The New York Central Railroad Company
Total Page:16
File Type:pdf, Size:1020Kb
The New York Central Railroad Company Report of the Board of Directors to the Stockholders for the year ended December 31, 1922 New York Central Building 466 Lexington Avenue New York ORGANIZATION OF THE NEW YORK CENTRAL RAILROAD COMPANY DECEMBER 31, 1922 DIRECTORS Elected at the annual meeting of the stockholders, January 25, 1922 CHAUNCEY M. DEPEW, Chairman ROBERT S. LOVETT ALBERT H. HARRIS FREDERICK W. VANDERBILT OGDEN MILLS BERTRAM CUTLER GEORGE F. BAKER ALFRED H. SMITH WARREN S. HAYDEN WILLIAM K. VANDERBILT FRANK J. JEROME WALTER P. BLISS HAROLD S. VANDERBILT EDWARD S. HARKNESS (One vacancy) The annual meeting of the stockholders for the election of directors is held in the city of Albany, New York, on the fourth Wednesday in January FINANCE COMMITTEE WILLIAM K. VANDERBILT GEORGE F. BAKER ALFRED H. SMITH HAROLD S. VANDERBILT ROBERT S. LOVETT OFFICERS President ALFRED H. SMITH New York Assistant to President HOWARD L. INGERSOLL New York Assistant to President GEORGE A. HARWOOD New York Executive Assistant to President MARTIN J. ALGER New York Vice President IRA A. PLACE New York Vice President ALBERT H. HARRIS New York Vice President GEORGE H. INGALLS New York Vice President PATRICK E. CROWLEY New York Vice President HOWARD M. BISCOE Boston Vice President JOHN L. BTJRDETT ^ New York Vice President JOHN G. WALBER New York Assistant Vice President EDWARD T. GLENNON Chicago Assistant Vice President FRANK J. JEROME Cleveland Assistant Vice President CHARLES C. PAULDING New York Assistant Vice President RAYMOND D.STARBUCK New York Assistant Vice President CHARLES J. BRISTER Chicago Secretary EDWARD F. STEPHENSON New York Assistant Secretary JOSEPH M. O'MAHONEY New York General Treasurer MILTON S. BARGER New York Assistant General Treasurer HARRY G. SNELLING New York Assistant General Treasurer EDGAR FREEMAN New York Treasurer EDWARD L. ROSSITER New York Assistant Treasurer LOUIS BENDER New York Assistant Treasurer GEORGE W. PORTER New York Assistant Treasurer RUDOLPH P. AHRENS Cleveland Assistant Treasurer EDWARD N. BENNETT Columbus Comptroller WILLIAM C. WISHART New York Assistant Comptroller LEBOY V. PORTER New York Assistant Comptroller FREDERICK H. MEEDER New York General Treasurer, ^66 Lexington Avenue, New York, transfers stock; pays dividends on stock issued in America; transfers registered bonds; pays interest on coupon and registered bonds Central Union Trust Company of New York registers stock issued in America Messrs. Morgan, Grenfell & Company, 22 Old Broad Street, London, E, C. {London fiscal agents), transfer stock issued in England; pay dividends on stock issued in England Union of London and Smith's Bank, Limited, registers stock issued in England REPORT To the Stockholders of THE NEW YORK CENTRAL RAILROAD COMPANY: The Board of Directors herewith submits its report for the year ended December 31, 1922, with statements showing the income account and the financial condition of the company. Road operated The following is a comparative table of the mileage operated: 1922 1921 Increase Miles Miles Miles Main lino and branches owned 3,716-11 3,699 19 16-92 Leased lines 2,624-62 1,946-64 677-98 Lines operated under trackage rights 559-24 452-37 106-87 Total road operated 6,899-97 6,098-20 801-77 The increase of 16 92 miles shown in main line and branches owned is attributable to a change in classification of track. The increase of 677'98 miles in leased lines is due to the lease of the Ohio Central Lines (Toledo and Ohio Central Railway, Zanesville and Western Railway, Kanawha & Michigan Railway and Kanawha and West Virginia Railroad), 691 80 miles, which increase is partially offset by a decrease of 13-82 miles due to a change in classification of track. The increase of 106-87 miles in trackage rights consists of 104-16 miles acquired under the leases of the Ohio Central Lines and 4-38 miles over the Pittsburgh and Lake Erie Railroad, less a decrease of L67 miles on the Cherry Tree and Dixonville Railroad. General conditions A general revival of business in the early part of the year continued in some industries throughout the year, but the coal strike and later the shopmen's strike caused a serious setback in the return of normal conditions affecting the railroads. Notwithstanding these unfavorable factors, an increased freight tonnage was handled by the company as compared with 1921. 3 Annual Report SUMMARY OF FINANCIAL OPERATIONS AFFECTING INCOME THE FINAL RESULTS OF OPERATION OF THE BOSTON AND ALBANY RAILROAD FOR 1021 AND 1922 AND OF THE OHIO CENTRAL LINES FOR 1022 ARE INCLUDED IN THIS SUMMARY UNDER SEPARATELY OPERATED PROPERTIES PROFIT, OR SEPARATELY OPERATED PROPERTIES LOSS, AS THE CASE MAY BE. SEPARATE STATISTICS FOR THESE PROPERTIES ARE APPENDED TC I THIS REPORT Year ended Year ended OPERATING INCOME Dec. 31, 1922 Dec. 31, 1921 Increase Decrease y.71008 miles operated 5,704'27 miles operated 5-81 miles RAILWAY OPERATIONS Railway operating revenues $316,620,098 02 $292,130,995 06 $24,489,102 96 Railway operating expenses 250,400,469 63 221,768,389 78 28,632,079 85 NET REVENUE FROM RAILWAY OPERATIONS $66,219,628 39 $70,362,605 28 $4,142,976 89 Percentage of expenses to revenues(7909 ) (75-91) (3-18) Railway tax accruals $17,361,159 94 $18,132,163 17 $771,003 23 Uncollectible railway revenues 53,416 69 54,084 95 668 26 RAILWAY OPERATING INCOME $48,805,051 76 $52,176,357 16 $3,371,305 40 Equipment rents, net debit $1,233,223 46 $961,046 6S $272,176 78 Joint facility rents, net credit 2,999,715 64 3,722,724 31 $723,008 67 NET RAILWAY OPERATING INCOME $50,571,543 94 $54,938,034 79 $4,366,490 85 MISCELLANEOUS OPERATIONS Revenues $928,419 03 $80,682 51 $847,736 52 Expenses and taxes 600,148 50 43,162 21 556,986 29 MISCELLANEOUS OPERATING INCOME $328,270 53 $37,520 30 $290,750 23 TOTAL OPERATING INCOME $50,899,814 47 $54,975,555 09 $4,075,740 62 NON-OPERATING INCOME Additional compensation and adjustment of standard return under contract with Director General of Railroads for use of the company's railroad prop• erty during federal control $4,281,607 57 Income from lease of road $131,725 28 367,389 37 Miscellaneous rent income 1,985,592 09 3,423,309 62 Miscellaneous non-operating physical property 661,866 95 511,893 39 $149,973 56 Separately operated properties—profit 1,520,309 00 32,194 95 1,488,114 05 Dividend income 10,309,802 89 6,316,257 46 3,993,545 43 Income from funded securities and accounts 3,418,230 56 3,171,612 70 246,617 86 Income from unfunded securities and accounts 1,682,200 64 2,783,072 72 Income from sinking and other reserve funds 90,740 20 71,474 65 19,265 55 Miscellaneous income 749,193 35* 836,928 37* 87,735 02 TOTAL NON-OPERATING INCOME $19,051,274 26 $20,121,944 06 GROSS INCOME $69,951,088 73 $75,097,499 15 DEDUCTIONS FROM GROSS INCOME Rent for leased roads $6,690,584 92 $6,703,480 51 Miscellaneous rents 907,983 10 1,157,912 85 Miscellaneous tax accruals 269,685 70 278,196 10 Separately operated properties—loss 3,613,257 88 1,323,143 08 $2,290,114 80 Interest on funded debt 34,855,173 31 33,598,469 01 1,256,704 30 Interest on unfunded debt 1,062,567 93 7,196,207 16 Amortization of discount on funded debt 572,510 98 553,788 43 18,722 55 Maintenance of investment organization 4,507 57 2,582 26 1,925 31 Miscellaneous income charges 1,339,631 28 1,988,033 97 TOTAL DEDUCTIONS FROM GROSS INCOME $49,315,902 67 $52,801,813 37 NET INCOME $20,635,186 06 $22,295,685 78 DISPOSITION OF NET INCOME Dividends declared (5 per cent each year) $12,876,984 76 $12,479,641 01 $397,343 75 Sinking funds 114,329 90 68,457 20 45,872 70 TOTAL APPROPRIATION OF INCOME $12,991,314 72 $12,548,098 21 $443,210 51 SURPLUS FOR THE YEAR CARRIED TO PROFIT AND LOSS $7,643,871 34 $9,747,587 57 $2,103,716 23 Debit balance 5 The New York Central Railroad Company Profit and Loss account BALANCE TO CREDIT OP PROFIT AND LOSS, DECEMBER 31, 1921 $99,149,306 53 ADDITIONS: Surplus for the year 1922 $7,643,871 34 Profit on road and equipment sold 66,894 47 7,710,765 81 $106,860,072 34 DEDUCTIONS: Surplus appropriated for investment in physical property $85,003 63 Debt discount extinguished through surplus 816,675 77 Depreciation prior to July 1, 1907, on equipment retired during year 1,127,596 82 Loss on retired road and equipment 396,738 83 Loss on sale of capital stock of the Lake Erie & Western Railroad Company 2,847,016 78 Premium on collateral trust 10-year gold bonds, called for redemption, at 105 per cent of par, September 1, 1922 1,080,325 00 Uncollectible bills and sundry adjustments (net) 220,751 02 6,574,107 85 BALANCE TO CREDIT OF PROFIT AND LOSS, DECEMBER 31, 1922 $100,285,964 49 Comparison of revenues, expenses and freight and passenger statistics The following comparisons of revenues, expenses and freight and passenger statistics exclude the Ohio Central Lines and the Boston and Albany Railroad, separate statements for which will be found appended to this report. Revenues, tonnage and passengers The total operating revenues were $316,620,098.02, an increase of $24,489,102.96.