Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-10-03
MORE MONEY
Flows Into Railroad Cof-
fersAfter CutIn Rates.
Two.cent Rate Results In Gain
Instead Of Expected Loss.
nelIen Explains Advantages Ex.
pected From B. & N. Merger.

New Haven, Conn, Oct. 1.-THE an
nual report OF the New York. New
Haven & Hartford Railroad Co. for
the last fiscal year ending June -,
1897. is published today. 1t shows gross
earnings from operation of 1851 1896.
as compared with s52,934,322 for Tn"
previous year. Operating expenses were
:S1, S50.081. as compared with S31.222.a'6
for the previous year and net earnings
from operations were s17.751 .S54 as COM
pared with 317.761..35 the previous year.
Net earnings OF the company's street
railroad this year were $3,6l3.S99: from
steamship lines. sG35,127 and income
from other sources $2,017.S14, making d
total income for this year s24,0S0, 1855.
Deductions from income this year were
ST. 1914. a. compared with S2,I32ll5
last year and net income this year az
rlicable to dividends sS.S93041 as COM
pared with s10.1s5,377 last year.
There We're paid this year In divi-
dcnds less s5Gl.ti0 dividends on stock
owned by subsidiary companies. the
sum Of s6,9O4.36S.
The surplus after dividends this year
T., Il .3S8,O53 az compared with S3,1l8.2SO
last year. Operating expenses to gross
earnings were in the ratio of 6S.673 per
cent this year as compared with 66.4I'
per cent. the previous year.
President Mellcn in the text Of his re-
mort calls attention to the fact that
while the gross earnings show an in
crease of about five per cent. over the
previous year, the operating expenses
increaced about seven per cent. due to
Increase of wages. cost Of material and
an increase Of % per cent. in the per
diem rate for the use Of freight cars.
He recites an immense number OF i'm
nrovements in progress on the system.
He states that the work at Waterbury
is to he completed during the year 1908
and the second track and tunnel be
tween Waterbury and Bristol Will prob
ably be completed about the close of
that year. The New Haven improve
ments will be practically completed by
January, 1908 and the extensive PrOvf-
dence improvements including the tun-
mel, will probably be completed about
Il year later. Twentv-seven grade cross
ings have been eliminated during the
wear in Connecticut, New York and
Massachusetts.
President Mellen gives details Ut the
recent financing of the companies show
Ing THAT II Ids Ip" h'stp's'i s'i''i'.7 -
which 247.977 shares are held In the
treasury of subordinate companies
whose capital stock is all owned by
the New Haven company. Stockhold-
ers Of record Dec .. 1907. will he offered
the right to subscribe ut S12o share
to additional stock. one for four and
similar rights given to holders OF con-
vertible debenture certificates proper
tomato tn their rights as to future
stockholders.
Referring to the acquisition of the
Connecticut Railway and Lighting Co..
and the Rhode Island Street Railway
properties. President Mellen believes
that they will eventually become prof
table though for Il brief time showing
q deficit in their returns. He says their
control was important for the protec-
ton and growth OF other properties OF
the company. He says that the opera
tion of the newly acquired coast steam
ship lines indicate Il profit in excess OF
the interest upon their cost and that
they have important hearing upon the
rate situation. About s4.000.000 preferred
stock of the New England Investment
Securities Co. has been disposed of hut
no further sales of stock are possible
except at prices fnadvisable.
In regard to the Boston Maine
merger President Mellen says that The
present situation excludes rival inter-
ITO. saves one dollar per annEn per
hare upon outstanding stock and has
worked no hardship to the New Haven
.'nmpany, He adds:
"The Boston & Maine railroad 10
probably as little competitive and is
more supplementary and complement
arv to our system of roads than any
othnr railroad property with which we
ere engaged in business and the opera
ion OF the two properties in close
harmony with the economies naturally
-csulting would. Judging from exper-
'"nce. everywhere upon the system of
loads controlled by our company. rem
,Iar possible an improved service and
reduced tariffs: and if the Boston Il
Maine railroad can be acquired with the
good will of the publis it now serves:
it should prove a profitable busl-
ness venture. but if there is to be only
unfavorable criticism. misrepresenta-
ton and disparagement. 1t may be we'll
~ proceed no farther. but such invest
,nent as has already been made. even
III tnat event Is JuSttiltI tis't ~ 'ie'''
removed what could only be regarded
as menace to your property in pre-
venting the control passing in another
direction"
The Central New England Railroad Co.
earned last year gross s.. 1866 and had n
deficit Of s2SG. 499 owing to the use Of earn
irgs In repairs on the Poughkeepsie
bridge. President Mellen says that the re-
,,ahilitation of the property Is so far adj
vanced as to Justify rate OF interest not
exceeding per cent. upon the general
mortgage income bonds Of which his COM
rany own $e.31S123 out Of 81 COO total.
about nine-tenths of all the outstanding
"ecurities Of the Central New England
are owned by his company.
The street railway lines Of the New Ha-
EN- system earned during the last fiscal
ear $1o.62S ,O57 gross. and the steamship
lines $s.eH54s GROSS The insurance fund
Il the company now amounts to $40 .S46.
i, gain for the year Of :si.36s. The general
balance sheet Of the company now
mounts to sS74.To119. as compared with
IS. 4sssSS the year previous. The retluc-
ion in the passenger rate to two cents
y mile on the whole system, which was in