The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-19

tegrity. In the last annual report you
were fully informed of the terms Of the
proposed settlement with the United
States Government. This settlement was
confirmed by "A decree OF the United
States District Court for the Southern
District of New York entered October
II. 1914, and the securities were trans
ferred to the trustees appointed there
under. Since then these trustees have
been In exclusive control of the respec-
tive properties. namely. the Boston and
Maine Railroad. the Connecticut trolleys
II the Rhode Island trolleys.
Since July /. 1913. there has been "A
widespread depression in business. Affect
ing adversely the earning power of your
property. for example, the gross operat-
ing revenues res as follows: For
the year ended June 80, 1918. 500
45s,79o for the year ended June 80,
1914. S67,+52,j 92 for the year ended
June 80, 1915, So ,379,263.
This business depression has also at
fccted all # 'he subordinate properties
In which your company Is Interested. 30
that the returns to you company from
these properties for the last year were
Si.759.610 less than for the year end
ing June 30, 1915. and sll3j.ijl less
than for the year ending June 80, 1914.
This large decrease IN earnings and in
come mad i necessary for the company
TO retrenCh In every way, During the
year continuous efforts were made to
adopt efficient methods and cncour-
age economical practice. There was a
total saving IN operating expenses OF
sj.loG $3.50 compared with "A loss in oper-
ating revenues of S2,073,32S. resulting
IN an Increase from railway operations
oc s3,o33.057.
reduction in Expenses.
Although there was a reduction in
expenses for maintenance of way and
structures and for maintenance of equip.
ment. the property has been well main
tained during the past year aud its
track and structures are In better con
di,ion than for several years.
"on June 80, 1915. the floating deb
Of the company In the hands of the pub
lie was s5O.i39. 600. including $50, 1000.
600 d per cent gold notes OF the New
England Navigation Company, hue May
!. 1917. for which the New Haven Com
pauy, as the only stakeholder, must b,
responsible. The company In the last
two years has spent for the protection
of it's properties the following 1915
s~3,2ai.Oj9: 1914, S7.Gls,939. This total
'S10.>e2 .99S, has been obtained from earn
iugs, from the sale Of property and
| from cash on hand In spite Of thes,
lAA sc alA'N VIM 80 -
exercising great care and pos'poning al
improvements that could be put on viii
safety. the debt In IN. hands Of the pub
lie OF the New Haven Company, includ'
ing the New England Navigation Com
pany. has been reduced since July I, 1915
S3@i..50: an increase In 1914 OF SO.
36i.25o. but "A decrease in 1915 o
s3.6s9. 900"
From July /. 1908. to June 80. 1915
the company has increased It's capita
obligations IN the hands OF the publ,
s36i.i02. 200. while in the same perio,
it has increased It's property s393,07l,
i"l.
Regarding the sale OF the company
properties under the Federal decree
Mr.. Elliott says; Under the decree o
the Federal court some securities mus
be sold hy January l., 1917, some b,
July l.. l"l1, and the remainder b.
July |. 1919. The decree, however
provides that the court may extend III,
q time for a good cause. The European
war started after the agreement wa
made with tho Government M ha
changed financial conditions IN the who'll
world TO such an extent that Il woul,
seem Just for the company 10 hay
more time within which "a dispose o
the various riuportics. II no sales can ~
I made on "A reasonable basis within tn
period now fiN,d 10y the court. At IN
proper time, II the properties have no
been sold, the management Will appl
"a the court for an extension of time