Norwich bulletin., 1917-02-21

K, F New York. New Haven and Hartford railroad issued statement today say ing that the company "has every req son to believe" that it's $25, ,000, 900 Of obligations maturing May ! together with SIS, ,000, 900 notes of the New Eng land Navigation company due on the same date, twill be paid or refunded at or before maturity"
 ''The refunding of these for further period as preliminary step in connec- tion with permanent financing of the short term debt,' the statement con- tinues, land taken in conjunction with the company's expectation of selling further securities which 1t owns with view to reducing it's short term debt and increasing its railroad facilities, leads, the directors to feel that the present position of the New Haven from a standpoint of holders of its short term indebtedness is the most satisfactory existing at any time since this indebtedness was created
 The New Haven statement further says:
 Sale of Securities Will Cause Loss.
 The company and the New England Navigation company together own se- curities, the sale of which is required by court decree, having an aggregate par value of nearly $125, ,000, GOO and present value of at least SI5,000s000. The sale of some of the securities if made within the next two years will
 
 book loss to the company. On the other hand, the physical valuation of the company's properties, which in common with the valuation of other railroads in the country is proceeding under the direction of the interstate commerce commission, leads the direc- tors to the conclusion that the value of the company's physical properties en- gagged in railroad operation is largely In excess of it's book value and that increased value from this source will materially exceed whatever loss may be sustained from the sale of assets not required by the company in its railroad transportation business
 Will Leave Substantial Surplus.
 'It is the intention of the directors to sell such of the securities as the court decree requires to be sold and apply the proceeds to paying off i'm sebtednesS and to increasing the com pany's facilities with the expectation of offsetting by increased value Of the company's railroad facilities as men toned above any losses that may re- suit from such sales. The directors nave no hesitancy in stating their drm conviction that this will leave the company with a substantial surplus md will permit the completion of plans which have heretofore been held in lbeyance, permitting the company to finance on a permanent basis the short time indebtedness which has been out standing for some yearS.
 The statement was issued today af- ter a special meeting of the directors. Stockholders will receive, as soon as possible, it was announced, a detailed statement setting forth the company's financial position. Floating Debt Reduced by $1o,52o, ,oo0.
 A summary of the New Haven's con- dition included in todayS statement says that since June 30, 1914, the com pany has reduced it's floating debt and &s<--- company by SIG, ,520. 900, has paid in cash for new equipment $4 .187 900, and for additions to properties of $5, 5,S50,- poo, making a total of $20, ,557, 900. Of this total. SIS. 900 was paid out of earnings and current cash and $7, ,300,- poo out of investments and real estate. 1
 These figures" the company says, l include $2,337 900 paid on account of locomotive, passenger cars and other cars acquired under equipment trusts | and costing ss,77s,o 900, leaving s6,4ss,- 900 yet to be paid, but as most of this 1 equipment is now in active use, the l company is now enjoying the benefit of | not only the $20, ,557, 900 cash expend- l ed but also of the equipment repre- sented by outstanding trust certifi- 1 cates, having a value of $6,439, ,000, a | total betterment of $26, ,996, ,000.'
 Increased Earnings. The result of these expenditures. it | Is asserted, is reflected in the com l PdIy earning SIdbSAlO4LSs Wu4Cn the year ended June 30, 1914, showed | net earnings of $268,o and for the | six months ended Dec. 31, 1916, $4.546,- l 900.
 Expenditures Authorized. Further expenditures of $15. 100000 l have been authorized for the next IS | which the company says | should enable it to handle more traffic | at less expense with an annual saving | of $5,000,0 900.
 
 Net Earnings 1-2 Per Gent.
 Including the undistributed earn | ings of the New Haven and the com panies owned by it. the company says. | the total net earnings of the New Haven system for the six months end | ed Dec. 31. 1916. were nearly $6,0o0. 900 | or at the rate of over [ 1-2 per cent. | per annum on the New Haven stock | careful estimate of the | probable results from operation for the six months ending June 30, 1917, all ways the lighter half of the year. leads f the directors to hope for a final result of the years operation Of well over per cent. upon the capital stock, i'm cluding the uudistributed surplus of |