New-York tribune., 1919-04-07
Delayed Dividends
Cut Net Income of
N. Y, N. III. & III. Co.
Railroad Administration Is
Out Nearly 81, 900, 900
on Rentals Which Are
Due From Subsidiaries

In the annual statement of the New
York, New Haven & Hartford Rail
road Company for the year ended De-
cember 81, 1918, sent to the stock
holders, it is pointed out that if the
subsidiary companies had paid the
same dividends last year as they did
in 1917 the net income of the company
would be substantially $4,000 900, or a
little more than $40 per cent on
$l57,117,900 Of capital stock. However,
these dividends have not as yet been
paid and the net income item on the
statement is recorded as $2,043,525.
The most striking difference from
previous statements is the absence Of
operating revenues and expenses from
the income account. The operation of
the railroad during the calendar year
1918 having been performed by the
railroad administration the revenues
are received and the expenses paid by
the Director General.
The corporation receives a specific
age annual railway operating income
during the three years ended June 80.
1917. 1t is interesting to note that
the statement records that of this
amount only S1,95O,O 900 was received to
December 81 last. The annual com
pensation for the year 1919 will be
| increased to $17,173,366, due to a re-
tot Nf bo
the Interstate Commerce Commission
and this amount will be still further
increased by approximately 100000
interest on the expenditures for i'm
provement work for 1918.
Subsidiary Rentals Overdue
The income account shows that be-
sides the rental received from the Di-
rector General there is total of other
income of $5,562,533 making a gross
income of S22, ,65s.417. Compared with
the report for 1917, the income aside
from rentals in 1918 represents q de-
crease of $1,O70,173. The expenditures,
being principally rentals of leased
roads, interests on funded debt and in
terest on unfunded debt, amount to
S20,614,892, an increase Of 81 1,034,SO
over 1917. This leaves net
income applicable to the year of
$2,043,525, or S360,57O less than in
1917. Had the subsidiary companies
which paid dividends in 1917, paid
the same dividends in 1918, namely
seas, 900, the income would have been
$2,992,525. This dividend income will
come from the subsidiary companies
all of whom have completed their con-
tracts with the Director General, when
he is in funds to pay the rental due
under the contracts and permits the
dividends to be paid, but not having
been pand during the calendar year
it could not be included technically as
"a part of the income for 1918.
The expenditures for road improve.
ments for the year amount to $1O,-
O74,053, among which was the Thames
River Bridge, which was completed
and put in operation in January of this
year. To carry out the programme ot
improvements the company arranged
to borrow $40 100000 from the Director
General and $3,00O,O0O from loca
banks.
the company was s57,O24,0 900, of which
$51, ,475,000 was loaned by the govern.
ment-$43, 1854, 900 to refund former
notes, and the balance, to pay for i'm
provements, $2,280,000, was borrowed
to make Liberty Loan subscriptions
ana 9G,SS0,UOU represents short term
notes to local banks.
Increase in Equipment
During the year the company's
equipment was increased by 1,5DO hop
per coal cars and fifty Santa Fe type
locomotives. For the coming year the
Federal manager and the company have
agreed that if funds can be secured
on proper terms approximately $7,OOO,-
600 should be expended to continue the
programme of improvements, the prn-
cipal items being the Cedar Hill yard
and New Haven station improvements
engine houses and shops in the vicn-
ity of Boston, new and improved
bridges, signal and increased weight OF
rail, track material and the completion
of the New Haven-New York telephone
and telegraph cable line.
The company presented it's claim fol
additional mpensation, as follows:
Average annual excess hire
paid during the threeyear
Interest at 6 per cent on the -
cost of additions and better
ments amounting to $7,214-
026.08, TO enable the company
to obtain economies from the
use of Santa Fe type Of en-
gines in hauling heavier trains 432S41 sc
Total 81 9O3. AZ
la. I. '