The Washington times., 1924-03-27
RAILROAD Will
SHOW 1928
LOSS
New York, New Haven and
Hartford to Report Shortage
of 100000.
By w. s. COUSINS.
Copyright, 1924, by Cosmopolitan
News SerVice.)


News Service.)
NEW YORK, March 27.-Edwari
J. Pearson, president Of the New
York. New Haven and Hartford
Railroad Company, confirmed today
Of the financial results Of last year
operation of the New Haven sys-
TEN. In January, he said, the 1928
shortage was something under 49,
900, 000."
The annual report of the New
York, New Haven and Hartford, to
be issued in about one week." M.
Pearson said today. will show a
total deficit for 1925 Of $685.. 900,
against S4,91O,936 in 1922 $15,326..
635 in 1921. and $27 ,42O,025 in 1920.
This is after payment Of all operat-
ing charges and verhead expenses,
including interest On outstanding
bonded obligations, sinking funds,
etc. This is the best showing of
any year since 1917, the last to re.
port a surplus from gross earnings.
In that year the company had ST.
40i.095 left over after paying all
charges"
Good Year Expected.
Judging from actual operations
during the first quarter Of 1924
and anticipating the normal run OF
traffic business the remainder of
| the year, President Pearson conf.
IDENTIFY expressed tho opinion 1924
would definitely pull the New
Haven system out Of the deficit
column.
Current business in New Haven
kor
good. With weather favora BILE
efficiency, labor conditions excel
ruary and the first part of March
tofOre, the results of the first quar-.
ter show a surplus Of about SIS, 900,
against $4,688,535 deficit in the
same period of 1928"
MIR. Pearson denied that his road
was negotiating arlalgamation with
any other railroad system, or con
templating additions to its own ia.
cilities by the acquisition Of other
New England lines. He is conf
| dent that such subsidiary lines as
the New York, West Chester and
Boston will eventually give a better
account Of themselves.
Bonds Due in April.
No definite plans have yet been
made for the refuAding of the
24,431 .252 European extension I
/ per cent bonds of the New Haven
system, due April /, 1925, Mr.
Pearson said. Last year adjust
ment was made with bond holders
by the payment of 10 per cent OF
the face value of each bond, re
newfng the balance for two years
at z per cent. The bonds slumped
last year on publication of the
Storrow Investigating Committee
4 report, but recovered on repudia
ton of the report land suggestions
therein) by the directors of the
road, and the systems general fl
nancial improvement. Mr.. Pearson
indicated the directors would pre-
fer to refund the issue in full
rather than attempt to pay it of
in cash.
Commenting on current discus
sions concerning the change in
methods in railroad financing
| whereby new railroad bond issues
might have to be offered competi
lively in the market, Mr.. Pearson
said:
1T is for the lawmakers to say
how the financing of railroad OF
other forms of industrial corpora
lions shall be financed: but rail
road corporations in the past have
been fortunate in securing the aid
of financial underwriters, and have
benefited largely by their CO
operation. hope there will be
ample reason for any changes made
in this important relationship"