from said 22d of October, that is till March 22, 1884, within which this company may commence the construction of its road and expend thereon ten per cent. of its subscribed capital, viz.: $23,970.

LOCATION OF THE HARTFORD & HARLEM.

The legality of the organization of the Hartford & Harlem railroad company was also denied and vigorously contested before us, but after very full investigation we were of opinion that all the statute requirements had been complied with, and that the company was duly organized. To the location of the eastern division of this road, from New Britain to New Haven, there was not much opposition, except to a small part in Hamden, and that in New Haven; and on the 11th of September the company was notified that with certain modifications we would approve the location so far as New Haven. The location asked for through the city of New Haven met with very general opposition from the citizens and the city authorities, and after a very protracted inquiry we were of opinion that great mischief was likely to ensue if the road should be built on the line and in the manner proposed. We therefore declined to approve of the location asked for through that city.

Many hearings were had in regard to the approval of the location of different portions of its line between New Haven and the New York state line before the motion was made by the New York & Connecticut Air Line company, that we refuse to approve any portion of the line of the Hartford & Harlem between the points named, because of its material and unnecessary injury to their own location. This motion was sustained by us as will be seen by our decision thereon printed in the appendix. In consequence of this decision, and our refusal to approve their proposed line through New Haven, the Hartford & Harlem were obliged to make a new location and their petitions for the approval of the portion commencing north of the city of New Haven, and extending to the New York state line, were heard by us on the 14th, 19th, 28th, and 29th of December, and a further hearing assigned for the 3d of January, 1884.

MERIDEN & CROMWELL RAILROAD.

Except by special authority a railroad company having once located its road cannot thereafter change that location. The location of the Meriden & Cromwell railroad having, as stated in our last report, been approved by us on the 29th of September, 1882, could not thereafter be changed though it was found that another line could be run to the manifest advantage of all interested. A law was therefore passed last year authorizing a railroad company to change the location of its road, or of any section or part thereof, if such change is made before the construction of the section or part is commenced. Acting under authority of this statute, the Meriden & Cromwell railroad company made a new location, and on the 22d of May, made application for our approval, and on the 25th of June, made application for our approval of further changes. By those new locations the crossing at grade of the Middletown branch of New York, New Haven & Hartford railroad and of the Hartford & Connecticut Valley railroad were both avoided, as well as of some highways.

GROSS EARNINGS.

The gross earnings of the various companies for the year as reported, show an increase of $881,286.40, being very nearly five and three-quarters per cent., and amounted to $16,234,942.44, the passengers earnings being $7,041,937.02, an increase of $335,632.11, or one-half of one per cent., and the freight earnings $8,003,510.07, an increase of $626,631.32. Of the total gross earnings a little larger per cent. came from freight than last year, being forty-nine and onethird per cent.

OPERATING EXPENSES.

While the gross earnings have increased, the expenditures reported for operating expenses have increased still more, the increase being $1,551,587.36, nearly double the increase in gross earnings. They are reported as $11,890,389.57, or seventy-three per cent. of the gross earnings, which is five per cent. more than last year. This increase in operating expenses is chiefly reported by two companies, the New York

& New England reporting an increase of $666,244.17, and the New York, New Haven & Hartford an increase of $732,498.74; the former reporting $67,000 more expended for repairs of road-bed and track than last year, $140,000 more. for repairs of locomotives, $64,000 more for repairs of cars, and $250,000 more for salaries and labor other than for repairs; and the latter reporting an increased expenditure of $150,000 for repairs of road-bed and track, $145,000 for repairs of bridges, and $225,000 for fuel. The number of men employed in operating the several roads, including officers, is twelve thousand, four hundred and sixty-nine, an increase of one thousand, five hundred and ten.

NET EARNINGS.

The net earnings, after deducting the $10,552.15 deficit reported by the Shepaug Railroad Company, which last year increased its operating expenses about thirty-eight per cent., by reason chiefly of bridge renewals, amounted to only $4,344,552.87, or $670,300.96 less than the preceding year.

DIVIDENDS.

Eleven companies paid dividends the past year, varying from one and one-half per cent. up to ten per cent., being an average of 7.75 per cent. on their capital stock, and amounting to $2,682,944.00. The twelve other companies, including the Meriden & Cromwell, paid no dividends on their $22,444,328.25 of capital stock.

EARNINGS AND EXPENSES PER MILE OPERATED.

The number of miles of road operated by our companies is 1,514.85, and the gross earnings per mile averaging $10,934.86, an increase of $495.02; the Norwich & Worcester and the Naugatuck earning the most per mile of the singletrack roads, and the Stamford & New Canaan the least.

The gross expenses per mile operated averaged $7,957.56, an increase of $903.37 per mile; the same two roads—the Norwich & Worcester and the Naugatuck-being the highest of the single-track roads, and the Stamford & New Canaan the least.

The net earnings per mile operated averaged $2,915.35, being $506.29 less than last year.

EARNINGS AND EXPENSES PER MILE RUN.

The gross earnings per mile run fell off three cents, having averaged $1.40; the New Haven & Derby and the Naugatuck continuing the lead, the former with $2.91 and the latter with $1.90, a falling off on both roads.

The expenses per mile run increased six cents, the average being $1.02, those of the New Haven & Derby having been $1.58, the Shepaug $1.38, and the Naugatuck $1.21.

The average net earnings amounted to only $0.37, a falling off of two cents.

MILEAGE.

The total train mileage increased 856,373 miles, amounting to 11,616,477 miles. The passenger train mileage amounted to 5,848,310 miles, an increase of 366,527, and the freight train mileage amounted to 4,372,635, an apparent increase of only 248,789. We say apparent increase, because the switching mileage on the New York, New Haven & Hartford road, which has heretofore been included in freight mileage, is this year included in the mileage of "all other trains," so that while the freight mileage on that road shows an apparent falling off of nine per cent., it, in fact, is increased about seventeen per cent.

MAINTENANCE OF ROAD.

The average cost of maintenance of road per mile operated was $1,547.41, or $147.66 less than last year, the Naugatuck showing the highest amount for the single track roads, being $1,801 35; the reason for the noticeable change in cost on the Hartford & Connecticut Western from $1,622.06 last year to $761.11 this year, and in the cost of maintenance per mile run, from $0.54 to $0.16 is, that heretofore the practice on that road has been to treat the construction account as practically closed so far as their old line was concerned, while this

year very many items heretofore charged to operating expenses have been charged to construction account. The average cost per mile run was $0.17.

STEEL RAILS.

There only remains one hundred and four miles of railroad in this State not laid with steel rails, ninety per cent. of the whole being so laid. With steel rails costing now only $35 at the mills, we are likely to forget that when first laid. in this State, they cost $176.

STOCK AND DEBT.

The total amount of stock issued and outstanding indebtedness reported, was on September 30, 1883, $88,072,031.44. The amount of stock is reported $56,953,678.25, an increase of $1,236,828.25, the stock of the New York & New England having been increased $635,000, and the Hartford & Connecticut Western, $334,000; the $300,000 capital stock of the Meriden & Cromwell being added, and the stock of the Stamford & New Canaan, being $64,171.75 less than that of the old New Canaan company. The outstanding indebtedness amounts to $31,118,353.19.

LENGTH OF ROADS.

Including the Meriden & Cromwell now in process of construction, the total length of all the roads in the State is 973.46, which is about eight-tenths of one per cent. of the total length of the railroads in this country. The length of the double tracks is 140 miles, and that of the sidings 246, making a total of 1,360 single track miles, an increase of 61 miles.

PROPERTY ACCOUNTS.

The balance sheets of the companies show construction accounts amounting to $75,110,698.46; equipment accounts, $9,034,511.01; and other permanent investments amounting to $2,174,393.31-a total of $87,303,858.11, including the permanent investments of the Hartford & Connecticut