New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-05
PETERBOROUGH PROSPERS
Tripp and Parsons Hopeful OF
Company'S Future.
GOOD YEAR PREDICTED
Current Year Is Expected to
Earn $1,000,000 More than
Interest Charges.

Estimates as TO the future earnings OF
the marlborough Rapid Transit Company
on its bonds which are to pay for cost of
construction of new subway and elevat-
ed lines have been prepared by Guy E.
Tripp. chairman of the Westinghouse
Electric and Manufacturing Company.
who was prominently identified with the
reorganization of the Metropolitan Street
Railway, and by William Barclay Par
sons, Of Barclay Parsons & Klapp, con-
sulting engineers. The amount Of new
first and refundng 5 per cent bonds which
the Interborough will have 10 sell to cover
the cost of the construction work and to
retire it's entire funded and floating DEBT
IS now estimated at $560O,OCO. or sli'-
10000 less than the original estimate.
Both Mr.. Trip and Mr.. Parsons con-
cur on the point that in the current year.
with only the old lines in operation. the
Interborough will earn 100000 more than
enough to pay interest and L per cent
sinking fund on the $l56OO0,o00 bonds. This
is based on an approximate increase OF
s, 900, 900 in net earnings for the hscai
year.
Mr.. Tripp estimates that for the year
ending June 80. 1917. when II Is expected
that the new subway will go into operation
and when all of these bonds will be out
standing. the net earnings of the present
property, exclusive of the new extensions
and after provision for the depreciation
reserves required by the Public Service
Commission, will be about 2.50o'co in eN-
cess of interest and sinking fund on the
entire issue of bonds.
Mr.. Parsons estimates that TINS inquire
will he S255OO0O. 1t is based on what he
saws is the safe assumption that the in
crease in net earnings for the fiscal Years
1915. 1916 and 1917 will be $4,000 a year.
After the new subways have been IN OF
Grafton three years the company, in his
judgment, will earn twice its interest
charges. with regular increments there
after
AS to earnings of the completed sys-
tenn. Mr.. Trip gives an estimate for the
fifth year of operation, when, In his Judg-
ment, the marlborough will earn s0O'oO' .
600 gross and show sl5250,coo available Tor
interest, sinking fund and dividends. In
other words, in the fifth year OF opera
ton of the completed system earnings
will be more than sufficient TO cover the
full amount Of S4,416.351 to which the in
terborough has a prior claim and VIII
begin to make the company whole for
former years, when the amount OF the
claim has not been earned.
This prior claim. with earnings from
other sources, will exceed the amount re-
Quired for interest and sinking FUND on
s156OOO.OO0 Of bonds by over $4,000 &C
cording TO Mr.. Trips estimates.
Such a surplus from the amount OF prior
claim, which will be available for divi-
dends. provided no more than sl56,onoW OF
bonds are sold. will be equivalent to l5N
per cent on Interborough Rapid Transit s
$4,000. 900 stock. or so per cent more than
It is necessary to pay to cover the interest
on Interborough-Metrop collateral
trust AZ per cent bonds.
Mr.. Parsons estimate that the enlarged
system will earn twice its interest charges
in the third year indicates that he be-
lieves the company will get its full prior
claim by that year, for per cent interest
on $l56,0OO.0 900 bonds amounts TO SSOoWO'
twice which would be nearly Sl,0O0,0CO
more than the prior claim and estimated
other income.