New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-06
Company Has No Desire to Re-
tain Outside investments,
Annual Report Asserts.
WANTS ONLY SOUND POLICY
President of Line Tells Why
Dividend Reduction Is Neces-
sary-Word of Cheer
for Stockholders.

the president, in the annual report OF the
New Haven Railroad, made public yes
terday, marks the completion of a period
in which your directors and management
deemed It essential. for the protection OF
its lines and the enlargement OF Its bust
ness and TO serve effectively the public
and develop the New England States by
comprehensive transportation system,
operating comparatively with your rail-
road, to adopt the policy Of acquiring an
interest in various transportation lines
adjacent to and serving the territory In
which your railroad is located"
In other words, as the wiseacres In the
Street put IT. the New Haven is through
with the policy Of monopoly. 1t has not
yet come to the point, however, Of con-
Tossing itself In the wrong. for Mr.. FL
lott goes on:
"rhese acquisitions, in the opinion OF
your board. were legally made. and after
due consideration It is the boards con-
viction they were for the best interests
VI tlo tOHpdIiJ tilo PupHN'
In case. however. the board OF d.
rectors should decide to divest the road
OF some or all OF these properties, after
it's special committees have investigated
and reported and g. conference has been
had with the Attorney General OF the
United States. the report provides this
loophole:
but your company has no desire TO re-
tain these investments. except In con-
formity with law and sound public
policy"
Disastrous Accidents Discussed.
This report OF the New Haven Railroad
system. ostensibly for the year ended
June 90, 1913. is signed by Howard FL
lott, the present executive, who did not
take Office until September l. But be-
sides dealing with the new policy OF the
system, put into effect since June 80. as
well as with the earnings OF the prop
critics in the year preceding that data II
discusses the two disastrous accidents
which occurred IN the interim. The d.
rectors met Friday and approved It.
Although the net income OF the system
for the year amounted 10 f.65a,3e7 the
New Haven paid out in dividends on It's
own stock and on the stock OF It's sub
salaries a total OF ,i1.7s7,03O, causing
deficit In the general income account OF
A.lg7.632 Mr.. Elliott. In referring TO these
figures. says
while the earnings for the first few
months OF the fiscal year were highly en-
couraging. being the greatest in the his
tory Of the company for a similar period.
the net results OF the year. compared
with 1912, show a large decrease, due TO
heavier operating expenses. which reflect
principally the expenditures made by the
company TO put the property and equip
ment In better condition to handle bust
ness safely and promptly and TO pay In
creased wages.
The unfortunate accidents at West
port, Conn. on october 3, 1917: at STAN
ford. Conn. on July IL 1918. and at North
Haven, Conn, on September 2, 1913; the
continued Investigations for several years
of the company and its operations and
the resulting Generalization and ex-
penditures made the year one OF I'M
usually heavy OUTLAWS.
From the standpoint OF gross earn
ings, much better results were expected,
but were not realized because Of the
conservative policy In manufacturing and
which restricted output and
orders 10 actual necessities, so as 60 be
prepared for any legislation that might
injuriously affect the business OF the New
England States.
Rsspo visibility Admitted.
while tho human factor was one cause
for the deplorable accidents referred 10.
the MANAGEMENT did not attempt TO evade
It's full responsibility. and the efforts of
the officers and employees were and are
being systematically devoted TO raising
the railroad and service TO higher stand
ards OF efficiency and discipline. all ne
cessitating larger expenditures and
higher wages.
''In maintenance OF way and structures
the increased expenses were not only Tor
wages, but for rails, ties, ballast. cross
overs signal and interlocking plants ana
station improvements. The Increase In
maintenance OF equipment expenses was
due to higher wages. to placing the roll
ing stock In sound operating condition.
the installation - superheaters on en-"
gines. the additional work and inspection
necessary to meet federal and state regu-
lations as to the equipment and the
larger number OF electric locomotives and
cars TO be maintained
In brief the features of the income ac-
count, compared with those OF the report
for the preceding year. are as follows:
Gross operating revenue. s6S,tlo,JoS. IN
crease A,l57l44; operating expenses w.
227 338. increase $5GO0,07; total net reve-
nue.. including railway tax accruals' VS.
3I6. s55. decrease s2.ls0.799; income from
other sources. Sl0.063,7Si. decrease }239,Ss3;
total income, S2S,3s0,6i0; deductions from
income. Sl9. 4SS. 402, increase &.o3.lO; net
income, s., 922 237, decrease A,i63,3l2; deficit
after payment OF dividends, A,H4'0Zo' IN
crease s3.63i.3S5
The increase in the transportation eN-
penses is explained by Mr.. Elliott as que
to increased train mileage 10 hahule IN
creased business, especially In the freight
service; to higher wages. fuel cost ana
claims for loss and damage.
Dividend Reduction Necessary.
'.This Increase" he says. I'm the cost
of operating is a general condition AFFECT
ing all the railroads Of the country, but
no question should arise as TO the wisdom
., ,hot mart NJ the Increased expenditures