UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF CONNECTICUT

Six Months Interim Report
of

THE TRUSTEES
of

THE NEW YORK, NEW HAVEN AND HARTFORD
RAILROAD COMPANY
to

THE HONORABLE ROBERT P. ANDERSON
CHIEF JUDGE
on the
Operations of the Railroad

March 5, 1962

In The
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF CONNECTICUT

IN PROCEEDINGS FOR THE REORGANIZATION
OF A RAILROAD
SIX MONTHS INTERIM RE PORT OF TH E TRUSTEES
COVERING PERIOD FROM AUGUST 3. 1961-FEBRUARY 3. 1962
In the Matter of
THE NEW YORK, NEW HAVEN AND
HARTFORD RAILROAD COMPANY,

No. 30226
Debtor,

Now come Richard Joyce Smith, William J. Kirk and
Ha·r ry W. Dorigan, as the Trustees of the property of the
Debtor (hereinafter "Debtor" or "New Haven") and respectfully present their Interim Report to this Court.

PRELI MINARY STATEM ENT
The Debtor filed in this Court its voluntary petition for
reorganization under § 77 of the Bankruptcy Act on July
7, 1961. In the regular course of proceedings this Court
appointed us as Trustees. We qualified and assumed office
August 3, 1961.
This Interim Report covers the six months period from
August 3, 1961 to February 3, 1962.1

Purpose of Report
Its purpose is two-fold:
I. To report on the Trustees' stewardship; and
II. To state the basis on which a plan of reorganization
can be formulated.

Nature and Charac:terisf ics
of the New Haven Railroad
The New Haven Railroad provides passenger and freight
service in New York, Connecticut, Rhode Island, and Massachusetts. Passenger service is provided over 613 miles of
road. Apart from the Long Island Railroad it has proportionately more passenger traffic than any other railroad in the

1. It also includes operation and accounts prior and subseque:J.t
to their appointment in order to preserve the continuity of the
annual records for comparative purposes. In a few instances
it covers accomplishments of the Trustees subsequent to February 3, 1962 where this is helpful to an understanding of
matters initiated before February 3.

United States. 2 The bulk of these are short-haul passengerscommuters and other suburban riders in and out of New
York City at the west end of the New Raven's line, and in
and out of Boston at the east end. Yet mass transportation by
the New Haven serves both national and local interests; is
demanded by those served; and, although inherently unprofitable, the New Haven must presently continue to perform these deficit operations.
The New Haven operates under franchises granted by
public authority. It may not arbitrarily discontinue service
even if the service is being provided at a loss . In this respect,
it is unlike a manufacturing or other corporation not affected
with a public interest. It cannot be contested that mass
transportation of commuters by rail into New York City is
a public interest. However, a railroad supported only by
private capital cannot be expected to provide such needed
public service unless it is properly compensated.
Although the New H aven operates 1715 miles of railroad in
freight service, much of this consists of branch lines. Almost
25% of its freight lines produce less than 3% of New Raven's
freight revenues. Much of this mileage can and should be
abandoned. Yet this is not a final solution. The New
Haven is not a long-haul freight carrier. Primarily it is
a terminating, rather than an originating carrier, subject to
high terminal costs.a The New H aven is something of a
large switchyard for inbound freight; and much of this
is of the heavy, bulk type moving under low tariffs that
produce only modest revenues for the New Haven. Southern
New England as an originator of outbound traffic, on the
other hand, produces many goods that are light, compact
and lend themselves to truck movement, especially when
2. "An exhibit of record compares the percent of passenger
service reve:~.ues with total operating revenues of other class I
railroads having passenger revenues in excess of 10 million dollars. In 1958, with the exception of The Long Island Rail Road
Company with a percentage of 80.6 the New Haven ranked
the highest with 45.2 percent. The New York Ce:~.tral Railroad
Company had 22.8 percent. The Pennsylvania Railroad Company
21.4 percent, and the other 13 carriers shown had less than 20
percent." Passenger Fares, New York, N.H. & H.R. Co . (1961)
314 I.C.C. 377, 380.

3. Per diem- the per day use rental payable by 0:1e carrier to
another for cars of the latter while on the tracks of the formeris a contributor to the New Raven's high terminal costs. For
some time the New Haven has resisted the per diem set by the
Association of American Railroads and the matter is in litigation.
For aspects of this and discussion, see Boston & Maine Railroad
v. United States ( D.Mass. 1958) 162 F. Supp. 289 app. dism'd
( 1958) 358 U. S. 68, 79 S. Ct. 107, 3 L. ed. 2d 34; Baltirrwre &
Ohio Rr. Co. v. New York, New Haven & Hartford Rr. Co. (S.D.
N.Y. 1961) 196 F. Supp. 724.
1

this form of competition is heavily subsidized and abetted
by the swift interstate thruways that parallel the New
Raven's main line. Yet it cannot be doubted that much of
the freight service performed by New Haven well serves
both national and local interests.
The financial position of the New Haven is serious. It
is not, however, hopeless. We believe that rehabilitation
and reorganization of the New Haven is practicable on the
bases set forth in this report.

Scope and Purpose of This Reorganization
A brief resume of the scope and purpose of this reorganization under § 77 of the Bankruptcy Act will help in putting
our problems in proper perspective for all interested parties.
Under § 77 the reorganization court has "exclusive jurisdiction of the debtor and its property wherever located" and
broad and plenary powers to effectuate that jurisdiction.
The judge must appoint one or more disinterested trustees,
subject to the ratification of the Interstate Commerce Commission. The trustee or trustees so appointed, upon filing
bond-which in the present case was August 3, 1961-"shall
have all the title and shall exercise, subject to the control
of the judge and consistently with the provisions of this
section, all of the powers of a [bankruptcy] trustee . . .
and, to the extent not inconsistent with this section, if
authorized by the judge, the powers of a receiver in an
equity proceeding, 4 and, subject to the control of the judge
and the jurisdiction of the Commission as provided by the
Interstate Commerce Act as now or hereafter amended, the
power to operate the business of the debtor." The
trustee(s) may file a plan of reorganization. We intend to
avail ourselves of this right if and when it becomes feasible
to prepare a plan of reorganization under the criteria now
to be set forth.
The broad purpose of § 77 is to recapitalize a railroad
which is a going concern, primarily upon the basis of net
earnings. A railroad that has sufficient earning power, so
that after paying all operating expenses there is a net operating profit, may be reorganized. A railroad that does not
have, or cannot be made to have, such capability must be
liquidated. For there is no alchemy in a § 77 proceeding
that will transmute an inherently unprofitable railroad into
a golden corporation with net earnings.
At the time the Trustees assumed office they were faced
not only with large operating deficits but with a large cash
attrition-the outlay of more cash than is taken in. Hence
in the case of the New Haven two objectives must be accomplished before reorganization is feasible. The first is to
stop the cash attrition. The second is then to proceed much
further and put the railroad on a net earning basis. If the
second objective can be achieved, then the process of
formulating a fair, equitable and feasible plan of recapitalization can and will be undertaken. If both the first and
second objectives cannot be accomplished, then the only
alternative is liquidation, presumably by a liquidating receivership in this Court, unless prior to that time § 77 is
amended to permit liquidation.~~
While, as subsequently pointed out, the Trustees were
4. Order No. 7 of this Court conferred these powers upon

the Trustees herein.

5. Legislation now pending in Congress would amend § 77 to
permit a bankruptcy liquidatio::J. of a railroad. See Fooshee and
B1llyou, Amendments to Federal Railroad Reorganization Statutes
Proposed by the American Bar Association ( 1961) 16 Business
Lawyer 543.
2

initially faced with a huge cash attrition of about $1,500,000
per month, this has been reduced to less than $500,000
per month. The prospects are fairly good that this can be
further reduced or completely eliminated before the end
of 1962, barring exceptional occurrences or catastrophies.
Forecast of possible elimination is partially predicated on a
repeal of the 10% Federal excise tax on passenger fares
and without any reduction of the fares now paid by the
travelling public.
Assumption by the appropriate governmental authorities
of their responsibilities is almost a sine qua non to the
achievement of the second objective. This assumption must,
of course, be voluntary, for neither this Court nor the
Trustees have any power to dictate governmental action.
The Trustees have cooperated with and urged upon the
governmental authorities assumption of public support for
unprofitable public services which the New Haven is required to continue. The Trustees will earnestly continue
this course of action.
In this connection the Trustees' role must be borne in
mind. Under § 77 they must remain independent and impartial at all times. They represent no single interest. As
officers of this Court, and subject always tu its supervision,
they must, to the best of their abilities, consider all interests;
and harmonize these diverse interests in line with the stake
that each has in this reorganization. These diverse interests
are: creditors-secured and unsecured; stockholders; labor;
and the public. No single interest can properly assert a
dictatorial position.
Labor, capital, and creditors must recognize that the
New Haven is affected with a public interest and that this
interest qualifies their rights. Yet the public interest is not
supreme. Those who ride or ship on the New Haven are
not entitled to a free ride at the expense of others who have
interests in the railroad. As early as Sept. 28, 1961, in our
petition to borrow under trustees' certificates, we pointed
out that we could not and would not continue to operate indefinitely through continued borrowing; and that we were
mindful of the creditors' interests. We adhere to that position.
We presently believe on the facts before us and on the
assumptions subsequently stated that reorganization will
~ecome feasible. If, however, at any time changing conditions l~ad us to a contra appraisal we shall promptly report th1s to the Court and ask for instructions. We are ever
mindful that if the alternative to reorganization must be
liquidation, the liquidation should be an orderly one.
An orderly liquidation presupposes reasonable cash resources
on hand of about $4 million at the outset of liquidation.

Present and Prior Reorgan'izations Contrasted
It must be emphasized that this reorganization is by no
means similar to the previous reorganization of the New
Haven Railroad.
The basic cause of the prior reorganization,6 which was
?mnmenced in 1935, was the New Raven's inability to meet
Its annual fixed charges of $17.5 million. The New Haven
however, then had substantial income from operations:
Moreover, as a result of World War II the New Raven's
income increased to a point where it was able to buy new
equipment, bring its maintenance up to a very high level and
expand its facilities generally. Today the picture is the
exact reverse.
In the prior reorganization the problem was the classic
. 6. Discussed by Sunderland, A Brief History of the Reorganization of the New York, New Haven a."ld Hartford Railroad Company (1948).

reorganization one of recapitalizing an economically profitable corporation, by reducing, in the case of the New
Haven, its fixed charges to less than $7 million annuallya level which could be met from the operations then conducted. Now, some fifteen years since the prior reorganization was completed, the New R aven's fixed charges
are still only $7.6 million annually. But, as we point out,
presently the New Haven not only has no profit from operations, but has been forced for some time to borrow money
merely to remain operational. This cash attrition will be fatal
unless eliminated within a reasonable time.
The reasons for the differences between the prior and
present reorganization are numerous and complex, but the
basic reason is that revenues have not kept pace with rising costs. For example, while revenues of the New Haven
today are twice what they were in 1935, the following increases in costs have occurred. Maintenance of way and
equipment costs have doubled, from approximately $20 million to $40 million. Pay to supervisory employees has
doubled from an average of $5,590 in 1935 to $ll,040 in
1961, with the aggregate payment of $1,062,000 in 1935
and $2,451,000 in 1961. For other employees, which account for most of the payroll, the average wage on the
New Haven was 68; an hour in 1935. Today the average
wage is $2.60 an hour, an increase of nearly 300%. Despite
the fact that there has been a reduction in employees from
20,000 to ·less than ll,500, total labor costs have gone up
from $33 million in 1935 to $76 million in 1961, an increase of nearly 133~%. Federal payrolJ taxes did not exist
in 1935; today they total some $6 million.
Total operating costs have increased from $63.7 million
in 1935 to approximately $147.8 million in 1961.

REPORT OF TRUSTEES" STEWARDSHIP
FINANCIAL SITUATION

Situation When Debtor Filed Its
Petition for Reorganization
The Debtor's financial collapse was almost total at the
time reorganization proceedings were instituted.
<?n July ~, 1961 the Debtor defaulted on the payment
of Its bond mterest. Six days later, July 7, the Debtor filed
its. ':'oluntary .petition for reorganization under § 77.
Within a fortnight, i.e., on July 18, the Debtor filed its
petition for an order authorizing the Debtor or such trustee
or trustees as may be qualified at the time of hearing to
borrow $5,000,000; and for authority to the Debtor to
apply t~ the Inter~tate Commerce Commission for permission to Issue a certificate covering such borrowing. The certificate was to be fulJy guaranteed by the United States
acting through the Commission, in accordance with th~
provisions of the Transportation Act of 1958.
The Debtor's petition stated:
"In the opinion of the debtor it will be necessary,
on or about the first of August 1961 to borrow approximately $5,000,000 in order that '·the debtor and
the trustee or trustees of its property may be able to
continue the operation of the railroad while in the
custody of the Court."
The petition further stated that the only effective avenue
open for borrowing was through certificates guaranteed by
the United States.

On the filing of the petition, this Court granted permission to the Debtor to file its application with the Interstate Commerce Commission; and set the matter of borrowing down for hearing on August 3.
The cash balance of the railroad company at July 31,
1961 was $3,750,000. Against this, however, there were
Federal taxes of $2,083,000 which were payable. A weekly
payroll of $1,500,000 was due in a few days. And there
were such other pressing current obligations as unpaid
freight loss and damage claims approximating $1,000,000; passenger ticket refund claims approximating $70,000. In addition, debts to vendors of materials and supplies
aggregated $3,000,000. Obligations to utilities, doctors, hospitals, trade organizations and contractors amounted to
$2,000,000.

Situation at Time of Trustees' Takeover
On assuming office August 3, 1961 the Trustees' first act,
and one of necessity, was to join in the Debtor's petition to
borrow. At that time the New Raven's cash balance was
approximately $1,700,000. This was slightly in excess of the
weekly payroll falling due the next day, August 4.
This Court granted the petition on August 3. That same
day the Interstate Commerce Commission approved a guaranty of the Trustees' certificate. The following day the
certificate was issued and the funds were drawn down and
the payroll met. Only receipt of the above borrowing enabled continued railroad operation but the situation remained
critical because a substantial portion of the loan was expended to satisfy part of the accumulated obligations facing
the Trustees.

Cash Attrition
Faced at the outset with almost no working capital and
with a large cash attrition (excess of cash disbursements over
t
cash receipts) it was obvious to · he Trustees that the immediate problem was cash attrition; and that their main
efforts must be directed to that problem.
During the first six months of 1961, cash loss amounted to
approximately $1,300,000 per month. In July, the first
month of reorganization while the Debtor was in possession, and in August, the first month under the Trustees'
stewardship, cash attrition averaged about $1,500,000 per
month. But for the overall six months ending December 31,
1961, the drain had been reduced to $900,000 a month
primarily due to the non-payment of bond interest, and
the Court's authorization that certain taxes be not paid.
It is currently estimated that this figure will be reduced
below $500,000 per month for the first six months of 1962.
This estimate is based ori a modest improvement in revenues,
together with certain economies effected by the Trustees,
which are covered elsewhere in this report. If the Federal
excise tax on passenger fares is repealed and the equivalent amount is incorporated into the fares, · he passenger
t
would pay the same amount as now and the New Haven
would benefit cash-wise to the extent of about $3,000,000
annua1ly. This would further reduce cash attrition by $250,000 per month, and bring it to manageable proportions.
In this connection, cash attrition should be distinguished
from income account losses. In 1961, the income account
loss was $19,550,000 while the cash attrition was $13,537,000. This differential was due to such items as bond
interest which accrued but remained unpaid, depreciation
charges which exceeded principal payments on equipment,
etc., by approximately $3,500,000, and other items that were
accrued but did not require a cash expenditure during that
year.
3

Additional Trustees' Certificates
In addition to the borrowing of $5,000,000 on Trustees'
certificates, initiated by the Debtor, it became apparen~ in
the fall of 1961 that further borrowing would be reqmred
.to enable the Trustees to continue operations while studying
the capabilities of the system and exploring the possibilities
of reorganization.
On September 28, 1961 the Trustees petitioned the Court
for permission to issue $15,000,000 of certificates, which
appeared essential for the continuance of needed an?
improved operations of the railroad system for approXImately one year's time. But the Trustees subsequently decided to ask only for specific authority to borrow $7,500,000. This Court granted the amended petition7 • Interstate Commerce Commission permission for the issuance
of $7,500,000 in trustees' certificates guaranteed by the
United States was secured. On December 13, $3,000,000
was drawn down at a rate of 4:11% interest-}{% less than
the interest rate for the initial borrowing. $4.5 million remains subject to draw-down.

Comparison of lnc:ome Ac:c:ounts for 1960 and 1961
In 1961, Operating Revenues of $127,202,495 were
$6,841,941 lower than in 1960. Of this decrease approximately $3,750,000 was in freight revenues, the balance
in passenger fares and seat charges, mail, express and
other passenger service. Notwithstanding the decrease in
revenue, operating expenses in 1961 were $1,392,464 higher
than in 1960 because of a substantial increase in expenditures
for maintenance. Charges for Maintenance of Way, Structures and Equipment were $4,312,488 higher, being partially offset by decreases totalling $2,920,024 in charges
for Transportation, Traffic, Miscellaneous Operations and
General Expenses.
Railway Tax Accruals and Equipment and Joint Facility
Rents decreased $5,282,441, the -largest factor being increased tax relief totaling approximately $3,650,000.
The deficit in Net Railway Operating Income of $19,577,295 was $2,951,964 higher than in the preceding year.
This increase is substantially less than the increase of
$4,312,488 in expenditures for maintenance.
In 1961, Other Income (net after Miscellaneous Deductions from Income) decreased $1,270,000 under that received in 1960. Income from Grand Central Termina-l Area
Properties decreased $628,000 primarily because of lower
hotel earnings. Profits from the sale of real estate decreased
$491,000 because of the temporary cessation of such activities because of reorganization.
7. In its granting order of October 20, 1961 this Court's flnd2 and 3 were:
'2. That a loan or loans to said Trustees in a total amount of
approximately $15,000,000 now appears e.sse:Itial for th~ continuance of needed operations of the ra1lroad system m the
Debtor's estate for approximately one year's time, and that
$7,500,000 of said sum should be made available to said Trustees
without further petition or order herein on their certificate to be
issued not later than about November 30, 1961, or on their
certificates to be issued from time to time beginning not later
than about November 30, 1961, as they in their discretion may
determine;"
"3. That in view of the complexities of the present case and
the progress thus far made by said Trustees in effecting economies, a period of approximately one year is not unreasonable for
the developme:Jt and ascertainment of such relevant facts as may
be necessary to determine the feasibility of reorganization of the
Debtor a;:~d that during such time said Trustees have the right
and du'ty under §77 of the Bankruptcy Act to continue needed
operations of said railroad system as aforesaid;".
in~s

4

Fixed Charges in 1961 were $629,000 higher than in
1960, primarily because of interest charges on ~he $13,000,000 of "Smathers Act" Loans received late m 1960 and
early in 1961.
INTERNAL ECONOMIES

An early concern of the Trustees was the matter of internal economies. During the first six months of their
administration, the following has been accomplished:
1. Institution of payroll savings, which will exceed $1,100,000 per year. This is in addition to fringe benefits
.
ranging from 8.55% to 13.75% of the payroll ~avings.
2. Elimination of $850,000 per year in eqmpment obhgations.
3. Savings in power contract payments of $250,000 annually.
4. Reduction in purchases o.f material and supplies of
$500,000.
5. Miscellaneous economies of $100,000.
STUDIES IN PROGRESS
The Trustees have personaHy inspected most of the system lines to obtain a first-hand, overall perspective. To lay
the basis for an intelligent evaluation of the system, including its segments, the Trustees have instituted various studies;
The cost of these studies is minimized by using the Trustees
own staff to develop the basic data. But the evaluation of
much of this material is committed to outside experts so
rhat the appraisal will come from independent sources and
tend generally to be more acceptable by interested parties.
Coverdale & Colpitts, a firm of consulting engineers, was
retained by the Trustees for advice regarding studies to be
made in connection with commuter and through passenger
train service, branch line abandonments, and the New E~g­
land Transportation Co. This study is comparable to studies
undertaken by security holders in the prior reorganization.
United Research, Inc. of Boston, Mass., has been retained
to prepare an economic analysis of the market existing for
freight traffic on the New Haven system at the present time
and over the next five to ten years; and the relation of this
freight potential to that of New England as a whole.
The engineering firm of Gibbs & Hill will survey the
New Raven's electrified operations, including our Cos Cob
power plant. Professor James J. Healey of the Harvard
Graduate School of Business Administration has been retained by the Trustees to study the problem of labor relations on the New Haven.
Through their staff the Trustees have the New York
harbor facilities under study looking toward a more economical operation.
A further study has been instituted by the Office of
Transportation of the Executive Department of the State of
New York. It has engaged the consulting firm of Edwards
and Peabody (headed by Dr. Ford K. Edwards) to make
a cost study of the suburban passenger service operations of
the New Haven in the New Haven-Danbury-New York City
area. The Trustees have made staff personnel available to
furnish Dr. Edwards with basic cost data requjred by him.
DEFERRED MAINTENANCE
It is well known that .for many years the New Haven
has not been expending enough to maintain its equipment
and facilities adequately. As a result, the condition of the
property has been deteriorating continuously and the
amount of the expenditures necessary to restore it to a
normal, well maintained condition has been increasing

steadily. In the "Plan Regarding Future Operation of the
New Haven Railroad" dated August 22, 1960, and submitted by the Company to the Interstate Commerce Commission, the accrued deferred Maintenance of Way, Structures and Equipment was estimated to total over $42,000,000
as follows:
•
·
·
.
·

$ 2,258,000

Roadway and Track .. .. ...... ..... ... .........•.. . ..
Station & Office Bldgs. . . . .......................... .
Other Facilities .................... .. ... ... ... ... .. .
Total Way & Structures . .... .................... .

24,133,830
1,500,000
2,260,000
$27,893,830

Locomotives .... . .. ......... ..... .... . ••.... · . · · · · ·
Freight Train Cars ............................... · · ·
Passenger Train Cars ...............................
Other Equipment .............. . . ... ... . ........ ... .
Total Equipment .......... ......... ....... ... . .

1,814,000
10,200,000
166,400
$14,438,400

This amount covered all of the equipment, roads and
facilities in operation at that time and to the extent that
operations or facilities are reduced the requirements would
be proportionately lower. There is no doubt, however, that
if the New Haven is to continue its present functions, additional expenditures of several million dollars per year
for several years will be required to raise the condition of
the property gradually to satisfactory levels. Even if
there is a considerable shrinking of the New Raven's facilities, as the Trustees believe should and must be done,
expenditure of many million dollars will be necessary to
restore the shrunken system to normalcy.
Because of the New Raven's precarious cash position the
Trustees cannot undertake full, normal yearly maintenance.
They have, however, taken modest steps in that direction.
IMPROVEMENTS IN EQUIPMENT
In order to alleviate the critical shortage of motive power,
fourteen diesel-electric road switchers were returned to Alco
Products, Inc., Schenectady, N.Y., for rebuilding and some
modernization at a net cost of about $90,000 per unit. Ten
of these units have been completed and are now back in
revenue service. The four remaining units will be completed
soon. This work was financed with funds derived from the
sale of 500 bad order box cars and held on deposit under
an equipment trust.
The Trustees have taken initial steps for the acquisition of
approximately 100 new commuter cars for use in the New
York suburban service under a program set up by the State
of New York through the Port of New York Authority. Specifications for a modern lightweight multiple-unit car have
been prepared and are now in the hands of the Port Authority. Financiai arrangements are subject to this Court's order.
A program for rehabilitation of passenger cars is in
effect. To date 57 cars have been completed-36 during
the period of trusteeship. This program ca.Jls for complete renovation of the car interior, i.e., cleaning and painting of entire interior, cleaning, dyeing and repairing of all
upholstery, repairs to seats, electrical equipment, piping,
toilet facilities and window shades. Cars are to be rehabilitated at the rate of two cars per week during the
remainder of this year at a cost of $2,000 each.
The Trustees have successfully concluded negotiations with
General American Transportation Corporation regarding the
disposition of 200 center-sill flat cars leased from General
American's predecessor in 1955 for use in piggy-back service. With the continuing trend toward longer and higher
trailers these cars are now too short in many cases to accommodate two trailers, for which they were originally designed. Use of the cars is also restricted because of the

necessity of using special equipment to adapt trailers. This
has led to limited possibilities of interchange with other
carriers. To solve this problem the Trustees have decided
to acquire by lease 40 to 50 so-called G-85 flat cars of a
modern design and in common use in interchange service.
These cars will meet the New Raven's clearance requirements and can be efficiently and economically used to meet
traffic requirements. General American, which is the manufacturer of the G-85 car, has agreed to take back the 200
center-sill cars and release the Trustees from any further
obligation with respect to them as G-85 cars are substituted
in service. The details of a lease covering the G-85 cars have
not yet been concluded, but it is known that the rentals paid
for necessary equipment will be substantially reduced and
the piggy-back operation may be handled on a more economical basis. The use of this equipment will also permit
the New Haven to handle ce1tain trailer traffic which it is
not able to accommodate with present equipment.
On July 31, 1961 the New Raven's box car fleet consisted
of almost 6,000 units, including bad order cars. A comprehensive study has been made by the Trustees of present box
car requirements. This study took into consideration present
and prospective freight requirements, equipment rentals, the
age, type and condition of the New Raven's box cars, and
the effect on per diem rentals and maintenance costs. On
the basis of this study the Trustees concluded that a substantial reduction of the box car fleet could and should be
made. Accordingly, approximately 500 bad order units of the
33500-35999 series of 1948 have been sold and 250 units of
the 30000-33499 series built in 1941 are now being offered
for sale. The Trustees have also disaffirmed a sale and lease
back contract, covering 960 units of the 36000-36999 series,
which were originally built in 1941 and 1944 and rebuilt in
1955.
The Trustees have also instituted a policy of disposing
of other unneeded equipment. They have disaffirmed financing agreements covering one of the lightweight trains
acquired in 1955 and 1956, and also an agre€ment covering the cars of a second lightweight train. They have sold
47 old gondola cars, five inoperative locomotives and two
Mack rail cars. Other units of such equipment for which
there is no present or prospective use will be sold if favorable prices can be obtained.
IMPROVEMENTS IN AND STREAMLINING
OF ROAD PROPERTY
Despite the shortage of available funds the Trustees have
made substantial expenditures for the maintenance and upgrading of track facilities on main lines and principal branch
lines. Since August 3, 1961 about 82,000 creosoted hardwood ties have been installed and approximately 75 track
miles of mainline track have been tamped and surfaced.
The reconstruction of a trestle at Bridgeport, Conn., estimated to cost $135,000, is in progress and will be completed in the spring of 1962. This work is essential in order
to maintain service on a branch line producing heavy industrial traffic.
At 0.1k Point Yard, Bronx, N.Y., foundation work has
been completed for a warehouse to be leased to Idaho
Potato Packers Corp. This project, designed to generate
freight traffic, will cost about $300,000; and is being built
with funds on deposit with the Trustee of the Debtor's
Harlem River Division Mortgage.
Plans and specifications have been prepared for an enlarged locomotive and multiple unit car facility at Stamford,
Conn., and for the reconstruction of one of the two freight
5

houses proposed to be rebuilt at Boston. These projects have
now been approved by this Court.
This Court has also approved the Trustees' proposal under
which Railway Express Agency would purchase a freight
house at New Haven, Conn. for $350,000 to be used by
Railway Express in connection with its new "key point"
distribution plan. New and modern substitute trailer and
forwarder facilities will be constructed at Cedar Hill Yard
when this freight house is sold, and less-than-carload traffic
will be handled at the New Haven passenger station. This
program is necessary to protect rail movement to key points
of Railway Express traffic. Removal of trailer and forwarder
traffic to Cedar Hill will also provide a much more efficient
operation, and will make available for sale an area of about
eight acres adjacent to the present freight house, with an
estimated sale value of approximately $300,000. The cost
of all substitute facilities will be about $535,000 as against
amounts realizable by the Trustees approximating $650,000.
As a part of the four state relief program, Connecticut
has made $500,000 available for the fiscal year beginning
July 1, 1961 for the maintenance or reconstruction of highway bridges over the railroad or track bridges over highways.
Approximately 20% of these funds has already been utilized
and the remainder has been earmarked for projects to be
completed this spring.
Relative to streamlining the system, the Trustees have
obtained Court approval for the abandonment of several
spur lines aggregating 23.49 miles where continued maintenance and operation is no longer warranted. All such
abandonments are subject to I.C.C. approval. This is merely
the beginning of what will be large scale abandonments,
for as previously pointed out some 25% of the freight lines
produce less than 3% of the freight revenues.
In addition to branch line abandonment, a program for
track removal has been inaugurated. A third track between
Kingston and Davisville, R.I., a distance of 9.64 miles, has
been retired from service with track material thus made
available for replacement in other lines. Studies have further
developed that approximately 66 miles of additional main
line track can be eliminated without impairing the present
amount of service being furnished. The normal maintenance
costs to be saved following removal of this track approximates $225,000 annually. Release of rail and track material
divides about equally between reuseable and salvage material. The reuseable material released will permit extending
the time for the purchase of new rail and other b·ack material costing about $1,500,000. The scrap material represents an estimated gross salvage value of about $400,000.
This removal program will be timed, to the extent practicable, to meet requirements for reuseable material, and to
produce the maximum net benefit from salvage.
In addition to the foregoing, frogs, switches, crossovers
and yard tracks no longer needed, are being removed and
the total program contemplates an estimated saving equivalent to over $700,000 in replacement value.
SALES OF PROPERTY
Proceeds from sales of property are customarily used to
finance additions and betterments. Reorganization made this
financing more difficult, particularly during the last half of
1961.
Prior to reorganization the Debtor was permitted under
its mortgages to sell real estate and other property no
longer needed for the operation of the railroad and to apply
the proceeds of such sales against expenditures for additions and betterments made to the remaining property. 13P.-

tween January 1, 1961 and July 7, 1961, $1,484,290 in cash
was generated from real estate sales.
Failure to pay bond interest due on July 1, 1961 and the
filing of the reorganization petition constituted defaults under
the Debtor's mortgages cutting off temporarily this source of
cash.
After several conferences with mortgage trustees and
other interested parties a mutually satisfactory resolution of
the problem of property sales was reached. On November
13, 1961, following a hearing, the Court issued its Order No.
44 authorizing the Trustees, without the necessity of any
further authorization, to sell property where the amount in
any one transaction does not exceed $25,000; and provided that the proceeds of real estate sales over $10,000 be
deposited in the Court registry.
The Trustees also requested the Court to permit the use
of funds deposited in the Court registry for additions and
betterments. Such authority was granted by Order No. 45
dated December 29, 1961, subject to the condition that any
addition and betterment exceeding $25,000 must be approved by separate order of the Court, and also subject to
the limitation that not more than a total of $100,000 could
be expended for small additions and betterments without
further Court order.
Under the above two orders the Trustees may proceed
with property sales and capital expenditures not exceeding
$25,000. Such transactions bulk large in number but do not
in the aggregate involve large sums of money. Individual
sales and expenditures over $25,000 may, of course, be
made, but these require specific Court authorization.
During the period between July 7 and December 31,
1961 only 14 small real estate sales aggregating $37,316
were closed. Now that the orders mentioned above have
been made, it is estimated that during 1962 real estate
sales will total about $2.4 million; and that much of the
proceeds of these sales can be used to fin ance expenditures
for additions and betterments.
SERVICE DEVELOPMENTS-PASSENGER
The Trustees have taken several important steps to make
passenger service more atb·active to the public and to reduce passenger service losses by adjusting fare structures.
During the last five months of 1961 every effort was made
to improve on-time performance and between August 1, 1961
and January 9, 1962, 36 additional passenger cars were rehabilitated and put into service. In the October 29, 1961
timetable the running time of a number of through trains
was improved by up to 19 minutes.
Effective December 1, 1961 the two day round trip coach
fares at the one way fare for the round trip were cancelled
and a new round trip two day fare for distances of 25 miles
and over was established at the one way fare plus 50 cents.
At the same time Saturday and Sunday excursion fares (with
the exception of excursion fares which are confined to a
specific train going and retuming) between all stations, and
Ladies' Day fares to New York and Boston were cancelled.
It is anticipated this change will produce additional revenue
of $500,000 on an annual basis.
On January 1, 1962 a ten per cent increase in commutation fares was permitted to go into effect by the Interstate
Commerce Commission and the Connecticut and Rhode
Island Public Utilities Commissions. Massachusetts and New
York suspended the increase pending public hearings. The
Massachusetts hearing was held on January 18 and that
Commission has now approved the ten per cent increase
effective February 11, 1962. A continued hearing for New

York was held on February 16, 1962. The full increase is
expected to produce $725,000 additional revenue per year.
Effective January 15, 1962 regular one way, round trip,
30-day and 6-month coach tickets were accepted in parlor
cars on payment of the space charge. Effective the same
date the minimum parlor car seat fare was increased from
$1.20 to $1.50. This experiment, on an annual basis, should
produce about $400,000 additional revenue, including rail
fares and seat charges.
In an effort to solve the problem of mass transportation
in the New York metropolitan area .t he governors of New
Jersey, New York and Connecticut formed a Tri-State Transportation Committee in August 1961. This group is exploring
with ·the Trustees possible mass transportation demonstration projects to be undertaken with federal funds made
available for · his purpose by the Housing Act of 1961. Part
ticular study has been given to the establishment of experimental commuter service into New York City via the New
Raven's Hell Gate Bridge route with a direct connection
to the City's subway system. It is anticipated that an application for approval by federal authorities of such a project
will be filed in the near future.
The New Rochelle project represents another step on
behalf of the commuter. Ground was broken in December
1961 for the New Rochelle Terminal Plaza at New Rochelle,
N.Y. This project, in the planning stage since 1956, will
consist of a multi-million dollar shopping center incorporating
new and improved railroad passenger facilities. The site of
this construction is the former New Haven freight yard at
New Rochelle, located a short distance east of 'the present
passenger station. Construction is being undertaken by outside capital and the new station will be built entirely without
expense to the Trustees. This new facility will not only
permit the retirement of the present passenger station, on
which heavy deferred maintenance has accumulated, but will
also make available about 400 enclosed parking spaces for
railroad patrons.
SERVICE DEVELOPMENTS-FREIGHT
We have earlier pointed out the inherent problems facing
a short-haul freight carrier with high terminal costs, such
as the New Haven. Merger with a trunk line is a potential
solution. At best this is a long range solution. The more
immediate problems are to stimulate freight traffic and
improve service.
In recent months, the Trustees have met with numerous
civic and industrial groups to stress that the New Haven
is essential to the economy of southern New England, and
that its continued existence depends upon maximum utilization. The Trustees have reason to believe that this direct
approach followed up by the activit'ies of the freight sales
force will bear fruit in the form of additional traffic.
Every effort has been made by the Trustees to improve
standards of freight service to the extent possible with funds
available. Along these lines, in October 1961 an eastbound
second day service from Chicago via Maybrook was established with the Pennsylvania Railroad to handle trailers,
forwarder freight and other traffic requiring expedited service.
This service places the New Haven in a position to match
the schedules provided by competitive routes serving New
England.
During the last five months of 1961, 41 new industries
located on the New Haven with anticipated new traffic of
4,370 cars annually. Construction of a new warehouse at
Oak Point Yard, Bronx, N.Y., begun in December 1961 with
completion in late spring of 1962, and lease ·to the Idaho

Potato Packers Corp. is expected to produce about 1,250
carloads of new traffic per year.
Plans are being completed by the City of New York for
the Hunts Point Terminal Market in the Bronx. The Trustees
have worked closely with City officials; and preliminary
agreement has been reached for servicing this Terminal
by the New Haven. Construction is scheduled to start during
1962. On completion, this terminal should generate approximately 40,000 cars of freight per year for the New Haven.
Developments in the transportation of automobiles on
multi-level freight cars have resulted in a considerable
diversion from the New Haven of traffic formerly handled
in box cars. This challenge is, however, being met, by
utilizing the over-dimension route ro Boston that permits
the use of multi-level cars; and by establishing a new
unloading facility at Readville, Mass. The New Haven
inaugurated this service in February 1962 and it should
re-capture much of the lost automobile b·affic.
Supplementing the progress noted, the Trustees also have
succeeded in substantially reducing expenditures in the
freight traffic department without impairing service.
LEASED AND OTHER LINES
The properties of the Holyoke & Westfield Railroad Company, the Norwich & Worcester Railroad Company, and
the Providence & Worcester Railroad Company are operated under long term leases made many years ago but not
disturbed by the prior reorganization. Lease of the Holyoke
& Westfield is perpetual at an annual cost of $46,000.
That of the Norwich & Worcester is for 100 years from
February 1, 1869, at a cost in 1961 of $327,609 for interest
on its bonds, dividends on its stock, and organizational
expenses. The Providence & Worcester lease, for 99 years
from July 1, 1892, required payments in 1961 of $426,868
for interest, dividends, and organizational expenses. Present
court orders provide that the Trustees shall decide by July
6, 1962, if these leases should be affirmed or disaffirmed.
The Trustees' recommendations on these matters will be
the subject of a later report to the Court.
The Debtor and the Trustees have continued to operate
the properties of Boston & Providence Railroad Corporation, which is still in reorganization. The lease under
which these properties had been operated by the New
Haven was rejected in the prior New Haven reorganization,
but the New Haven has continued operation of these
properties for and on account of the lessor Boston & Providence. Various plans of reorganization for Boston & Providence have been proposed and considered, but no plan has
yet been consummated.
SUBSIDIARIES
The Connecticut Co. and the New England Transportation Co. are wholly owned subsidiaries of the New Haven
Railroad. The New Haven owns 70% of the stock of the
Boston Terminal Corporation, the remaining 30% being
owned by the New York Central Railroad. All of the stock
of these three subsidiaries owned by the New Haven is
pledged to the United States Government as collateral for
the so-called flood loans.
The Connecticut Co. operates bus service in greater
Hartford, greater New Haven and Stamford, Connecticut.
Its operations are not essential to the railroad operations
of the New Haven.
The New England Transportation Company operates
trucks in connection with the freight service of the New
Haven Railroad and to a limited degree common carrier
7

service on the highways of the four states. The Trustees
believe that the New England Transportation Company
must be considered as an essential component of the continued operation of the New Haven system. We are presently engaged in a careful study of the operations of this
subsidiary in an effort to eliminate it!s deficit and to determine the part it should play in the system.
The Boston Terminal owns and operates South Station
and its terminal facilities in Boston. Under an Operating
Agreement with Boston Terminal the New Haven and New
York Central are obliged to pay any defiicit in operating
expenses.
By a Purchase and Sale Agreement dated April 15, 1960
(prior to bankruptcy) with a Massachusetts real estate developer, Boston Terminal agreed to sell the South Station
Building for $1 million, reserving certain areas for operating purposes. Due to the necessity of securing various
regulatory approvals and consents of other interested parties
under various applicable instruments, and due also to delays caused by certain litigation brought by public bodies,
it has not been possible to carry out the transaction. The
original performance date of July 1, 1960 has by agreement of the parties been extended from time to time and
is currently extended to March 29, 1962. While litigation
has now been concluded, there still remains the problem of
obtaining the consents of the other interested parties.
In October 1961, the Massachusetts Appellate Tax
Board, determining appeals by the Boston Terminal of tax
assessments of the City of Boston on its real estate for the
years 1957, 1958 and 1959, ruled that the assessment
should be reduced from $12,221,800 to $10,525,000. This
decision resulted in the Boston Terminal being entitled to
a tax refund, including interest, for those years, of $493,466.
Since the Boston Terminal has not paid its real estate taxes
for 1960 and 1961, the City of Boston has not made the
refund. Considering the Appellate Tax Board's decision to
be unsatisfactory, Boston Terminal has appealed to the
Supreme Judicial Court with respect to the determinations
for 1957 and 1958. It has requested a formal report of the
Appellate Tax Board for the year 1959. Upon receipt of
such report it will determine whether the decision for that
year should similarly be appealed and whether it should
proceed with its appeals concerning the years 1957 and
1958. An appeal has also been filed with the Appellate Tax
Board concerning the assessment of $12,221,800 for the
year 1960, but can not be brought on for hearing until the
taxes due for that year are paid. A petition by Boston
Terminal for abatement of the 1961 assessment of $12,221,800 was filed and denied; any appeal from this assessment to the Appellate Tax Board must be filed no later than
March 28, 1962 and would require payment of one-half
the tax assessed.
TAXES
Federal payroll taxes (Railroad Retirement and Unemployment Insurance) amount to approximately $6,000,000
annually, and are being paid currently. The rates continue
to increase. As of January 1, 1962, the Company's contribution for Railroad Retirement Taxes rose from 6%% of
payroll to 7¥4%, while the Unemployment tax rate rose from
3%% to 4%. As noted above these taxes did not exist when
the New Haven entered reorganization in 1935.
The state and local tax situation is much more complex.
The Interstate Staff Committee appointed in the fall of
1960 by the governors of the four states in which the New
8

Haven operates, the Mayor of New York City, and the
County Executive of Westchester County recommended a
program of :tax relief and other assistance for the New
Haven, which eventually might have resulted in a saving
of $6,200,000 annually. The program consisted of the
following:
New York State
Acceleration and modification of 1959 rail·
road tax relief program .. . ....... . . $1,515,000
Exemption of transportation facilities used
790,000
exclusively in rail passenger service ..
Assumption by Westchester County locali·
ties of annual maintenance costs for
nine passenger stations (exclusive of cost
$2,575,000*
270,000
of acquisition) . .. . . ............ . . .
Connecticut
Repeal of gross receipts tax on railroads . . $1,200,000
1,730,000
530,000
Fnanciol assistance from other sources . .•
Rhode Island
Repeal of gross receipts tax on railroads $ 187,000
Fifty per cent abatement of present real
property taxes levied by governments on
670,000
483,000
railroads ..... . .......... . ....... .
Massachusetts
Financial assistance from sources to be de·
1,225,000
!ermined ... .. . . ..•. . ....•..•.. • .. $1,225,000
$6,200,000
Total
*This is in addition to benefits already received under the 1959 railroad
tax relief program amounting to $244,000.

As yet, the C'Ost of maintaining passenger stations in
Westchester County has not been assumed. The exemption
in Massachusetts is dependent upon observance of an unworkable provision relating to the retention of employees
and the maintenance of service. This tax relief even in its
entirety is not sufficient to cover the continued losses in providing passenger service. Moreover, as a permanent policy
such relief in the opinion of the Trustees would be more
effective if it were based upon a ·comprehensive overhaul of
the methods of taxation as applied to railroads, with a view
to relating the taxes on a uniform basis for all the states
to earnings ra ther than revenues. Meanwhile, it should be
pointed out that the relief which has been given is subject
to varying conditions that can nullify its purposes. In any
event, since property taxes are not being paid, much of the
relief does not provide any cash for current operations.
URGENTLY NEEDED ADDITIONAL STEPS
The heavy burden of pay1'0ll and its high ratio to shrinking operating revenues has been previously noted. Apropos
of this, on August 16, 1961 the Interstate Commerce Commission in a lengthy decision • alled attention to the need
c
for federal and state tax relief; federal assistance; the necessity of shrinking the Railroad's operations; and labor's
contribution. As to the latter, the Commission stated:
"It would be highly unrealistic if the employees of
the New Haven were to assume that no sacrifice on
their part is required. At present levels of traffic, some
reduction in operating costs is imperative, even in reorganization. The New Haven payroll in 1960 was
$77,266,390. Wages are by far the largest item of
operational expense. Whether the contribution of New
Haven employees should be in the form of increased
productivity, modification of work rules, or in some
other form cannot be determined from this record. We
do say that some contribution on the part of labor is

essentia-l if the current level of employment is maintained."8
The Interstate Staff Committee (for the States of New
York, Connecticut, Massachusetts and Rhode Island)
reached substantially the quoted conclusions in its report
of January 1961.
The 10% increase in commutation fares granted by the
I.C.C., Connecticut and Rhode Island on January 1, 1962,
and by Massachusetts on February 11, should be immediately approved by New Y'Ork. It is also imperative that the
Federal Government repeal the 10% excise tax on passenger
fares at the earliest possible date; and that the New Haven
be permitted to capture this differential by retaining its
present fares . Moreover, additional governmental assistance
is required to begin to overcome deferred maintenance and
improve present margina-l operations. In its 1961 report,
previously mentioned, the Interstate Commerce Commission stated that Federal assistance should be provided annually in a substantial amount. 9
Turning to the states and other local governmental bodies,
we believe it is reasonable that they make a fair contribution
in support of inherently unprofitable service of a local nature
that they want the New Haven to C'Ontinue.
To this end the Trustees have conferred with the Governors of the states of New York, Connecticut, Rhode Island
and Massachusetts, the Mayor of the City of New York, and
the County Executive of the County of Westchester. Anothe r conference with these officials and with representatives of the President of the United States is scheduled for
March 6, 1962. The Trustees have also had significant meetings with the Senators and Representatives from the areas
served by the Railroad. Following the conference of
March 6, the Trustees will again confer with the Senators
and Representatives. Whatever the solution may be, it will
require the full cooperation of all interested parties-Federal,
state and local governments, labor and management, creditors, and the users of the Railroad.

with the degree of certainty required for the formulation 'Of
a concrete plan of reorganization. One thing is abundantly
clear. This railroad cannot be reorganized unless public
authorities assume responsibility for the cost of providing
passenger service at least in the suburban and commuting
areas. Moreover, unless the federal and state governments
c'Ome forward soon with a concrete plan for discharging
that responsibility, the Trustees will not be justified in continuing such passenger service. Pending crystallization of
essentia, preliminary steps, the Trustees are facing l:h.e varil
ous ta,sks outlined herein, with a view to carrying on railroad operations as long as there is reasonable prospect for a
solution of the passenger service problem. As we have said,
the formulati'On of a plan of reorganization within the purview of § 77 at this time is impossible. Any suggestion
to the contrary would be illusory and misleading. We do
believe, however, that the Court, the creditors, and the
public authorities should know that we have developed quite
firmly in our own minds the premises upon which any workable plan must be based. Assumption by governmental authorities of the passenger service is one premise; another is
the need for streamlining the Company's freight lines; a
third is assistance by the Federal Government in overcoming
deferred maintenance; a fourth is that even with the passenger service problem solved, operations of the railroad
streamlined and provision for deferred maintenance, service
on the New Haven lines cannot be contemplated as a
permanent continuing function unless it is merged with a
Trunk Line railroad. This, in our opinion, must not merely
be a physical interconnection, but a full and complete
corporate merger. Only then can the disadvantages inherent
in New Raven's terminal characteristics be overcome. Liquidation is negative in character and will destroy many interests. Reorganization on the other hand is affirmative in
character and will conserve valuable public and private interests. We shall continue our work in establishing these
premises and shall report to the court on further developments.

PREREQUISITES OF ANY REORGANIZATION
At the outset of this report we observed that the purpose
of a reorganization under § 77 of the Bankruptcy Act is
to recapitalize a railroad on the basis of foreseeable earnings, and that without earnings a reorganization under that
Section isc not feasible. We have not yet reached a point in
the reconstruction of operations of the New Haven Railroad
at which earnings from those operations can be foreseen
8. Passenger Fares, New York, N . H . & H. R. Co. ( 1961) 314
I.C.C. 377, 380.
9. Ibid p. 399. b its annual report for the fiscal year ended
June 30, 1961 (issued on December 31, 1961 ), the Commission
recommended enactment of legislation authorizing limited Federal
grants of direct financial aid to rail passenger service for the purpose of preserving, in the public bterest and the interest of
national defense, adequate essential passenger service. The program would provide for the disbursement of funds under a precise
formula which would leave little need for the exercise of discretion and would be based primarily on the amou:1t of tax relief
and other assistance extended by State and local authorities.
75th Annual Report of the I.C.C., pp. 189-191.

The Trustees wish to take this opportunity t'O express their
appreciation for the continued support of the patrons (freight
and passenger) of the New Haven, and the cooperative
spirit of its officers and employees.
Financial and statistical statements for the full calendar
year 1961 appear on the following pages. F inancial reports
covering only the operations by the Trustees and being filed
monthly with the Court.
Respectfully submitted,

Richard Joyce Smith
William J. Kirk
Harry W. Dorigan
Trustees
Dated: March 5, 1962.
Fleming James Jr.,
James Wm. Moore
Counsel for the Trustees

9

Financial and Statistical Statements
Contents
page

NEW HAVEN RAILROAD

13

Comparative Statement of Income

14

Balance Sheet

16

Notes to Financial Statement

17

Operating Revenues in Detail

17

Operating Expenses in Detail

20

Statistics of Rail-Line Operations

21

Investments in Affiliated Companies

22

Other Investments

23

Transportation Property

24

Long Term Debt

25

Equipment Obligations
WHOLLY-OWNED SUBSIDIARY COMPANIES

26

The Connecticut Company

27

New England Transportation Company

28

Providence Produce Warehouse Company

11

THE NEW YORK, NEW HAV,EN AND HARTFORD RAILROAD COMPANY
COMPARATIVE STATEMENT OF INCOME FOR TH'E YEARS 1961 AND 1960

OPERATING REVENUES:
Freight .......................•......................... . .....................
Passenger ... .. ................................................ .... ........... .
Other ....................................................................... .

OPERATING EXPENSES :
MaintenanceTrack and structures ................... . ...... .. ..................... .... ... .
Equipment ................................................................. .
Depreciation and retirements .................................................. .
Traffic ..... . . ..... ......... . .. . ..... ..... ..... . ............................ · ·.
Transportation •................................................................
Miscellaneous . ..... ..... . ... . ...................... .. ..•..................... .
General . .. ...... ... ..... ...... ........ .. ........ .. ....••......... . ............
Net revenue from railway operations
TAXES AND RENTS:
TaxesFederal income (leased lines) ......................... . .. .. ................... .
Payroll ..................................................................•..
Property and other ...............................•...........................
Equipment and joint facility rents, net (Note 5) ...................•..•........•.•••
Net railway operating loss
OTHER INCOME-net:
Grand Central Terminal area buildings ................. .. . .. ............. .. ..... .
Profits on sales of real estate ....... . .. .... .. .. .... . .............. . ....... . .... . . .
Other •.......................................................................
Net loss before fixed charges
FIXED CHARGES:
Rent for leased roads
InterestMortgage bonds-fixed ............•...........................................
Equipment obligations . . . . .. .... .... ....................... . ................. .
Other ..................................................................... .
Net loss ............................................................... .

1961

1960

$ 67,253,933
42,515,891
17,432,671
127,202,495

$ 71,005,753
44,441,369
18,597,314
134,044,436

15,529,508
18,738,969
9,700,327
2,809,131
65,440,288
2,742,261
7,495,573
122,456,057
4,746,438

13,767,746
16,804,946
9,083,624
2,877,099
67,934,671
2,798,137
7,797,370
121,063,593
12,980,843

311,484
5,967,440
1,992,917
16,051,892
24,323,733
19,577,295)

318,370
5,985,058
5,870,912
17,431,834
29,606,174
16,625,331)

4,775,976
692,972
2,156,484
7,625,432
11,951,863)

5,403,571
1,183,568
2,308,463
8,895,602
7,729,729)

800,606

800,477
3,403,554
1,886,340
1,507,455
7,597,826
( $ 19,549,689)

3,441,051
1,791,630
935,624
6,968,911
( $ 14,698,640)

STATE'M,ENT OF R'ETAINED INCOM.E FOR THE YEAR 1961
RETAINED INCOME (DEFICIT):
Balance, December 31, 1960 ......... . .... .. ..... . .. . .......................•....
Charges during current year:
Net loss transferred from Income .............. . ................. . ............. .
Loss on retirement of lightweight trains ......................................... .
Reserve for doubtful receivables ............................................... .
Reserve for impairment in value of investments in wholly-owned subsidiaries .......... .
Write off book value of reacquired certificates of interest
in undistributed common stock (Note 6) .............................•.....•...
Balance, December 31, 1961 ...................................................••

The accompanying notes are an integral part of the financial statements.

($

860,403)

$ 19,549,689
1,759,234
1,915,500
4,745,201
1,373,535

29,343,159
( $ 30,203,562)

THE NEW YORK, NEW HAVEN AND
BALANCE SHEET AS OF
ASSETS
CURRENT ASSETS :
Cash . . ........ ..... . ... ...... .... .. . .. .. . . . · · · · · · · · · · · · · · · · · · · · · · · · · ·
Special Deposits ....... . ...... • .•.....•...... .. .. . . ... .. . .. · · . · · · · . · · · .
Net Balance Receivable from Agents and Conductors .. ... ... ..... .. . ... . .. .. .
Miscellaneous Accounts Receivable .. .... .. .. . ... . . .... . .. .. . . .. .. . . .. . .. .
Interest and Dividends Receivable .... . .. .. . . ..... .. ... ..... .. . .. . .. .. .. . .
Accrued Accounts Receivable . . .. ..... . . .... .. . ..... ...... .. ........ .... .
Working Fund Advances . .. .. .. .. . ... . . ... . .. . . . .. .. ..... .. . . . . .. . .. . .. .
Prepayments ......... ....... .. .. .. . ...... . . . ... ... ...... . .. . .. .. . . ... .
Material and Supplies ... . ... ... .. .... . . ....... . ..... . .. . ........ . ..... .
Other . . . .. . .... ... . . . .. . .. . .. . .. . . . ... . ....... . · · · · · · · · · · · · · · · · · · · · · ·

$

6,901,206
607,449
2,655,784
4,600,698
87,274
2,012,686
528,836
413,355
6,408,434
39,442

Total ... .. . . .. . ..... . . . . . . ..... ... ...... .. . .. . . ... .... . .. · · · · · · .. . · ·. ·

$ 24,255,164

SPECIAL FUNDS:
Capital and Other Reserve Funds . . ... . . ..... ... ... . .. ... .... . . .. ... .. . .. .
Insurance and Other Funds .... . ....... . .. . ... . ...... . ......... .. ....... .

3,516,200
204,840

Total . . .. . ... . . .. . .. . . .. ....... .. . . .. . ....... . ... . .. .. ... .. . .. .. . .. . . .

INVESTMENTS (Note 1) :
Affiliated Companies .........•..•...... ... . .. .. . ... . . . .. .. .. . ... .. . .. ...
Less-Reserve for Impairment of Value .... ; . . .. . .. . .... . .... . .... .. . . ... .

3,721,040

$ 20,622,588
4,745,201

Other .. . . . ...... . .. . .. . .. .. .. . .... . ...... . .. . . . . . .. . . .. .. ... ... . ... . .

15,877,387
6,170,634

Total . . ..... . . . ... . .. . .. . . ............. . . . .. . ......... . . . ... .. . . .... . .

PROPERTIES
Road and Equipment :
Road .......... . . . .. ............ . ..... . ....... . . . . .. . .. .. . ... . . . ... .
Equipment ....... . . .. ... .... .. . . .. . . . . . .. .. .... . ... . .. . .. . ... . ... . . .
General Expenditures ..•.. .. . ......... . .. . ...... . .. .. . . .. . .. ......... .
Improvements on Leased Property . . . . . ... .. ...... ... ... . .... .. . . . . . . .. .. .

22,048,021

299,152,491
170,981,416
18,502,135
6,931,136

Total ............•..•..........•...•.•... .... ... . .. . .. . . .. . .. ... . . ... .
Acquisition Adj. (Resulting from Reorganization) . . . .. . . . .... . . . . .. .. . .. .. . . . .
Donations and Grants ....... • ....•....••.•... ..... . . . .... . . .. . . ...... . . .
Accrued Depreciation-Road and Equipment •. .. . ... . . . . . .... . .. . .. . .. . . .. .
Accrued Amortization of Defense ProjectsRoad and Equipment .. . ... . . . ..... . . .. . .. . . . ....... . . . .. . . .. .... . .. . .
Investment in Transportation Property ........ . .. . ........................ .
Miscellaneous Physical Properties .. . .. ... . .. . .. . .............. . ....... . .. .

495,567,178
34,054,271)
614,438)
114,577,914)
10,261,055)

159,507,678 )
336,059,500
27,562,821

Total ... .. . .. . .... . ..... . ......... . . . .. . . .. . .. .. .. . . .. ... . .. ..... . .. . .

OTHER ASSETS AND DEFERRED CHARGES:
Other Assets (Note 2) ......• •.... . • .•• ...... .. . . . . .......... . . . .. . .....
Unamortized Discount on Long-Term Debt ............................... .
Other Deferred Charges .................... . ......•. . ... . .......... . .. .

363,622,321

4,484,645
445,042
1,628,721

Total ...•••.•............. . ........ .... . .. . . .. . ........ . .............•

6,558,408

TOTAL ASSETS ....... . .. . ..... . . .. .. . .............. . ...... . . . ....... .

$420,204,954

Figures in Parentheses denote credits.

14

The accompanying notes are an integral

HARTFORD RAILROAD COMPANY
DECEMBER 31, 1961
LIABILITIES AND SHAR- HOLDERS' EQUITY
E
CURRENT LIABILITIES (Excluding Long-Term Debt Due Within One
Year-Note 3) :
Traffic and Car Service Balances . ............... . .. . . . . . . .. . .. .. ... .. . .. . .
Audited Accounts and Wages Payable ................................. . .. .
Miscellaneous Accounts Payable ... . ......................... . ........ ... .
Interest Matured Unpaid ..... ............... . . .. ...... .... .... . ..... . .. .
Dividends Matured Unpaid .... .... .. .. . .................... . . . ......... .
Unmatured Interest Accrued ..... . • • . . . • ..•..•.... .. . ....... . . ..... . .... .
Current Portion of Injuries and Dama~tes Reserves .. .............. . .. . . ... . . .
Accrued Vacation Pay .. .. . .. ... .. . . ... .. ..... .. ... .. . ... . ...... . . . ... . .
Other Accrued Accounts Payable .. .. .... . ...... . ... . . . .. . . .. .... ........ .
Federal Income Taxes Accrued .......................... . .... . . . .. . . . .. . .
Other Taxes Accrued ...... ................ .. . .... ... . . . . . ... . . . .. . . •...
Other .. . ..... . .. . . . . . .. . . ..... . . . .... ... .... . .. .. . . ... .. . ..........••

$

4,416,141
5,240,867
2,023,818
462,437
22,750
252,653
3,522,000
4,050,000
6,164,876
271,079
975,756
2,315,418
$ 29,717,795

Total .............. ... ...... ........... . . .. . .. .. .... . . .. . ... . . . ...... .
LONG-TERM DEBT DUE WITHIN ONE YEAR (See page 24):
Equipment Obligations . ....... . . .... . ..... . . . ......... . .............. . . .
LONG-TERM DEBT (See page 24):
Equipment Trusts ............. . . ..... . ....... . . . . .. . . ...... ... .... . .. . .
Conditional Sale Agreements . . . .. . .. . .. . .... . ......... .. . . .. . ..... . ..... .
Receivers' and Trustees' Securities ...... ........ . .. .. ..... . ..... . ...... . . .
Debt in Default:
Disaffirmed Conditional Sale Agreements . ... .. ........ ... .............. . .
Harlem River Div. 4¥4% Bds. due Jan. 1, 1973 .. . ...... . . . ... . ....... . ... .
4% Bonds due July 1, 2007 ..... ... . ............ . .. . . ... ..... ... . . .. .. .
4%% Income Bds. due July 1, 2022 ....... . ... . ... .. . .... . . ..... . ...... . .
Flood Disaster and Other Loans .. . ..... . .... . . . . .. ............. . .. . . .. .

7,053,775
20,548,480
10,489,591
8,000,000
649,434
7,618,000
76,819,900
52,755,500
27,956,800

Total .... . . . .. ......... . ...... . . . . . .. . .... ... . . ... .. . . . · . ... . .. ...... .
RESERVES:
Injuries and Damages . ........................ . . . .. .. .. .. ... . .. . .... . . . .
Other Reserves . ... ... . .. .. .. . ..... . ......... . ..... . .. . . .... . .. . .. . .. . .

204,837,705

4,838,791
1,793,188
6,631,979

Total . . ... .. ..... . .......... . . . ........ .. .. .. .. .. . . . . .. .. . . . . . . . .. .. . .
OTHER LIABILITIES AND DEFERRED CREDITS:
Intere~t in Default .... . ............. . .. . .. . . . . . . . . ....... . .. .. . . . .... . .
Accrued Continstent Interest (Note 4) .. .. .. .. .... .. . .. . .. . .. . ........ . ... .
Unsettled Per Diem Char~tes (Note 5) .......••...... . . . . . . ... . . . .. . .. . . ...
Pre-Bankruptcy Material and Other Vouchers Payable .......... . .. . ... .. .... .
Deferred Taxes •. . ............................. . .................. . ....
Other Liabilities ............. . .. .... . .. . . . ..... . . .. . . . ..... . . .. .. ... . . .
Other Deferred Credits .......•.......•.... .. . . . . .. . .... . . .. . ..... .......
Accrued Depreciation-Leased Property . . .. . .. .. .... . . .. . . .. . .... . . .. . .... .

4,201,702
7,121,993
12,513,330
5,717,225
6,694,257
3,697,881
542,170
5,204,037

Total ...... . ....... . .......... . .. . . .. ..... ... . .. . . .. . . .. . .. . . . .. ... . . .
SHAREHOLDERS' EQUITY:
Stock:
Outstanding:

~~f:r~d ($<roo ~:~ {~gg:~~g ~t::}

::::::::::::::::::::::::::::::::

45,692,595

53,782,641
49,089,000

Undistributed:
Common (No Par) {535,260 shares} .. . . ... . . . .. .... . . ... ........ . . .
Preferred ($100 Par)
650 shares . .... . .. ......... . . . .. . ...... • ..

53,526,000
65,000

Total ... .. ..... .. .. . .. . .. . .... . ...... . ..... . .................. . ...... .

156,462,641

Paid-in Surplus •..••..... . .. .. . .. . . .. .. ....... .. . . ....... . ...........• .
Other Capital Surplus ..... . .. .... .. . . .. .. . .. . .............. . . . . . ....... .
Retained Income (Deficit) ... . ...... . . . ...... . .. .. ....... .. .. ... .. . . . .. .

1,000
11,026
( 30,203,562 )

Total •.••....••..•...•.••••••••.•••••••• • ••• • • · •• • ••• • • • • • • · • · • · • • • • • •
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY .............•.•...

126,271,105
$420,204,954

part of the financial statements.
15

THE NEW YORK, N. W HAVEN AND HARTFORD RAILROAD COMPANY
E
NOTES TO FINANCIAL STATEMENTS
1. INVESTMENTS
Investments are stated at values as determined in the 1947
reorganization plus subsequent additions at cost and, at December 31, 1961, include $14,175,960 pledged as collateral to secure
bonds and other obligations, as detailed on pages 21 and 22. The
Reserve for Impairment of Value reflects the impairment of the
value of the investment in wholly-owned subsidiaries as shown
by the books of those companies.

2. OTHER ASSETS AND DEFERRED CHARGES
The respective rights of the New H'aven Railroad and the New
York Central Railroad in the Biltmore Hotel and its operation
have been the subject of litigation. In September 1960 the New
York Supreme Court rendered a decision favorable to the New
Haven. The New York Central has appealed this decision. Included in Other Assets is $1,636,991 of uncollected income from
the Hotel Biltmore for the years 1959 through 1961.

3. CURRENT LIABILITIES

Liabilities normally subject to current settlement, the payment
of which has been deferred because of bankruptcy, are included
in Other Liabilities.

4. CONTINGENT INTEREST
Under the terms of the mortgage securing the 4*% General
Mortgage Income Bonds, unpaid interest is cumulative up to
13~% of the principal amount of such bonds outstanding and
under the computation of "Available Net Income" as defined in
the mortgage $2,373,998 of contingent interest was charged to
income in each of the years 1959, 1958 and 1957, representing
interest not earned and not paid. No further accumulation of un-

16

earned interest was made in 1960 or 1961 inasmuch as such
interest previously accrued amounted to 13~% of the principal
amount of such bonds outstanding. The indenture states "All
accumulated and unpaid interest shall, whether or not earned,
be payable on the maturity of said Bonds by declaration or otherwise, and thereafter interest shall accrue as a fixed charge at the
rate of four and one-half per cent. ( 43~%) per aunum and be payable on May 1 of each year for the preceding calendar year." On
July 13, 1961 the corporate mortgage trustee declared the principal of said bonds to be due and payable by letter of that date.
No accruals of interest such as those provided for in the mortgage
are shown inasmuch as counsel have advised that they should
not be made.

5. FREIGHT CAR RENTALS IN DISPUTE
The validity and reasonableness of per diem payments required
since August 1, 1953 in accordance with Interstate Commerce
Commission orders were appealed to the courts in 1957. The controversy has not yet been settled. The Company has continued
to make settlements on an interim basis subject to a final determination of the proper per diem rate; however it has charged
income with the full rate ( $2.88 at present). Of the total excess
of amounts recorded over amounts paid at December 31, 1961,
approximately $1,977,000 and $1,986,000 relate to 1961 and 1960
operations, respectively.

6. CERTIFICATES OF INTEREST

In connection with the issuance of presently outstanding common stock pursuant to the 1947 Plan of Reorganization of the
Company, Certificates of Interest (which represent an interest in
undistributed common stock ) were issued in an aggregate face
amount of $53,858,503. Certificates with a face value of $6,157,074
were reacquired in 1956 and 1957 at a cost of $1,373,535. This
amount was carried as an asset on the books of the Company
until December 1961 when it was written off to Retained Income.

OPERATING REVENUES
1961

1960

$ 67,253,933

$ 71,005,753

Switching ...................................... .. .. . ...... . ....... . ...... · ·
Water Transfers-Freight .....•..... . ................ . .. ... . .. . . .. .... .. .. .... .
Total Revenue from Transportation .............. . ... ..... ..... . ..... .. ... ..... .

23,032,880
14,598,498
4,884,513
42,515,891
22,843
481,205
6,677,854
2,008,742
269,909
2,500
774,230
15,488
120,022,595

24,330,842
14,467,597
5,642,930
44,441,369
24,089
555,405
6,979,197
2,681,165
314,621
3,662
717,066
24,219
_126,746,546

INCIDENTAL REVENUE:
Dining and Buffet ................. .. ... .... ................... ... .......... .
Station and Train Privileges ................................................. .
Storage-Freight ............................................................ .
Demurrage ..... . ............. ........... ..... ... ... . ..... . ... .... .. . . . .... .
Communication ... ....... ....................... . ................ . .. .... . . .. .
Power ..... ................ . . ..... ...... .. .................. . ..... ......... .
Rents of Buildings and other Property ......................................... .
Miscellaneous ..............•..••............................................
Total Incidental Revenue .....•....•..... . .. .. .. . .. ....... ... .......... . .. ... .

1,954,607
358,749
58,302
1,040,093
32,839
66,363
398,047
793,635
4,702,635

2,078,574
373,075
39,120
978,154
30,987
60,608
391,251
824,944
4,776,713

JOINT FACILITY REVENUE-Net Cr...•.•... ..... .. .... ...... .......... ........••

2,477,265

2,521,177

$127,202,495

$134,044,436

$

$

TRANSPORTATION REVENUE :
Freight ..........•.•.................... ... ... . .... .. . .. . . ... . . . ... .. . . . . .
Passenger:
Local ............................... ... .. . ........ .. ........... .. ....... .
Commutation ........... .. .......... . .. .. . . . ............... . .........••.••
Interline ...... ....... ........... ....... .... .... .. .. . .. . . .• . . .... .. .... . ..
Total .......... .... .............. • ........ ... . . .. .. .. ... . .. . . . . . ...........
Baggage .................................................................. .
Parlor and Chair Car ....................................................... .
Mail .................... . .... . . . .. . .. . ..... .. .. . . .. . ...... .. .... . ......... .
Express ............ ......... ........................................ , ..... .
Other Passenger Train ...... . .. ...... .. .... .. .. .. . . ... .. . .. ... . .... .. ... . . .. . .

Milk ............... . . . ... .. · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

TOTAL RAILWAY OPERATING REVENUES

OPERATING EXP.ENSES
MAINTENANCE OF WAY AND STRUCTURES:
Superintendence ..........•....•............•.........•......................
Roadway maintenance ...•............. ...... ....... • .............. .. .... .. ...
Tunnels and subways ....................................................... .
Bridges, trestles, and culverts ................................................. .
Ties ........ . ........... .... ........ .... ... .. ..... ..... ........ ........... .
Rails ... ............... . . .... .............................................. .
Other track material ..•...... ... . . . ... ... ... . . .......... ......... .. ...........
Ballast ... .................. .. ...................................... .. .... · ·
Track laying and surfacing ................................................... .
Fences, snowsheds, and signs ........ ......... .... .. ... ............ . ..... .. ... .
Station and office buildings ..... . ... ... ............ .. ........... . ............. .
Roadway buildings ..•.... .. ......... .... ... ... ... .... .......... ........ . .. . .
Fuel stations ............................................................... .
Shops and enginehouses . ... ........ ............. .. . ... ....... .. ............. .
Wharves and docks ......................................................... .
Communication systems .......... ... .. .... ........... ...... ................. .
Signals and interlockers .. ... ...... .. . ...... .... .............. ......... .. . ... .
Power plants ............................................................... .
Power-transmission systems ................................................... .
Miscellaneous structures ..................................................... .
Road property-Depreciation . . ...... ... . ...... .... . . ................. .... .... .
Retirements-Road .. ....... . ... ... .... . ....... ... .. ... .. .. ...... .. ..... . .... .
Roadway machines ......... .. ..... ... ..... . ..... .. . ............. . ..... .. .. . .
Dismantling retired road property ....... ....... . ... ........ . .. .... • ....... . ....
Small tools and supplies ......... ..... .... . ..... . ......................... . .. .
Removing snow, ice, and sand .... .. .. .. . ...... ......... .. .. .. ..... ....... ... . .
Public improvements-Maintenance .... ............ ... ...... ..... .......... . .. .
Injuries to persons .......................................................... .
Insurance .................................................................. .
Stationery and printing ...................................................... .
Other expenses ..... ............................... ...... . .. .. .... .... ...... .
Maintaining joint tracks, yards, and other fac.-Dr ................................ .
Maintaining joint tracks, yards, and other fac.-Cr. . .. .•. .....•....................
Right-of-way expenses ..................... , ................................. .

1,144,351
775,261
3,967
538,392
553,243
260,073
429,817
122,545
2,927,354
24,888
652,160
69,157
1,366
323,129
170,485
433,932
1,679,398
18,010
473,866
93,212
3,190,530
266,446
253,593
143,884
333,555
951,602
350,406
168,074
132,695
12,493
425,874
2,177,862
116,019)
883
$ 18,986,484

1,113,808
727,035
2,405
728,728
485,133
272,900
154,330
73,692
2,332,906
23,900
648,697
77,943
1,299
286,482
102,544
342,668
1,531,726
17,928
419,267
150,392
3,220,197
108,503
210,933
65,946
267,157
507,676
313,085
322,882
152,832
13,849
238,585
2,273,034
94,046)
2,030
$ 17,096,446

Figures in Parentheses denote credits.
17

OPERATING EXPENSES (Continued)
1961
MAINTENANCE OF EQUIPMENT:
Superintendence . ......... .... ....................... . ... . ........... .. ...... .
Shop machinery ...........••.••.••••.••..•..................................
Power-plant machinery ............•..........................................
Shop and power-plant machinery-Depreciation ... ... ... . ... .. ..... .. ....... .... .
Other locomotives-Repairs ............. .. .. ........ ...... .. .. .. . ... ... . .. ... . .
Freight-train cars-Repairs .. .... . ........ ... .. . ...... ..... . ........... . .. .... .
Passenger-train cars-Repairs . .. . ....... . ... .. .. ... ............. . .. . ........... .
Floating equipment-Repairs •..••..............................................
Work equipment-Repairs ..••... ..... . ......................... . ..............
Miscellaneous equipment-Repairs . .... ... .. . .... . ............ .. ... . ..... ...... .
Dismantling retired equipment ... ....... ... : ........ . ......................... .
Retirements-Equipment .. . ...... .. ........ ... .......... . ... . ......... . ...... .
Equipment-Depreciation ..................................................... .
Injuries to p ersons ..... .. . .. . ........ .. ...... . .. . . ... ....................... .
Insurance .................................................................. .
Stationery and printing .....••.................................................
Other expenses ...........•..••............... . .................. . ...........
Joint maintenance of equipment expenses-Or. .... ..... .... .... ........... ..... . . .
Joint maintenance of equipment expenses-Cr......... ........ .. ................ . .

1960

$ 1,016,673

$ 1,031,418

1,860,412
434,523
8,624,603
171,207
936,617
2,844,115
5,893,841
384,768
3,262,777
527,386
4,984
5,187
74,001
34,215
416,246
218,246
4,669,296
807,353)
5,383,467
2,938,744
742,476
1,087,752
361,663
111,726
1,558,509
8,485,788
5,278,332
330,000
1,759,748
596,204
252,472
222,143
1,196,170
341,701
906,676
485,113
322,687
197,308
111,948
1,134,163
4,790
2,075,637
$ 65,440,288

1,906,620
440,522
9,448,651
176,543
889,874
2,829,288
6,071,445
377,361
3,366,653
518,915
5,473
8,495
75,832
30,864
405,987
209,236
4,971,334
836,845)
5,671,618
2,614,997
771,046
1,608,299
349,212
105,863
1,544,464
8,918,266
5,285,505
530,000
1,874,919
611,620
233,472
222,934
1,292,393
350,172
543,134
499,475
331,765
153,711
116,834
1,230,901
5,620
2,172,203
$ 67,934,671

31,065
166,789
191,468
6,412,044
2,997,051
6,050,926
419,431
113,822
95,915
474
77,205)
6,129,088
465,988
259,911
17,805
600,380
107,316
16,621)
24,982,320

55,555
146,614
188,263
5,481,623
2,872,728
5,444,580
442,893
117,125
54,677
2,149
300,252)
5,866,913
454,453
287,922
20,320
324,694
82,871
14,676 )
22,559,870

TRANSPORTATION-RAIL LINE:
Superintendence ............. . ..... . ....... .. . .............................. .
Dispatching trains ... ... . .. .. .. . . .. .. ... ... .. ........ ................. .. . . ... .
Station employees ...•.........•.•.••..•.........•................... · · · · · ... .
Weighing, inspection, and demurrage bureaus ................................... .
Station supplies and expenses ....................................... · . · ....... .
Yardmasters and yard clerks •.............................•......... · · · · • .. · .. .
Yard conductors and brakemen ......... . ... . .. . .. ........ ............. · · . · · ... .
Yard switch and signal tenders ... . .. ... ........... ... ........... . . ............ .
Yard enginemen .. ....... .. .. .. ... .. ...... . ............. .... ...... .. ........ .
Yard switching fuel . . ... ... ... ........ . ....... . .. . .... . .... . ... ..... ........ . .
Yard switching power produced ....................... . ..... . . . ......... · · · · .. .
Yard switching power purchased ........................... . ............... · .. .
Lubricants for yard locomotives .... . ...... ... ... .... .... ...... ..... . · . · · · · · · .. .
Other supplies for yard locomotives . . . ..... .. .. . ..... ..... . .... .... .. .... ...... .
Enginehouse expenses-Yard .. .. . ...... .. ... . ... .... . . .......... . . ... . .... · ... .
Yard supplies and expenses ......... ............... . ...... . ... . .... . .......... .
Operating joint yards and terminals-Or.. . ... . ...... .... . ... ....... .... . ... ..... .
Op~rating_joint yards and terminals-Cr......................................... .
Trrun eng1nemen ............................................................•
Train fuel ....... . .... ............. .. . . .... . .... . ....... . . .................. .
Train power produced ... . ............. .. .. . ... . .... . ............ . ..... ...... .
Train power purchased ... . ...... ....... .. ....... .. ...... . . .. .... .. ....... . .. .
Lubricants for train locomotives ........................................... . ... .
Other supplies for train locomotives ............................................ .
Enginehouse expenses-Train .... . ..... ......... .................... . ... .. .. . .. .
Trainmen .. ..... . ... . ........ . ....... . .. . ........ . ...... .... ............. . . .
Train supplies and expenses .. .... .... ... .. .. ... .. .. ..... .. . . ........ · .. · ...... .
Operating sleeping cars ......... . ... .. .. ......... .... . ... ........ . . .. .... .... .
Signal and interlocker operation ............................................... .
Crossing protection ......... ... . .. .... .... . ..... .. .................. .... .. . .. .
Drawbridge operation ... . .... .. . .. . . .... ....... ...... . .... . .... _. .. .... . ...... .
Communication system operation ...... . .. . . . . .. . .. ... . . . . .. ... .. .... . . .. ..... . .
Operating floating equipment ••.••. . ...... . . ................... . ...............
Stationery and printing •••.....•••.... . ........... . . ..... . . .. . . .... . .. ... .....
Other expenses . . . ...................... . . ... .. ... . .. ... ......... . . .. ... . ... .
Operating joint tracks and facilities- Or.... ...... ....... . ................... . ... .
Insurance . . . . .. . .. .... . ... . .......................... . ... ... .... .. .... ... . .
Clearing wrecks .. ... ... ....... ..... . ......•..... .. ............... ... .. ......
Damage to property ........... . . . ............ . ........... .. . .. ....... .... ... .
Loss and damage-Freight ..... . . . .... . . . ........ . . . .• . .......... .... . ........ .
Loss and damage-Baggage ..................•............. .. . . .. ....... . .. ... .
Injuries to persons .. . . ..... .. . .. ... ....................... . . ................ .

Figures in Parentheses denote credits.
18

OPERATING EXPENSES (Concluded)
1960

1961
TRAFFIC:
Superintendence .............. .. ...... . ..... . .......... . . . ... . ... . .. . .... .. . .
Outside agencies ... . ..... . . . ... . . . .. . ..... . . . .. . .... . . .. .. . .. . . .. .......... . .
Advertising . . .. .... . ..... .. .. .. .... .. . . ..... . .... .. . . ........ .. . . .. . .. ... .. . .
Traffic associations .. .. . . ..... .. ... ... .. .. .... . . . ..... . .... . . . .. .. . . .. . . ..... .
Industrial and immigration bureaus ... .. .... ......... . . . .. . .. .. .... .... . . . ... . . .
Insurance . . ... ...... . ...... ..... .. . ... . .. .. . .. ... . ......... . . . .. . ... .. . .... .
Stationery and printing ... . .................... . ........ .. ......... . .... . ..... .
Other e:.:p enses . ............ . .... . ... . .... . . . ..... . .................... .. .. . .

$

774,804
1,359,873
324,884
82,231
80,911
1,056
120,412
64,960
2,809,131

$

805,508
1,393,827
290,039
113,432
84,344
1,294
139,738
48,917
2,877,099

MISCELLANEOUS OPERATIONS:
Dining and buHet service .... . .... . .. .. ............................ .. ....... .. .
Producing power sold .. .. . . . . .. .. .. . ...... .. . . .. .. . . . . .. .. . .... . . .... . . .. .... .
Operating joint miscellaneous facilities-Dr. . . . . .. ...... . ............ . .. . .... .. .. .

1,887,624
42,586
812,051
2,742,261

1,948,810
40,736
808,591
2,798,137

544,435
3,787,169
589,874
767,960
10,266
640,406
152,915
41,474
722,865
238,209
7,495,573
$122,456,057

570,676
4,056,203
613,296
835,007
13,410
622,624
206,644
39,535
665,720
174,255
7,797,370
$121,063,593

14.93
19.64
51.44
2.21
2.16
5.89
96.27

12.75
16.83
50.68
2.15
2.09
5.82
90.32

GENERAL:
Salaries and expenses of general officers . . . . .................... . ... ... .. . . ...... .
Salaries and expenses of clerks and attendants ... . .. .. .... .. . . ... . ..... . ........ .. .
General office supplies and expenses ... . .. . ...... ... .......... ..... . . .... ... . ... .
Law expenses .............. ..... . .. . . . . . . ......... .. .. .. . .. . ...... . .. . .. . .. .
Insurance ... . .. . .. . ........... .. .... . .. .. ....... . .. .. . . ... .. . . .. ..... . .... . .
Pensions and gratuities ........ . .... .. . .... . .. .... .... ..... ... .. . . ..... . ..... . .
Stationery and printing . ........... . . . . . .... . .. . . .. .... ... . . . .. .. .. .. . .... . .. .
Valuation expenses .. ........ . ... . . .. .. . . .. . .. . . .... . ....... . . . .. ..... .. . · · . · ·
Other expenses . .. .. . . ..................... .. ... .. .. ......... . .. . . . . ... . . . .. ·
General joint facilities-Dr ... . ... . . ..... . .. . .. .. . .... . .... .. .. .. ........ .. .. .. .
TOTAL RAILWAY OPERATING EXPENSES . .. . . . ... ... .... . ... . ... .. ..... .... .

RATIO OF EXPENSES TO REVENUES:
Maintenance of Way and Structures . . .. .... .. ..... . . . .. . .. . . ... . .. . . . . .. .. .. .. . .
Maintenance of Equipment . . . . . . .. . .. ....... . ....... .. ..... .. .. . ..... .. ...... .
Transportation-Rail Lines . . .... .. . .. . .... . .. .. . . .. . ... • . . ... ... ....... . .......
Traffic . .. .. ... .... ............ . . . . ... . ..... . . . .......... . . . ........ . .. .. . .. .
Miscellaneous Operations ........ .... . ...... .. . . ... . ...... . . . . . ... . . ... .. . ... . .
General .......... . ........... ... .. ..... ....... .. . ... .. ... ..... .. . .. .. .... . .

19

STATISTICS OF RAIL-LINE OP, RATIONS
E
1960

1961
Average Miles of Road Operated .......•••. Total .•........•.•...........•••••.•••••
Freight Service •.............•...•...••.•
Passenger Service ....•.•........••.•.•.••

1,738
1,715
613

1,752
1,729
631

Train Miles .....................••..•••• Freight Service ...............•••.•..•...
Passenger Service ....................... .
Total Transportation Service .............. .
Work Trains ....•.................•..••.

2,607,491
6,231,579
8,839,070
131,199

2,831,736
6,442,812
9,274,548
109,365

Locomotive Miles" .............•.•••.••• Freight Service .•........................
Passenger Service ....................... .
Total Transportation Service .............. .
Work Trains ........................... .

5,918,827
5,030,503
10,949,330
167,472

6,298,792
5,325,139
11,623,931
142,091

Car Miles ............................••• Freight Service ....•.....................
Passenger Service ...................... . .
Total Transportation Service .............. .
Work Trains ........................... .

161,239,103
48,546,621
209,785,724
576,250

170,060,735
53,031,623
223,092,358
442,158

Gross Ton Miles ............ .. ..... . •.•• • Locomotives-Freight .................... .
(thousands)
Locomotives-Passenger .................. .
Cars and Contents-Freight ............... .
Cars and Contents-Passenger ............. .

872,093
1,116,788
6,739,124
3,263,724

860,958
1,169,732
7,035,964
3,574,205

Train Hours ........... . . ................ Freight Service ......................•...
Passenger Service ...............•........

167,321
164,968

179,374
170,491

Tons of Freight ....... . ...............••• Revenue ............................... .
Non-Revenue .....................••.....
Total . . .. .... ... .. .. ................... .

18,370,951
220,223
18,591,174

18,494,244
267,976
18,762,220

Ton Miles of Freight ..............••.•••• Revenue .........•...................•..
( thousands)
Non-Revenue .....................••..•..
Total ..............................•. • ..

2,765,046
16,047
2,781,093

2,809,208
20,722
2,829,930

Passengers Carried

28,162,811

30,835,912

Passenger Miles ............................................ . .................... .

1,187, 746,048

1,290,821,702

Freight Revenue-Account 101 .......••...................•........................

$ 67,253,933

$ 71,005,753

•••

0

••••

0

••••••••

••••••••••••

0

••••••

0

••••••••

0

.

0

•

••

•

0

•••

0

••••••

Passenger Revenue-Account 102 ................•.................................

$ 42,515,891

$ 44,441,369

Revenue per Ton ........................ . ..................... . ................ .

$ 3.66

$ 3.84

Revenue per Ton Mile .................................... . ........ 0........ 0.... .

$.0243

$.0253

Miles per Revenue Ton .... .. . . . . • . . ........ . ... • ... . .. . . ... ... . ... .........•. .. ..

150o51

151.90

Ton-Miles-Revenue freight per mile of roadt ..... . ...... . .. 0... 0... 00.. . ........... .

1,565,369

1,580,058

Revenue per Passenger .... . . . .. . ......................................... .. . .... .

$ 1.51
$o
0358

$ 1.44

Revenue per Passenger Mile ... . ..................... . . . .. . ..... . ........... . ..... .

$00344

Miles per Revenue Passenger ..... 0................................ 0. 0............ 0

42.17

41.86

Revenue passenger- Miles per mile of road . .. . .. .. . . ....... . ........ . ... 0........... .

683,398

736,770

" Locomotive miles shown are based on rules of I.CoCo which require treatment of a group of units operated together as one locomotive.
t Excludes ton-miles in harbor transfer service.

20

INV, STMENTS IN AFFILIATED COMPANIES
E
Number of
Shares

Par Value

Book Value

No Par
$2,000,000
1,125,000
336,400
1,500,000
1,500,000
500,000
29,160,000
258,770
576,600
No Par
40,000
143,500

$1,140,625(A)
2,000,000(A)
1,125,000(A)
321,400(A)
500,000(A)
1,527,204(A)
1
1
957,449(B)
576,600
4,400(B)
36,288(B)
79,015
8,267,983

STOCKS:
Boston Terminal Corporation, The ................................. .
Connecticut Co., The-Class A ...... .... .. . ... . ................... .
Connecticut Co., The-Class B ......... . .. ............. ........... .
Fruit Growers Ell:press Company .................................. .
New England Transportation Company ... .... .... ........ ......... . .
New York Connecting Rail Road Company ... ............ ........... .
New York and Stamford Railway Company ...... . . ... .. . ........ ... .
New York, Ontario & Western Railway Company ....................•
Pullman Company, The .......................................... .
Providence Produce Warehouse Company ........................... .
Railway Express Agency, Incorporated . .. ... ....... ..... ... ..... .... .
South Manchester Railroad Company .............................. .
Union Freight Railroad Company .................................. .
Total ...... ............... . .. . .. . . .... ................ .. . .

7
20,000
11,250
3,364
15,000
15,000
5,000
291,600
25,877
5,766
44
400
1,435

Rate of
Interest

Face Value

OTHER SECURED OBLIGATIONS (NOTES) :
New York and Stamford Railway Company ......................... .
Providence Produce Warehouse Company .... ..... ..... . ..... • .......
Providence Produce Warehouse Company ........................ ... .
Total .................................................... .

6%

4lh%
2%

42,866
228,817
41,329

1

228,817(B)
41,329
270,147

UNSECURED NOTES:
New England Transportation Company ............................. .
New York, Ontario & Western Railway Company ... ..... . .. . .. ....... .
Railway Express Agency, Incorporated .............................. .
Providence Produce Warehouse Company ........................... .
Total .................................................... .

6%

5%&6%
5%
4%

738,000
1,098,000
1,272,284
10,332,098

419,500(A)
1

1,272,284(A)
10,332,098( C)
12,023,883

INVESTMENT ADVANCES:

............................................................... · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

50,575
10,000
60,575

Total Investments in Affiliated Companies . ..... . . ......... .. . . ....... .... . .. ...... . .... .. .
Less-Reserve For Impairment In Value .............•.......................................................
Total Investments In Affiliated Companies Less Reserve ................................... .

20,622,588
4,745,201
$15,877,387

New England Car Company ............................................................................ ·
Providence Produce Warehouse Company .............. • ..•.•..... .. .............. ... ................. .. ...
Total

Pledged
(A) Pledged under Flood Loan and other guaranteed agreements .............................................. .
(B) Pledged under The N.Y., N.H. & H. R.R. Co. First and Refunding Mortgage, and under the Company's
General Income Mortgage subject and subordinate to the prior lien of the First and Refunding Mortgage . ..... . . .

$ 8,306,013

1,226,954
$ 9,532,967

(C) Includes non-interest bearing notes totaling $1,684,983.

21

OTHER INVESTMENTS
Number of
Shares
0

0

0

0

o

0

o

0

0

0

0

o

0

0

o

0

0

0

0

0

0

o

0

0

o

0

o

0

o

0

0

0

0

o

0

0

0

0

0

o

0

0

o

0

o

o

o

0

o

0

o

o

o

o

o

o

o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

.

0

•

•

••••••

o

0

0

o

o

0

o

0

o

0

$ 735,200
750
No Par
No Par
20,100
2,500
107,100
955,100

Face Value

o

o

0

7,352
750
250
60
201
2,500
1,071
9,551

o

0

0

0

Par Value

Rate of
Interest

STOCKS:
Boston & Providence Railroad Corporation
Business Development Company of Rhode Island
Connecticut Development Credit Corporation, The
Greater Fall River Development Corporation
Holyoke & Westfield Railroad Company
Massachusetts Business Development Corporation
Norwich & Worcester Railroad Company ... .
Providence & Worcester Railroad Company ..
Total ..

o

o

o

0

o

0

o

o

0

o

o

o

0

0

o

0

0

0

o

o

0

0

o

o

0

o

•

o

0

0

o

•

0

••

o

o

o

o

0

•

o

o

0

o

o

o

o

o

o

•

0

o

o

•

o

o

0

0

•

o

o

o

0

o

o

0

0

o

o

o

o.

o

o

o

0

o

0

o

o

o

o

o

.

0

o

o

o

o

o

0

o

0.

o

•••

0

••

o

o

o

0

o

o

o

o

o

•

••

••

•

0

•••••

0.

0

•

•

0

0

0

0

0

0

0

0

••

Book Value
$

0

0

•

500,506
7,500
25,000
300
20,100
25,000
107,100(A )
955,100(A)
1,640,606

BONDS:
Boston & Providence Railroad Corporation, due 1938
Total

0

0

0.

0.

0

••

0

••

•

•

••

0

•••••••

•

0.

0

0

0

0

0

0

.

0.

5%
0

0

0

0

0

0

0

0.

0

0

0

0

0

0

0

0

0

{

2,000,000
170,000

3,060,000( B)
260,100(A)
3,320,100

0

OTHER SECURED OBLIGATIONS (NOTES):
Atlas Terminal Stores, Incorporated
Depot Realty Corporation ..•.......
Produce Terminal Realty Corporation .
Rabson Realty Corporation ..
Total
0

0

0

0

0

0

•••••••••

0

•

0.

0

0

0.

0

0

0.

•

0

o

0

0.

0

0

0

.

o

o

•

o

o

•

o

o

••

o

0

o

o

o

o

o

o

o

o

o

0

0

o

o

o

0

o

0

•

o

•

o

o

o

o

o

o

o

0

0

0

o

o

0

o

o

0

o

o.

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

o

0

0

0

o

o

0

o

o

o

o

•

0

0

0

0

••

0

•

0

••

0

••

0

••

o

•

o

o

•

o

o

o

o

o

o

••

0

0

0

0.

0

••

0

0.

0.

0

0.

0

0

0

0

0

0

••

o

o

o.

0

3lh%
4lh%
4%

o

o

0

o

o

o

o

0

0

14,377
25,826
243,693(C)
17,000(C)
300,896

o

0

14,377
25,826
243,693
17,000

INVESTMENT ADVANCES:
Norwich & Worcester Railroad Company
Total Other Investments ......
0

0

•

0

0

0

0

0

0

•

0

0

0

0

•

0

0

0

0

0

0

0

o

0

o

o •••

0

0

•

0

0

0

•

o

o

•

0

o

0

o

o

0

0

0

o

o

o

o

••

0

o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

909,032
$6,170,634

Pledged
(A) Pledged under Flood Loan and other guaranteed agreements
(B) Pledged under Flood Loan and other guaranteed agreements, subject to prior pledge under various other obligations
(C) Pledged under The N.Y., N.H. & H. R.R. Co. First and Refunding Mortgage, and under the Company's General
Income Mortgage subject and subordinate to the prior lien of the First and Refunding Mortgage
0

•

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

•

0

0

0

••

0

0

0

•

0

0

0

0

0

0

22

0

°

•

0

0

0

0

•

•

0

0

0

•

••

0

0

0

0

•

0

•

0

•

0

•

•••

0

$1,322,300
3,060,000
260,693
$4,642,993

TRANSPORTATION PROPERTY

FOR THE YEAR ENDED DECEMBER 31, 1961
Balance at
Beginning
of Year

Additions and
Betterments
During the
Year

Credits for
Property Retired During
the Year

Net Additions
and Betterments During
the Year

Balance at
End of
the Year

ROAD:
Engineering ....... ................ .
Land for Transportation Purposes .... . .
Other Right-of-Way Expenditures .. .. .
Grading ........................... .
Tunnels and Subways ........... .. .. .
Bridges, Trestles and Culverts ........ .
Ties . .... ... ... ........ ... . ....... .
Rails ....... . .. . ..... ..... ... .. .. . .
Other Track Material ...... ......... .
Ballast ..................... . . . .... .
Track Laying and Surfacing ......... .
Fences, Snowsheds and Signs .. ... ... .
Station and Office Buildings ......... .
Roadway Buildings ................. .
Fuel and Water Stations .. .... ...... .
Shops and Enginehouses ........ . .... .
Wharves and Docks •........ . .......
Communication Systems . .. . ...... ... .
Signals and Interlockers .... ... ...... .
Power Plants ..................... . .
Power Transmission Systems ......... .
Miscellaneous Structures ...•••. .. ....
Roadway Machines & Small Tools .... .
Public Improvements-Construction . . .. .
Shop Machinery •....................
Power Plant Machinery ......... . .. . .

$ 8,533,716
40,430,804
163,409
53,504,846
2,204,458
43,913,890
8,530,383
17,206,984
14,842,626
7,217,575
10,433,704
2,096,591
27,091,847
489,731
613,144
6,986,970
1,633,484
3,494,116
16,304,444
2,649,655
9,677,470
1,013,096
2,876,448
17,791,996
2,301,879
5,296,329
307,299,595

GENERAL .......................... .
LESS : DONATIONS AND GRANTS ... .

19,356,641
484,441
326,171,795

s

4,175

193,061

188,886)

53,987
27,402
37,533
40,866
17,324
95,970
8,179
48,408
36,119

211,908
212,781
561,526
401,250
212,120
212,969
5,605
545,460
8,348)

157,921)
185,379)
523,993)
360,384 )
194,796 )
116,999)
2,574
497,052)
44,467

43,750
136,076
925
809,202
32,370
7,215
4,602
84,197
126,975
32,915
55,762
1,753,439

195,546)
75,070
460,703
117)
1,283
70,052)
51,283
39,339
65,561)
9,679)
3,277,954

239,296
136,076
74,145 )
348,499
32,487
5,932
74,654
32,914
87,636
98,476
65,441
1,524,515 )

8,460,375
40,110,733
163,409
53,315,960
2,204,458
43,755,969
8,345,004
16,682,991
14,482,242
7,022,779
10,316,705
2,099,165
26,594,795
534,198
613,144
7,226,266
1,769,560
3,419,971
16,652,943
2,682,142
9,683,402
1,087,750
2,909,362
17,879,632
2,400,355
5,361,770
.305,775,080

135,172
1,618,267

$

545,959
5,175
3,818,738

545,959 )
129,997
2,200,471)

18,810,682
614,438
323,971,324

6,071
43,416

$

79,412
363,487

($
(

73,341)
320,071)

EQUIPMENT:
Diesel Electric .... .. ...... ... ... . .. .
Electric ......... .... . .. ... . .... . .. .
Freight Cars ..... ....... .. .. ...... .
Passenger Cars . ..... ..... .......... .
Floating .... .. .... ... ... ..... . ... . .
Work ... ................ .... .. ... . .
Miscellaneous .... ... ... ........... .

61,985,422
7,536,183
27,797,598
70,316,333
5,921,221
1,908,081
195,822
175,660,660

32,742
994
23,436
148,755

2,340,953
2,033,668
464,783

( 2,308,211)
994
2,010,232 )
316,028 )

13,443
1,750
221,120

48,768
12,192
4,900,364

35,325 )
10,442 )
( 4,679,244 )

59,677,211
7,537,177
25,787,366
70,000,305
5,921,221
1,872,756
185,380
170,981,416

Total ..........•.•.•.•.. • · · · ·

$501,832,455

$1,839,387

$8,719,102

( $6,879,715)

$494,952,740

FiRures in Parentheses denote contra items.

23

LONG-TERM DEBT
In Hands
of Public

Maturities
in 1962

In Treasury

UNMATURED
Underlying BondsProvidence Terminal Company-First Mortgage Bonds, 4%%, due
March 1, 1962 •..•...................... • .... · · · · • · · · · · · · · · ·
Equipment Obligations-(see page 25 for details) Equipment Trust Certificates ..... .. ........ . ... . ..... . .. ..... . . . .
Conditional Sale Agreements . . . ... . . ..... . ....... .. ..... .... . . .. .
Trustees' Certificates5%, due August 4, 1966 .... . .... . ... . ......... . ..... . .. . . . .. . .. .
4%%, due December 13, 1966 . ... . ............... . . ... . .. . .... .. . .

Total Unmatured . . . ... . .. . . .. . . ... . . .. .. . . . . . . .. .. . . . .. . .. · ·

$

$

25,325,440
12,766,406
38,091,846

{ $

492,000(A)
576,000(B)
1,068,000

4,776,960
2,276,815
7,053,775

5,000,000
3,000,000
8,000,000
46,091,846

7,053,775

1,068,000

DEBT IN DEFAULT
Underlying BondsHarlem River Division First Mortgage Bonds, 41/.a%, due January 1, 1973.

7,618,000

First and Refunding Mortgage Bonds, 4%, due July 1, 2007Issued ... .. .................... · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

76,819,900

3,000
274,200(A)
6,210,215( B)
14,500,000(A)
1,200,785{B)
22,185,200

Nominally issued .... . ...... ... .. . ..... . .. . ... . .. .. . . . .. ... . .
76,819,900
General Mortgage Income Bonds, 4%%, due July 1, 2022 (convertible-see
Note No. 4 to Financial Statements)Issued .. .. ..... .. .. . ...........................•........ · · ·
Nominally issued . .. . .. ..... . .. . ........•.... . ............. ..

3,279,636 (A)
11,695,164(A)
14,974,800

52,755,500

- 52,755,500
- -- Equipment ObligationsDisaffirmed Conditional Sale Agreements
Flood Loans, 4%%, due in installments to 1965 •............ . . . . . . .... .
Shop Centralization Loan (C) , due in installments to 1967
Collateral Notes (C) due in installments toDecember 20, 1961 . . ........ . . .. ... .. . .... . .... . . . . .. . . ... . . .
December 26, 1961 ... . . .... . . . .... . .... ... . ..... . ... . . . ..... .
December 26, 1961 .. . .. . . ... . ............... . . . .. . . ... . .. . .. .

649,434
13,090,000
1,375,000

226,500
222,500
42,800
491,800

Promissory Notes due November 3, 1961 . . ........ . . . .. .. . . .... . . . ... .

13,000,000

Total Debt in Default .... . .... . ........... . ..... .... .. . ... . .

165,799,634

Total Long-Term Debt . . . . . ........ ... ............ . .. .

$211,891,480

37,163,000
$7,053,775

(A ) Pledged under Flood Loan and other guaranteed agreements.
(B) Pledged under Flood Loan and other guaranteed agreements subject to prior pledge under various other obligations.
(C) Interest rate is lh of 1% above the effective New York prime commercial rate.

24

$38,231,000

E(i)UIPMENT OBLIGATIONS
Princ~al

Amount
Outstanding
Dec. 31, 1961

Description
Equipment Trust Certificates:
Interest Rate
2%
1947 #1

$

Payable
During 1962

351,000

Final
Maturity

351,000

$

1962

Equipment Covered

30 Diesel-Electric Road Locomotives and 15 DieselElectric "B" Locomotive Units
71 Coaches, 10 Dining Cars, 5 Grill Cars, 2 Parlor
Cars and 2 Transformer Cars
2450 Box Cars, 1 Mack Diesel-Electric Rail Car and
1 Transformer Car
35 Diesel-Electric Switching Locomotives and 7
Caboose Cars
30 Coaches, 50 Parlor Cars, 10 Grill Cars and 2
Sleeping Cars
15 Diesel-Electric Road Locomotives and 21 DieselElectric Switching Locomotives
12 Diesel-Electric Road Locomotives and 15 Hopper Cars
25 Sleeping Cars and 2 Box Cars
545 Hopper Cars and 103 Box Cars
93 Multiple-Unit Electric Coaches and 7 MultipleUnit Electric Combination Cars
85 Hopper Cars, II Sleeping Cars and 4 Bedroom
Cars
10 Electric Passenger Locomotives and 5 Box Cars
15 Diesel-Electric All Purpose Locomotives
15 Diesel-Electric Road Switching Locomotives
and 2 Lightweight Diesel-Electric Passenger
Locomotives
30 Diesel-Electric Road Switching Locomotives

1947

#2

2¥4%

397,000

397,000

1962

1947

#3

2lh%

500,000

500,000

1962

1947

#4

2lh%

188,000

188,000

1962

1948

#1

2%%

864,000

432,000

1963

1948

#2

2lh%

540,000

270,000

1963

1949

#1

2¥4%

420,000

140,000

1964

1949 #2
1953 #1
1954 #1-A
1954 #1-B
1954 #2

2¥4%
3lh%
3%
3%

468,000
1,540,000
3,080,000
2,884,000
1,384,000

156,000
220,000
440,000
412,000
173,000

1964
1968
1969}
1969
1969

1955
1956
1956

#1
#1
#2

3%
4%%
5¥s%

1,784,000
1,500,000
1,810,000

223,000
150,000
181,000

1970
1971
1971

1960

#1

5lh%

7,615,440

543,960

1975

90,000
30,000
18,000
720,000
254,000

90,000
30,000
18,000
540,000
108,000

1962
1962
1962
1963
1964

15
5
3
30
100

3~%

Conditional Sale Agreements :
Dated
3- 1-1952
4- 1-1952
6- 1-1952
2- 1-1953
3~%
4-15-1954
3.45%
10- 1-1956

51h%

607,501

202,499

1964

1

7- 1-1957
7- 1-1957
9- 9-1957
9-15-1959
10-28-1959
II- 1-1959

6%
6%
5.8%
51h%
4%%
51h%

800,000
2,628,571
23,231
6,776,170
79,700
439,233

120,000
262,857
23,231
645,348
31,880
105,000

1971
1971
1962
1972
1965
1966

7
23
30
30
15

12- 1-1959
5¥z%
Total Equipment
Obligations ..... .

300,000

100,000

1965

$38,091,846

Diesel-Electric Road Switching Locomotives
Budd-Diesel Rail Cars
Budd-Diesel Rail Cars
Budd Passenger Diesel Rail Cars
Highway Trailer Flat Cars and 7 Mack DieselElectric Rail Cars
Six Car Lightweight, Self-Propelled Passenger
Train-Budd
Diesel-Electric Road Switching Locomotives
Diesel-Electric Road Switching Locomotives
Highway Trailers
Diesel-Electric Road Switching Locomotives
Gondola Cars
Centralized Traffic Control-Derby Jet., Conn.
-Poughkeepsie, N. Y.
Track and Roadway Maintenance Units

$ 7,053,775

Payments Maturing in Years Ending December 31
1962 ... . $7,053,775
1963. ...
5,056,545
1964 . . . . 4,088,608

1965 ....
1966 ....
1967 ....

$3,436,165
3,350,398
3,331,165
Total

1968 ....
1969 ....
1970 ....
•

0

$3,331,165
1971 .... $1,823,165
2,259,165
1972 ....
866,650
1,863,165
1973 ... .
543,960
$38,091,846

1974 ....
1975 . ...

$ 543,960
543,960

••••••••••••••••••

25

THE CONNECTICUT COMPANY
1961
INCOME ACCOUNT:
Operating Revenues .. .... ... ........................ . . . ...... . .. . . . . . ....... .
Operating Expenses ... .. . .. . ........ . . . .. . .......... .. ... ... ..... .. ... . .. ... .
Net Operating Revenue ........................................... . .. . ....... .
Other Income .............................................................. .
Total Income .. .. . . ..... .. . ..... ...... ... . . . ... .. ... . ... . .. . . . .. . . .... . .... .
Income Deductions •••...•....................................................
Net Income before Taxes ................................................. .
Provision for Income Taxes ... .. .... .. ...... ... .... ... ....... .. .. .. . .. ..... .. . .
Net Income .. .. .... ... ........... .... ...... .. . . . .. . ..... . ..... .. . .... .. .

BALANCE SHEET
ASSETS
Current Assets:
Cash, Working Funds and Temporary Cash Investments . . .. . ............. . .... .
Accounts Receivable . ........... ..... .. ...... . . .. . ......... ...........•.•
Material and Supplies ......... .... .. ........ . . .... ....... .. .... ... .. .•...
Total Current Assets ................................................. .
Tangible Property-Net . . .......... . ....... .. ........ . ... ........ . ..... . .. ... .
Investments:
New Haven 4lh%, General Mortgage Income Bonds ... . ................ ....... .
Less-Reserve for Impairment of Value ••••... . ... ... . ........ . ..... . ....
New Haven Common Stock- Nominal Value .......................... . ...... .
Other ............................•••...................................
Total Investments ................................................... .
Miscellaneous Special Funds .................................................. .
Prepayments .............. .. .......... .. . . . .... . . .. ..... .. .... . . . . . ...... .. .
Total Assets . ... ... ..... . ................................... . ....... .

$ 9,527,902
9,194,492
333,410
21,377
354,787
33,989
320,798
207,000
$
113,798

26

9,463,298
9,216,944
246,354
22,494
268,848
29,200
239,648
182,029
$
57,619

$

$

$

416,645
382,604

$

$

Equipment Obligations:
Due within one year ... .... ...... ... ..... .. .... .... . ... . . ... .. . ....... . .. .
Due after one year •..•....••..•.........................................
Other Deferred Credits ..••... ... .•..•........................... . .... ... .....
Injuries, Loss and Damage Reserves . . ....... . . ... ...... .. ....... .. .. . .. . ......•
Capital Stock .............. ...... .... . . .. . . .. . . .. . .. . .... ........ ... ........ .
Unappropriated Surplus .... . ..... . ... .... .... . . .... . . . .... . .. .... ........ . . . . .
Total Liabilities . ........ ...... ........... . ......... . ....... .. ....... .

Debits:
Adjustment in Book Value-Investment in Securities of Parent Company . .. . ........ .
Loss on Sale of Norwich Division •. . .. .......... . ... ... .. ........ . .... .... ... • •
Credit Balance, December 31, 1961 ............................................ .

1960

December 31, 1961

LIABILITIES
Current Liabilities:
Miscellaneous Accounts Payabl e ... . ... . .. .. ... ......... . . .... . .. .... .... . .
Unredeemed Tickets ...... . ..... . ... ... .. ...... ....... . .. .... .... .. . . .... .
Taxes Accrued ...... ..... ... ......................... .. .. .. . · · · · · · · · · · · · ·
Other Current Liabilities ................................................. .
Total Current Liabilities ........ . ...... . ... . .. .. . . ..... ..... ... ... ... .

UNAPPROPRIATED SURPLUS ACCOUNT
Credit Balance, December 31, 1960 •.•... ............. . ......... .. . .. . . . . ... ....
Credits:
Net Income for year 1961 ..............• ••. ..... . . ..... . .... ... .... .. ... . ... . .
Miscellaneous-Net ........................•..••..................... . . · ..... .

Year

1,178,674
164,521
105,777
1,448,972
4,665,479

34,041
1
378,886
412,928
40,177
41,134
6,608,690

643,952
63,269
86,681
831 ,356
1,625,258

318,102
437,067
4,383
626,398
3,125,000
472,482
$ 6,608,690

$

$

113,798
3,031

1,636,934

116,829

1,228,340
_ _. .: .5: ;.,2•:=-94;:.: 1
$

1,281,281
472,482

NEW ENGLAND TRAN'SPORTATION COMPANY
Year

1960

1961
INCOME ACCOUNT
Operating Revenues
Operating E:~:penses

$ 3,230,642
3,623,739

$

3,059,387
3,522,229

Net Operating Revenue ...................................................... .
Other Ordinary Income ... ................ . .. . .. .. . .... .... .... .. ..... . . . ... . .

393,097)
23,600

462,842)
61,004

Gross Ordinary Income •.......... . ....... ..................................•.
Deductions from Ordinary Income ...... . ....... .. ............ . ................ .

369,497)
84,332

401,838)
97,109

Net Ordinary Income .......... .......... . .......... .... ...... . ........ ... ... .
Delayed Income Credits ... ... ...... .. .. .. .......... .... ... ........ ...... . .. .. .
Delayed Income Charges . ... .......... ....... . . ............... . ...... ... ..... .
Net Income .............. . . ....... . .. . .. .. . . . ....... . ... .. . ...... ... . .. .
) Indicates deficit.

453,829)

498,947)
30,724
7,051
475,274)

($

453,829)

($

December 31, 1961
BALANCE SHEET
ASSETS
Current Assets: .... ... .. ..... .. . ... . .............. .......................... .
Cash and Workin2 Funds ..... .. ..... . ......... . ... ... . .. .... . .... . ....... ... .
Accounts Receivable .. ...... . ..... .. . ....... .. ............................... .
Material and Supplies ..................... . .... . .. ... ..... . ...... .. ... ... . ... .
Other Current Assets ..... ..... ............................................... .

$

45,631
5,900
192,496
12,860
150,473

Total Current Assets ...... .. .... .. ...... .... ......... .. .. ......... .... ... .
Tangible Property-Net .. .. .................................................. .
Special Funds .......... ..... .. . .. . ................ .. .... .. . ... ... ..... .....•
Deferred Debts ... ...•.... . . .. .. ............... ..... ........ . . ...............

407,360
1,243,360
117,562
65,151

Total Assets ............................................................ .
LIABILITIES
Current Liabilities:
Long-Term Debt Due Within One Year ... ............................. ... . ....•
Advances Payable . ... ....... . . .. . . ....... . . . . . ............ . .. . ........ . ....••
Equipment and Other Long Term Obligations .............. .. . ............ ....•••
Deferred Credits . .. ..... . .. . .... .............. .. ...... ... .. ... ...•.... ...•.•
Injuries, Loss and Damage Reserves . ...... .. .... . ................... ........••.
Capital Stock .. . ... .. .. .................................. . .. .. . ...... .....•••
Unappropriated Surplus (Deficit) ... .. . ...... .. .... .. ... . ............... . .. ..••.

$ 1,833,433

Total Liabilities .... . ... .. . .... .. ..... ........................ .... ... .... .

$ 1,833,433

380,948
266,872
1,856,989
348,013
1,163,136
94,383
1,500,000
3,776,908)

UNAPPROPRIATED SURPLUS ACCOUNT
Retained Income (Deficit), December 81, 1960 .................................. .
Net Loss for Year 1961 ...............•.•••.... ... ............................

( $ 3,323,079)

Retained Income (Deficit), December 31, 1961 ......... ... .. ......... .......... .

( $ 3,776,908)

453,829

27

PROYIDEN CE PRODUCE WAREHOUS· C OMPANY
E
1

Year

1960

1961
INCOME ACCOUNT
Rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • . . . • . . . . . • . • . . . . . . . . . . . . . . . . . . . • .
Interest ...................................................................•.
Total Income ....... . ...................... . . .. .. ................. .. .
Expenses .................................................... .... .......... .
Net Income (Deficit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BALANCE SHEET
ASSETS
Current Assets:
Cash ... ............ .. . . ... .. .. . .... ............................. ..... . .
Accounts Receivable ..................................................... .
Total Current Assets ................................................. .

$

($

362,055
271,270
633,325
885,200
251,875)

===========

$

($

391,369
282,263
673,632
932,923
259,291)

December 31, 1961

$

16,680
20,404
37,084

Investments:
Land .. ... ........ . ....•............. ... .... .... ......... ..... . .........
Building and Structures-Net ...........•. . ........... ... ......... ... ..... .
Notes Receivable ...................•.••......... ..... ... .. ..... . .........
N.Y., N.H. & H. R.R. Co. Securities-Nominal Value .........................•
New England Car Company ......... . ...................... . . ....... ..... .
Defem Corporation ...................................................... .
Total Investments ................................................... .

3,486,796
3,114,642
6,565,895
4
15,150
75,000
13,257,487

Other Assets and Unadjusted Debits ........................................... .
Total Assets

127,322
$ 13,421,893

LIABILITIES
Current Liabilities:
Interest Payable ... ... ... ... ... .... .......... . ...... ..... . . . . .. . ... ..... .
Accrued Taxes .......................................................... .
Total Current Liabilities ............................................. .

$ 1,490,824
19,447
1,510,271

Other Liabilities ..... ..... . . ... . .. .. . .... .... . .. ... .. ....... .. .... . ......... .
Funded Debt ........... . .. . ................................................ .
Unadjusted Credits ... .. ... . .. ........ .. . . .............. ..... . . . ....... .... . . .
Capital Stock .... .. ...................................................... ..•
Surplus (Deficit) ............................. . .............. ........... ..... .
Total Liabilities .................................................... .

32,500
17,023,112
2,765
576,600
(
5,723,355)
13,421,893
$

UNAPPROPRIATED SURPLUS ACCOUNT
Retained Income Deficit, Balance, December 31, 1960 .... . ....... ....... ...... .... .
Net Loss for Year .... .. . . .. .. . .. ..... . ..... ...... . .......... . .... . ...... .
Adjustment in Book Value-Investment in Securities of Parent Company ......... .
Miscellaneous-Net ..................•....•. •• ... ..•••••... ...•.•.........
Retained Income Deficit, Balance, December 31, 1961 ..................... . •.• .• •

28

$

524,089
251,875
4,927,357
20,034
$ 5,723,355