New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-25
n Y. CENTRAL. GIFTS
OPERATING COSTS
60 e42.75S Decrease inl9l4,
Gross Shows Only $751;
427 Loss in Net.
BALANCE TOO SMALL
FOR FOUR DIVIDENDS
Annual Report Mentions Only
Three Payments and Shows
Small Surplus.

The New York Central & Hudson
piver Railroad Company NOW the New
vork Central Railroad Company in its
srnual report issued to stockholders
sbows what strict economies were prac-
tsed 20 offset a drop in gross earnings
don, Sl22 6SS.S09 in 1918 10 S112.741,05
n 1914, a decrease of $9,942.75S. Ex-
,srses were reduced from S93,4l4.436
p SS4O3SI05. making the loss in net
revenue from railway operations only
1851 .427. The falling off in freight rev.
srpes last year was $6.753,SSS.
almost every community on tho
rst" saws President A. II. Smith to
he stockholders. "showS a loss in vol
pme. and the consequent decrease in
he density of freight traffic per mile
~ road was 3Sl,2l5 tOn-miles. The
decrease in passenger traffic. S2,765.729
was in ooth local and lnterIine ousl-
ress.
The decreases in operating expenses
are grouped as follows: Maintenance
n way and structures. SS,S93,64
maintenance Of equipment, Sl.726.246;
TRANSFORMATION expenses. S3.717,6 36,
which was due. says President Smith,
70 the decrease in the volume of bust
ness and the benefits in the form of in
creased efficiency resulting from pre-
vious investments.
Loss on Investments.
The New York Central's operating
income last year amounted TO $22,542,-
40. a decrease Of S36S.970. But non
operatinc income witnessed loss of
2587.-60. due TO less dividends hav-
ing been received on some of the COM
panys investments. principally in Lake
Shore & Michigan Southern and the
Michigan Central.
A total Of S14I31,5l4 other income
brought the surplus before fixed
charges I'D 20 $36.674325, which after
dsducting these various items left a
balance applicable 10 dividends Of S.
sss.672, compared with Sl3.243.55S the
previous year. In this connection the
report states that during 1914 only
three dividends were declared as
against four in the previous year. The
total disbursements 10 stockholders for
The two years were SS.45S,S90 and SILL
94S02l. respectively. The fourth quar-
,s.ly dividend for last year was not
paid until February !. 1915.
Deduct.ng the amount required for
The three dividends there remained
surplus Of S205.435. but had the four
dividends been paid last year there
would have been a deficit Of S2,500000,
sgsinst a surplus for 1913 amounting
70 S2000,53I.
Other deductions from corporate in
cone show an increase Of Sl,64S, l5j
cue TO heavier carrying charges on the
tompany's unfundcd debt. resulting.
he report says, from the financial con-
t,ionS which existed at the time when
-1tundel obligations had to be issued
o. extended. During 1914 there WAS
expended for additions and betterments
S5j59l4, and for similar items of the
Ines Of leased roads S4.761.S35. There
vas expended for additional equipment
E.3SG2S4
l. {. {. Decision Helps.
10 the extent of its application"
says President Smith, speaking of the
Interstate Commerce Commissions
grant Of higher freight rates to the
Eastern roads. "the decision of the
commission is helpful, besides inspir-
ing confidence in their general attitude
toward the railroads.
With respect 10 the purchase of the
stock Of Lake Shore & Michigan South
I'm IRON AO40CIS VINO WOu4O not agree
70 the consolidation plan, the report
Of that company makes the official an
lOuncement that 32,2O0 shares were
bought al $500 a share. There was
borrowed from the Lake Shore SlG,lOO,-
WO 10 make this purchase.
The separate reports Of the com
ianies comprising the New York Cen
trsl lines show the following operating
items Of income: Lake Shore & Mich
gan Southern, gross S5l,524,2o5. net
Nl,42O7O7; Chicago. Indiana d South
EN-. gross S42O5,19G, net S454.1O4;
Lake Erie & Western, gross $5,6O2.77l,
net S5674O2; Pittsburgh & Lake Erie,
gross Sl5597.354, net S4,614,439; Mchi-
gan Central. gross S33, 464,96S, net &c.
m7s5; Cleveland, Cincinnati, Chicago
s.. Louis, gross $780, $50, net ST.
si4086; Boston & Albany, gross SlG,-