as compared with the sur
plus OF S115,473 for the first quarter of 1904.
It was the first quarterly deficit to be reported
in New-Haven road statements. and for time
threatened to bring the earnings Of the COM
pany down to a dangerous level for the year.
The explanation for this deficit was officially
given out at the time as due to the severe
weather of the winter and the car service laws
of New-England. But II has been the fact that.
while the weather was severe and tied up busi-
ness generally, the demurrage laws were no
different in that period than before. The in
crease of S2800O0 in sums paid for the use
Of foreign cars in that period has not as yet
been accounted for, except on the grounds of
less stringent administration.
In some quarters the administration end is
being given the burden Of blame for this con-
diton. The gross earnings Of the road for the
quarter had been increased $493.929. but the
operating expenses had increased $767,430. thus
accounting for the net earnings decrease of $27S,
500. AS against this showing, the figures for the
June quarter, already announced in advance Of
the official railroad statement, are particularly
good. 1t is understood that for the three months
ended June 80 the total net earnings will be
about S6,105,485, against s4305,4S5 for June,
1904 Fixed charges for the same period will be
about 50 1872 900, which will leave to be used for
dividends $3,923,4S5 This will indicate sur
plus of net earnings above dividends of about
100000. There is good deal Of talk in rail-
road circles about possible results of practical
nature on this account at the September direct
ors' meeting.
WOULD PARALLEL CONSOLIDATED.
Some time ago there was vigorous effort
made by Boston capitalists either to purchase
enough street railways in this State or tnsti-
and trolley lines in a trunk line through this
State. The movers in this enterprise were the
banking houses of the Shaw interests in the
Hub City but the New-Haven road put up so
many obstacles that nothing was done about it
at that time. Since then various legislative at
tempts have been made and met to introduce
this parallel line. It is now announced that the
Shaw interests have plans for the construction
of an air line, electrically equipped. between
Worcester and Hartford the former city being
the Western Massachusetts end Of the Boston
trolley syndicate's holdings. AS the New Haven
road is now in possession of the Springfield troll
ley interests, this move of the Boston fnan-
cers is in the nature of a direct competition
The Boston arrangements are said to be under
full swing now, inasmuch as one Of the OBJ
stacles, the amendment to the charter Of the
Stafford Springs road, has been overcome by
legislative action.
The survey for this new road, which is to be
twenty-eght miles shorter than the Consolidated
tracks, will be run over a distance of sixty miles
Work is to be begun at both Hartford and
Worcester, well as in the middle of the pro-
posed line, and the road is expected to be opened
by the middle of 1907 The road will be run
west from Worcester through Spencer, Mass.
to East Brimfeld, where the trunk line will
turn south directly for Hartford. The cost of
the new road will be nearly S300000O although
the stated capital of the road is but $780, 600.
The fare by trolley is expected to about half
that of the steam road and the running time
hour more Between Boston and Hartford
by trolley the running time will be five hours.
When this extension of the big Massachusetts
trolley syndicate down far as Hartford is
finished 1t is expected in railroad circles that
the fight will again be started by this company
to secure parallel rights to extend it's line to
this city. Originally the Shaw interests had in
mind through trunk electric line from Boston
to New-YOrk by way OF Hartford and New
Haven. That scheme never panned out. It
is learned that 1t will again be taken up
A year or two ago the Boston interests tried to
secure trolley rights to run from Hartford down
the Connecticut River to Middletown. It was
at that time discovered that charter rights to
that line had been previously given TO certain
parties acting for the Consolidated road, who
had kept alive their rights to that extension
though they had never attempted to use them
This blocked the Shaw extension for the time
being. The same Boston people then tried to
work through the Legislature a plan to run an
electric line from Middletown to this city and
that was blocked. Just what the company will
now try to do is not yet known. but the rail-
road sky is beginning again to look cloudy