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Show UTAH LIGHT AND RAILWAY CO. Annual Report Made to Stockholders. Operating Expenses Shown to Be Forty Per Cent of Income. Encrmous Interest Account Piled on Its Indebtedness, Which Is Also Larg-e. The- annual report submitted to tho htockholrlers of the 1'tnh Ilsht and Ralliray company, datsfl March l, hnt Juat been circulated among tho stockholders stock-holders Here Is the report. Report to StockJiolrlors Executive ofnVo Utah Idht and RallWS Company Salt Iike City, 1'toh. March 1. 190J. To the Stockholders of tho Utah Lleht and1 Railway Company: Oontlemen . The president nnd directors beg leovo to submit for your Information the fol-lOWlBg fol-lOWlBg report, covering the tlnanclnl nftnlrs of Iho company, for the year 11HM. beine th flrst annual rep,irt to vou of tho merged companies. Tho secretary's annual Thin nolo I report In detail as also th manager's departmental physical reports. In detailed statement of the business operations of tho company, wero Of-flc Of-flc lally pre.nt,J t-., and approved by, the president und (-Miar.l of directors on February 21, 1905, nnd are filed for record In tho M-cr.-tary of He I submit to you herewith a digest of the secretary's sec-retary's rehjrt of tho llnancial condition! nnd operations of the company for th year ISM, as follows ; to wit EAKNINfSS AND INCOHBS. From electric system. BST,701 II Krom railway system ... 63V-'7 t r-"roin gus system ... IL'.TT: 2.' Krom nilscol. sources i.fi.56 Totul gross earnings nnd Incomes I l,M6,9UM OPBRATINQ BXPEN8SB, Klectrlc system $K.973.CS Railway systeia tins system 24,913 ,fj MlKcellnneous 30.717. S3 Total operating expenses ,t0T,4M r.3 MAINTENANCE. Electric system $ "S.oi J RsJlWSy system 136.23i.ll Qoa system 5.154 U Miscellaneous 1.389.27 Total molntinanco $221,309 23 GENERAL EXPENSES, tinrluslvo of damage claims settled.) Elcetrlo system $ 16.R99.72 rial I way system 47.2X1 15 Gas system 2.4ti4 5S Total general expense . $ 66.352.4j Total operating maintenance and general expenso $ 795.141.27 Revenue from operation 47ifi57 1 FIX ED CHARGES. For taxes $ 40,529.40 For Interest 00 funded debt 2.9Y.CO For Interest on loans and overdrafts 24 851.39 Total tlxod charges . S5.330.79 Net gain from deptmll. operating and fixed charges $ 114.325 40 Add balunco of loss and gain account, ac-count, being diffsisnss gained In supply depts., discounts, etc . 971 CO Net surplus t 12U2S 00 Said net surplus In the sum of $121. 2S. was disposed of, and appears In tho WH account:! as follows, to wit For dividend No. 1 of 1 cr cont on the preferred slock of the company of record December 31. "1901. and made payatris May 1, mi ... . . ..t40.oovw For dl1den.l No 2, of 1 per cent on the preferred stock of tho coropony of record December 31. 1904. and made psystblS November 1. 190S iO.OV) 00 Balance of not purplus to contlngont reserve fund 41.298.00 Total $121,298.00 MEMORANDUM. This statement Is exclusive of expenditures for the year 1904. for now construction, now equipment, and general Improvements and Investment In comp.iny'K properties. th sam i - : i c an Investment chaige, distributed hh follows For new contructlon. equipment nnd buildings of Ek'-trlc power system ... $14S.701 o$ i r- .Irtrlr 6ervlee . . . S4..'A1 Vj Miscellaneous 1,100.00 Railway system 72.34S 9 Gas system 9.684.95 Title account 6.754 12 Total new construction. equipment, property, tltln and buildings $273.0 58 .- amount received from tho sale of old material. machinery and equipment. 15.93. Net total for Investment nnd property tltlo charges $257 153.62 On December 3. 1904. as a result of the conferences con-ferences between representatives of tho re-spectlve re-spectlve Investing Interests of the company, whobo conclusions wero confirmed later by the bonrd of directors tho sold board author lr.d tho lmmodloto Ineuance of tl.l50,'O0 of t ho company's rl per cent consolidated mortgage bonds, to ho used, as outlined and contemplated contemplat-ed In the mortgngt covering sold bonds for new equipment, new construction and other purposes. Tho Industrial bond market, however, did not Justify the selling of the bonds ot the prices then preailing for like temrltles. The. l.r.l of dir. - tors titers fors authorized the Is-BUOnCS Is-BUOnCS of $1.'"0.000 Of notes undur ihn tltlo of "collateral trust Improvement notes," $500,000 of which were, by authority, nscotlatsr snd rold. Tho secretary wns authorlze-i to carry as a resource of tho company, subject to liquidation liquida-tion throuch tho sals or the collateral trust Improvement notes, the sum of 1197,151.12 r ,, tho amount expended for 1304 as hereinbefore shown. If tho reslduo of the e.ild not.? oro nono-tlated nono-tlated and Hold ilurlriK tho year 19u5, tho pro-ceodi pro-ceodi therefrom, together with the remainder i.f lh j. mil. In fiom the .-.lie of ili.j llr.it $V,'A"i. will be upplled to tho erect ,,n of a tew Kteum. plum, extension of the railway system to Sandy and uinciiam Junction the paving of East South Ternplo street, and Other new equipment and new construct . .n necessary to the welfare of the company'B plant property and franchises During the year the nnul contract was en-tored en-tored Into between this company and the t7tah Sugar company, owner of the Hear River power plant, with a capacity of .vn hoi--,,., power, for the 11 SS upon our s-vstern of Itx entire output. This hus been found very sd vontag'ijUB to the electric lighting, power an I rallws) systsms Of thla company, as this and olh' r auxiliaries have made them as pr-rf-ct as to capacity und cfllclency as tho needs of the company require for the picieiit ..nly During the j'ai 1904 the electric and rall-waj rall-waj i terns' demand on the power deport-ment deport-ment were at times approximately 10,000 horsepower, horse-power, and this vo were enabled to .re without resorting to numo reserve power hold In hand for exti norillnary demands Respectfully submitted In behalf of the board of directors. (Signed) JOSEPH V. SMITH. President. What Report Shows. An analysis of tho report discloses somu riueer things. One which will strike tho averaai reader or Investor is that the oporHtiiiK I'xpi-n.so amounts to i" per Ct ill nf lh (TOSS earnlngn nnd thfl interest inter-est a0C30Unt above 'i, per ient. Included In tho Interest account or fixed charges is $40,629 lu taxes, a nniall amount of tnxes win n the cn nltallznt on of the company Is $6,000,000. But the total to-tal amount paid In tuxes, State city and county, last year wns only $33,812.67. In addition tho company paid to tho City of Salt Lake WOO iiet license on Its cars. This is all the people receive in any form from the corporation What Newhouse Would Pay. Assuming thai the gross oarnlngs of the system proposed by Samuel Newborns New-borns WOUld DC the same a the present Company, Mr Newhouw, would pav at the rate he proposed $5S.O00 as 1 per cent of the gross earnings of his company. Is There a Surplus P The net surplus Is glen at $121. C9S. and Out of this a dividend of $10.CO) Is declared, de-clared, payable on preferred stock on May 1 last past; another dividend ,,f 140.000 payable 0n Di'cvmb.-r 1 next Roth these dividends are 1 per cent. Thu balance of the alleged net surplus of $4i, '.".is is carried to the contingent reserve re-serve fund. Rut Is there a surplus" Rather Is there not a deficit" Look at Fixed Charges, Look at the fixed oharges one Item Is "for Interest on loans and overdrafts $24,851.39." This Is practically 10 per cent on tho $o7.lK! '2 which wns expended during tho year for new construction, equipment, buildings, etc. But the report speaks for Itself. Tho figure tell their own story, a also the comment made in tho report of the financial condition of the company. |