The daily morning journal and courier., 1905-09-23
. ,Etxls- 42a ANNUAL REPORT OF
 CONSOLIDATED ROAD
(Continued from First Page.)

cept that the dividends received from | these lines are included in the item of | income from other sources.
 The policy of the company in acquir- | ing the securities of leased and control | led lines has been. continued, and $5, | 337, ,67S has been expended. for that pur- | pose during the year. New equipment | to the amount of $S,564,522 has been | purchased and charged to new equip | ment account. About 195 miles of new | steel rails have been laid.
 Regarding the Central New England | railway, the report says the control of | that line has not returned to the com pany's treasury the interest upon it's cost, and thus far the advantage of the | purchase has been only indirect The | physical condition of the property was i such that a considerable outlay was necessary to bring it to standard to l obtain results desired, and this outlay 1 has not only absorbed all available net | income from the operation of the prop | erty, but required advances from t1e | company in addition. Arrangements | have been completed for the transfer l of a portion of the freight business heretofore handled by way of New York harbor to this line, and as fast as 1 the improved condition of the line will 1 warrant other diversions will be made 1 It is announced that the Newburgh, Duchess & Connecticut railroad, which | was recently purchased, will be operat- ed by the Central New England as a l part of its lines, contract covering such operation having been agreed up- on. The purchase price represents in interest charges the rental that has been paid by contract for many years for only a portion of the line. In referring to- the purchase of the New York, Ontario & Western the re- port says that the purchase was made November 1, 1904, of 291, 500 shares of | the common stock and twenty-two shares of the preferred stock of that | road, constituting the majority of the shares. The cost of this stock was $13, 1 983, ,197 less dividends received shortly | thereafter of $S74S00, making the net cost to the,iNew York, New Haven and Hartford railroad SIS, 3,1OS,397, which amount is included in the cost of in- vestment in stocks owned"
 l A careful estimate warrants the I earnings of the New York, Ontario & Western Railroad company will justify l (and so far they have) the payment of dividends upon it's stock sufficient to | cover the interest charge incurred by this investment, and the control secur- ed is of value for the protection of the interests of this company in many ways. The purchase was financed tem- l porarily by the issue of promisory notes maturing July l., 1905, which notes have been paid out of the pro- ceeds of an issue of 100000 of fifty year four per cent. debentures of the company, dated July 1, 1905, the balance of the proceeds of such issue have been l devoted to the general purposes of the 1 company.
 The report then gives a statement of the operations of the Consolidated [ Railway scompany for the year ending June 30, 1905, showing the gross earn ings to be $4,567, ,97S.52, net 1 earnings $1,6S2,3568S Other fig ures in the company's opera tions are miscellaneous income, $13,391.- 35, showing surplus of $1,695, ,748. .23, which, deducting charges, taxes and | interest, etc!, amounts to $1,264, ,4145S, making the, amount applicable to divi- dends $4S1, ,3S3.65. Of this amount $2OO,- 900 has been paid to dividend to the | New York, New Haven & Hartford Railroad company which owns all the stock of the consolidated railway com pany, and the balance has been carried into surplus account.
 Considering the financial year, says
 the report, ending June 30, 1905, was one wherein the system of roads was acquired and merged, and the advan-
 tages of concentrated control and the
 economies resulting were not available
 there is every reason for satisfaction
 and confidence of improvement in the
 future.
 Touching upon the steamboat prop
 critics, the report says that the various | water lines acquired by the company have during the fiscal year just closed been consolidated and merged into two,
 namely the New England Navigation
 company and the Old Colony Steam-
 boat company. The earnings of the
 above companies for the year ending
 June 30, 19O5 were: Gross, $4,549 659.19;
 expenses, $3.SO0, ,S25.55, making the net
 earnings SPAS, S33.64 Less taxes, inter
 est, etc., the amount is $142 OO235 malz-
 ing a surplus of $606, ,S31.2 Of this
 amount $3OOOOO has been paid to a di-
 vidend to the New York, New Haven
 and Hartford Railroad company as the
 owner or lessee of all the capital
 stock of the steamboat properties, and
 the balance has been carried to surplus
 account.
 "!