Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1919-04-07
NEW HAVEN NET INCOME
DROPS $36o57o IN YEAR

nc StdlctHeill OF the 3HalrS or the
New York, New Haven and Hartford
Railroad company for the year ended
Dec, 81, 1913. has been sent to the
stockholders. The most striking diff
ference from previous statements is
the absence of operating revenues and
expenses from the income account.
The operation of the railroad during
the calendar year 1913 having been
performed by the railroad administra-
ton, the revenues are received and the
expenses are paid by the director gem
eral. For the informa ton of stock
holders the operating results and sta
tistics for 1918 are inserted-as an APP
pendix-at the end of the statement
The corporation receives a specific
rental of SIT, .SS4.34, being the aver
age annual railway operating income
during the three years ended June so.
1917.
The corporate income account
shows that besides the rental received
from the director general there is
total of other income of S5,562.53 81,
making a gross income OF $22, 658,4l7.55,
The expenditures, being principally
rentals of leased roads, interest on
funded debt and interest on unfunded
debt, amount to sz0,o14, 899.12. This
caves a net income applicable to the
year of ,04S,525.43 had the subsi-
diary companies which paid dividends
in 1917 paid the same dividends in 1918,
namely, $4,000, the income would
have been s2,992, 525.43. This dividend
income will come from the subsidiary
companies, all of whom have competed
their contracts with the director gen
eral, when he is in funds to pay the
rental due under the contracts and
permits the dividends to be paid, but
not having been paid during the calen-
dar year 1t could not be included tech
nically as part of the income for 1918.
The result bears out the prediction of
the management that the net income
would be substantially 100000. or a
little more than ] 80 per cent. on
$157,11I900 of capital stock
The annual compensation for the
year 1919 will be increased to $17,173.-
| 1886 due to q, restatement of the COM
panys income by the interstate COM
nefce commission and this amount
will be still further increased by an
| ProXimately 100000 interest on the
| expenditures for Improvement work
| for the year 1918.
| The expenditures for road improve
ments for the year amount to S10074-
| 053.I9, among which was the Thames
river bridge, which was completed and
put in operation in January of this
year. To carry oIt the program OF
| improvements the company arranged
to borrow s10.oG0,00Q from the director
general. and 100000 from locaI
banks. The total short term indebted
ness of the company was $57,024,o00, OF
which $51,475.000 was loaned by the
government s43, 964.000 to refund for
mer notes and the balance TO pay for
! y 0an
ed to make Liberty loan subscriptions
and $2.995,00O represents short tern
notes to local banks.
| During the year the company's
equipment was increased by 1906
! hopper coal cars and 50 Santa Fe type
| locomotives For the coming year the
federal manager and the company
| have have agreed that if funds can be
| secured on proper terms approximately
i $1,000 600 should be expended to con-
tinue the program of improvements
i the principal items being the Cedar
| Hill yard and New Haven station i'm
| provements, engine houses and shops
in the vicinity of Boston, new and i'm
proved bridges. signals and increased
weight of rail, track material and thu
completion of the New Haven New
| York telephone and telegraph cable
line.
The company presented its claim fol-
additional compensation as follows
Average annual excess car hire pait
during the three year period, $1492,,
/ 061.92; interest at per cent. on thu
cost of additions and betterment
amounting to $7,2t4,026.08 to enable
the company to obtain economies from
the use of Santa Fe type of engines il
hauling heavier trains, s432, 941. Sc; to
tai 81 a24e0342
/ 1t also claimed the reasonable ex
penses of the corporate organization
during federal control and any savin.
in the cost of conducting the fedora
valuation due to the fact that sucl
valuation was nearly completed.
The company represented that thes
expenditures which the stakeholder
had made in keeping New England in
dustries in operation during the perio
, of congestion, and in improving tn
property, would be enjoyed by tn
. director general during the period o
, federal control without compensation
to them. If these claims had heen al
lowed and the company been permitte
to receive as dividends from It's affil
lated companies the amounts receive
, during the test period, there woul
have been net income of approx
mately s5,00o.0o or return of nearl