New Britain herald., 1917-02-21

short-term indebtedness, is the most satisfactory existing at any time since | this indebtedness was created
 Net earnings for the six months ended December 31 last were $4,546,- | 900 or at the rate of approximately 6 per cent on the stock. This compares with earnings for the full year ended June 30, 1916, of $4,3150 900; for the | year 1915 of s2,307,00O, and for the | year 1914 of $26S,00o. The present position of the company was described 1 as follows:
 "The financial position has been steadily improving since June 30, 1914 and is stronger today than at any time since that date. Since that date it has re- l
 duced its floating debt
 and that of the New
 England Navigation Go.
 in the hands of the pub
 lie $lO,5 51o,oVo It has paid in cash for new
 equipment ...... .... 4,lS1'ooo It has paid in cash for ad-
 ditions to it's yards.
 | tracks, terminals, and
 other facilities, includ-
 ing it's leased properties. 5,S5O,O00
 IOtal 9Ao' ,ooo
 ''The above has been paid off as fol- lows:
 Out of earnings and cur
 rent cash s13,257, 900 Sale of investm ents and
 real estate ............ 7,3OO,OO0
 Total $2O, .OOO During the last year careful study has been made of what the com- pany should expend to produce the most efficient and economical opera tion ,and an expenditure of about $15, 100000 during the next eighteen months has been authorized as fol- lows:
 For additional equip-
 ment l,O25,OOO For additional freight yards 5,5OO,O OO0 For additional tracks, turn
 tables, signals, interlock-
 ing plants, renewal and
 strengthening of bridges
 and for numerous ether
 improvements the exact
 details of which cannot
 be put down at this
 time ................. 9,175, 900
 Iotal ..... ........ $15, Ioo, QUO
 With these expenditures made, the company estimates that it can save annually about s5,O0O,OOO in opera tion of which $1,60O,OOO would be obtained through the use of more powerful locomotives, $1,2O0,0O0 from operation oi new freight terminals, $1,2OO,OOO through reduction in car hire, $700,000 from superheating, and $300,00O in various other items. As for dividend possibilities, the man. agement reports:
 "A careful estimate of the prob able results from operation for the six months ending June 30, 1917, always the lighter half of the year, leads the directors to hope for final result of the years operation of we'll over 6 per cent. upon the capital stock, including the undistributed surplus of companies which the New Haven controls. This represents what the capital stock is earning and what the directors in ordinary circum- stances, would use as basis for divi- dends, but it is clear to the board that, various questions which have arisen as a result of the decree re- quiring the company to dispose of part OI AIS assets. all llc HcI cdlll- ings should be devoted to provide the additional facilities which the above figures indicate will amply repay the expenditure.
 "The company and the New Eng land Navigation company together own securities the sale of which is required by court decree having an aggregate par value of nearly $125,- 000,000 and present value of at least $75,0OOO00. The sale of some of the securities. if made within the next two years, will undoubtedly represent a substantial book loss to the com- 1 pany.
 Ut is the intention of the direc- l tors to sell such of these securities 1 as the court decree requires to be l sold and apply the proceeds to pay l ing off the indebtedness and to in- creasing the companys facilities, with | the expectation of offsetting by the in l creased value of the company's rail- road facilities any losses which may result from such sales. The present 1 floating debt in the hands of the public, including the notes of the New England Navigation company, is 1 about $43.000,00o. At one time with ] in the last three years 1t was a little l over $56,000.00O. The company has l on hand a cash working balance of | about $5,00c.0O0, and IS carrying fuel and materials of value of more than $3,000,000 greater than that on June 30, 1914. all of these materials and fuel being paid for"