Waterbury evening Democrat., 1907-10-02
MAD BIG GAIN
Reduction in Passenger Raies 10 Two Cenis a Mile Boom
 ed Railroad Business
INTERESTING REPORT

| x Hartford railroad company for the last fiscal year ending June 30, 1907, is published to-day. It shows gross earnings from operation of $55, ,6O1, 1856 as compared with $52,- 9S4,322 for the previous year. Op- erating expenses were $37, ,OS1 as compared with $35, ,222 ,5S6 for 1 the previous year and net earnings | from operations were $17, ,S54 as compared with $17761, ,7335 the prev ious year. Net earnings of the com pany's street railroads this year were $33,615,S ,S99; from steamship lines $635, 127; and income from other ] sources, $2,O77,S74, making the total | income for this year $24,O8O, 755. De auctions from income this year were $15, ,187,714 as compared with $9,- 752, ,115 last year, and net income this year applicable to dividends, $S,S93,- 041 as compared with $10, ,lS5,3I7 last year. es -. ; | There were paid this year in divi- l dends less S546,44O dividends Aon l stock owned by subsidnary compan- ies, the sum of $6,9O4,9SS. The sur ! plus after dividends this year, is $1,- 9SS,O ,O53 as compared with $3,71S,- 2S5 last year. Operating expenses to gross earnings were in the ratio rsof GS.O73 per cent this year as compared with 66.477 per cent the previous year.
 l President Mellen in the text of his report calls attention to the fact that l while the gross earnings show an in- crease of about five per cent over the previous year, the operating expenses 1 increased about seven per cent, due to increase of wages, cost of, mater ial, and an increase of 25 per cent | in the per diem rate for the use of l freight cars. He recites an immense number of improvements in progress on the system. He states that the work at Waterbury is to be com pleted during the year 1908, and the second track and tunnel between Wa | terbury and Bristol will probably be completed about the close Of that year. The New Haven Improvements will be practically completed by Jan uary, .s190S, and tlie extensive Provl- dence improvements, including the tunnel. will probably be completed ! about a year later. Twenty seven grade crossings have been eliminated during the year. in Connecticut, New York and Massachusetts, twenty-two of them in Connecticut. The large contract for new equipment, deliver | ies of which have now for some tune been in rapid progress, include " locomotives, B electric locomotives 24 parlor cars, six sleeping cars, TOUT dining cars, 5OO passenger coaches, 5,W refrigerator cars, 11,3OO steel box cars. 4.5OO steel gondola cars, 6oO steel fiat cars, 16O open electric cars, a passenger steamer for the Fall River line and eighteen -barges. /
 President Mellen gives details of the recent financing of the company showing that it has now l,2lS,iSl shares of which 247,977 shares are held in the treasury of subordinate companies whose capital stock is all owned by the New Haven company. Stock holders of record December Z, 1907, will be offered the right to sub scribe at S125 a share to additional stock. one for four, and similar rights given to holders of convertible de- benture certificates proportionate to their rights as future stockholders. Payments of twenty-five per cent on the new stock, will be called for semi- annually, beginning January l, lsOS, with option to pay in full on each semi-annual date, and interest al- lowed at five per cent per annum on partial payments. (t -
 Referring to the acquisition of the Connecticut Railway and Lighting company and the Rhode Island Street railway properties, President Mellen believes that they will eventually be- come profitable, though for a brief time showing a deficit in their re- turns. He says their control was im- portant for the protection and growth of other properties of the company. He says that the operation of the newly acquired coast steamship line indicate a profit in excess of the in- terest upon their cost, and that they have important bearing upon the rate situation. About s4,e00, ,000 preferred stock of the New England Ivestment Securities company has been disposed of, but no further sales of stock are possible except at prices in advisable.
 In regard to the Boston and Maine merger President Mellen says that the present situation excludes rival interests. saves one dollar per an- mum per share upon outstanding stock of the Boston and Maine, and has worked no hardship to the New Haven company. He adds:
 "The Boston and Maine railroad is probably as little competitive and is more supplementary and comple- mentary to your system of roads than any other railroad property with which we are engaged in business. and the operation of the two prop critics in close harmony with the economies naturally resulting would. judging by experience everywhere upon the system of roads controlled by your company. render possible an | improved service and reduced tariffs, and if the Boston and Maine railroad can be acquired with the good will of the public it now serves, it should prove a profitable business venture but if there is to be only unfayora- ble criticism. misrepresentation and disparagement, it may be we'll to proceed no further But suen in vestment as has already been made even in that event is justified in that ! it has removed what could only be regarded as a menace to your prop erty in preventing the control pass- ing fn another direcfion-
 The Central New England Rail-