The Bridgeport evening farmer., 1913-08-25
NEW HAVEN AND ITS 6 PER CENT Question of Earning This Divi- dend Rate Under New Con-
 ditiOnS Discussed ANOTHER DECREASE SHOWN Preliminary Figures Indicate 6.2 Per Gent Earned For
 Fiscal Year
ANOTHER DECREASE SHOWN

The New York, New Haven and | Hartford raad has submitted the quar- ter1y report for the period ending June 30, 1913. and although it is almost inn possible to tell just what the figures will be for year comparison with the figures for the first six months with figures for other years, taking there with some changes in the income and fixed charges it would make it appear as though there might be question of possible deficit for the current year even at a dividend rate of six per cent The financial status has created a lot of interest in connection with the dis Friday in New Haven.
 The report for the quarter ending June 30, 1913, shows operating revenues of $16, 1857, .43, an increase of $98, 710.- 96, as compared with the correspond ing quarter of 1912. The opera ting ex- penses were S12,195 ,193.45, an increase of $1, ,223, ,829.72. The net operating rev enue was $4, ,662, ,605 9S, a decrease of $1,- 127,118.76. The net revenue from out side operations decreased $405, ,476.46; taxes decreased $1O3, 116.36; other in- come increased $594, ,690.91.
 The gross corporate income for the quarter this year was $10, ,Oo6, ,135.43, a decrease of $834,787.95; interest, ren- taIs, etc, increased $1, ,438, ,067. 80; the net corporate income for the quarter this
  78S.67 for the same quarter of 1912, a decrease in net corporate income of $2, PIP, ,855.75 The New Haven system has reported to the Interstate Commerce Commits sion gross earnings for the year ended in June, 1913 of s68, ,613, GOO. It reports total operating expenses of $47,2227, 900. an increase of $5,123, 600. This wipes out the gain in revenues and $1, ,443, 900 besides.
 The operating income after taxes | was SIS, ,316, GOO, a decrease from 1912 of $2. .1oS, 900. In 1912 the New Haven earned a surplus of SIS, 385, GOO and paid $14 315, 900 out in dividends, so that there remained a deficit for the year of $93O, GOO. If the items of interest on bonds, rentals, guaranteed dividends, and other income received are not ma terilly changed from last year, 1t is apparent that with the decrease in net earnings this years surplus will not be more than $11, ,280,O00. The Boston & 1 Maine paid dividends up to the close | of the fiscal year, so that the loss Of l income from that source will not be | shown in the 1913 report.
 The New Ravens own dividend was reduced from 8 per cent. to Der cent l in the final quarter. The 1-2 per cent. paid on the $780, GOO of stock calls for SIS, ,15O, 600 that unless the l income is sweIIed from an unexpected 1 source the company promises to show l a deficit after dividends for the year | recently closed of more than $2,00o,0OO. If the new regime in, office is able 1 to effect material economies of oper- ation and administration, and if bus mess improves materially it appears | easily possible that at least per cent may be earned on the stock. Prel1m- mary figures indicate that the com II pany earned about 6.2 percent in the
 year recently ended.
 | consideration of the future II
 should not be forgotten, however. that
 fixed charges have been increased, and
 other income reduced by the recent
 action Of the New Haven and~Boston
 S5Maine directors. The 7,5OO,OOO or new per cent convertible bonds just
 authorized will require $4,5oo,O00 a year | for interest The $40,0O000 900 of per l cent notes to be paid off from the proceeds on December 1, and the $5,- | GOO 900 of 4 per cent. debentures that mature Feb 1 are carried at an an- nuaI cost of S2 200, GOO, so that the shift | of ob1igations will add approximately s1,s5o,ooo to the company's fixed charg- es. The loss of the per cent. on Bos- ton & Maine stock will reduce other 1n- come by $9OO, 600, making a difference I in two items of $2,750,OOO against next years income account
 The cut in the New Havens dtvi-
 dend will mean an annual saving ot
 s. Oo0 o0O It will be necessary for the
 company to, earn close to $1l,OO0,VUI
 surplus to pay per cent.
 As has been seen, the company ap- pears to have earned about $11, ,OoC in 1913. Whether 1t can earn enough more to offset the loss in other income
 and the additional fixed charges would ] seem to depend upon the changes
 which the new management brings
 about. the status of general business land the extent to which new funds 1n-
 vested in the property pays returns.