Norwich bulletin., 1917-05-03
THE NEW HAVEN
ROADS EXPENSES GROW.
Total Increase Was 1884 Per Cent.
Over the Year Previous.

Because of the volume of traffic re-
ceived from manufacturing concerns in
the New England states which were
actively identified with the manufac-
ture of munitions of war, and because
of the general business expansion irs
the New England territory, the total
operating revenues of the New York,
New Haven and Hartford railroad for
the IL months ended Dec. 81, 1916, were
unusually heavy, with an increase of
SO, 1926, 5S1, or 14.73 per cent, as COM
pared with the preceding year. Total
operating expenses increased So, 999, 81,
or 1884 per cent, the advance i'll ex-
penses being due to the unfavorable
weather in the first part of the year.
the abnormal amount of business,
which caused serious congestion at
many points, labor troubles and steadi-
| ~ increasing prices for fuel; material
and wage account. After all deduc-
tons, including interest, net income
was $5,544,977, an increase of sS96,S37.
In addition to the factors named
which contributed to the growth in
expenses, the company's payments
were Increased by a substantial expan-
sion in taxes imposed, the outgo on this
account being more than IL 1-2 per
cent. heavier than in the year before.
A part of this increase in taxes was
due to the larger federal income tax
and to the federal tax on capital stock.
Non operating income for the year
increased I,719,T6 or almost 81 per
cent, due to increased dividends re-
ceived from the Central New England
Railway company, from the New York,
Ontario and Western railway and to
interest from subsidiary companies.
Because of the increased volume of
business some of the subsidiary COM
panies were able TO pay their interest
on their obligations to the New Haven
and to pay also some of the accun1u-
lated interest which had not been
taken into the income account of the
New Haven unless earned and paid in
cash.
Deductions from gross income in
creased S1,S13, 204, due entirely to hire
of equipment, which increased upward
of 1873 per cent, on account of con-
gestion of freight, enlbargoes and lack
Of facilities by shippers and the rail-
road which prevented prompt unload
ing of cars. Profit and loss account
showed a credit of 513,240, 428, with a
profit and loss surplus of $12, 959, 774,
which represents the credit to the ac-
adjustments of values of securities or
other properties, some of which cam
rot be made for several years.
Under the decree of the federal court
must be sold. and according to last two
annual reports of the New Haven those
properties will be sold at a loss. but it
IS believed those losses will be Offset in
part by profits in companies which
have Increased in value.
Comparative results for 1915 show
operating revenues of $$5. ,365,
against $74.750,69s in 1915 and s6S.471.-
604 in 1914: operating expenses, S57,-
313,16s. against SAT, 1857, 951 in 1915 and
$40, $50, 229 in 1914: total operating in
come. s25. 125. 26S. against $24, 1877 ,677 in
1915 and 1924, 529 in 1914 The ratio
Of operating expenses to total operat-
ing revenues was 66.92 per cent. in
1915, $3.50 per cent. In 1915 and rs per
cent. in 1914.
Among the important increases in
operating expenses last year were
sS94,5S1 for maintenance of roadway,
$4,000 for depreciation on bridges.
trest1es and culverts, $174,102 for sig
service. s746,ss1 for repairs to steam
locomotives and $S56,71s for repairs to
passenger cars. Chargeable directly
to tran sportation, there was an in
crease on station employees account of
S1,153,7s9, on train enginemen ac-
count, $433, 545. and on fuel for train
locomotives, 31,414, $50.