Norwich bulletin., 1919-07-02
SHORE LINE co. ISSUES STATEMENT

.ssviafle in 1918 they were s1.47s,2z1. an l expenses, in these two years, had in 1 creased $3ee,55s more than revenue 1 had increased, in spite of the fact that ! in 1918, in an effort to reduce oper- a ting expense, we had reduced car mileage 1SS.4iS car miles.
 In 1914. our payrolls amounted to $4Ts,sst, aud in 1918 these payr6iis 1 had advanced to Ss1e.s5e, in spite of ] the fact that we had reduced our car mileage 59s,s47 miles. The effect of 1 this increase ifs wage. coupled with the increase in cost of everything all so that went into service. was to if1- crease our operating expense per car 1 mile from 27.sT cents (ihcluding taxes and Nentals) in 1914. to 44.ss cents Gf- cluding taxes and rentals) in 1918. and the earnings per car mile had in
 creased from ss.55 cents in 1914 to Ss.s3 cents in 1918. leaving, in 1914, sS- 1t6 cents per car mile with which to pay interest on bonds, and, in 1913. showing q loss of SAT cents per car mile Getting away from car mileage and using total figures of operation, in the year 1918 we nhad a net revenue Of st5,s41 with which to pay taxes Of $6S, 3e6 arid rentals and interest amounting to s4o2.4sos so that our ac- tual loss for the year without fguf- ing dividends of any kind, was $424,-
 
 which is the best property that We have, the earnings for the year 1918 show a net from operations Of $1S5,- COSTS with which to pay taxes and rentals. on that division alone,s of s2sa.so7.1s. so that this property has actually been a Burden to us fer the past year, and it should be borne in mind that these figures are tho re- wage scale entered into on June 1st, 1sIs
 The results of the operations for fs19. up to June) 1st. ttfae latest sss.75. This includes taxes only. Rem tals and interest due for the same pc riod. January 1st. to June 1st, amounts to s1eee7e.7e. which makes a total loss of s227.5s4.45.
 It will be seen that for the. first five months of this year we have not earned enough to pay our actual ep- erating expense, and the only way in which we have been able to meet our payroils and other current expenses has been through credit extended to us by The Eastern Connecticut Power Company in connection with our pur chase of fuel and the production of power.
 Tn 1916 it became apparent that one Of the heavy items Of hxpense, namely; power. could only Be reduced by the building of a modern power plant. An effort to finance this con
 
 in NeFv York and Boston. but the A. napeial condition and outlook Of the Shore Line was such that it was irn- possible to finance it without the eh-, then owner of the Shore Line. and he, finally, authorized the construction, provided the investment could be made in such way IS not to involve it with the affairs of the Shore Line.
 The Eastern Connecticut Power ra- nv. fas1 0nd construction begun, an agreement be- ing entered into with the Sh1re Line for the purchase of it's franchise rights to generate and sell electricity for power purposes, and part of the proceeds of that sale has been used to keep The Shore Line Electric Rail- way Company in operation. so that to- day it is using up its principal te pay for its oerstions and, of course, this cannot long continue ares .l
 Because of this unsatisfactory con dition of earnings. the ms na gefnent is now making g careful study of lxcfaed not taking care Of the actual operat- ins expenses these schedules will be reduced. which will. of course mean a reduction in tho number of men ersa- ra yYoIi. and evcfy. effort will be made to reduce opera ting expense to the point where earnings will cover it.
 This condition is not peculiar to the Shore Ldnn. Of the 4s.eeo miles of electric railway track in the I'nited States, nearly 5000 miles are now in l the hands of receivers and the nuna- Der is still increasing, During the 1 past four years 300 miles of track has been disnla ntled and sold as junk and l in addition to that the service on 1 nearly half that number of miles has ! been discontinued.
 The market value of the securities l of 1S represents tixe eiect-ic railway lines represents today just about one l half that of three years ago. and the l market value of the Kew York city l traction properties alone has shruTsk l 1as. 600, ,oeo in the past two years, and l the properties are in the hands of re- question of good or bad mana cement | but is brought about by tho peculiar l. resulting from the in creased cost of doing business and the ] value Of the coin in ! which our service is paid.
 The Shore Line is today owned by l the Estate of Morton r. Plant, De- cea sed, and the question raised bv your request for an increase in wa ge '. has been taken up with the executors , for final determination, and their l conclusions are that, executors, l they are not justified. and. in fact, l cannot legally put other funds of the !! are willing 10 forego their claim for 1 interest on the securities held by l -hefn long enough to determine wbe- ] her with changed conditions result ', ng from the signing of the peace -es-n1s the property can be made to i operate at profit.
 As consequences the manage KET GUIDE.