New-York tribune., 1920-09-08
I.R.T. Reports
$2,235,835.69
Years Deficit
$7,O93,1OO.7l Profit and
Loss Surplus Explained
as Not Representing
Cash or Quick Assets
Pleads for Fare Raise
45,797,452 Net Traffic
Gain, l24,95l,575 of
Which Was ON Subway

A second lnStalment OF the annual
report of the Interborough Rapid
Transit Company was issued yesterday
in which it is declared that, in spite
of the enormous increase of traffic on
subway lines, the net corporate in
come for the fiscal year shows a deficit
of S2,235,s35.69. For the previous year,
the report says, the deficit, in net
corporate income, was s3.8lo,339.92:
Pressing needs are cited and, on the
question Of receivership, it is said that
If a receivership is followed by the
cancellation of the elevated railway
lease, there would be serious loss to
the public both in transportation
privileges and in money. Explaining
this, the report indicates that with
the elevated railway lease cancelled
the northern terminus OF the west
Side elevated line would be at l5oth
Street, and If elevated lines are opera
ted separately, they might, under their
charters, increase fares 70 ten, or
fifteen cents.
Plea for Fare Raise
Regarding this years deficit, while
1t is not as heavy as last year, the
levels of prices for materials: the re re-
gpite increased traffic, the company
cannot operate profitably upon Ave-
cent fare.
The gross operating revenue Tor the
year ended June 80, 1920, is indicated
a. being $51,478,410.81, or an increase
of Ss,271 ,20O,9s, over 1919.
Operating expenses were, $3l ,695,-
208.98, an increase Of $5,461 ,882.58,
while the percentage Of expenses to
earnings increased from 607l per
cent last year to 61.57 per cent this
year.
According to the report, the sub
way division showed an increase in
operating revenue of $500, ,765.08,
1888 per cent, while the elevated
division showed an increase of $780,
435.90, $50 per cent.
The increase of 2Os2 per cent on
the subway was explained as an in
crease in car miles operated, number
ing 3,755.213 together with the in
creased cost Of labor for the opera
tion thereof.
The profit and loss surplus, which is
said to be exclusive of accruals under
contract 3, and related certificates pay
able from future earnings, stands at
9e1 80. This, however, represents no
cash or other quick assets, available
for current use, the report sets forth.
Profits and Loss
Apparently it copsists Of:
I. Advances to associated companies
to keep their service to the public
going. which advances cannot be re-
paid at this time;
g Reserve materials and supp1ies
TO insure continuous and safe opera
tion, and
3. Cash deposits required by state
and city authorities.
The report then describes the in
crease in rates of pay to employees
which became effective during the year
In part as follows:
August II. 1919. an increase of 25
per cent to employees who at that time
received less than $4,000 year, with
the provision that the increase should
not bring the employees pay to more
than $4,000 a year.
June 6, 1920, an increase of 10 pei
cent upon the wages in effect Angus
is, 1919, of all employees upon the
company's payroll.
The report places great emphasi,
upon the need of the city for NOR,
subways.
In conclusion, under the subheadin,
Of Traffic. the report sets forth tha
the number of passengers carried dur
ing the year was 955, ,1i0, compare,
with S09,335,658 an increase of 145,
Ts7,452. or 1901 per cent. the resul
Of gain on the subway division O
124,951,575, or 27.09 per cent, and
gain on the Manhattan Railway divi
sion of 2OS45S77 or & o2 nor cont