BETTERMENTS, $1,976,154.79. The betterments made to your property during the year, including the completion, practically, of your standard gauge line between Denver, Grand Junction and Trinidad, respectively, are located as follows, viz.: Standard Gauging, First District, First Division..$ Grand Junction Terminal Improvements. Total 74,714 45 166,516 97 46,082 80 263,321 64 60,374 37 1,370,171 52 28,813 45 8,071 33 47,440 94 43,204 45 5,329 47 560 73 $2,114,602 12 Less amount charged Income for year (including interest on Fund) and credited to Betterment Account as a whole..... Net as above. 138,447 33 $1,976,154 79 CONSTRUCTION AND EXTENSION OF BRANCHES. Net Increase for the Year, $681,580.23. The report of the Comptroller, to which reference is again made, shows this expenditure in detail. GENERAL REMARKS. It will be observed that the sum of these necessary expenditures for New Equipment, Betterments, etc., amounts to over $4,000,000.00, to which add the $500,000.00 for decrease in your Liabilities, making say $4,500,000.00 in all, against which you realized in cash from the sale of $1,956,000.00 First Consolidated and Improvement Mortgage Bonds (including $136,000.00 First Consolidated Mortgage Bonds in the Treasury, June 30, 1890), $1,480,750.00, thus necessitating not only the use of your surplus and the drawing down of the Assets which you had on hand at the beginning of the year (see page 19), but also the creation of debts in the shape of Loans, Bills Payable, etc. With these large expenditures made in the year under review, and previous years, amounting since the reorganization (July 12, 1886) to over $21,000,000.00 (see page 28), your Road and its Equipment is now in such condition, physically, that no extraordinary outlay in connection therewith is anticipated for the current year. It is hoped, also, that with reasonable economy in every department of the service, and the general revival of business which is now looked for, your earnings will be sufficient to justify the ordinary expenditure for maintenance, provide for all fixed charges and other current Liabilities now existing, as they mature, and leave a tangible surplus at the end of the year. Your Company had on hand June 30th, 1891, Materials and Supplies to the amount. of $880,000.00, which can be drawn down to $570,000.00 and maintained at that figure, thus relieving the expenditure of current Earnings to the extent of the difference. Its Bills Receivable and other amounts due from various Individuals and Companies, Agents and Conductors, etc., carried in its Current Assets, are all considered good and collectible. Heretofore the Income Account of your Company contained a full year's interest on its mortgage bonds as such interest matured, but left out that which had accrued since the payment of the previous due coupon. This is now written up in the General Profit and Loss Account for the year ending June 30th, 1891, being one month's interest (June) on the Improvement Mortgage Bonds, and two months' interest (May and June) on the First Mortgage Bonds, or $108,004.17 in all. In future the accrued interest will be written up to Income each month, thus showing at all times the true condition of this account. But little, if anything, was done in the way of preparing this Report before my arrival in Denver on the 9th inst., hence the delay in placing it in your hands, a circumstance which we very much regret. By order of the Board of Directors. GEORGE COPPELL, Chairman. REPORT OF THE COMPTROLLER. THE DENVER & RIO GRANDE R. R. Co. GEORGE COPPELL, ESQ., DENVER, COLO., Sept. 12th, 1891. Chairman. Dear Sir: I beg to present herewith my report of the Company's financial condition, June 30th, 1891, consisting of adjustments made in the general Profit and Loss Account during the year then ended, together with comparative balance sheet, Summary of its financial operations outside of its Income Account, based on such comparison, and analysis of its general Profit and Loss Account for the same period, arranged in the order named. Annexed hereto is the report of the Auditor, exhibiting in detail the Earnings and Expenses, and other statistical information, from the records of the Company, for the twelve months ended June 30th, 1891, and the six months ended June 30th, 1890, respectively. Very respectfully, STEPHEN LITTLE, |