New-York tribune., 1921-01-26
Deficit
Is $2,682,76O
In Six Months
Net Corporate Income for
Period E n d e d Dec. 81
Shows CreaterLosses Than
Preceding Twelve Months
Subway Revenue Drops
Increase in Wages More
Than Offsets Steady Gain
in Number of Passengers

The net corporate income of the In
terborough Rapid Transit Company for
the six months ending December 81,
1920, shows a greater deficit than was
shown in the financial report of the
company which covered the fiscal year
ending June 80, 1920, according to sta
tistics just completed by the company.
Statistics obtained at the office of
the Interborough yesterday show the
deficit for the six months ending De-
cember 81 last was ,682,760.03, as
compared with the deficit of $685.
1859 for the twelve months ending
June 80 last. In each case the net cor
porate income is obtained after the
fixed charges and operating expenses
have been deducted from the gross
revenue of the company. The figures
given do not meet or include the
preferentials due the company under
the dual contract, nor the interest on
the city's investments in the new sub
ways.
Wage Increase Big Factor
According to the itemized reports Of
the Interborough and the Public Serv-
ice Commission this tremendous falling
off in net corporate income lies in the
fact that the net revenue from the sub
way division during the six months
ending December 81 was only $lS1, 1913,
as against $2,630,953.75 for +he year
ending June so, despite the fact the
number of passengers carried by the
subway lines showed a steady ratio Of
Increase each month.
The statisticans of the Interborough
and the Public Service Commission
agree that the cause of this drop in net
revenue from the subway lies in the 8
per cent increase in wages granted last
June; in the cost of coal and the fact
that the interest on the new subway
extensions became a fixed charge as
soon as they were opened to operation.
The per cent increase in wages for
the six months ended December 81 was
estimated at approximately $4,000.
| 1t was also pointed out that through
out the history of the subways the
number Of passengers carried during
the summer months has been ma
terially lower than the winter months.
In connection with this the monthly
report Of the Public Service Commits
sion, completed for the five months
July to November, inclusive, gives the
following figures on the net income:
July, deficit S74,309; August, deficit
s176,914; September, deficit $45,279;
October, surplus S54,S52, and Novem-
ber, surplus $196,S3O. The Public Serv-
ice Commission figures for December
have not been compiled.
borough Rapid Transit Company show
the deficit sustained by the elevated
railroad division for the six months
ended December 81 was $2,864,749. The
corresponding deficit for the twelve
month period ended June 80 was $4,-
S66,789.44. The half yearly figures for
the December period are in accord with
the Public Service Commissions state
ment for the months July to November.
inclusive, which are $2381 1854. The
difference of $AS3,395 would represent
this division during the month of De-
cember.
The net corporate revenue OF the
company is obtained by subtracting
the operating expenses of the two di-
visions and certain fixed charges un-
der the terms of the dual contract
from the gross operating revenue of
the subway and elevated divisions. The
fixed charges include taxes, interest
anu SlllhlHS Aunu OH Clty UOHuS, III
terest and sinking fund on I. r. T.
company first and refunding mortgage
5 per cent gold bonds, interest of
three-year 7 per cent notes, and the
| fixed charges Of the Manhattan Rail-
way Company, representing the ele-
waited divisions that were preferred un
der the dual contract.
1t was stated yesterday at the Offices
of the Interborough Rapid Transit
Company that the revenue of the COM
pany for the fiscal year ended June 80,
1920, fell short of meeting the prefer
entail payments stipulated in the dual
contract by $7,611,552, not taking into
account any return upon the money
invested by the city in the new sub
ways.
The city's return on the old subway
is met by the rental clauses in con-
tracts / and g The above sum is
represented in divisions as follows:
Subway division, $1,o81 1892; elevated
division, S6,529,660.