The morning journal-courier., 1908-02-14
New Haven Roads Statement for the Last Quarter Re. veals a Drop of
 S1,154,000.
NEW RULING EFFECTIVE
Various Considerations Not Made Evident Makes Report Less UnfayOrablc Than it
 Appears.


 Haven and Hartford Railroad com pany for the quarter ending Decem- Der Slst, 1907, shows gross earnings of sH,1S0,6l4SS, an increase of s1O3, SO5 0S, as compared with the corresponding quarter of 11G6.
 The operating expenses were s1o,234,- S6i,27. an increase of sl,257 sSs.44.
 The net earnings from operation were sS,S9575o.59, a decrease of s1,154, ,55s.S6.
 Income from other sources than op- eration increased sS42,S4445.
 Interest. rentals and taxes increased ssS2. .63069
 The net income from all sources for the quarter this year was s650, ,SaS.25, a decrease of Sl,194,3i4.6O, as compared with the same quarter of 1906
 The figures for 1907 are based on the classification adopted by the Interstate Commerce Cohmission, July list. 1907, which materially affects comparison with 1906, especially in the items "In- come from other sources" and Inter state, Rentals, Taxes, etc.
 A resident of New Haven who is familiar with the operations of the New York, New Haven and Hartford railroad company when shown the above report said. that while upon it's face it was very unfavorable and in- dicated earnings of only about one third the required dividend fund for tho quarter 1t as whole was subject to some important qualifications favor- able to the company. In the first place, IS referred to in the statement, the fig- ures fer 1907 are based upon a new ruling of the Interstate commerce commission which ruling requires a large charge for depreciation which did not appear last year. Tn the second place the charge for operating expen- ses undoubtedly included the fifty cents a day per diem charged for detained cars amounting for the quarter prob ably to S700o00 of which in the end the company will probably be called upon to pay not more than half when the pending dispute over denurrage Is set tied.
 Again the operating expenses for the quarter did not include reductions in the operating force and car service and other matterg which at the present time are probably amounting to more than $50,000 a week, or say s200,0C0 or more per month. Moreover the com pany has been paying undoubtedly dur ing the quarter considerable sums for it's insurance funds and, as future re- source. will probably be able to draw possibly sloo.00o quarter in returns on its large investment in the Central New England income bonds"
 Al the foregoing matters said this authority, must be taken into con- siedration in connection with the mat ter of maintaining the dividend of eight per cent for the present year; also the fact that the company has an abun- dance of fun ls on hand derived from payments for the recently issued six per cent debenture bonds and amount ing to more than s2o,0o0.000 now for the most part in hand while other great railroad systems have to enter the market hereafter for new funds. The company also is still far removed from it's ultimate resources in reducing op- erating expenses in various quarters. X much better estimate as .o the fll- tule of the Now Haven as well as oth- CT great railway systems of the coun- try can be made at the end of the present quarter and when the length and depth Of the industrial recession are disclosed. For the time being it is worth noting that in proportion to its returns the New Haven is selling for higher price in the market than either the New York Central or the Pennsylvania each of which is selling lower than on six per cent basis re- l turn while the New Haven is selling somewhat higher than at that rate.