New Britain herald., 1928-01-24
R. R. OWNED BUSES
 PAYING OWN WAY
Income 4ests Expenses in tss7
 for First Time

for First Time
 Steadily increasing its operation of motor coaches. tho New York. New Haven & Hartford railroad. through its subsidiary. the New England Transportation company. now has 23: de luxe buses using the highways and ii the largest railroad operator of rubber tired vehicles in tho country. an announcement made through the Boston News Bureau discloses
 It is learned that in 1927 the in- come from motor coach operation approximately eQualled cost of oper- alton for tho first time. The gross income last year doubled the in como of the year before. In 1926 and 1925. the latter year seeing the beginning of the railroads motor coach subsidiary. the deficits were considera ble. A substantial net profit from motor coach operation Is an ticipated from now on.
 Tho statement originating In Bos- ton is as follows:
 The New England Transportation tai in July, 1925. to operate motor coaches for the New Haven. now has capital stock of $1.s0o, 900. all owned by the railroad. and has cs3 motor coaches and five trucks and sS service cars. Nine new Yellow coaches have just been delivered. giving 1t 54 of this make. Other makes com prise chiefly Macks. Fa- geols. Whites and Pierce -Arrows. and also IS new observation coaches made by the American Car $ Foundry Co.,. and operating between Boston and New York. Springfield and Hartford, Hartford and New London and Providence and Fall River.
 What Buses Earn
 1n the portion of 1925 when New England Transportation Go. started operations. it earned gross of about $11s,eO0 and showed a deficit after charges of $46,000 after liberal de- preciation charges. In 1926 gross increased to $1.46o.ooo and the deficit was a little over $77,ooo.
 For 1927 it is understood gross was somewhat over $2,c0o,0oo. an increase of more than 50 per cent over 1926, and the company at least broke even and may show small profit after all charges. This is a Antarprtao In a space of little over 1-c years and it must be borne in mind that it by no means tells the whole story. Tho primary purpose of establish ment of bus operations was to check diversion of passenger business from the New Haven and to cut losses of unprofitable rail lines. It was also intended to supplement rail service and develop new business.
 A Saving to Railroad
 New England Transportation Co. has in a. large measure fulfilled It's purpose. Over and above what it may actually earn from operations 1t has meant a big saving to the railroad This alone IS already un- derstood to have fully justified the investment in the Transportation Co. which probably exceed. the $2.- o,ooo. including bus terminals. etc.
 New England Transportation Co. with 50 lines last year operated .. total of 6.6s2.355 coach miles and carried 4.24s,oco passengers. It thus operated an average of l2s.50o coach miles a week and carried s3,- ee0 passengers weekly. It operates on 1.345 miles of highway and has a total of over 100 employees. When 1t began operations the Transportation Co, figured cost of operation in its preliminary studies at 70 cents per bus mile. an admit tedly high figure. but it was felt that cost of 20 to 30 cents per mile fig ured by some bus operators was too low and did not include proper de- "eciation. Actual experience has
 ronstrated for this company .
 of operation of 30 cents or less
 i bus mile and this. after very liberal depreciation charges.
 It is its practice to figure the life of a motor coach at five years and 10 depreciate it accordingly. The bus probably costs less than one-third as much to operate as a steam train on a unit mileage basis, l. e.. meas uring cost per bus mile against cost per passenger train mile.
 Connecticut Company Busses
 The New England Transportation O.. with 2S2 motor coaches. by no means comprise the whole of New Haven's interests in bus operation. It's subsidiary. the Connecticut Co, operating a fleet of 12o or more. while the Worcester Consolidated. Springfield Street Railway and the County Transportation Co.. the old Westchester Street Railway, all New Haven subsidiary bus opera tlons.