New-York tribune., 1922-03-14
Deficit Increase
I'm 1921 Is Shown
BY Interborough
Loss Is S4.464.826. Com
pared With S2.235.835
i'm 1920; Gross Reve-
nues Largest in History

The lnterhorough Rapid Transit Com
pany in 1921 operated AT loss of 81.
464,s26. compared with the 1920 deficit
Of S2,235, 5,sS5, loss Of s3,s10,33s in 1919
and surplus of s4,662.75s in 1918.
Frank Hedley, president and general
manager, in the annual report issued
TO stockholders yesterday. said the in
crease in the deficit last year was caused
by increased charges for operating
expenses, taxes and for interest and
sinking funds aggregating s2,259, ,7O5 in
excess Of the gross operating revenue
Tor the year.
These accumulated deficits. totaling
S1o,ol l,o02.' said Mr.. Hedley, "have so
Tar as possible been taken care OF by
the application of the remaining sur
plus. the sacrifice of assets and the
iofpearance OF cur creditors, in order
10 Keep the service going and avoid
condition of disintegration and chaos
similar TO that now existing on the
surface lines"
The gross revenues reported by tho
company last year amounted to S55,O31.-
@'l, the largest in its history. A com
2srison of the operating results for
''-i VIZ" 'he previous year follows:
Gross rcvenue. .sss.oalar s., lFso ~ 1,o
operating expenses. Ss.024sts 3i.s95. 200
Yet revenue. ....... sis co... 2a5 sla.7ss.2ol
4sN@s .---.--...... 2.735,5q4 26234lo
= Operating income sl6271.sol s17l5q.7sf
other income. 639.l2S SOS. $50
Gross income. .sleefo.7e4 sf7.7ss.1so
'harees .-.......... 2l.S7o.5ol 90 oo3. e95
r-ar',,it Deneit ...,.. ...- ss4ass.s25 s2295,sa5
0FoD4ts '''..-......, 34.779 5.l2e
Total surplus ..... S2.ssa.oss S7.s2I.sss
Appropriations 49,. 42o.I75 s2s2s3
Profit and loss surp s2242s7s s7.os3.1oo
Mr.. Hedley makes no reference in
the report to the impending possibility
Of receivership unless the Inter
borough's contract with the Manhattan
Elevated is abrogated, but once more
stresses the necessity of higher fares
20 meet the conditions arising from
growing traffic
= railroad costing S4.5OOoOO
mile he said, Cannot be indefinitely
extended at fare fixed for congested
areas furnishing a constant peak load,
and a fare fixed for congested areas
cannot be proftably applied where
these conditions do not exist Tho
present subway ramifcations have
more than reached their limit on q five
cent basis and to attempt ANYTHING
further would be to entirely disrc
gard all economic laws.
Even II reduction in wages and
the exercise Of other economies were
20 enable the present system to con-
5inue on five cent basis no new lines
RnnId h1 1IN ND.i /,
less new travel of equal proportions
awaited their CT cmpletion. This would
mean continued and permanent con-
gesitlon, instead of the relief which
the public expects and to which it is !
entitled"
Mr.. Hedley said that any program
OF construction considered essentially /
Tor the clty's welfare accompanied by /
a corresponding regulation of fares /
would undoubtedly meet with favor /
able response from investors.
In 1908 the subway and elevated
INES combined carried 339 1O4,s2o
passengers This number increased
gradually with each year until in 1921
the combined lines, including the re.
cent additions. carried 1Ol3,67S ,S3l (
passengers. Since the opening of new
ines in 1918 the report stated there
has been an average increase of ST.
400 1000 passengers annually.
The gain in the revenue from the
transportation of passengers in 1921
vas S2,933925 and the increase in
other street railway operating revenue
Vas s619.605. There was spent last
year S4.669.264 for additions and be-
termcnts to the property.
The company's balance sheet as of
December 81 showed current assets in
cludlng $2,241,321 cash, 81 1,545 900 cash
advances and no bills receivable. On
the liabilities side was S377,323 due
me Manhattan Elevated on it's lease
With the Peterborough, S2,316 636 in
tereSt and rents accrued S1.l58.756
dividends and coupons due. s4052's50
interest pabable s4O3422 wages my