Norwich bulletin., 1912-03-21
SHOWS A SURPLUS
 AFTER DIVIDEND.
New Haven System Had No Difficulty
 in Maintaining Rate.

Official income account of the New Haven for the six months ended Dec. 31 last stills for the time being at least, all doubts as to the ability of the road to maintain it's long estab- lished eight per cent. dividend It shows, including results of operations of subsidiary lines, with all intercom- pany relations eliminated, full six months dividends earned with a sur plus of s1,504,932, or a divisible sur plus equal to 49 per cent. on the amount of New Haven stock in the hands of the public. In the fiscal year ended June 30, 1911 the combined income statement of the New Haven system showed small deficit after dividends of S313.283. These com bined statements include income of all subsidiary electric and steamship 1 lines of New Haven, and dividends are computed on the amount of stock actually outstanding, and not includ- ing the $21,471, 300 held by the New 1 England Navigation Co. and the The New Haven proper. i c., the steam railroad, reports 6 deficit for | the six months. of s1,942,227, after dividends This, however, is rather misleading, as no part of dividends ] from subsidiary lines payable to the | parent company June 30 next is in | cluded in "other income This de- l felt of practically s2,0OO,O00 in the 1 six months must not be construed as 1 a sum to be overcome by earnings 1 from operations during the current | half year
 l In the six months statement of New 1 Haven itself other income is credited
 with the sum of but s3,311,935. com pared with half of last years total l other income of S4,589,4 As mat ter of fact New Ravens other income for the current year will be fully as great and probably greater than for It911. the combined statement show ing the prof1tabIeness of subsidiary opera tions. Thus the true other in come" for the six months is at least 1 t$1, 100000 greater than that actually l received. this amount being the six months proportion of the total pay able June 80 New Haven's actual deficit for the half year may thus be stated to be not over sS00,000. And this is after allowing dividends at the Irate of S14.S15,376 per annum,. com pared with S12,454S52 in the 1911 year, although on the other hand New Ravens first half year always pro duces about 55 per cent. of total an nual net.
 New Haven s WorNng cdplIaI III the
 six months from July to December has been reduced 13,50o,0 900 from S44317.2S6 to $40,777,011. Compar- ison of current assets and liabilities
 as of June 30, and Dec. 31 last com
 pares:
 June. 30. Dec. 31. Current assets 3,522,317 $67,448,S4S Current liabili-
 Excess assets .. 44,817,2 ,2s6 3o,777,011
 The decrease in current assets is
 due to the sale last summer of the Boston bonds, which were carried in marketable securities" The bulk of lthis. $7,S71,02S, was expended for leouipment and construction purposes. The feature of the two six months reports Is the increasing profitableness of the subsidiary companies, which at last appear to be in a position to be lof material aid to the parent com Ipany. The surplus of S1,500 900 for the New Haven railroad system over land above proportionate dividends on the stock is, of course, due directly
 to these subsidiary operations.