The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-23
RECEIVERSHIP NOT
NEAR SAYS SH0NTS
marlborough Consolidated Re-
port Gives 1918 Earnings
as 81, i02,176.
PLEADS FOR HIGHER FARE
Gives Increases in the s'COsts
of Everything" as Reason
for Situation.
PLEADS FOR HIGHER FARE

fhat no receivershlp for Intcrborough
Consolidated Corporation is imminent
WAS the statement made at the annua,
meett.; Of the stockholders OF that cor
roration yesterday by Theodore p
shonts president Of the company. In re-
srorse TO the question Of stakeholder
who inquired IL a receiver for the COR
poraton was likely in the near future
The statement OF earnings as given
IN the annual report made public yester-
day was small indeed compared with
that of last year. The total income for
tho twelve months ended December 81.
1918. was S4,402,176. against S6.e55.SO6
year ago. Expenses, taxes. interest,
&C.. were virtually unchanged from last
wear and totalled s3.s77.2S1. leaving
net income Of S72+.s14. against s3,2s3.-
aloa year ago. This was equal to only
Sihs share on the preferred. whereas
last years earnings were equivalent TO
- cents A share on the common stock
after provision for the full per cent.
dividends on the preferred.
or the total income OF the corporation
s4.2s9i0O represents dividends aggre-
eating 1917 per cent. on the capital stock
of the Tntcrborough Rapid Transit Com
pany owned by the consolidated corpora
ton. The remaining s1s3.075 was re-
,elved from interest and dividends on
other securities and from interest on
loans. bank balances, &C.
Total expenditures for the year were
s3.s77.2e1. More than $4,000 900 of that
amount was paid in interest on $751;
$4,000 PETERBOROUGH Metropolitan AZ
per cent. collateral trust bonds; S73,6s0
in interest on advances from the Bank
ers Trust Company and on bills pay
able; s300. 900 Was paid into the sinking
fund OF the InterboroughM Metropolitan
bonds and the remaining sc5l.45 went
for administration and general expenses
and for taxes. After all charges there
vas available for dividends a surplus
o. te37o,270. which was reduced to
net surplus OF S1,6s416S by the pay
ment OF / Il per cent dividends on the
preferred stock last April. An appro-
rriation OF $3.50. 900 was made in June
from the surplus account for the reduc-
ton Of the sum advanced by the Bank
ers Trust Company from sl.25o,o00 to
100000.
Argues for Increase of Fares.
The general balance sheet as Of De-
cemher 81. 1918, shows total assets and
liabilities OF Sl25.5i0.4ia. Current as
Ytts total s2l29,9Ol and current liabili-
ties sl570.93i OF the former amount
more than $500 900 is in cash. $500, goo
IN bills receivable. $500. 900 in Liberty
Nonds and the remainde- in accrued in
,erest and dividends and in accounts re-
cevabie. The current liabilities are rep
resented by accrued interest on Inter
borough metropolitan bonds, unsolicited
dividends on preferred stock. taxes and
interest accrued and bills and accounts
payable.
49, yl,.NIi n -
,o-panying the income report Presi-
cent Shonts presented at length his Argyll
lnents for an increased fare and took
occasion to critiCise the local authorities
ror not granting the increase which
lad been requested. He pointed 10 n
,reat increase in operating expenses
Fought about by war conditions and
~ Government price fixing az the reason
'cr the situation in which lnterborougI
low finds itself.
The costs OF everything, he said,
nave mounted higher and higher. 1t
'ecame necessary in order 70 complete
ne Interborough's part OF the contracts
- raise about s40,ooc,00o in addition TO
-. si60.oO0.O0o originally borrowed.
'hs was done by the issue OF short
torn notes dated SeDtember ]. 1918.
fggregating s39.416, 600 and secured by
SCI $4,000 of the first and refunding
IG1-,eage bonds as collateral. This or
course greatly increased the fixed
charges payable for interest and sinking
-lnis and operating costs scared.
Wages and materials were on war
1ss's IN competition with Governments
.av,nE the taxing power OF the world
49, ready. IN order to win the war. to
lav catravagart rhres for labor and
material. These nigh costs continue,
"hav need not he detailed here beyond
foynC that materials and supplies have
Increased from so to 900 per cent. while
81 wages enormous increases have been
,-arted The total amount of wages
for operation and maintenance) at the
rates OF pay in effect September 10,
''ls. is $3.50. 600 a year greater than
I've amount would be at the wage rates
.a5 on January I. 1916.
"In place OF earning the returns cal
c..ated, large deficits have arisen and
'7rser ones are in sight, Provision must
- rade n meet these deficits. They
80 the outgrowth of abnormal condi-
lions, and being an emergency should
IL met by an emergency measure-ar
'aoreasc in the fare.
New York Railways Condition.
"Tho Peterborough Rapid Transit
Company had accumulated a cash sur
Nus az more than S10,000.000 out OF
wN'oh to take care Of operating losses
,u-.ng the lean years heretofore men,
'n-ed. This, however. is no longer ade'
g.a'e and It is being rapidly ex'
houe'ed"
7. d.scussing the affairs Of the New
York Railways Company. which Is also
"eEnG higher rate OF fare. Mr.
''rr's continued:
The situation Of the New York Rail
'a"' Company is in many respects sim
az - that Of the Intcrborough. The
i'r'r pal objection raised to increasing
''e fare has been that the rentals q
'-" leased lines are too high. We car
'''" reply 10 this by saying that th'
esSregate net rental paid during III
3s'al year ended June 30. 1918 S1,621
'iiD, Tor the leased lines Is exactly ~
i"r cent upon the aggregate stocks ant
h0ris Cs2l6l2.l4D in the hands OF thu
fih.l" at the end of that year; tina
IN appraisal by Ford Bacon Davi
~ the actual property belonging to tn
Nrers ~ the leased lines devoted t.
.'-e"t railway operation shows that i
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