The Connecticut labor news., 1922-10-20
U. s. Treasury Advances of $13,5oo,-
 oooto New York Central For Op-
 erating Losses" Remains Unjusti-
 fled.
By LEVI STEVENS LEWIS.


 Never since it was incorporated in 1853; not once in oo years, has the New York Central Railroad Company failed to learn" millions for its stock and bondholders.
 Official records show that after paying taxes, operating expenses and all other expenses, plus several mil lions that are neither taxes or op- erating expenses, the surplus remain ing on hand for the stock and bond holders, that is to say THE CLEAR NET PROFIT, during the four calen- dar years IoI6-IoIo were $333,o26,- 56o.57 for each day the sun rose and set, $o,523.35 an hour night and day, from December 3I, 1915, to December 3E, 1slo.
 In, total disregard of this unini: | :: peachablG official record, the sum of $I3, 10000 was "advanced' to the New York Central from the treasury of the United States early in >1oI8, which advances -four in number) were declared publicly to be "in com pensatlon for operating losses.''
 When the authorities in Washing ton were asked to explain these re- markable advances (and the false pretense) MT. Brice Clagett, assist ant general director Of the United States Railroad Administration, after one or two vain attempts to explain, finally terminated the correspondence with the admission that satisfactory explanation was impossible
 The figures, MT. Clagett declared, were taken from the books of the railroad administration and that "ev- cry source of information here in Washington" had been exhausted" and that that was "the limit of his in formation He further suggested that perhaps Senator Hitchcock could pos sibly reflect some light on the sub ject.
 Senator Kellogg of Minnesota pub hcly declared on the floor of the United States Senate that fit is per fectly evident that unless their net earnings are increased, a very large percentage of the railroads, including some of the best, will be in the hands of a receiver within a few months for inability to pay their interest and fixed charges" See Congressional Record December 6, 1919, page 2I7.
 The same senator sounded sini- lar alarm two months alter. He then said: "The railroads are going back into private ownership NOT EARN ING ENOUGH NOW TO PAY THEIR OPERATING EXPENSES AND INTEREST ON THE BONDS, LACKING $6o,ooo, 900 A YEAR" See Congressional Record, page 274o, February II, 1920
 Evidently the senator hadn't taken pains to get his information from accurate and authentic sources. He may possibly be surprised when he learns the truth of the matter
 Here are the figures compiled from the statistics of railways in the terstate Commerce Commission, the highest railroad authority in the land.
 The total income from all sources of all American railways during the four calendar years 1o16-IoIo was sufficient to pay "the operating ex- penses and the fixed charges" and "the interest on the bonds" and the taxes, and dividends to stockholders" plus hundreds of millions disposed of otherwise, and yet leave a surplus on hand in excess of TWO BILLION DOLLARS which was carried for ward as undivided profit" to be dis posed of later on, perhaps not alto gether with ,scrupulous regard to the moral and legal rights of "the own CTS" particularly the minority stock holders.
 In other words according, to the highest railway authority in the land, the total NET PROFIT during these | four years was not less than $5,682,- i 844,3 ,376. Note particularly the words NOT LESS" As matter of fact l there appears to be ample grounds (data that stands unimpeached and l uni1npeachab1e) for the suspicion that the profits of the railroads of the | United States appears to be SEW l ERAL BILLIONS OF DOLLARS every year greater than the official reports indicate. |
 A careful compilation of the sew era1 different tables; tables of diff ;erent class and different sections, he yearly net profits total up thus: Profits of 1oI6 ST ,222, 1928, 3,5o4 Profits of IoI7--------------------- I,I87,7I3,oo5 Profits of IoI8 I ,685, ,oo3,oo7 Profits of IoIo------------------ I,586, ,oo3, zoo Total profit 4 years---$5, ,o82, 2,S44,376 These several billions of profits are eported to have been distributed as i ollows: ( To the stockholders, 5H per cent, lamely the sum of ,742,458. To the bondho1ders, 38 per cent, ( amely the sum. of $2,I6I, ,o3o,I65. It Carried forward as surplus" to be i isposed of later on, 36H per cent, I amely the sum of $2,o72, I62,753. II