New-York tribune., 1922-05-25
New York Central
1921 Net Is Equal
TO 1898 a Share
Big Expense Reductions III
Last Three Quarters Drop
Operating Ratio From
93.7 to 1871 Per Cent

The New York Central Railroad
such an extent during the last three
quarters Of 1921 that the operating
ratio on tho years returns was reduced
from o3.78 TO 1871 per cent. The an
nual statement, which is in the hands
of tho stockholders to day, shows total
net income after bond interest and all
other charges, of S22,405 900. the equiv
nlcnt Of $S.93 n share on the capital
stock In 1920 the company earned
3,734, 900 on the basis Of government
compensation for two months and
guaranty for an additional six months.
but the actual result from operations
in that year was deficit Of S25,33i ,00o
after interest charges. surplus Of
S9717 900 was carried over into the
profit and loss account after payment
of dividends
Included in the nom operating in
come Of 1872 was an item of S4.2Sl 900,
representing additional compensation
and adjustment of standard return
during the period Of Federal control.
The net increase in income from other
than operating sources was about
/ $500 600 greater than the total OF that
itcm With 500 1850 900 OF operating
revenues as a working basis tho COM
pany effected saving Of S5,33A 900 in
maintenance Of way and structures.
S2S, $40 900 in maintenance of equip
ment and S46.G4l 900 in transportation
costs AS against these and other saw
inEs in operating expenses, agGrcgating
So ,299 900 there was a reduction Of
only $46, ,493 900 in total operating
revenues.
Revenue tonnage of freight carried
decreased 36,27S. 900. coal and coke
alone falling off 1857 900 and iron
orc 100000. Passenger revenue de-
creased S4,160 900 to a total of $50
432 900. The decline of $4,039000
in revenue from the transportation
of mail was explained in the statement
by the fact that the 1920 returns in
cludcd an adjustment Of compensation
for this service during the entire pc
riod Of government control.
The reduction of $54,237 900 in cur
rent assets was accounted for mainly
by shrinkage in special deposits from
S33 057 900 to 81 l.252 900. The balance
sheet also reported S13,303, 900 of loans
and bills receivable, a practically non
existent item in the 1920 report. The
fact that nearly all Of this amount
represented investments in United
States certificates, representing tenn
pOldTN tnploVintul Oh moneys HclU To b
provide for certain authorized addi- I
tions and bettcrments. bears out the
belief entertained for some time in the
financial community that tho New York /
Central was we'll supplied with cash. /
Current liabilities were brought down
from Sl55, 800 900 to S92.330 900. The /
indebtedness to the War Finance Cor
poration and all but S13. 900 of the debt
owed to banks and individuals were
paid off during 1921. Property in
vcstment accounts were increased S25,-
$4,000.
The earnings statement of the Bos-
ton Albany Railroad was carried
separately in the report of the New
York Central. Gross income of this
leased road available for fixed charges
was $2,l25.926. as compared with So
285238 in 1920. After all deductions
there was a deficit of 81 ,351 ,o43, against
net income of Sl1S,24l in 1920. The
1920 statement with which comparison
is made includes compensation and
guaranty from the government