New Britain herald., 1915-11-16
ing that the chicken coop had been stronger.
 Assets S1S3,S15,OS2.83.


 "The direct and indirect assets of
 the New Haven company required to : be sold aggregate book value of
 $133,S15, 5,082.S3 or about 2S per cent.
 of it's entire assets.
 "Now the first effect of the dissolu-
 ton decree is to prevent the New Ha-
 ven company from declaring any div idends until it is known what can be
 obtained for these assets which it IS
 ordered to part with. It is one of the
 first principles of business that no 1 supposed profits can be divided untli 1 all losses are first made good. IT any 1 of you were required to sell 2O per cent. of your property within limited | time you would be very careful not to figure up your profits, however l prosperous your business might be, until you knew what you could get for the property which you were re- ouired to sell. This is just the case | with the New Haven.
 Increase in Revenue.
 Through the considerable increase | in business during the last five months, 1 coupled with some small increases in passenger and freight rates, the New l Haven is showing some increase in 1 it's revenue During the year ended June 30, 1915, although it earned s2,O73,32S3O less than it earned the previous year, yet through careful management, closer cooperation, greater care and efficiency, it man. aged to increase it's net income $3,- S51,95S99. Yet with all these com mendable signs of returning prosper ity and of efficient management I wish to impress upon you that finan- cial prudence forbids considering any dividend declaration until it is known what would be the real condition of the company's assets as compared with it's liabilities when these properties have been sold.
 Another effect of the dissolution decree has been to- render it i'm possible for the company to make improvem ents, extensions or addi- tions as it's management would like to do if there were no questions of it's future financing.
 New Bridge Necessary.
 "The building of a new bridge across the Thames river at New Lon don is imperative and it must be built strong enough to take the heaviest loads which may be anticipated will pass over it during it's life. This bridge will cost about $2,500,O00. Another $1,50o,00O must be spent in electrical facilities in order to get the full benefit of the identification be- tween New Haven and New York and diminish if not abolish the smoke nuisance iu New Haven so far as the railroad is responsible for it; $S,OOO,- | 900 must be spent for trackage, | yards and sidings.
 'The recent congestion on all of l the railroad lines was due to a lack of track room rather than to a lack l of cars. The demands of the New | England committee are growing by l leaps and bounds and they must be l satisfied in a reasonable way or bus mess will suffer. Regularity and safe | ty is to be assured by improved and | added signals at an estimated cost of $1,0O0,0O0. Passenger cars, steam l engines and freight cars must be l supplied at an estimated cost of over 1 5000, 900. It is save to say that at least $25, 100000 should be spent within the next five years, the most of which must be realized either from earnings or from the sale of property or securities.
 Decree Embarrasses Company.
 ''The dissolution decree embarras- l
 money which in ordinary times would naturally probably be through the l issue of stock which would be will , ingly taken if the company were on l a permanent dividend-paying basis. If | the company could be assured of the amount which it would realize from the sale of the properties as
 ordered by the decree it could then pretty nearly predict when New Iia- 1 ven would have a new station and the kind of a station it would have. l Another effect of the decree has l been to increase the cost of doing 1 business. When the properties sep l arated were, with the exception of the Boston & Maine, under a com- mon management the same general officers controlled them all. Since the decree it has been necessary for | each company to supply itself with additional officers with a correspond ing increase of salary list. It has al- so been necessary to compensate in some degree the trustees who in all cases have become directors of the properties and have devoted a great deal of valuable time to their opera = tion. This is no more than fair be- cause men of the character of these trustees could not fairly be asked to l devote so much time and energy to the conduct of these properties with out receiving some compensation. Never Finished.
 Another effect of the decree has been shown in the difficulty attend l ing any attempt on the part of the | separated properties to borrow ] money or otherwise finance them selves for necessary improvements. Railroads and street railways must continue to grow and improve if they