The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-02
DIVIDENDS URGED
FOR THIRD AVENUE
Stockholders Committee Re-
ports That Road Has
Earned 8 Per Cent.
PRAISE FOR wHITRIDGE

The committee Of stockholders OF the
Third Avenue Railway Company, ap-
pointed by President r. W. whitridge
at the last annual meeting In November
to investigate the affairs OF the COM
pany. made its report yesterday. II
maintains that the stockholders are en-
titled TO return upon their invest
ment and that quarterly dividends at
tho rate OF l per cent. should be de-
clared after the beginning Of the next
fiscal year and not later than October
|. 1915. The committee also charges
that the directors at no time have
owned over ll3 shares OF the
stock collectively and that they rep
resent the interests OF the bondholders
rather than the shareholders. Presl-
dent whtridge and his associates are
praised for their management OF the
property.
Mr. Whitridge In his reply to the re-
port says that II IL in error as to the
amount OF stock held by the present
board OF directors He replies in part
as follows:
pos ng that the present hoard represents
only 1i3 shares of stock. As "A matter
OF fact I find that enc director Is the
representative OF a company which has
6.02j shares Of stock IN It's name and
two directors are members OF firms
who, at the time OF the stockholders
meeting held 2.722 shares and 2.Ot5
shares respectively Besides which
bel eve the fact to he that the present
directors represent many thousands Of
shares In addition
The committee. think, is In error
In considering the depreciation fund as
earnings and IN ts forecast OF what
the actual earnings will he at the end
o. the fiscal year"
The report said
I'm urging this policy for dividend
payments we see no reason why the as
sets " the company will not continue
To Increase even though these disburs--
ments are made.
We believe that the year 1914 was
the lowest point OF net income that will
be reached and that II the present able
management II continued the net rev
enues u the company will show con-
slant Improvement
THE special reserve fund for depre-
citation and contingencies from the
statement ending June 80 1914 has
reached a total amount OF Sl,l5e,75o
This amount was clearly q part OF the
net "a, uings of this property and should
he considered AS a part OF he surplus
earned since tho companys organizs-
tiou, January I. 1912. which would in
crease the net income from ,2,050,i73
TO ,320e,9:3.
I'm the year 1914 the surplus earn
lngs Of the company were s626,306, plus
the reserve created for depreciation and
contingencies. namely. Sbil.2j0, total,
St137,556. These figures show that the
net earnings OF the company for 1914
were the equivalent OF approximately $
per cent on the stock. exclusive Of the
high maintenance charges, which were
themselves very liberal offset against
depreciation.
ain addition. the surplus of the com
pany on June 30. 1915, will be Increased
by the total net earnings for the fiscal
year ending on that date"
The committee also approved OF the
purchase OF the Fifty-ninth street line
and ADDS that II pereves tna1 il viii
prove a growing asset TO the system.
Tho purchase OF other lines Including
the New York City Interborough Rail-
road Company, Sc, Is also commended
The Bronx lines show an increasing
ratio Of earnings and the committee be-
lieves the new subways will hasten the
development of this section and Increase
It's earnings