McGinnis Reports

After nine months as boss of the New York, New Haven & Hartford Railroad, Patrick B. McGinnis last week made his first year-end report on the state of the road's health. Despite a $1,152,606 net loss before he took over in April, said McGinnis, the New Haven wound up 1954 with a net income of $9,000,000. As a result, he would be able not only to pay off $2,400,000 on the New Haven's income mortgage bonds, but also to hand stockholders a welcome dividend: $1.25 for preferred shareholders and a proposed 10% stock dividend for common shareholders. Furthermore, said McGinnis, heading off possible complaints that he is making a profit by cutting maintenance, the New Haven will modernize 1,000 old 81 boxcars built in 1941, thus extend their life eight more years, and spend another $1,000,000 for new signals along a 40-mile stretch of mainline track into Boston.

Wall Streeter McGinnis also announced that he wants to merge the New Haven with the $269 million Boston & Maine Railroad within two years, says this will give New England the benefits of greater economy and better service. Most New Englanders are against the move, including Massachusetts' Governor Christian Herter. But after a meeting with the Governor, McGinnis said flatly that he still intends to steam full-speed ahead. He and his friends have already bought 350,000 shares of B. & M. stock, now own 42.5%. If that is not enough, said McGinnis, "we are willing to put in more money to get control."

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