The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1913-10-06
new HAVEN ROAD
SHOWS ADEFICIT
Amounted to $4,127,632.64
During Year, Says Report
Just Issued.
BIG OPERATING EXPENSES
Accidents and Continued Investiga.
lions Also Said to Have Caused
Heavy 0utlays.

Inc annual report or the New YORK,
New Haven and Hartford Railroad Sys-
TEN for the year ended June 90, 1918, just
made public, shows a deficit in the gen.
craI income account of S4,127, SO. 81. The
operating revenues amounted to s95. $780,
466.O7, and the operating expenses to
1854 I7.JO. The net revenue derived
from outside operations was $64l, O6l.3O
making the net revenue for the system
S3O.157, OJ9.S7.
Taxes paid during the year were $685.
$685.. leaving an operating income of
S25,O74r 326.22. The income derived from
other sources, such as dividends, inter-
est, rentals, &C, was $4,979 1912; and de-
auctions from income on account of in
terest, rentals, &C, were 81 594, 33S7. -.
leaving net income for the year OF
S7,659,S gZS5. There was paid out in div
idends on the stock of the New York,
New Haven and Hartford Railroad Com
companies held by the public, total OF
$u,7SI,O30.40, making a deficit OF s4127,-
6S264
Statement of President.
In referring TO these figures, President
Howard Elliott, who signs the report, al
though ne did not succeed Charles S.
NIelen until September i 1918, says to the
stockholders:
While the earnings for the first few
months of the fiscal year were highly
encouraging, being the greatest in the
history OF tho company for a similar
period, the net results for the year,
corApared with 1912, show a large de-
crease, due to heavier operating eX-
UeuseS. which reflect principally the
expenditures made by the company to
put the property and equipment in
better condition 10 handle business
safely and promptly, and to pay in
creased wages. The unfortunate ac-
CideutS at WestpOrt, Conn., on October
3. 1917: at Stamford, Conn. on June
l.. 1913, and at North Haven. Conn,
on September =. 1915, the continued in
designations for several years of the
company and it's operations. and the
resulting decentralization and eXpendi-
lures made the year one Of unusually
heavy OUTLAWS. From the standpoint
Of gross earnings much better results
were expected. but were not realized
because Of the conservative policy in
manufacturing and consumption, which
restricted output and orders to actual
necessities. 50 as to be prepared for
any leEisla ton that might injuriOusly
affect the business Of the New Eng
land States.
While the human factor was one
ferred TO, the management did not at |
tempt to evade its full responsibility. !
nd the efforts of the officers and en- |
pIoyes were, and are being, Systemat-
iraIIy devoted to raising the railroad /
and service to higher standards of
efficiency and discipline. all necessi-
tating larger expenditures and higher
wages. In maintenance of way and
structures. the increased expenses
were not only for wages, but for rails,
ties ballast crOssoveTs, signal, and /
interfering plants and station i'm
prOvememts. The increase in mainte-
nance of equipment expenses was due !
to higher wages. to placing the roll
ing stock in sound operating condi-
ton. the installation of superheaters
OF engines. the additional work and
Inspection necessary to meet Federal
md state regulation as to equipment,
and the larger number of electric loco
motives and cars to be maintained"
Cost of Operation.
The increase in transportation expenses
Is EXPLAINED by President Elliott as be-
ing due to increased train mileage to
handle increased business, especially in
The. freight service, higher wages, fuel
cost. and claims for loss and damage.
This increase" he says, in the cost
or operating n a general condition affect
]
no question should arise as to the wis
dom Of that part of the increased eX-
penditures due to improving your rail
road and equipment, from which better
operating results are anticipated. All
OF these conditions, however. made II
necessary TO reduce the dividends of the
from per cent to 7 1-2 per cent
per annum. the dividend for the first
three-uuarters Of the fiscal year being
at the rate of per cent per annum
and the last quarter at the rate Of 6
per cent per aHnum."
Speaking of the company's general
policy, ne says:
The past year marks the completion
of a period in which your directors and
ma nagement deemed it essential, for the
protection OF its lines and the enlarge
ment Of its business and to serve eff
fcctivcly the public ana develop the New
England States by comprehensive
transportation system operated coop
pratively with your railroad to adopt
the policy OF acquiring an interest in
various transportation lines adjacent TO.
and serving, the territory in which your
is located. These acquisitions,
in the opinion of your board were
legally made, and after due consideration
that they were for the best interests OF ,
the company and the public, which is
II