Norwich bulletin., 1921-12-13
CONNECTICUT CO. Is
BEGINNING TO COME RACK

A surplus of about $4,000 in the
treasury of the Connecticut Co. at the |
end of the current year IS forecast bv
returns filed with the public utilities com
mission for the II months ended Nov.
30. 1t will be practically the first time
the company has shown a surplus since
the war.
This reversal Of last years deficit Of
S1.436,000 IS attributed to the increased
fare together with the economies in op-
Grating methods, gradual reduction of
the cost in materials and fuel a slight
recession in recent months in rates Of
pay and relief from unregulated iitnev
competition
The records show that during tile pc
Rod Of arusteeship-seven years-traclz-
age of Is miles has been added TO the
Connecticut Co system, s2264 .oOe has
been spent for new rolling stock and ST.
100000 for additional power house ca
paeity and other necessary additions TO
! the properly If it should now be re-
t turned to the New Haven the property
would be in as fully good condition as
far as can be seen by utilities commits
sloners records as it was when separated
from the railroad company in 1914.
I The present federal trustees of the
! Connecticut Co. are Walter c. Noyes Of
New York. Morgan 2. Brainard Of Hart
ford, Charles Cheney of Manchester.
Leonard NJ. Daggett of New Haven and
Charles G. Sanford of Bridgeport. They
have constituted themselves a board Of
| directors and made Lincius s Storrs Of
New Haven, president. The trustees
were appointed by the court without anv
solicitation on their part. being prac-
tically drafted for the service
Judge Moves. chairman of the board.
is quoted as having said recently that
ha Ea rvfo l.
responsibility of acting as trustee
should the department of justice at
WASHINGTON see fit to change its pres
ent policy.
Recommended Return.
The return of the stock and manage
ment Of the Connecticut Co. 10 the New
Haven road. or the termination otherwise
of the federal control of the trolley
company was recommended in a special
report of the public utilities commission
submitted to the 1921 session Of the leg
islature after an exhaustive study of the
street railway problem. II was advised
that the attorney general OF Connect
cut be directed TO request the depart
ment of justice to reopen and modify
that portion of the Judgment decreeinr
the assignment and transfer OF the cap
ital stock Of the Connecticut Co. TO a
board Of Eve federal trustees largely on
the ground that it was a Connection;
corporation doing solely an intrastate
business. No action was taken by the
legislature.
Notwithstanding stringent financial
conditions brought about by excess cost:
: that forced the discontinuance OF pay.
ments OF rentals. and an extension o,
. time for the payment OF taxes to the OK.
: tent that the Connecticut Co. now owe,
the New 'Iaven Co $s44s.O0O for rent
: and the state sI,Ss2. 22O.s3 in back taxes
( the trustees have refused TO decreas.
the amounts srent for the upkeep OF IN,
= physical property in order 10 make ma
: ter.al reductions in operating costs L
years prior to the trusteeshin, q pc
cent. Of The gross income was considered
sufficient 10 keep the property in goo,
r condition. At no time since the trustee
ship has the expenditure for that purpos
n been less Than that percentage and Il
$ 1920 over IS per cent. OF the gross in
u 1 come was SO applied.
!. Dividends. 1T the rate OF 3 "a per cen;
were paid FOR :ne three years preceedinl
!; tn change Of control in 1914. The mos
prosperous period IN the eompany's his
{ tory was the second year Of the t-us
5 teeship when the net income. over to;a
charges. was atrifie less than $1,000. OOr
s. The operating costs for 1914, 1915 an
. 1915 varied from S5,1S5,000 TO $3.50.
5 600. The prevailing rate OF fare wa
five cents
Operating costs which were S5.s43, 90
in 1916. have more than doubled. L
1917 they Increased 20 1881, 900. s
L 1918. to Ss.l50.00o. in 1918 to $4,000
q and in 1920 TO s12, ~ 300 That is op
: Grating costs. taxes and fixed charges re
:. quired SO @nts Of each dollar revenue &
. 1916. 81 cents in 1917. sS cents in 1915
80 cents in 1919 and s1.l00 in 1920.
: Rates Of fare at cents. a distanc
: tariff with a minimum fare Of 6 cent!
a short fare zone with a minimum far
of cents were plans tried which faile
"a to check the decrease in net income Tn
~ only assistance which the trustees wer
i able to obtain from outside sources wa
q S1.126.747.SS which was advanced by tn
United States Housing Corporation
recognition OF the transportation need
of the variols Connecticut comnunitie
y supplying war essentials, and certai
equipment trusts. most Of which hav
o. been paid eff. No vital trackage wa
le discontinued. The legislature offered re
is lief in various ways.
o. The financial condition Of the Come,
E ticht Co. is one which has been commo
lie to all traction properties throughout ii
re UnitedN~Sta-es In addition to weati
Id ering the storm of financial condition
o. the Connecticut Co. trustees have keI
the property in good condition and hay
added to the physical equipment to kee
at pace with the growing needs of the con