Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-30

in 1928. That the gain was due chiefly
| to economies is shown by the decline in
| operating rates from Ola per cent to
| 68.5 per cent. The officials now say that
! expenses have been cut to such an ex-
tent that it will be impossible to go
much further in this direction, and
that further increases in income must
come chiefly from new business.
Considering that it's territory is so
highly developed industrially, it is not
strange that Al per cent of New Havens
net income is from manufactured prod
ucts. The products shipped are we'll di-
versified, however, including metal
| working, textile, leather, rubber. paper,
foodstuffs and chemicals. This part of
the company'S business is fairly stable.
The New York communication business is
increasing as more sections are devel-
oped. The bus subsidiaries are also do
ing fairly well. But the company is
frankly puzzled, however. over the flu
ture of its steamship and traction i'll
tereStS.
New Haven was put on 81 dividend
basis last year. In the last two years
it has advanced from 40 to 100. At
this price it yields per cent and is
earning its dividend by a good margin.
Last year earnings, not including some
subsidiary earnings, were So. This fact
seems to justify a higher rate, especially
since the directors are trying to make
the common as attractive as possible so
that holders of convertible bonds will
convert into common. Moreover, a
higher rate would improve the financial
standing of the company, helpful in
case it does some long-term financing.
Boston & Maine.
Besides New Haven's interest in vari-
Gus Southern New England transporta-
ton companies it owns a majority of
the common stock of the Boston &
Maine Railroad, which covers central
and northern New England. Boston &
Maine also operates bus subsidiary in
an effort to retain some of the passen-
ger business which has been steadily
leaving the railroads.
Like New Haven Boston e. Maine has
greatly improved its operating efficiency
by rebuilding its properties. This work
has entailed great expense, but the re-
suits turned deficit in 1923 to profit
of S848 on the common by 1928. In
1927 earnings dropped to 70 cents be-
cause OF the great costs of reconstruc-
ton after the New England flood, but
in 1925 and 1926 earnings were $500
and $9.0l a share.
Although most of the larger economies
possible In section already highly de-
veloped have been effected by this road
there is little doubt that earnings are
permanently on higher level. Because
there is a relatively small amount of
common in relation to bonds and pre-
ferred, however, earnings are liable to
fluctuate widely.
! plan of reorganization in 1926
which would have helped clear the COM
pany's Indebtedness failed to meet with
the approval of some of the preferred
stockholders who are entitled to back
dividends. Arrangements are being made
to pay these cumulated dividends and
the way would then be cleared for the
payment of common dividends.
Boston 81 Maine stock is closely held
and t1uctuates erratically It's position
has been improving at about the same
pace as New Ravens, but its price is
sometimes as much as 20 points above
or below New Haven
Copyright, 1929