The New York Central Railroad Company

Report of the Board of Directors to the Stockholders for the year ended December 31, 1928

46G Lexington Avenue New York NEW YORK CENTRAL BUILDING

PARK AVENUE AND 46TH STREET

NEW YORK CITY ORGANIZATION OF THE NEW YORK CENTRAL RAILROAD COMPANY

DECEMBER 31, 1928

DIRECTORS

FREDERICK W. VANDERBILT EDWARD S. HARKNESS JACKSON E. REYNOLDS GEORGE F. BAKER ALBERT H. HARRIS PATRICK E. CROWLEY WILLIAM K. VANDERBILT BERTRAM CUTLER MY'RON C. TAYLOR HAROLD S. VANDERBILT WILLIAM COOPER PROCTOR CHARLES B. SEGER OGDEN MILLS* WARREN S. HAYDEN JAMES SIMPSONJ

* Since deceased t Appointed June 13, 1928

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

EXECUTIVE COMMITTEE

ALBERT H. HARRIS, Chairman GEORGE F. BAKER JACKSON E. REYNOLDS WILLIAM K. VANDERBILT CHARLES B. SEGER HAROLD S. VANDERBILT PATRICK E. CROWLEY

OFFICERS

President PATRICK E. CROWLEY New York Assistant to President HOWARD L. INGERSOLL New York Executive Assistant to President MARTIN J. ALGER New York Assistant to President FRANK H. HARDIN New York Engineering Assistant to President RICHARD E. DOUGHERTY New York Assistant to President CURTIS M. YOHE Pittsburgh Vice President ALBERT H. HARRIS New York Vice President GEORGE H. INGALLS New York Vice President RAYMOND D. STARBUCK New York Vice President HOWARD M. BISCOE Boston Vice President JOHN G. WALBER New York Vice President and General Counsel ROBERT J. CARY New York Vice President CHARLES C. PAULDING New York Vice President JOHN L. BURDETT New York Assistant Vice President CHARLES J. BRISTER Chicago Assistant Vice President JOHN K. GRAVES New York Assistant Vice President WILLIAM J. FRIPP New York Assistant Vice President ALBERT S. INGALLS Cleveland Assistant Vice President EDWARD HUNGERFORD New York Secretary EDWARD F. STEPHENSON New York Assistant Secretary JOSEPH M. O'MAHONEY New York General Treasurer HARRY G. SNELLING New York Assistant General Treasurer HENRY A. STAHL New York Assistant General Treasurer RUSH N. HARRY New York Treasurer EDWARD L. ROSSITER New York Assistant Treasurer SYLVESTER S. BLISS New York Assistant Treasurer ROBERT N. BROCKWAY New York Assistant Treasurer RUDOLPH P. AHRENS Cleveland Comptroller WILLIAM C. WISHART New York Assistant Comptroller LEROY V. PORTER New York Assistant Comptroller FREDERICK H. MEEDER New York

General Treasurer, 466 Lexington Avenue, New York, transfers stock; pays dividends on stock registered in America; transfers registered bonds; pays interest on coupon and registered bonds Central Union Trust Company of New York registers stock in America Messrs. Morgan, Grcnfell & Company, 23 Great Winchester Street, London, E. C, England (London fiscal agents), transfer stock registered in England; pay dividends on stock registered in England National Provincial Bank, Limited, London, registers stock 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, 1928, With statements showing the income account and the financial condition of the company. The year's business Business handled in 1928 compared favorably with that in 1927. Traffic during the first six months was substantially less than during the same period the previous year, but a sharp recovery occurred during the last six months, which was a reversal, generally, of the trend in 1927. While the number of tons of revenue freight carried showed a decrease as compared with 1927, there was a slight increase in the revenues derived therefrom. Passenger revenues again showed a decrease from the preceding year although the number of passen• gers carried was greater, due to the increase in commutation passengers, indicating the continued growth of the suburban territory surrounding New York City served by the company's lines. Although there was a small decrease in operating revenues, total operat• ing income for the year was slightly greater than in 1927. The net income for the year, however, decreased more than $8,000,000 as compared with 1927. This decrease is atl rib- utable to the reduced receipts representing dividends upon the company's stock holdings, as set forth on page 8. The principal factor in the lessened dividend income was the re• ceipt in 1927 of an extra dividend of more than $9,000,000 upon the company's holdings of stock of The Michigan Central Railroad Company, while no extra dividend was paid by that company in 1928. The capital structure of the company was further improved during the year by the issue of an additional $41,975,900 of stock and the retirement of $50,000,000 of funded debt. This makes the ratio of capital stock to total capitalization 42-74 per cent as compared with 38-34 per cent at the end of 1927. The company continued during the year its large expenditures on improvements to roadway and structures and in purchase of equipment in order that its business might be handled more efficiently and economically and its passengers accommodated with greater comfort. A detail of some of the more important projects is given later in this report. 3 Annual Report

INCOME ACCOUNT FOR THE YEAR

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

.(SEPARATE INCOME ACCOUNTS FOR WHICH WILL BE FOUND ON PAGE i 57)

Year ended Year ended OPERATING INCOME Dec. 31, 1928 Dec. 31, 1927 Increase Decrease 6,911*27 miles 6,906 21 mites 5 06 mites RAILWAY OPERATIONS operated operated Railway operating revenues 8381,733,244 32 $383,377,311 19 $1,644,066 87 Railway operating expenses 288,250,203 20 293,399,836 25 5,149,633 05

NET REVENUE FROM RAILWAY OPERATIONS $93,483,041 12 $89,977,474 94 $3,505,566 18

Percentage of expenses to revenues (75-51) (76-53) (102) Railway tax accruals $29,136,903 40 $25,193,779 94 $3,943,123 46 Uncollectible railway revenues 130,543 88 106,116 97 24,426 91 RAILWAY OPERATING INCOME $64,215,593 84 $64,677,578 03 $461,984 19 Equipment rents, net debit $5,082,960 30 $5,831,379 94 $748,419 64 Joint facility rents, net credit 3,089,488 42 2,977,628 96 $111,859 46 NET RAILWAY OPERATING INCOME $62,222,121 96 $61,823,827 05 $398,294 91

MISCELLANEOUS OPERATIONS Revenues $806,434 21 $844,401 48 $37,967 27 Expenses and taxes 771,857 88 799,356 42 27,498 54

MISCELLANEOUS OPERATING INCOME $34,576 33 $45,045 06 $10,468 73

TOTAL OPERATING INCOME $62,256,698 29 $61,S6S,S72 11 $387,826 18

NON-OPERATING INCOME Income from lease of road $121,460 21 $118,545 02 $2,915 19 Miscellaneous rent income 4,678,141 05 3,913,012 56 765,128 49 Miscellaneous non-operating physical property 1,670,448 10 218,305 67 1,452,142 43 Separately operated properties—profit 625,521 14 1,046,006 81 $420,485 67 Dividend income 19,604,392 20 31,260,564 75 11,656,172 55 Income from funded securities and accounts 3,251,582 82 3,230,591 21 20,991 61 Income from unfunded securities and accounts 4,330,899 54 2,551,845 74 1,779,053 80 Income from sinking and other reserve funds 187,673 12 168,311 39 19,361 73 Miscellaneous income 124,622 45 101,495 85 23,126 60

TOTAL NON-OPERATING INCOME $34,594,740 63 $42,608,679 00 $8,013,938 37 GROSS INCOME $96,851,438 92 $104,477,551 11 $7,626,112 19

DEDUCTIONS FROM GROSS INCOME Rent for leased roads $14,117,576 90 $14,360,838 39 $243,261 49 Miscellaneous rents 1,381,959 89 893,639 29 $488,320 60 Miscellaneous tax accruals 1,738,966 97 266,405 56 1,472,561 41 Separately operated properties—loss 52,899 70 52,899 70 Interest on funded debt 27,744,694 35 29,292,539 92 1,547,845 57 Interest on unfunded debt 752,012 48 334,765 77 417,246 71 Amortization of discount on funded debt 456,381 85 501,155 70 44,773 85 Maintenance of investment organization 3,777 75 5,266 60 1,488 85 Miscellaneous income charges 268,683 93 257,794 58 10,889 35 TOTAL DEDUCTIONS FROM GROSS INCOME $46,516,953 82 $45,912,405 81 $604,548 01

NET INCOME $50,334,485 10 $58,565,145 30 $8,230,660 20

DISPOSITION OF NET INCOME Dividends declared(8 per cent in 1928;7M per cent in 1927) $34,854,879 30 $30,462,783 11 $4,392,096 19 Sinking and other reserve funds 175,851 37 159,054 11 16,797 26 Investment in physical property 650 00 $650 00 TOTAL APPROPRIATIONS OF INCOME $35,030,730 67 $30,622,487 22 $4,408,243 45 SURPLUS FOR THE YEAR CARRIED TO PROFIT AND LOSS $15,303,754 43 $27,942,658 08 $12,638,903 65 5

The New York Central Railroad Company

Profit and loss account

BALANCE TO CREDIT OF PROFIT AND LOSS, DECEMBER 31, 1927 $217,926,914 65

ADDITIONS: Surplus for the year 192S $15,303,754 43 Profit on property sold (net) 169,349 46 Profit on securities sold (net) 26,953,997 39 Sundry adjustments (net), unrcfundable overcharges, and uncollectible accounts 348,580 29 42,775,681 57 $260,702,596 22 DEDUCTIONS: Surplus appropriated for investment in physical property $230,763 37 Depreciation prior to July 1, 1907, on equipment retired during year 534,400 39 Loss on property retired 812,020 17 Cancellation of indebtedness of Raquctte Lake Railway Company account deficit from operation prior to January 1, 1928 326,795 71 1,903,979 64

BALANCE TO CREDIT OF PROFIT AND LOSS, DECEMBER 31, 1928 $258,798,616 58

Road operated The following is a comparative table of mileage operated: 1928 1927 Increase Decrease Miles Miles Miles Miles J Main line and branches owned 3,725-95 3,72001 5-94 Leased lines 2,632-25 2,632-54 -29 Lines operated under trackage rights 553-07 553-66 59

Total road operated 6,911-27 0,906-21 5-06

The increase in mileage of main line and branches owned is the net result of the acquisition of the Gary and Western Railroad between Ivanhoe and Gary and Western Junction, Indiana, 7-53 miles, heretofore used under trackage rights, and decreases due to sundry track changes and adjustments of measurement. The decrease in mileage of leased lines is due to the discontinuance of the Harsimus Branch of the New Jersey Junction Railroad, 34/100ths of a mile, and increases aggre• gating 5/100ths of a mile resulting from various track changes. The decrease of 59/100ths of a mile in trackage rights is the net result of the above- mentioned transfer to this company of the ownership of the Gary and Western Railroad, 753 miles, the acquisition of rights over the Baltimore and Ohio Railroad between Buckeye and Philo, Ohio, 6-17 miles, and of additional rights over the New York Ontario and Western Railway, 77/100ths of a mile, between Fulton and Oswego, New York.

Revenues, tonnage and passengers Freight revenue was $234,617,642.06, an increase of $236,533.11, while revenue freight tonnage was 111,480,773 tons, a decrease of 236,235 tons. A new and greatly enlarged classification of commodities ordered by the Interstate Commerce Commission and effec• tive January 1, 1928, makes comparison in detail with 1927 difficult except as to some of the larger items. Tonnage of bituminous coal decreased substantially and this and rate adjustments were reflected in decreased earnings therefrom. On the other hand, tonnage and earnings of anthracite coal increased materially, largely due to adjustments in rate arrangements. Iron ore movement fell off, partly on account of decrease in related indu.s- 6

Annual Report v trial production. A large and increased tonnage of automobiles and parts is attributable to a year of record production in that industry. Passenger revenue was .$96,917,043.14, a decrease of $2,188,270.53, the number of revenue passengers carried being 71,338,842, an increase of 243,134. Interline passengers decreased 147,805 and local passengers 1,182,629, reflecting the continued effect of bus and private automobile competition. Commutation passengers, however, increased 1,573,568, principally in the New York suburban territory. Mail revenue was $8,811,895.36, an increase of $687,052.17, mainly due to the increase in rates hereinafter referred to at page 14. Express revenue was $12,874,709.23, an increase of $159,464.98. Milk revenue was $6,568,615.05, a decrease of $25,468.00. Switching revenue was $4,532,616.10, a decrease of $48,959.62. Other transportation and joint facility revenues were $17,410,723.38, a decrease of $464,418.98. Operating expenses Operating expenses were as follows: Group Amount Increase Decrease Maintenance of way and structures 950,974,509 60 $3,302,561 33 Maintenance of equipment 81,947,793 73 $2,333,513 77 Traffic expenses 5,426,534 18 275,610 56 Transportation expenses 133,231,379 09 1,384,067 03 Miscellaneous operations 6,306,741 07 492,078 27 General expenses 10,708,856 57 3,484,196 80 Transportation for investment—credit 345,611 04 80,010 49

Total $288,250,203 20 $5,149,033 05

The decrease in expense for maintenance of way and structures is largely attributable to a decrease in the average cost of ties and in the rail-laying program and to a reduction in forces. There were also smaller charges for retirements of facilities and the year 1927 included expenses incident to flood damage on the Boston & Albany Railroad. The increase in expense for maintenance of equipment was principally due to larger expenditures for rebuilding passenger cars in 1928 and for heavy repairs to freight cars. Fewer locomotives received heavy repairs than in the previous year. The increase in traffic expenses is due principally to the development of the company's representation in outside territory. Transportation expenses decreased $1,384,067.03. The decrease in charges for fuel for train and yard locomotives was $1,435,326.58, attributable largely to lower prices for coal. Reduction in price and conservation of fuel oil used in the operation of marine equip• ment resulted in a decreased outlay of approximately $250,000. Another decrease came from the inclusion in the previous year's expenses of charges for detouring trains of the Boston & Albany as a result of the November, 1927, flood. There were increases in the charges for wages of train and enginemen, the result of a full year's payment in 1928 of increases effective for only a part of 1927, and in the account "Other expenses" in con• nection with the greater volume of freight handled by motor truck service. 7

The New York Central Railroad Company

Expenses of miscellaneous operations increased, principally in the dining service, more business having been handled. General expenses decreased $3,484,196.80. Commencing with 1925 the company has each year charged to expenses and set up in a reserve an amount to provide for estimated total payments upon pensions granted in that year. Pursuant to recently issued instruc• tions of the Interstate Commerce Commission, however, this practice has been discon• tinued and the pension expenses for the year 1928 include only the actual payments for pensions applicable to that year and prior to 1925, no charges for a reserve having been made. This has produced a decrease of $3,076,000 in pension charges as compared with 1927. Valuation expenses decreased $159,000, following a reduction in forces engaged on this work. Railway tax accruals Railway tax accruals, details of which will be found on page 41, were $29,136,¬ 903.40, an increase of $3,943,123.46. Federal income taxes on net profits of $26,953,000 on sale of securities in 1928 account for $3,077,000 of this increase, the balance being mainly in taxes on real estate in the Grand Central Terminal area and elsewhere.

Equipment rents The net debit to equipment rents was $5,082,960.30, a decrease of $748,419.64. The factors contributing were as follows: a decrease in the net debit for freight cars of $922,¬ 757.50, largely the result of decreased payments to other roads reflecting successful efforts in speeding up the return of foreign cars, and a decrease in net charges for floating equip• ment rentals of $20,707.56. Partly offsetting are a decrease in net credits for locomotive rentals of $111,472.99; an increase in net payments for passenger train car rentals of $78,394.08; and a decrease in net credit for rental of work equipment of $5,178.35.

Joint facility rents There was a net credit to joint facility rents of $3,089,488.42, an increase of $111,¬ 859.46. This reflects an increase of $22,966.30 in the amount received for facilities maintained by this company and a decrease of $88,893.16 in the amount paid for use of facilities maintained by other companies.

Miscellaneous operations This account includes only the operation of the company's livestock yards at Buffalo, the.gross income of which for 1928 was $806,434.21, a decrease of $37,967.27, while net income was $34,576.33, a decrease of $10,468.73.

Non-operating income Miscellaneous rent income increased $765,128.49, partly through acquisition of new properties, notably on the wrest side of New York City, and through increased rental from properties already under lease, together with increased income incident to the adjustment 8

Annual Report of rentals, referred to in the report for 1927, between the company and the New York State Realty and Terminal Company (the capital stock of which is entirely owned by the company), affecting properties in the Grand Central Terminal area. The increase of $1,452,142.43 in income from miscellaneous physical property is also largely attributable to the adjustment involving properties in the Grand Central Terminal area. The decrease of $420,485.67 in profit from separately operated properties is due to smaller receipts from operation of the Pittsburgh McKeesport and Youghiogheny Railroad. Dividend income decreased $11,656,172.55, mainly the result of the inclusion in 1927 of extra dividends on the company's holdings of stock of The Michigan Central Railroad Company, The Pittsburgh and Lake Erie Railroad Company, and the Reading Company and the reduced dividend income from stock of the American Express Company, American Railway Express Company, and Mohawk Valley Company sold during the year. There was an increase of $1,779,053.80 in income from unfunded securities and accounts. A large part of this increase is due to the adjustment of accounts, heretofore referred to, as to properties in the Grand Central Terminal area. Other items are larger interest receipts from the State of New York and municipalities in connection with the financing of grade crossing elimination and interest received at final settlement with the purchaser of the company's holdings of stock of the Mohawk Valley Company, being interest on the deferred installment of the purchase price.

Deductions from gross income Rent for leased roads decreased $243,261.49. There were reduced payments to The Mahoning Coal Railroad Company and the Providence Webster and Springfield Railroad Company by reason of falling off in gross earnings and smaller interest payments for account of The Toledo and Ohio Central Railway Company and The Kanawha & Michigan Railway Company due to reduction in amount of equipment trust obligations outstanding. Miscellaneous rents increased $488,320.60, largely in connection with payments to the City of New York for ferry franchise and privilege and rentals for piers and land under water. The increase of $1,472,561.41 in miscellaneous tax accruals is chiefly the result of the adjustment referred to above as contributing to the increase in income from miscellaneous physical property and that adjustment is also largely responsible for the increase of $417,246.71 in interest on unfunded debt. The principal causes for the decrease of $1,547,845.57 in interest on funded debt are maturity and retirement on September 1, 1928, of $50,000,000 Lake Shore and Michigan Southern Railway Company twenty-five year 4 per cent gold bonds of 1903, maturity and retirement on October 1, 1927, of $1,185,000 First Mortgage 5 per cent bonds of New York and Northern Railroad Company, reduction in amount of equipment obligations out• standing, and the inclusion in 1927 of interest on temporary loan from the Michigan Central Railroad Company liquidated in that year. 9

The New Yuri; Central Railroad Company

Net income before dividends and other appropriations The net income of the company was $50,334,485.10, a decrease of $8,230,660.20, and amounted to 10-86 per cent upon the capital stock outstanding at the end of the year.

Dividends Xo. 54, 2 per cent on 4,213,008-95 shares, declared March 14, 1928, payable May 1, 1928 $8,426,017 90 No. 55, 2 per cent on 4,215,798-95 shares, declared June 13, 1928, payable August 1, 1928 8,431,597 90 No. 56, 2 per cent on 4,619,28895 shares, declared September 12, 1928, payable November 1, 1928 8,726,145 60 No. 57, 2 per cent on 4,635,55895 shares.declared December 12, 1928, payable February 1, 1929 9,271,117 90 Total for year, 8 per cent $34,854,879 30

Dividends were not paid on unconverted scrip, equalling 33-4 shares for three quarters and 32-4 shares for the final quarter, nor on 5/ lOOths of a share held by the company. With respect to dividend No. 56, the amount which would have been payable on the outstanding shares at 2% was reduced by crediting thereon, as an adjustment, the aggregate amount in excess of par, at the rate of $1.27 per share, paid by subscribers to additional stock who elected to make payment of their subscriptions on the single paymenl plan. See page 11. Surplus After charges for dividends aggregating $34,854,879.30 and other appropriations amounting to $175,851.37, there remained a surplus for the year of $15,303,754.43 which was carried to the credit of profit and loss. At the end of the year the total corporate surplus was $261,796,939.61, which includes profit on securities sold referred to on page 10.

Income account comparisons for recoil years Surplus carried to Year Gross revenue First charges Net income Dividends profit and loss 1921 $322,819,568 75 $54,927,739 96 .$22,295,685 78 $12,479,641 01 $9,747,587 57 192-2 363,616,475 75 52,103,676 93 20,635,186 Oti 12,876,984 76 7,643,S71 34 1923 421,034,783 91 50,528,266 88 45,339,426 69 17,432,978 43 27,748,777 54 1924 369,606,930 30 49,670,903 64 39,250,399 92 20,728,835 39 18,399,461 00 1925 385,994,504 80 44,802,790 48 48,627,223 57 26,732,833 39 21,768,272 54 1926 399,537,748 86 45,593,416 85 55,664,040 98 26,827,814 64 28,691,046 93 1927 383,377,311 19 45,912,405 81 58,565,145 30 30,462,783 11 27,942,658 08 1928 381,733,244 32 46,516,953 82 50,334,485 10 34,854.879 30 15,303,754 43

Property investment accounts Changes in the property investment accounts for the year, shown in detail elsewhere in this report, wrere: Road increased $27,230,727 82 Equipment increased 4,540,134 25 Miscellaneous physical property increased 8,624,459 49 Improvements on leased railway property decreased (see pages 33 and 34) 2,552,023 30 a net increase of $37,843,298 26

Acquisition of capital stock of The Michigan Central Railroad Company The company acquired during the year 197 shares of capital stock of The Michigan < Vntral Railroad Company at a cost of $197,000, making its holdings on December 31, 1928, 186,038 shares, or 99-29 per cent of the total outstanding. 10

Annual Report

Advances Additional advances of $15,000 for construction purposes were made to The Hudson River Connecting Railroad Corporation, the total to December 31, 1928, being $24,595,000. There was advanced to The Xew York & Harlem Railroad Company, in connection with the operation of its traction lines in New York City, the sum of $746,285.55, making the total advances on that account to December 31, 1928, $2,608,285.55. The company advanced to The Toledo and Ohio Central Railway Company $146,¬ 000.26, to enable it to pay maturing principal installments under equipment trusts, making the total advanced to December 31, 1928, $2,756,039.74. Advances to The Kanawha & Michigan Railway Company, to enable it to pay maturing principal installments under equipment trusts and for other purposes, were $86,197.42, bringing the total advances on December 31, 1928, to $3,204,397.42. Advances to the Clearfield Bituminous Coal Corporation, of which the company owns the entire capital stock and the entire output of which it takes for fuel supply purposes, were $125,000, making the total advanced to December 31, 1928, $1,675,000. Advances by the company to the Cleveland Union Terminals Company, after appli• cation to repayment of advances of $2,307,500 from proceeds of bonds issued and sold by the Terminal Company during the year, stood on December 31,1928, at $10,550,600. Advances to The Pittsburgh MeKeesport and Youghiogheny Railroad Company for additions and betterments and equipment were $58,154.31, an equal amount for the same purposes having been advanced by The Pittsburgh and Lake Erie Railroad Company. The total of such advances by this company to The Pittsburgh MeKeesport and Youghi• ogheny Railroad Company to December 31, 1928, was $16,066,848.30. During the year The Cleveland Cincinnati Chicago and St Louis Railway Company repaid to the company $9,000,000 upon the advances previously made to it, leaving a balance on December 31, 1928, of $1,250,000.

Sales of securities during the year The company sold to the Rochester Central Power Corporation its holdings of tin' capital stock of the Mohawk Valley Company, amounting to 511,430 shares, at $75 per share, and to E. L. Phillips its holdings of the capital stock of the New York State Rail• ways, consisting of 136,043 shares of common stock, at $25 per share. The total considera• tion received from the sale of these stocks was $41,758,325. The cost of acquiring them, incurred in the years 1905-1910, was $16,447,408.30. The company sold 3,000 shares of stock of the American Railway Express Company for $389,130. This stock was carried upon the books of the company at par, $300,000. The company sold 15,900 shares of stock of the American Express Company at $225 per share, receiving $3,577,500. The amount at which this stock appeared on the books of the company plus the cost of transfer tax stamps was $1,997,067.64. The federal tax of over $3,000,000 on the profits from these transactions was charged against 1928 income, while the profits were credited directly to the company's surplus through profit and loss account. 11

The New York Central Railroad Company

Reduction in amount of notes of Cleveland and Youngstoion Railway Company The company held on December 31, 1927, notes of the Cleveland and Youngstown Railway Company aggregating $1,840,906.30. During the year this indebtedness was reduced by a payment of $985,865.04, leaving a balance due on December 31, 1928, of $855,041.26.

Balance due in connection with sale of The Lake Erie and Western Railroad Company's stock The balance due to the company in connection with the sale in 1922 of its holdings of stock of The Lake Erie and Western Railroad Company was reduced to $520,000 by payment during the year of an installment of $130,000 upon the purchase price.

Stockholders The following table shows the number of stockholders of the company at the end of each year since the consolidation: Total In United States Abroad Average Average Average Date Number holding Number holding Number holding December 31, 1915 25,042 100 22,270 104 2,772 64 December 31, 1916 22,532 111 21,836 112 696 56 December 31, 1917 27,102 92 26,771 92H 331 69 December 31, 1918 28,693 87 28,395 87 298 69 December 31, 1919 30,445 82 30,180 82 265 • 67 December 31, 1920 32,396 77 32,173 77 223 64 December 31, 1921 34,328 73 33,824 73 504 70 December 31, 1922 34,319 78 33,843 78 476 70 December 31, 1923 34,946 77 34,502 77 444 70 December 31, 1924 36,282 84 35,856 84 426 66 December 31, 1925 40,660 94 40,238 94^ 422 64 December 31, 1926 61,580 62 61,174 62 406 69 December 31, 1927 54,530 77 54,146 77 384 72 December 31, 1928 52,875 88 52,529 88 346 68

Issue of additional capital stock Stockholders of record at the close of business on June 15, 1928, were offered the right to subscribe on or before August 29, 1928, for additional stock of the company to the extent of ten per cent of their holdings. This stock was offered at par, payable in two installments of $50 per share each, due August 29 and December 14, 1928, respectively, with an option to subscribers to make a single payment on or before August 29, 1928, of $101.27 per share; stock subscribed for under the two payment plan being entitled to dividends payable on and after February 1, 1929, and stock subscribed for on the single payment plan being entitled to dividends payable on and after August 29, 1928. Upon subscriptions under this offer $41,975,900 of stock was issued during the year, making the total stock outstanding on December 31, 1928, $463,559,135. 12

Annual Report

Changes in funded debt The changes in the funded debt of the company, in detail, were as follows: The amount on December 31, 1927 $684,629,138 64 has been reduced as follows: Lake Shore & Michigan Southern Ry Co 25 year gold bonds of 1903, due September 1, 1928 $50,000,000 00 Payments falling due during the year and on January 1, 1929, on the com• pany's liability for principal installments under equipment trust agreements as follows: N Y (' R R Co Trust of 1917, January 1, 1929 1,117,000 00 Trust No. 43 of January 15, 1920, January 15, 1928 922,700 00 X YC E R Co Trust of 1920, April 15, 1928 1,153,167 33 X Y (' Lines Trust of 1922, June 1, 1928 572,000 00

X Y (' Lines i]/2 per cent Trust of 1922, September 1, 1928 569,000 00 X Y (' Lines Trust of June 1, 1923, June 1, 1928 462,000 00 N Y C Lines Trust of 1924, June 1, 1928 983,000 00

X Y (' Lines i]/2 per cent Trust of 1924, September 15, 1928 848,000 00 N Y C Lines Trust of 1925, May 15, 1928 734,000 00 57,360,867 33 leaving the funded debt on December 31, 1928 $627,268,271 31 a decrease of 157,360,867.33.

Termination of New York Central Lines Equipment Trust of WIS New York Central Lines Equipment Trust of 1913 having expired on January 1, 1928, the litle to the equipment was transferred by the Trustee to the several railroad companies, parties to the trust, in proportion to the amount of the cost thereof paid by each company, respectively. This company's share of the equipment so transferred from trust to railroad owned consisted of 244 locomotives, 311 passenger cars, 986 box cars, 16 auto box cars, 894 hopper cars, and 3 caboose cars, and the share of The Toledo and Ohio Central Railway Company 3 locomotives, 3.042 gondola cars, and 298 hopper cars.

Retirement of $50,000,000 of Lake Shore and Michigan Southern Railway Company bunds There became due on September 1, 1928, $50,000,000 of twenty-five year four per cent bonds issued in 1903 by The Lake Shore1 and Michigan Southern Railway Company (a corporate predecessor of this company). The retirement of these bonds was provided for by the use of the proceeds of the sale of capital stock offered to the stockholders for sub• scription, as hereinbefore set forth, and other funds in the treasury.

Proposed issue of bonds by Huston mid Albany Railroad Company By resolution adopted by the Board of Directors of this company on January 11, 1928, the Boston and Albany Railroad Company was requested to issue $5,700,000 of its c 50 Year 4:}i /c Improvement Bonds of 1928 to be applied at par for payment to this com• pany on account of capital expenditures for additions and improvements to the property of the Boston and Albany Railroad Company and its leased lines made dining the period January 1. 1917, to June 30, 1927. The issue of the proposed bonds was authorized hy the Board of Directors of the Boston and Albany Railroad ('onipany by resolution adopted 13

The New York Central Railroad Company

March 12, 1928, and application to the appropriate public authorities for approval of the issue of the bonds and of the guaranty thereof by this company has been made.

Changes in the company's capital structure The following table shows the record of capital stock, funded debt, the ratio of capital stock to total capitalization, and surplus. Ratio of Capital stock capital stock including premium Total to total Date thereon Funded debi capitalization capitalization Surplus Dec. 31, 1915 $249,590,460 $681,240,153 $930,830,613 26-81% $37,550,480 Dec. 31, 1916 249,590,400 072,929,007 922,519,467 27-06% 65,642,319 Dec. 31, 1917 249,849,360 690,665,086 940,514,446 26-57% 75,803,749 Dec. 31, 1918 249,849,360 688,297,201 938,146,561 26-63% 81,680,770 Dec. 31, 1919 249,849,360 671,666,782 921,516,142 27-11% 87,721,721 Dec. 31, 1920 249,849,300 748,366,477 998,215,837 25-03% 90,055,227 Dec. 31, 1921 249,849,360 739,592,969 989,442,329 25-25% 100,246,999 Dee. 31, 1922 208,233,920 762,956,287 1,031,190,207 26-01% 101,519,922 Dec. 31, 1923 268,326,060 769,979,489 1,038,305,549 25-84% 123,173,460 Dec. 31, 1924 305,310,300 776,916,391 1,082,226,691 28-21% 140,170,197 Dec. 31, 1925 387,055,085 696,501,507 1,084,156,592 35-76% 159,892,921 Dee. 31, 1926 387,655,085 694,380,124 1,082,035,209 35-83% 187,821,081 Dec. 31, 1927 425,082,285 684,629,139 1,110,311,424 38-34% 220,524,740 Dec. 31, 1928 468,206,961 627,268,271 1,095,475,232 42-74% 261,796,940

Proposed leases of lines of controlled companies The proceedings before the Interstate Commerce Commission in which the company is seeking the authority of the Commission for the leasing of the Michigan Central Railroad, the Cleveland Cincinnati Chicago and St Louis Railway, and other lines, referred to in the annual reports for 192G and 1927, are still pending. Additional evidence was intro• duced at hearings held January 9-16, 1928.

West Side improvements, including electrification, in New York City and vicinity The plan of the Committee of Engineers indicating changes to be made in the location and grades of the 30th Street branch between Spuyten Duyvil and St Johns Park with some municipal improvements was tentatively approved by the Board of Estimate and Apportionment of the City of New York on May 24, 1928, and referred to the Transit Commission for determination in connection with the elimination of the remaining grade crossings on the 30th Street branch. Hearings were held by the Transit Commission and decision reserved pending the report of the Board of Appraisers as to the value of the lands and rights involved south of 60th Street. The Board of Appraisers has made its report and final hearings have been ordered by the Transit Commission so that a decision may be rendered and agreements prepared with the City of New York. The elimination of grade crossings in the regions of Manhattanville and Dyckman Street have been com• pleted and placed in service except for a portion of the freight yard at Manhattanville. An experimental Diesel oil-electric locomotive was placed in service during the year, south of 72nd Street on the 30th Street branch. 14

Annual Report

Automatic train control During the year, in addition to the installations of automatic train control on the New York Central Railroad and Boston & Albany Railroad which have been previously reported to the stockholders, the main line of the New York Central between Elkhart, Indiana, and Englewood, Illinois, and between Croton, New York, and Poughkeepsie, New York, has been equipped, thus giving protection to all trains while operating in the steam road territory over the main line between New York and Chicago. The Rochester Division of the New York Central Railroad has been equipped between Rochester, New York, and Suspension Bridge, New York, and the Toledo Division has been equipped between Toledo, Ohio, and Detroit, Michigan. Equipment of the Highland Circuit on the Boston and Albany was well progressed toward completion.

Valuation of the company's property by the Interstate Commerce Commission No decision has yet been made by the Interstate Commerce Commission as to the company's protest in respect to the tentative valuation of its properties.

Container car service The development of container car service continued throughout the year. The com• pany had on December 31, 1928:

Do cars carrying 588 merchandise containers 7 cars carrying 84 lime containers 457 cars carrying 5,484 brick containers 562 Total 6,150

Wages Requests of telegraphers for increases in wages and changes in working conditions were submitted to arbitration during the year and under the awards the company will be subjected to an additional expense of approximately $300,000 per annum.

Increased rates for transportation of mail In May, 1925, the carriers petitioned the Interstate Commerce Commission for an increase in mail transportation rates. With the co-operation of the Post Office Depart• ment and the Commission, the railroads arranged to make a complete analysis of passenger train service for a test period of thirty-five days, namely September 16 to October 20, 1925. The data so developed were used by both the Post Office Department and the railroads in presenting their case to the Commission at hearings in July, 1927. As a result, the Inter• state Commerce Commission issued an order increasing rates for the transportation of mails approximately fifteen per cent effective August 1, 1928, and granted a flat increase of fifteen per cent retroactive to the date from which the carriers respectively filed their petitions. The estimated effect of this order will be to increase the annual mail pay from August 1, 1928, of this company by approximately $1,196,000 and of all the New York Central system lines by $1,625,900, while the retroactive increase is estimated at $3,956,000 15

The New York Central Railroad Company for this company and 15,315,000 for the entire system. The Government questioned the power of the Interstate Commerce Commission with respect to the retroactive feature of its order, as a result of which a test case was instituted in the United States Court of Claims, which on April 2, 1928, rendered its decision upholding the Commission's power. The Government appealed from this decision to the United States Supreme Court where the case was pending at the end of the year.

Railway Express Agency, Inc. In view of the expiration on February 28, 1929, of the term of the amended uniform express contracts under which the American Railway Express Company has been con• ducting the express transportation business over most of the railroads of the continental United States, the Uniform Express Contract Committee of the Association of Railway Executives submitted in July of this year for the consideration of the railroad companies represented in said Association a report and plan, under which the railroad companies participating therein were, subject to the approval of the required governmental authori• ties, to unite in conducting through their own express agency the future operation of the express business, either by means of a new corporation the stock of which would be owned by the participating railroad companies which should acquire the operating properties and equipment of the American Railway Express Company, or, through the acquisition of the entire capital stock of the American Railway Express Company and the modification of its corporate and financial structure to such extent as would make the same con• sistent with the proposed plan. Under the plan the value of the property and equipment devoted to the express business was to be represented by debentures either purchased by the participating railroad companies or sold to the public, and the stock was to be limited in amount, allotted to the participating railroad companies on substantially the basis of the express business done by each and representative mainly of voting rights with the directors nominated by districts so that all sections would be represented in the directorate. Under the plan the contract to be made by such express agency with the several partici• pating railroad companies was to be in substantially the form of the existing uniform express contract except that practically the entire net income was to be distributed among the contracting railroad companies on the basis of business done. The plan was to become effective upon its approval by 75 per cent of the railroad companies entitled to participate therein, and upon such approval President Storey of the Atchison, President Atterbury of the Pennsylvania, President Crowley of the New York Central, and President Gray of the Union Pacific were appointed agents of the participating railroad companies for the purpose of negotiating and agreeing upon the terms of the acquisition of the properties or of the stock of the American Railway Express Company, of organizing the new corporation and of taking the other necessary steps for carrying the plan into effect The plan has already been approved by over 95 per cent of the railroad companies entitled to participate therein, the new corporation has been organized and negotiations by the agents looking to the acquisition of all the operating properties of the American Railway Express Company are being progressed with a view, the necessary governmental authorizations having been obtained, of having said new corporation, Railway Express Agency, Inc., conduct the express business over railroad lines after midnight on February 28, 1929. 16

Annual Report

Straightening of the South Branch of the Chicago River and terminal improvement at Chicago The construction of the new river channel by the city was about 25 per cent complete and the rearrangement of the facilities of the railroad on the west side of the river was well under way at the close of the year. Studies are continuing in conjunction with the Chicago Rock Island and Pacific Railway for the utilization of the additional property that will be made available by the straightening of the river. Such studies include the rearrangement and improvement of the passenger and freight terminal facilities, giving due regard to the extension of streets through the terminal area as required by the city.

The Cleveland Union Terminals Company During the year satisfactory progress was made in the construction of the new station building. The viaduct carrying the westerly approach over the Cuyahoga River was practically completed and work on street bridges, grading, retaining walls, etc., on both approaches progressed. Installation of the electrification system is under way and the electric locomotives were ordered. Collateral improvements on the lines of the system consisting of additional tracks affording access to the new terminal and grade crossing eliminations were commenced. It is expected that the terminal will be put in operation in 19.30. Conveyance to the company of Gary and Western Railway On June 20, 1928, the company, with the approval of the Interstate Commerce Com• mission, acquired by deed from the Gary and Western Railway Company, a subsidiary of the Chicago Lake Shore and Eastern Railway Company, a railroad 753 miles long in the vicinity of Gary, Indiana, and in exchange conveyed byr deed to the Chicago Lake Shore and Eastern Railway Company a segment, 753 miles long, of the former Chicago Indiana and Southern Railroad in the same vicinity. Since 1908, as an incident to certain local relocations to enable the construction and service of the steel and other plants at Gary, the company and its predecessor, the Chicago Indiana and Southern Railroad Company, has operated the Gary and Western Railway under lease and the Chicago Lake Shore and Eastern Railway Company has operated this segment of the Chicago Indiana and Southern Railroad under lease.

Nicholas Fayette & Greenbrier Railroad Company On October 31, 1928, the Interstate Commerce Commission issued a certificate authorizing the construction of the Nicholas Fayette & Greenbrier Railroad between Swiss and Nallen, West Virginia, 29 miles, in accordance with the agreement between the Chesapeake & Ohio and this company providing for joint ownership and operation of the new line. This company has been designated as the agent to build the road. The right of way has been largely acquired and construction work started. This project will insure future coal reserves to this company in both the high and low volatile coal fields along the Gauley and Meadow Rivers and embracing the Kanawha and New River districts. New York Central Building The thirty-four story tower building, located between 46th and 45th Streets on Park Avenue, an illustration of which appears as the frontispiece to this report, will be completed 17

The New York Central Railroad Company and occupied by May 1, 1929. Certain of the executive offices of the New York Central Lines will be located on the thirty-second, thirty-third and thirty-fourth floors, while the remainder of the building will be rented for commercial purposes. The building contains a total floor area of 817,767 square feet and cost approximately $12,760,000. By night the tower roof and. cupola are illuminated by a system of flood lighting and projector lights, using a total of about 100,000 candle-power.

Rail and air service In order to accommodate the company's passengers desiring a faster service, an arrangement was entered into with the Universal Air Line System by which planes of that company connect at Cleveland with certain New York Central trains and carry passengers to and from Cleveland, Chicago, Minneapolis and St Louis. This arrangement became effective in September, 1928, and a number of passengers have taken advantage of this service. While this company does not sell through tickets nor act as agent for the airplane company, it does make reservations for passengers upon their request.

Pensions During the year 474 employees were retired and pensioned; 264 at the age of seventy, 147 for disability, and 63 voluntarily on service pension. There were 3,062 pensioners at the close of the year. The total amount paid in pensions for the year was $1,781,315.53. The balance in the reserve set up to provide for payments upon pensions granted in 1925, 1926, and 1927 was, at the end of the year, $6,241,939. The practice of setting up a reserve was discontinued after 1927 as heretofore explained in this report in the comment on operating expenses. Losses by death The Board records the death of the following: April 5, 1928, the Hon. Chauncey M. Depew, continuously associated in an official capacity with this company or its predecessors and its affiliated line, The New York & Harlem Railroad Company, for sixty-two years. From 1866 to 1874 he was Attorney of The New York & Harlem Railroad Company, from 1874 to 1883 he was suc• cessively Attorney and General Counsel of The New York Central and Hudson River Railroad Company, and from 1883 to 1885 Second Vice President and General Counsel and from 1885 to 1898 President of that company. He was Chairman of the Board of Directors of The New York Central and Hudson River Railroad Company and, after consolidation, of The New York Central Railroad Company from 1898 until his death. January 24, 1928, Ira A. Place, Senior Law Vice President of this company. In 1883 he became associated with the General Counsel of the New York West Shore and Buffalo Railroad Company and, after the reorganization of that company and its lease to the New York Central, he entered the Law Department of The New York Central and Hudson River Railroad Company and through successive steps became General Attorney, General Counsel, Vice President, and Senior Law Vice President of The New York Central Railroad Company and its affiliated lines. He took an active and leading part in the reconstruction and development of the Grand Central Terminal area. 18

Annual Report

September 4, 1928, Frank J. Jerome at Painesville, Ohio. Mr Jerome entered the service of the Lake Shore and Michigan Southern Railway Company in Cleveland, Ohio, in 1893 as an Attorney and became successively General Attorney and General Counsel of that company. He was named as a Director in the articles of consolidation forming The New York Central Railroad Company in December, 1914, and continued to hold that position, wdth the exception of a few months, until his retirement from active service in January, 1927. November 8, 1928, Frank W. Stevens, formerly Chairman of the Public Service Commission of the State of New York and Valuation Counsel of the New York Central Lines for a number of years. May 26, 1928, Edgar Freeman, Assistant General Treasurer, and for fifty years with the New York Central. February 2, 1928, Louis Bender, Assistant Treasurer, after a service record of forty-five years. November 20, 1928, Walter B. Pollock, Manager of the Marine Department for many years, and at the time of his death a special assistant in the Traffic Department.

Changes in organization Effective May 9, 1928, appropriate changes in the by-laws of the company having been made, the Finance Committee was discontinued and an Executive Committee of seven members was appointed as follows: Albert H. Harris, Chairman George F. Baker William K. Vanderbilt Harold S. Vanderbilt Jackson E. Reynolds Charles B. Seger Patrick E. Crowley The Board records the election on June 13, 1928, of James Simpson to fill the vacancy caused by the death of the Hon. Chauncey M. Depew. The following appointments were made: March 1, 1928, Curtis M. Yohe, Assistant to President; August 1, 1928, Edward Hungerford, Assistant Vice President (Public Relations); February 1, 1928, Robert N. Brockway, Assistant Treasurer.

The Board wishes to express its appreciation of the loyal and efficient service of the officers and employees of the company during the year.

For the Board of Directors,

President. CHAUNCEY M. DEPEW

APRIL 23, 1834—APRIL 5, 1928 19

The New York Central Railroad Company

Important improvements

Important improvements completed or under way during the year, or contemplated for the near future, are as follows:

New York, N. Y. Improved street traffic conditions in the vicinity of Grand Central Terminal: Changes in and additions to the overhead roadways around the Grand Central Terminal for the purpose of improving street traffic conditions were completed. As a result of this work it was possible to narrow the granite piers supporting the overhead roadway on the easterly side of Vanderbilt Avenue, giving a greater freedom in the movement of vehicles, and providing for ten new stores. In connection with the widening of the roadway of Park Avenue between East 57th Street and East 72nd Street by the City of New York, the openings in the roof of the Park Avenue tunnel were covered over at the joint expense of the city and the company.

Increased station and track facilities—Grand Central Terminal: The power plant and other facilities under the Graybar Building were completed. Additional ticket offices in the main station building were completed. Removal of certain facilities of the American Railway Express Company on the express level to another location outside the Terminal will enable the company to provide additional track and platform space early in 1929.

Bronx Terminal Market: Track work south of Highbridge incident to the construction of the Bronx Terminal Market, covered by agreement between the company and the City of New York, was commenced and will be placed in service in the spring of 1929.

Mott Haven Yard: Progress lias been made in the rearrangement of tracks and construction of additional Pullman and coach yard and other facilities which it is expected will be finished in 1929, during which year work on a new building for the use of the New York Central Commissary Department and the Pullman Company will be commenced.

Improvements at Weehawrken, New Jersey: Work has progressed on the reconstruction of five ferry bridges at Weehawken, New Jersey. Heavy ferry traffic necessitates the completion of one ferry bridge before the next one can be taken out of service, so that it will probably take two years to complete the improvement. Work was commenced on additional passenger station tracks, extension of coach yard and improved milk facilities. A grain dryer and additional belt conveyors on Pier 7 are expected to be ready for use in 1929.

Station improvements and incidental work: Platform extensions and incidental work were under way or completed at La Salle Street Station, Chicago, and also in the suburban New York City territory at Marble Hill, Greystone, Hastings, Dobbs Ferry, Ardsley, Irvington, Ossining, Harmon, Botanical Gardens, Mount Vernon, Bronxville, Tuckahoe, Crestwood, Scarsdale, Hartsdale and White Plains.

Buffalo—Terminal improvements: A substantial portion of the work upon the new passenger terminal at Buffalo has been completed and it is expected that the station will be put in sendee in the spring of 1929. Negotiations are still continuing with the City of Buffalo and State of New York, in connection with the downtown improvement.

Freight house—Chicago, Illinois: A new one-story brick freight house, 70 feet by 240 feet, with platforms and freight tracks, wras built along South Clark Street joining the other freight houses at this location.

Grade crossing elimination—various places: Grade crossings at Fulton, Ghent, Railroad Mills, Alton, Colemans and Saugerties, New York, were eliminated. Work was also completed on Bliss road at ColUnwood, Ohio, and on the Lincoln Highway at Rolling Prairie and St John, Indiana. Work was commenced on the elimination at Brighton, Nepperhan and Rensselaer, New York, Detroit, Michigan, West 117th Street, Cleveland, Ohio, West Central Avenue, Toledo, Ohio, and 141st Street, Indiana Harbor, Indiana, and at various other locations. 20

Annual Report

At Port Clinton, Ohio, the new line, incident to the elimination of grade crossings, was sufficiently completed so that the main line traffic was diverted over it. At South Bend, Indiana, the work at thirteen streets was nearing completion at the end of the year.' Incident to this a new passenger station will be completed in 1929.

Car retarders: Car retarders were installed on the westbound hump at Selkirk, New York, giving satisfactory service and producing economy of operation. Car retarders were also partially installed at DeWitt, New York, the westbound hump having been completed and put in service and the eastbound hump partially completed.

Four-tracking: Work progressed in four-tracking the Hudson Division between Garrison and Beacon, New York, including tunnel work at Garrison, and this improvement will be completed in the spring of 1929. On the River Division four-tracking has been completed and placed in service from New Durham to Dumont, New Jersey, a distance of about 114 miles, with the exception of a small piece of double track at the crossover at Overpeck Creek, Little Ferry. In order to complete the Little Ferry four-tracking, it will be necessary to replace the present two- track drawbridge with two two-track lift bridges, together writh the necessary track and signal work. It is anticipated that substantial progress will be made on the bridges during 1929 and that the entire project will be completed during 1930.

Signals and interlocking: The work of standardizing signals and interlocking between Iona Island and Newburgh, New^ York, on the River Division progressed and will be completed in the spring of 1929. New mechanical interlocking and improved track layout were installed at Rochester station. At Chicago a new 48-lever machine was installed at the 16th Street Tower and interlocking of the crossovers at the junction of the Chicago Junction Railway at Root Street was also completed. At various places color light signals were installed, replacing semaphore signals.

Enginehouses, coaling and water plants: A new thirty-one stall enginehouse and a one-hundred foot turntable, ash pits, and other facilities w'ere placed in service at Harmon, New York, and at the same location work progressed on the extension of the powerhouse to provide steam and power for additional shop facilities. Reconstruction of the Rensselaer enginehouse will be completed in 1929, as will the extension of seventeen stalls for handling longer locomotives at Air Line Junction, Ohio. A fourteen-stall extension of the enginehouse at Collinwood was completed and the work of extending eighteen stalls wras in progress. In order to facilitate the handling of through power, the company is constructing ash-pit facilities and rearranging certain features of the coaling plant at Wayneport, New York, the work to be completed early in 1929. At Elkhart, Indiana, and at Air Line Junction and Huron, Ohio, installation of water treating plants is in progress. Under this treatment large quantities of scale-forming compounds found in water used for locomotive operation will be removed and locomotive maintenance cost decreased.

New car dumper at Toledo, Ohio: Work was commenced on an extension of the coal dock and the installation of a new electric car dumper with service tracks at Toledo, Ohio. This machine, of the most modern type, is of 120-ton car capacity and will supplement the existing car dumper in order adequately to handle the increasing lake cargo coal tonnage through this port.

Improvements, Ashtabula Harbor, Ohio: Electric sub-stations are being installed to permit the use of purchased electric power for the ore dock operations for the purpose of reducing the cost of power which at present is generated by the company. The existing power plant will be retained for emergency purposes. The new equipment is to be ready at the opening of lake navigation in 1929.

New equipment: Locomotives: Seventeen Hudson type passenger locomotives and one switching, one passenger and one freight oil electric locomotives were received. Authorized for 1929 delivery are eight Hudson type passenger locomotives and one hundred Mohawrk type freight locomotives. 21

The New York Central Railroad Company

Passenger-train cars: Ten steel passenger coaches, three steel passenger and baggage cars, six passenger and baggage motor rail cars, nine passenger baggage and mail motor rail cars, ten steel multiple unit coaches, six steel dining ears, two steel baggage cars, one steel multiple unit baggage car, thirty steel underframe milk cars, nineteen steel horse cars and three steel business cars were received. One passenger baggage and motor rail car, ten steel multiple unit passenger coaches, and eight steel baggage cars were authorized for delivery in 1929.

Freight-train cars: One thousand and fifty-seven 55-ton steel box cars, five 82-ton special type flat cars, five 92-ton special type low floor flat cars, and five hundred 55-ton all-steel gondola cars were received.

Company service equipment: One marine pile driver, two air operated ballast plows, one steam shovel, three single-track snow-pknvs, two double track snow-plows, one crawler type crane, and five steam locomotive cranes were received. Three steam locomotive cranes and four 10-ton single end derricks were authorized for delivery in 1929.

Marine equipment: One steel platform twelve-car capacity car float was received and three steel platform twelve-car capacity floats were authorized for 1929 delivery.

Boston & Albany Railroad: Work was completed on the relocation of a portion of the Grand Junction Branch at Cottage Farm, including the new bridge over the Charles River. Renewal of the boiler plant at West Springfield, which included construction of a boiler room and installation of a 3700-H. P. stoker fired boiler, feed water heater, etc., was completed. A 1000-ton concrete coaling station, a sand drying plant with 750-ton wet sand storage and four water type ash pits were installed at Beacon Park Yard, Boston. At Chester there was installed a modern 80-ton concrete coaling plant with a 10-ton dry sand pocket. Equipment ordered during 1927, which was received in the early part of 1928, included six steel suburban coaches, ten steel baggage cars, and one steel business car; five well and nine special low flat cars. Additional equipment ordered and received during 1928 included five heavy main line passenger locomotives, five double-end suburban type locomotives, and ten all-steel main line coaches. There are still on order three all-steel combination cars, on which an early 1929 delivery is anticipated. 22

Annual Report

COMPARATIVE CONDENSED GENERAL BALANCE SHEET, DECEMBER 31, 1928 and im

ASSETS

1927 INVESTMENTS 1928 Comparison 8563,972,119 37 Investment in road $591,202,847 19 $27,230,727 821m Investment in equipment 149,924,609 46 Trust 150,321,151 46 396,542 OOIne 250,486,821 36 Owned 254,630,413 61 4,143,592 25 IM 136,897,924 06 Improvements on leased railway property 134,345,900 76 2,552,023 30 Dec 100,283 76 Deposits in lieu of mortgaged property sold 45,582 06 54,701 70 DM 19,637,551 94 Miscellaneous physical property 28,262,011 43 8,624,459 49 Iu Investments in affiliated companies $157,634,846 66 Stocks $142,192,221 07 15,442,625 59 Deo 12,267,490 36 Bonds 11,963,490 36 304,000 OODet 42,805,666 57 Notes 11,840,095 32 30,965,571 25 Dee 68,029,225 97 Advances 97,922,663 50 29,893,437 53 lie

280,737,229 56 263,918,470 25 16,818,759 31 Dee Other investments $42,658,997 90 Stocks $40,435,972 77 2,223,025 13 Dee 1,550,S21 67 Bonds 1,577,321 67 26,500 00 he 2,495,906 30 Notes 1,375,041 26 1,120,865 04 Dee 11,066,569 54 Advances 18,835,966 59 7,769,397 05 lac 12,444 98 Miscellaneous 9,712 85 2,732 13 Dee

57,784,740 39 62,234,015 14 $4,449,274 75Ine

$1,459,541,279 90 TOTAL INVESTMENTS $1,484,960,391 90 $25,419,112 00 Int

CURRENT ASSETS $20,631,587 69 Cash $40,012,139 59 438,041 27 Special deposits 351,881 09 8,979 34 Loans and bills receivable 1,628,268 78 314,895 23 Traffic and car-service balances receivable 2,243,660 70 3,918,451 78 Net balance receivable from agents and conductors 4,385,588 95 11,297,631 50 Miscellaneous accounts receivable 12,014,322 21 32,388,782 40 Material and supplies 28,221,596 35 8,232,467 22 Interest and dividends receivable 7,669,904 17 394,711 54 Rents receivable 375,455 54 548,049 97 Other current assets 461,939 56

$78,173,597 94 TOTAL CURRENT ASSETS $97,364,756 94

DEFERRED ASSETS $184,201 67 Working fund advances $191,351 67 3,626,224 43 Insurance and other funds 4,010,009 31 847,490 81 Other deferred assets 850,701 62

$4,657,916 91 TOTAL DEFERRED ASSETS $5,052,062 60

UNADJUSTED DEBITS $143,178 S7 Rents and insurance premiums paid in advance $171,772 70 11,457,666 13 Discount on funded debt 11,001,284 28 125,001 00 Securities acquired from lessor companies (per contra) 125,001 00 15,525,342 53 Other unadjusted debits 15,175,458 82

$27,251,188 53 TOTAL UNADJUSTED DEBITS $26,473,516 80

$1,569,623,983 28 $1,613,850,728 24 $44,226,744 96ln« 2:i

The New York Central Railroad Company

COMPARATIVE CONDENSED GENERAL BALANCE SHEET, DECEMBER 31, 1928 and 1927

LIABILITIES

1927 STOCK 1928 $421,285,435 00 Capital stock $463,559,135 00 $42,273,700 00 Ine 4,396,850 00 Premium on capital stock 4,647,825^ 90 250,975 90Inc

$425,682,285 00 TOTAL CAPITAL STOCK $468,206,960 90 $42,524,675 90 Inc

LONG TERM DEBT Funded debt unmatured $69,080,938 64 Equipment obligations $61,720,071 31 $7,360,867 33 Dec 597,951,000 00 Mortgage bonds 547,951,000 00 50,000,000 00 Dec 17,560,200 00 Debenture bonds 17,560,200 00 — 37,000 00 Real estate mortgages 37,000 00 —

$681,629,138 64 TOTAL LONG TERM DEBT $627,268,271 31 $57,360,867 33 Dec

$1,110,311,423 64 TOTAL CAPITALIZATION $1,095,475,232 21 $14,836,191 43 Dec

CURRENT LIABILITIES $2,553,914 84 Traffic and car service balances payable $6,148,764 05 $3,594,849 21 Inc 23,838,472 91 Audited accounts and wages payable 22,977,448 07 861,024 84 Dec 3,120,578 85 Miscellaneous accounts payable 2,886,219 44 234,359 41 Deo 2,498,541 73 Interest matured unpaid 2,488,074 48 10,467 25 Dec 8,425,641 90 Dividend declared, payable February 1, 1929 9,271,117 90 845,476 00 Inc 195,703 13 Dividends matured unpaid 201,744 98 6,041 85 Inc 13,090 00 Funded debt matured unpaid 333,090 00 320,000 00 Inc 5,866,986 87 Unmatured interest accmed 5,126,080 85 740,906 02 Dec 1,095,716 34 Unmatured rents accrued 1,147,586 35 51,870 01 Inc 16,971,270 48 Other current liabilities 15,017,235 11 1,954,035 37 Dec

$64,579,917 05 TOTAL CURRENT LIABILITIES $65,597,361 23 $1,017,444 18 Inc

DEFERRED LIABILITIES 814,715,322 52 Liability to lessor companies for equipment $14,715,322 52 3,698,676 56 Other deferred liabilities 4,603,013 97 $904,337 41 Inc

$18,413,999 08 TOTAL DEFERRED LIABILITIES $19,318,336 49 $904,337 41 Inc

UNADJUSTED CREDITS $11,894,536 77 Tax liability $14,660,833 36 $2,766,296 59 Inc 1,066,329 68 Insurance and casualty reserves 1,602,550 86 536,221 18 Inc 1,574,356 48 Accrued depreciation—road 1,833,520 54 259,164 06 Inc 114,159,138 17 Accrued depreciation—equipment 126,677,134 76 12,517,996 59 Inc 1,143,953 03 Accrued depreciation—miscellaneous physical property 1,525,642 99 381,689 96 Inc 125,001 00 Liability to lessor companies for securities acquired (per contra) 125,001 00 — 25,830,588 04 Other unadjusted credits 25,238,175 19 592,412 85 Dec

$155,793,903 17 TOTAL UNADJUSTED CREDITS $171,662,858 70 $15,868,955 53 Inc

CORPORATE SURPLUS $1,176,016 39 Additions to property through income and surplus $1,406,779 76 $230,763 37 Inc 1,421,809 30 Miscellaneous fund reserves 1,591,543 27 169,733 97 Inc 217,926,914 65 Profit and loss—balance 258,798,616 58 40,871,701 93 Inc

$220,524,740 34 TOTAL CORPORATE SURPLUS $261,790,939 61 $41,272,199 27 Inc

$1,569,623,983 28 $1,613,850,728 24 $44,226,744 96 Inc 24

Annual Report

CAPITALIZATION

Capital stock

Number of shares authorized 5,000,000 Total par value authorized $500,000,000 0

Number of shares issued • 4,635,542TVt[ Par value outstanding $463,554,240 00 Consolidation certificates of 1S69 not converted 49 Consolidation certificates of 1869 outstanding 4,895 00 Par value held by company 5 W

4,635,591,VJ $463,559,140 01

Par value per share $100.00 Dividend for the year (details on another page) 8 per cent

Funded debt

Date of Date of Amount • Amount issuer and Kate of Payable on the MORTGAGE BONDS issue maturity authorized is ue . now outstanc ng interest first day of Lake Shore & Michigan Southern Ry Co 25 year gold® 1906 May 1, 1931 $50,000,000 00 $50,000,000 00 4% May and Nov Carthage Water town & S H R R Co consolidated© 1891 July 1, 1931 300,000 on 300,000 00 5% Jan and July Little Falls & Dolgeville R R Co first© 1902 July 1, 1932 250,000 00 250,000 00 3% Jan and July Pine Creek Railway Co first® 1882 Dec. 1, 1932 3,500,000 00 3,500,000 00 6% June and Dec NYC&HRRRCo gold debentures® 1904 May 1, 1934 48,000,000 IK) 48,000,000 00 4% Nov and Hay Kalamazoo & White Pigeon R R Co first© 1889 Jan. 1, 1940 400,000 00 400,000 00 5% July and Jan NYC&HRRRCo gold debentures© 1912 Jan. 1, 1942 9,188,000 00 9,188,000 00 4% July and Jan Gouverneur & Oswegatchie R R Co first© 1892 June 1, 1942 300,000 00 300,000 00 5% Dec and June Indiana Illinois & Iowa R R Co first© 1900 July 1, 1950 4,850,000 00 4,850,000 00 4% Jan and July Chicago Indiana & Southern R R Co 50 year® 1906 Jan. 1, 1956 15,150,000 00 15,150,000 00 4% July and Jan Jamestown Franklin & Clearfield R R Co first© 1909 June 1, 1959 11,000,000 00 11,000,000 00 4% Dec and June NYC&HRRRCo-Spuyten Duyvil & Pt Morris first© 1909 June 1, 1959 2,500,000 00 2,500,000 00 3i% Dee and June Cleveland Short Line Railway Co first© 1911 Apl. 1, 1961 11,800,000 00 11,800,000 00 4i% Oct and Apl Carthage & Adirondack Railway Co first© 1892 Dec. 1, 1981 1,100,000 00 1,100,000 00 4% June and Dec Sturgis Goshen & St Louis Railway Co first® 1889 Dec. 1, 1989 322,000 00 322,000 00 3% June and Dec Mohawk & Malone Railway Co first® 1892 Sept. 1, 1991 2,500,000 00 2,500,000 00 4% Mch and Sept New York & Putnam R R Co first consolidated© 1894 Oct. 1, 1993 3,987,000 00 3,987,000 00 4% Apl and Oct Lake Shore & Michigan Southern Ry Co gold mtge© 1897 June 1, 1997 50,000,000 00 50,000,000 00 3}% Dec and June

NYC&HRRRCo gold mortgage© 1897 July 1, 1997 100,000,000 00 94,000,000 00 d2 /O Jan and July NYC&HRRR Co-Lake Shore coll gold© 1898 Feb. 1, 1998 90,578,000 00 22,576,000 00 3i% Aug and Feb NYC&HRRR Co-Mich Central coll gold® 1898 Feb. 1, 1998 21,550,000 00 19,336,000 00 3}% Aug and Feb N Y C R R Co 4% consolidation mtge-series A® 1913 Feb. 1, 1998 * 68,002,000 00 4% Aug and Feb Mohawk & Malone Railway Co consolidated® 1902 Mch 1, 2002 3,900,000 00 3,900,000 00 3J% Sept and Mch NYC&HRRR Co refund and imp't-series A© 1913 Oct. 1, 2013 40,000,000 (II) 40,000,000 00 4i% Apl and Oct NYCRRCo-NYC&HRRRCo ref and imp-series B© 1920 Oct. 1, 2013 4,494,000 00 4,494,000 00 6% Apl and Oct NYCRRCo-NYC&HRRRCo ref and imp-series C® 1921 Oct. 1, 2013 85,000,000 00 85,000,000 00 5% Apl and Oct

Total $552,455,000 00

Less securities reacquired or nominally issued and held by or for the company: N Y C R R Co refunding and improvement mtge bonds—series B $4,494,000 NYC&HRRR Co-Lake Shore collateral gold bondsf 10,000 4,504,000 00

Total mortgage bonds actually outstanding $547,951,000 00

* Authorized for 370,000,000 to take the place of a like amount of NYC&HRRR Co-Lake Shore collateral gold bonds t Deposited with City of New York and included in Balance Sheet account "Insurance and other funds" 25

The New York Central Railroad Company

CAPITALIZATION (concluded)

Funded debt (concluded)

Date of Date of Amount of Amount issued and Rate of Payable on the DEBENTURE BONDS issue maturity authorized issue now outstanding interest first day of NYCEECo twenty-year 6% convertible© 1915 May 1, 1935 $100,000,000 00 $12,060,200 00 6% Nov and May NYC&HRRRCo 1900 July 1, 2000 5,500,000 00 5,500,000 00 3J% Jan and July

Total debenture bonds actually outstanding $17,560,200 00

EQUIPMENT TRUST OBLIGATIONS Equipment trust certificates (N Y C R R)© 1917 Jan. 1, 1932 $19,995 ,000 00 $3,351,000 00 «% July and Jan Equipment trust notes (Trust No. 43)® 1920 Jan. 15, 1935 13,829 ,400 00 6,458,900 00 6% July 15, Jan 15 Equipment trust certificates (N Y C R R)@ 1920 Apl. 15, 1935 17,297 ,509 95 8,072,171 31 7% Oct 15, Apl 15 Equipment trust certificates (N Y C Lines)© 1922 June 1, 1937 8,580 ,000 00 5,148,000 00 5% Dec and June Equipment trust certificates (N Y C Lines)© 1922 Sept. 1, 1937 8,535, 000 00 5,121,000 00 4i% Mch and Sept Equipment trust certificates (N Y C Lines)©' 1923 June 1, 1938 6,930, 000 00 4,620,000 00 5% Dec and June Equipment trust certificates (N Y C Lines)© 1924 June 1, 1939 14,745,,00' 0 00 10,813,000 00 5% Dec and June Equipment trust certificates (N Y C Lines)© 1924 Sept. 15, 1939 12,720,,00 0 00 9,328,000 00 H% Mch 15, Sept 15 Equipment trust certificates (N Y C Lines)© 1925 May 15, 1940 11,010, 000 00 8,808,000 00 4i% Nov 15, May 15 Total equipment trust obligations actually outstanding $61,720,071 31

MISCELLANEOUS FUNDED OBLIGATIONS Mortgage on real estate in city of New York 1901 Aug. 8, 1906 $16,000 00 $16,000 00 5% Feb 8, Aug 8 Mortgage on real estate in city of New York 1927 Aug. 8, 1932 21,000 00 21,000 00 6% Feb 8, Aug 8 Total $37,000 00

Total funded debt actually outstanding S627,26S,271 31

TRUSTEES: © Bankers Trust Company, New York ® Illinois Trust and Savings Bank (now Illinois Merchants Trust Com• © Central Union Trust Company of New York pany), Chicago, and Joseph D. Oliver, South Bend, Indiana (D Central Union Trust Company of New York and ® Metropolitan Trust Company (now Chatham Phenix National Bank Frank L. Littleton of Indianapolis, Indiana and Trust Company), New York @ American Exchange Irving Trust Company, New York (now ® United States Trust Company, New York Irving Trust Company) ® United States Trust Company, New York, and John H. Holliday, Indian• ® Guaranty Trust Company of New York apolis, Indiana © Guaranty Trust Company of New York and John B. Cock- ® United States Mortgage and Trust Company, New York rum of Indianapolis, Indiana © William K. Vanderbilt (deceased) and Chauncey M. Depew (deceased) @ Guaranty Trust Company of New York and William A. Wildhack of Cincinnati, Ohio 2(1

Annual Report

EQUIPMENT TRUSTS

The following statement shows the character of the equipment included in Equipment Trusts together with the total amount of certificates or notes issued and the amounts now outstanding:

NEW YORK CENTRAL RAILROAD EQUIPMENT TRUST OF 1917

Certificates issued for not to exceed 80 per cent of cost Loco- Passenger Freight bearing dividend Annual Certificates Company motives cara cars at 4 J per cent installmem redeemed NYCRB 165 238 7,027 $16,184,000 00 $1,117,000 00 $12,833,000 00

EQUIPMENT TRUST NO. 43 (1920) Notes issued for not to exceed 75 per cent of cost Loco• Freight bearing interest Annual Notes Company motives cars at 6 per cent installment redeemed N Y C R R 125 4,559 $13,829,400 00 $922,700 00 $7,370,500 00

NEW YORK CENTRAL RAILROAD COMPANY EQUIPMENT TRUST OF 1920

Certificates issued for not to exceed 75 per cent of cost Loco• Freight bearing dividend Annual Certificates Company motives cars at 7 per cent installments redeemed NYCRR 95 161 4,217 $17,297,509 95 $1,153,167 33 $9,225,338 64 MCRR 26 40 1,948 7,014,971 25 467,664 75 3,741,318 00 C C C & St L Ry 70 54 3,127 11,416,671 00 761,111 40 6,088,891 20 P & L E R R 5 11 477,843 90 31,856 26 254,850 08 T & O C Ry 1 18,003 90 1,200 26 9,602 08

Totals 196 267 9,292 §36,225,000 00 2,415,000 00 $19,320,000 00

NYC LINES EQUIPMENT TRUST OF 1922

Certificates issued for not to exceed 75 per cent of cost Loco• Passenger Freight bearing dividend Certificates Company motives cars cars at 5 per cent installments redeemed N Y C R It 50 5,015 $8,580,000 00 $572,000 00 $3,432,000 00 $5,: MCRR 10 3,498 5,595,000 00 373,000 00 2,238,000 00 3,; C C C & St L Ry 15 4,026 5,625,000 00 375,000 00 2,250,000 00 CNRR 1,008 1,155.000 00 77,000 00 462,000 00 P&LERR 2,510 3,345,000 00 223,000 00 1,338,000 00 P McK & Y R R 2,508 3,345,000 00 223,000 00 1,338,000 00

Totals 75 1S.565 $27,645,000 00 $1,843,000 00 $11,058,000 00 $16,587,000 (

NYC LINES FOUR AND ONE-HALF PER CENT EQUIPMENT TRUST OF 1922

Certificates issued for not to exceed 75 per cent of cost Loco• bearing dividend Annual Certificates Company motives at 4} per cent installments redeemed NYCRR 160 $8,535,000 00 $569,000 00 $3,414,000 00 MCRR 15 765,000 00 51,000 00 306,000 00 C C C & St L Ry 65 3,360,000 00 224,000 00 1,344,000 00

Totals 240 $12,660,000 00 $844,000 00 $5,064,000 00 $7,; 27

The New York Central Railroad Company

EQUIPMENT TRUSTS (concluded)

NYC LINES EQUIPMENT TRUST OF 1923

Certificates issued for not to exceed Balance 75 per cent of cost certificates Loco• Passenger Freight bearing dividend Annual Certificates outstanding Company motives cars cara at 5 per cent installments redeemed Dec. 31, 1928 NYCRR 8 184 2,013 $6,930,000 00 $462,000 00 $2,310,000 00 $4,620,000 00 M C R R 39 3,986 9,480,000 00 632,000 00 3,160,000 00 6,320,000 00 C C C & St L Ry 48 930,000 00 62,000 00 310,000 00 620,000 00

Totals 8 271 5,999 $17,340,000 00 $1,156,000 00 $5,780,000 00 $11,560,000100

NYC LINES EQUIPMENT TRUST OF 1924

Certificates issued for not to exceed Balance 75 per cent of cost certificates Loco• Passenger Freight bearing dividend Annual Certificates outstanding Company motives cars cars at 5 per cent installments redeemed Dec. 31, 1928 NYCRR 61 110 5,270 $14,745,000 00 $983,000 00 $3,932,000 00 $10,813,000 00 MCRR 25 17 999 3,495,000 00 233,000 00 932,000 00 2,563,000 00 C C C & St L Ry 45 2,220 6,405,000 00 427,000 00 1,708,000 00 4,697,000 00 CNRR 255 405,000 00 27,000 00 108,000 00 297,000 00

Totals 131 127 8,744 $25,050,000 00 $1,670,000 00 $6,6S0,000 00 $18,370,000 00

NYC LINES FOUR AND ONE-HALF PER CENT EQUIPMENT TRUST OF 1924

Certificates issued for not to exceed Balance 75 per cent of cost certificates Loco• Passenger Freight bearing dividend Annual Certificates outstanding Company motives cars cars at 4 J per cent installments redeemed Dec. 31, 1928 NYCRR 48 189 4,218 $12,720,000 00 $848,000 00 $3,392,000 00 $9,328,000 00 MCRR 2 25 998 2,595,000 00 173,000 00 692,000 00 1,903,000 00 C C C & St L Ry 5 55 2,305 5,640,000 00 376,000 00 1,504,000 00 4,136,000 00

Totals 55 269 7,521 $20,955,000 00 $1,397,000 00 •$5,5S8,000 00 $15,367,000 00

N Y C LINES EQUIPMENT TRUST OF 1925

Certificates issued for not to exceed Balance 75 per cent of cost certificates Passenger Freight bearing dividend Annual Certificates outstanding Company cars cars at 4J per cent installments redeemed Dec. 31, 1928 NYCRR 257 3,694 $10,526,000 00 $734,000 00 $1,71S,000 00 $8,808,000 00 MCRR 12 1,957 3,398,000 00 234,000 00 590,000 00 2,808,000 00 C C C & St L Ry 65 4,794 7,778,000 00 532,000 00 1,394,000 00 6,384,000 00

Totals 334 10,445 $21,702,000 00 $1,500,000 00 $3,702,000 00 $18,000,000 00 28

Annual Report

INVESTMENTS

IMPROVEMENTS ON LEASED OR CONTROLLED RAILWAY PROPERTY Grand Central Terminal $49,255, 420 21 New York & Harlem Railroad 29,970, 329 69 West Shore Railroad 29,368, 733 71 Boston & Albany Railroad 1,733, 852 35 Beech Creek Railroad 4,281, 039 32 Toledo & Ohio Central Railway 5,417, 880 40 Beech Creek Extension Railroad 2,151, 142 99 Improvements to piers on leased property 1,964 ,613 62 Lake Erie Alliance & Wheeling Railroad 1,773,,96 6 58 Hudson River Bridges at Albany 1,409,,24 3 21 New York State Realty & Terminal Company 1,295,,49 9 23 Kanawha & Michigan Railway 1,390, 126 31 New Jersey Junction Railroad 714, 614 84 St Lawrence & Adirondack Railway 671 ,585 65 Fort Wayne & Jackson Railroad 398 ,357 62 New York Stock Y'ards 553 896 53 Ottawa & New Y'ork Railway 302: 819 60 Troy & Greenbush Railroad 232 243 49 Detroit Hillsdale & South Western Railroad 182 120 84 Wallkill Valley Railroad 201 569 79 Erie & Kalamazoo Railroad 114,,43 6 50 Kalamazoo Allegan & Grand Rapids Railroad 118, 100 86 Kanawha & West Virginia Railroad 112, 635 30 Hudson River Connecting Railroad 597; ,885 95 Detroit Toledo & Milwaukee Railroad 48,,55 9 81. Zanesville & Western Railway 63, 198 47 Genesee Falls Railway 12 ,503 89 Battle Creek & Sturgis Railway ,512 86 Point Pleasant Bridge ,530 30 Bailey Run Sugar Creek & Athens Railway 283 24 Titusville & Cambridge Springs Railroad 197 60

Total $134,345,900 76

INVESTMENTS IN MISCELLANEOUS PHYSICAL PROPERTY New York Central Building, 45th-46th Streets, Park Avenue, New York $11,018,179 81 Hotel Biltmore building, New York 2,800,000 00 West Side Improvement, New Y'ork 1,482,627 51 Substruction 1 work Graybar building, New York $640,361 36 247 Park Avenue, New York 369,118 32 250 Park Avenue, New York 535,534 44 270 Park Avenue, New York 492,477 85 277 Park Avenue, New York 681,046 36 290 Park Avenue, New York 343,010 11 299 Park Avenue, New Y'ork 561,129 42 300 Park Avenue, New Y'ork 395,561 69 320 Park Avenue, New York 104,146 36 340 Park Avenue, New Y'ork 63,371 05 379 Madison Avenue, New York 125,148 49 385 Madison Avenue, New York 216,514 75 Apartment house, 33 East 48th Street, New York 115,348 76 Hotel Commodore building, New York 267,297 27 Hotel Roosevelt, New York 396,672 96 Barclay Park Building, 115 East 48th Street, New York 196,199 56 Vanderbilt Concourse Building, New York 47,479 01 Yale Club building, New York 51,027 31 5,601,445 07 Carried forward $20,902,252~39 29

The New York Central Railroad Company

INVESTMENTS (continued)

INVESTMENTS IN MISCELLANEOUS PHYSICAL PROPERTY {concluded) Brought forward $20,902,252 39

LAND AND BUILDINGS At Cleveland, Ohio $4,029,057 25 At sundry other locations 274,362 22 4,303,419 47

Stock Yards, East Buffalo, New York 1,616,961 19 Putnam Bridge across Harlem River, New York 250,000 00 McCormick dock and warehouse property, Chicago, Illinois 395,666 97 Property, Morgan Street, Chicago, Illinois 391,818 40 Elevator, Schneider, Indiana 111,019 28 Gas Plant, Toledo, Ohio 10,131 89 Commercial tracks and sidings ' 175,793 28 Special assessments, paving and construction of highways and sewers 55,941 34 Property released from operation, held for disposition 29,144 96 Sundry items 19,862 26

Total $28,262,011 43

Held by this company INVESTMENTS IN AFFILIATED COMPANIES—STOCKS Total outstai ding Shares Par value Bailey Run Sugar Creek & Athens Railway Co $205,700 00 2,057 S205.700 00 Battle Creek & Sturgis Railway Co 500,000 00 825 82,500 00 Beech Creek Railroad Co 6,000,000 00 25 1,250 00 Beech Creek Extension Railroad Co 5,179,000 00 51,790 5,179,000 00 Boston Terminal Company 500,000 00 1,000 100,000 00 Canadian Niagara Bridge Company 750,000 00 5,464 546,400 00* Cherry Tree & Dixonville Railroad Co 500,000 00 5,000 250,000 00 Chester & Becket Railroad Co 50,000 00 288 28,800 00 Chicago Kalamazoo & Saginaw Railway Co 450,000 00 1,800 180,000 00 Chicago River & Indiana Railroad Co 500,000 00 5,000 500,000 00 Clearfield Bituminous Coal Corporation 825,000 00 16,500 825,000 00 Cleveland Cincinnati Chicago & St Louis Ry Co common 47,028,700 00 429,411 42,941,100 00 Cleveland Cincinnati Chicago & St Louis Ry Co preferred 9,998,500 00 84,681 8,468,100 00 Cleveland Union Terminals Company 10,000 00 68 6,800 00 Detroit Terminal Railroad Co 2,000,000 00 5,000 500,000 00 Detroit Toledo & Milwaukee Railroad Co 1,060,000 00 5,300 530,000 00 Fort Wayne Union Railway Co 80,000 00 200 20,000 00 Fulton Chain Railway Co 21,000 00 210 21,000 00 Genesee Falls Railroad Co 54,000 00 250 25,000 00 Hudson River Bridge Company at Albany 500,000 00 3,750 375,000 00 Hudson River Connecting Railroad Corporation 250,000 00 2,500 250,000 00 Indiana Harbor Belt Railroad Co 7,600,000 00 22,800 2,2S0,000 00 Jefferson Coal Company 2,000,000 00 10,200 1,020,000 00 Lake Erie Alliance & Wheeling Railroad Co 3,000,000 00 30,000 3,000,000 00

Carried forward $67,335,650 00 * First installment of ten per cent paid 30

Annual Report

INVESTMENTS (continued)

Held by this company Total outstanding Shares Par value

INVESTMENTS IN AFFILIATED COMPANIES—STOCKS (concluded) Brought forward $67,335,650 00 Lake Erie & Pittsburg Railway Co $4,300,000 00 21,500 2,150,000 00 Lansing Manufacturers Railroad 100,000 00 500 50,000 oo Lansing Transit Railway Co 2,000 00 10 1,000 00 Mahoning Coal Railroad Co common 1,500,000 00 17,893 894,650 00 Mahoning Coal Railroad Co preferred 661,367 00 9,560 478,000 00 Merchants Despatch Transportation Co 4,000,000 00 40,000 4,000,000 00 Michigan Central Railroad Co 18,736,400 00 186,038 18,603,800 00 Middleport & Northeastern Ry Co 1,000 00 10 1,000 00 New Jersey Junction Railroad Co 100,000 00 1,000 100,000 00 New York & Harlem Railroad Co common 8,656,050 00 111,028 5,551,400 00 New York & Harlem Railroad Co preferred 1,343,950 00 22,859 1,142,950 00 New York State Railways first preferred 3,862,500 00 6 600 00 New York State Realty & Terminal Company 100,000 00 1,000 100,000 00 Nicholas Fayette & Greenbrier Railroad Co 400,000 00 2,000 200,000 00* Ottawa & New York Railway Co 1,000,000 00 10,000 1,000,000 00 Pittsburgh & Lake Erie Railroad Co 43,182,720 00 431,834 21,591,700 00 Pittsburgh MeKeesport & Youghiogheny R R Co 3,959,650 00 31,368 1,568,400 00 Raquette Lake Railway Co 250,000 00 2,500 250,000 00 Securities Corporation of the New York Central Railroad 100,000 00 1,000 100,000 00 St Lawrence & Adirondack Railway Co 1,615,000 00 16,150 1,615,000 00 Toledo & Ohio Central Railway Co common 5,846,300 00 58,463 5,846,300 00 Toledo & Ohio Central Railway Co preferred 3,701,400 00 37,014 3,701,400 00 Toledo Terminal Railroad Co 4,000,000 00 3,872 387,200 00 Toronto Hamilton & Buffalo Railway Co 5,415,000 00 20,120 2,012,000 00 Trestle Realty Corporation 500,000 00 2,500 250,000 00 Troy Union Railroad Co 30,000 00 150 15,000 00 West Shore Railroad Co 10,000,000 00 100,000 10,000,000 00 Sundry inactive corporations 10,025 1,002,500 00

Total $149,948,550 00

INVESTMENTS IN AFFILIATED COMPANIES—BONDS

Beech Creek Railroad Co second mortgage $1,000,000 00 $500,000 00 Beech Creek Extension Railroad Co consolidated mortgage 3,964,000 00 3,964,000 00 Cherry Tree & Dixonville Railroad Co first mortgage, series A 1,210,000 00 605,000 00 Cherry Tree & Dixonville Railroad Co debenture certificates 4,588 38 4,588 38 Chester & Becket Railroad Co first mortgage 50,000 00 50,000 00 Chicago Kalamazoo & Saginaw Railway Co first mortgage 468,000 00 187,000 00 Clearfield Bituminous Coal Corporation mortgage gold 2,500,000 00 700,000 00 Cleveland Cincinnati Chicago & St Louis Railway Co general mortgage 32,740,000 00 1,000,000 00 Cleveland Cincinnati Chicago & St Louis Railway Co ref and impt mtge 15,000,000 00 193,000 nil Fort Wayne Union Railway Co general mortgage 136,000 00 34,000 00 Lake Erie & Pittsburg Railway Co first mortgage 3,682,000 00 1,841,000 00 Merchants Despatch, Inc, equipment trust ctfs 3,856,000 00 2,106,000 00 Ottawa & New York Railway Co first mortgage 825,000 00 825,000 00 Ottawa

Total $13,507,588 38 Sixty per cent paid 31

The New York Central Railroad Company

INVESTMENTS (continued)

Held by

T this company INVESTMENTS IN AFFILIATED COMPANIES—NOTES par value Boston Terminal Co $4,938 44 Chester & Becket Railroad Co 37,307 69 Kanawha & Michigan Railway Company 496,186 17 Lake Erie Alliance & Wheeling Railroad Co 490,168 95 Lake Erie & Pittsburg Railway Co 25,000 00 New Jersey Junction Railroad Co 504,959 90 New York & Harlem Railroad Co 145,000 00 Pittsburgh MeKeesport & Youghiogheny Railroad Co 300,000 00 Schenectady Railway Co 233,150 00 Toledo & Ohio Central Railway Co 10,093,412 00 Troy Union Railroad Co ' 134,377 01 Zanesville & Western Railway Co 60,000 00 Total $12,524,500 16

INVESTMENTS IN AFFILIATED COMPANIES—ADVANCES Boston Terminal Co $48,652 00 Cherry Tree & Dixonville Railroad Co 203,212 04 Clearfield Bituminous Coal Corporation 1,675,000 00 Cleveland Cincinnati Chicago & St Louis Railway Co 1,250,000 00 Cleveland Union Terminals Co 10,550,600 00 Hudson River Connecting Railroad Corporation 24,595,000 00 Kanawha & Michigan Railway Co 3,204,397 42 Lansing Manufacturers Railroad 117,646 95 Lansing Transit Railway Co 8,917 86 Lake Erie & Pittsburg Railway Co 146,987 49 Middleport & Northeastern Railway Co 5,307 17 New York & Harlem Railroad Co 2,463,285 55 New Y'ork State Realty & Terminal Co 31,636,454 47 Nicholas Fayette & Greenbrier Railroad Co 13,221 66 Pittsburgh MeKeesport & Youghiogheny Railroad Co 16,066,848 30 Securities Corporation of the New York Central Railroad 2,758,842 25 Toledo & Ohio Central Railway Co 2,756,039 74 Toronto Hamilton & Buffalo Railway Co 400,000 00 Trestle Realty Corporation 12,250 00 Zanesville & Western Railway Co 10,000 00

Total $97,922,663 50

OTHEK INVESTMENTS—STOCKS Shares Kansas Oklahoma & Gulf Railway Co preferred 4-98 $498 16 Mahoning State Line Railroad Co 29 1,450 (id New Y'ork New Haven & Hartford Railroad Co 15,456 1,545,600 00 Pittsfield & North Adams R R Co 722 72,200 00 Reading Company common 262,900 13,145,000 00 Reading Company first preferred 136,800 6,840,000 00 Reading Company second preferred 300,300 15,015,000 00 Rutland Railroad Co preferred 23,520-5 2,352,050 00 Syracuse Northern Electric Railway Incorporated 118-2 11,823 02 Wheeling & Lake Erie Railway Co common 56,000 5,600,000 00 Wheeling & Lake Erie Railway Co preferred 4,933 493,300 00 Wheeling & Lake Erie Railway Co prior lien 38,398 3,839,800 00 Sundry inactive companies 477-6499 48,344 99

Total $48,965,066 17 32

Annual Report

INVESTMENTS (concluded) Held by this company OTHER INVESTMENTS—BONDS par value Cortlandt Water Co first mortgage $300,000 00 Kanawha <& Hocking Coal & Coke Company first mortgage 642,000 00 Mortgages on real estate 49,815 00 New York New Haven & Hartford Railroad Co convertible debentures 3§% 206,300 00 New York New Haven & Hartford Railroad Co convertible debentures 6% 421,000 00 United States Government 1st Liberty Loan 4£% 1,000 00 United States Government 4th Liberty Loan 4£% 51,050 00 Valley Stone Company first mortgage 780 00 Sundry inactive companies 178,916 2S

Total 81,850,861 28

OTHER INVESTMENTS—NOTES Cleveland & Youngstown Railway Co 8855,041 26 Lake Erie & Western Railroad Co 520,000 00

Total $1,375,041 26

OTHER INVESTMENTS—ADVANCES Boston & Albany R R Co $8,225,009 OS Barclay Park Corporation 1,425,000 00 Bowman Biltmore Hotel Corporation 2,180,813 00 Mahoning State Line Railroad Company 4 04 N Y United Hotels, Inc 1,419,300 00 Park Avenue Improvement Company, Inc 237,937 44 Park Lane Corporation 997,500 00 Vanderbilt Avenue Realty Corporation 1,268,856 20 Yale Leasing Corporation 140,640 39 33 East 48th Street Realty Corporation 263,775 76 379 Madison Avenue, Inc 427,500 00 385 Madison Avenue, Inc 427,500 00 300 Park Avenue Company, Inc 1,565,432 31 350 Park Avenue Company, Inc 256,638 37

Total $18,835,966 59

OTHER INVESTMENTS—MISCELLANEOUS Membership in commercial exchanges $8,765 00 Hydraulic Steel Co certificate of deposit of claim 796 85 Other items 151 00

Total $9,712 85

Summary of investments Road and equipment S996,154,412 26 Improvements on leased or controlled railway property 134,345,900 76 Deposits in lieu of mortgaged property sold 45,582 06 Miscellaneous physical property 28,262,011 43 Investments in affiliated companies—Stocks, par value $149,948,550 00 ledger value $142,192,221 07 Bonds, par value 13,507,588 38 ledger value 11,963,490 36 Notes, par value 12,524,500 16 ledger value 11,840,095 32 Advances 97,922,663 50 263,918,470 25

Other investments- Stocks, par value 848,965,066 17 ledger value $40,435,972 77 Bonds, par value 1,850,861 28 ledger value 1,577,321 67 Notes, par value 1,375,041 26 ledger value 1,375,041 26 Advances 18,835,966 59 Miscellaneous 9,712 85 62,234,015 14

Total investments $1,484,960,391 90 33

The New York Central Railroad Company

EXPENDITURES FOR ADDITIONS AND BETTERMENTS

ROAD Owned railway Leased railway Engineering $878,705 23 $8,108 51* Land for transportation purposes 1,552,468 46 431,682 34* Grading 4,178,268 82 1,164,132 35* Tunnels and subways 394,622 93 57,018 58 Bridges, trestles and culverts 1,893,160 99 888,332 79* Ties 481,513 91 28,697 08* Rails 1,652,756 12 111,996 87 Other track material 1,550,144 24 525,949 52* Ballast 625,263 56 137,344 52* Track laying and surfacing 717,844 01 55,261 39* Right-of-way fences 6,318 93 20,552 59* Snow and sand fences and snow sheds 101 53* Crossings and signs 623,860 44 101,420 65* Station and office buildings 5,899,889 11 277,785 32* Roadway buildings 12,729 68* 11,116 33 Water stations 16,492 76 30,450 79* Fuel stations 22,202 80 131,371 23 Shops and engine houses 620,906 25 374,183 87* Grain elevators 6,885 71* 71,115 69 Storage warehouses 180 64* Wharves and docks 9,271 98 133,869 20 Coal and ore wharves 12,773 54* 533,370 27 Gas producing plants 13,074 10* Telegraph and telephone lines 468,802 51 74,186 18 Signals and interlockers 3,048,984 02 470,235 36* Power plant buildings 204,225 42 288,162 93 Power sub-station buildings 99,795 03 36,103 15 Power transmission systems 117,560 15 16,067 08* Power distribution systems 232,690 59 44,793 44 Power line poles and fixtures 17,762 60 4,562 43 Underground conduits 331,047 42 15,050 67* Miscellaneous structures 9,278 98 10,576 52 Paving 9,154 28 Roadway machines 136,449 48 108,553 48 Roadway small tools 4,120 62 7,972 96 Assessments for public improvements 220,525 99 62,146 08 Revenues and operating expenses during construction 1,014 27* 4,502 79* Shop machinery 46,178 01 317,834 91* Power plant machinery 496,672 49 142,540 37 Power sub-station apparatus 17,177 01 346,586 64 Unapplied construction material and supplies 78,791 08*

Total road expenditures $26,550,711 94 $2,783,697 53*

* Credit balance NOTE: The excess of credits over charges in many of the accounts in the column headed "Leased railway " results in large part from the transfer during the year from "Improvements on leased railway property" to "Advances" of SS,225,069.08, representing uncapitalized expenditures made upon the Boston and Albany Railroad and its leased lines for improvements thereto during the period January 1, 1917 to June 30, 1927, pending the issue by the Boston and Albany Railroad Company of $5,700,000 of its Improvement Bonds of 1928 to be taken at par in payment to this company on account of such expenditures. This proposed bond issue is referred to on page 12 of this report 34

Annual Report

EXPENDITURES FOR ADDITIONS AND BETTERMENTS (continued)

Owned railway Leased railway EQUIPMENT f property property Steam locomotives $483,417 61 Other locomotives 625,165 04 Freight-train cars 445,507 32 Passenger-train cars 2,373,376 87 Motor equipment of cars 113,462 47 Floating equipment 21,945 09 Work equipment 526,956 10 Miscellaneous equipment 49,696 25*

Total equipment expenditures $4,540,134 25

GENERAL EXPENDITURES Organization expenses $41,075 65 Law 63 80 Stationery and printing $8 00 Taxes 23,318 15 5,144 87 Interest during construction 615,482 40 226,512 90 Other expenditures—general 75 88 8 46

Total general expenditures $680,015 88 $231,674 23

Expenditures for the year $31,770,862 07 $2,552,023 30* Investment in road and equipment as of December 31, 1927 964,383,550 19 136,897,924 06

Totals to December 31, 1928 $996,154,412 26 $134,345,900 76

t Including trust pquipment • Credit Expenditures on Miscellaneous physical property

New York Central Building, 45th-46th Streets, Park Avenue, New York $7,865,987 12 Substructural work, Graybar Building, New York 2,352 48

LAND Cleveland, Ohio Adjacent to Cleveland Union Terminal area $130,684 35 Broadway—Pittsburg Avenue 705,047 26 $835,731 61

East 198th Street, New York 16,610 59 Chelsea to Poughkeepsie, New York 1,500 00 853,842 20

Buffalo stock yards 6,695 68 Commercial tracks and sidings 31,957 82 Property released from operation, held for disposition 21,475 88 Special assessments paving and construction of highways and sewers 26,797 08 West Side improvements, New York 8,270 04 Sundry items 971 11

Total expenditures $8,818,349 41

Less transferred to investment in road Land near Dennings Point brick yard, Dutchess Junction, New York $93 55 West Side improvements, New York 193,796 37 193,889 92

Net increase in Miscellaneous physical property investment $8,624,459 49 35

The New York Central Railroad Company

EXPENDITURES FOR ADDITIONS AND BETTERMENTS (concluded)

The expenditures for improvements to leased or controlled railway property, tabulated by accounts on the preceding pages, were made on the following-named properties: West Shore Railroad $1,291,516 29 Boston and Albany Railroad 7,214,506 79* Toledo & Ohio Central Railway 946,028 63 Piers on leased property 8,127 71 Grand Central Terminal Improvement 698,618 29 New York and Harlem Railroad 732,043 90 Beech Creek Railroad 125,393 09 Kanawha & Michigan Railway 193,995 06 Beech Creek Extension Railroad 112,813 67 Lake Erie Alliance & Wheeling Railroad 37,976 94 St Lawrence & Adirondack Railway 88,786 29 Detroit Hillsdale & South Western Railroad 76 67 Ware River Railroad 56,670 49* Ottawa & New York Railway 13,473 48 Erie & Kalamazoo Railroad 3,820 43 Fort Wayne & Jackson Railroad 12,402 20 Hudson River Connecting Railroad 166,419 89 Piitsfield & North Adams Railroad 32,944 07* New York State Realty and Terminal Company property 189,750 86 Zanesville & Western Railway 33,803 36 New Jersey Junction Railroad 42,504 79 Kalamazoo Allegan & Grand Rapids Railroad 18,499 47 Chester & Becket Railroad 919 59* Kanawha & West Virginia Railroad 17,583 19 Detroit Toledo & Milwaukee Railroad 15,154 69 Troy & Greenbush Railroad 6,027 92* Wollkill Valley Railroad 7,964 14 New York Stock Yards 255,805 97 Point Pleasant Bridge Company property 135 45 North Brookfield Railroad 2,897 94* Battle Creek & Sturgis Railroad 3,085 29 Gary & Western Railway 260,469 67* Hudson River Bridges at Albany 4,873 70 Titusville cc Cambridge Springs Railroad 197 60 Bailey Run Sugar Creek & Athens Railway 283 24 Genesee Falls Railroad 1,278 88 Total for year $2,552,023 30* •Credit. See note on page 33 Analysis of changes in Equipment Investment account EQUIPMENT ADDED, including betterments and partial payments: TRUST OWNED TOTAL Steam locomotives $623,946 85 $2,643,705 09 $3,267,651 94 Other locomotives 12,135 21 613,029 83 625,165 04 Freight-train cars 22,163 86 3,377,943 35 3,400,107 21 Passenger-train cars 33,196 18 3,545,681 80 3,578,877 98 Work equipment 828,817 30 828,817 30 Floating equipment 111,471 40 111,471 40 Miscellaneous equipment 14,725 77 14,725 77 Totals $691,442 10 $11,135,374 54 $11,826,816 64 EQUIPMENT RETIRED Steam locomotives $245,400 00 $2,538,834 33 $2,784,234 33 Freight-train cars 49,500 10 2,905,099 79 2,954,599 89 Passenger-train cars 1,092,038 64 1,092,038 64 Work equipment 301,861 20 301,861 20 Floating equipment 89,526 31 89,526 31 Miscellaneous equipment 64,422 02 64,422 02 Totals $294,900 10 $6,991,782 29 $7,286,682 39 Net increase in trust equipment $396,542 00 Net increase in owned equipment 4,143,592 25 Net increase in equipment investment $4,540,134 25 36

Annual Report

DETAIL OF RAILWAY OPERATING REVENUES

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

REVENUES FROM TRANSPORTATION

1928 1927 Increase Decrease Freight $234,617,642 06 $234,381,108 95 $236,533 11 Passenger 96,917,043 14 99,105,313 67 $2,188,270 53 Excess baggage 588,275 84 628,010 51 39,734 67 Parlor and chair car 46,700 00 34,925 00 11,775 00 Mail 8,811,895 36 8,124,843 19 687,052 17 Express 12,874,709 23 12,715,244 25 159,464 98 Other passenger train 1,295,445 09 1,242,238 51 53,206 58 Milk 6,568,615 05 6,594,083 05 25,468 00 Switching 4,532,616 10 4,581,575 72 48,959 62 Special service train 51,290 41 63,748 79 12,458 38 Other freight train 21,641 08 24,242 74 2,601 66 Water transfers—freight 325,911 39 309,686 49 16,224 90 Water transfers—passenger 762,700 75 767,129 59 4,428 84 Water transfers—vehicles and live stock 857,471 58 994,421 02 136,949 44 Water transfers—other 64,994 60 99,130 52 34,135 92

Total $368,336,951 68 $369,665,702 00 $1,328,750 32

INCIDENTAL AND JOINT FACILITY

Dining and buffet $3,977,159 .60 $3,888,334 72 $88,824 88 Station restaurant 150,742 17 180,990 48 $30,248 31 Station, train and boat privileges 977,532 43 986,965 31 9,432 88 Parcel room 197,781 69 207,328 50 9,546 81 Storage—freight 429,874 04 438,505 10 8,631 06 Storage—baggage 87,533 59 95,014 76 7,481 17 Demurrage 1,172,720 76 1,169,153 63 3,567 13 Telegraph and telephone 8,002 91 8,562 07 499 16 Grain elevator 142,247 96 186,069 82 43,821 86 Power 1,806,107 40 1,942,729 55 136,622 15 Rents of buildings and other property 2,682,895 49 2,636,171 01 46,724 48 Miscellaneous 2,404,197 86 2,642,051 17 237,853 31 Joint facility—Cr. 165,623 44 156,415 69 9,207 75 Joint facility—Dr. 806,186 70 826,682 62 20,495 92

Total $13,396,292 64 $13,711,609 19 $315,316 55

Total railway operating revenues $381,733,244 32 $383,377,311 19 $1,644,066 87 37

The New York Central Railroad Company

DETAIL OF RAILWAY OPERATING EXPENSES

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

MAINTENANCE OF WAY AND STRUCTURES 1928 1927 Increase Decrease Superintendence 83,847,323 22 $3,880,082 62 $32,759 40 Roadway maintenance 4,907,976 36 5,235,030 18 327,053 82 Tunnels and subways 234,042 27 140,251 45 $93,790 82 Bridges, trestles and culverts 1,841,846 73 1,680,872 93 160,973 80 Bridges, trestles and culverts—depreciation 85,065 89 89,640 00 4,574 11 Elevated structures 32,767 19 33,094 94 327 75 Ties 4,871,406 68 5,381,287 72 509,881 04 Rails 3,171,380 06 3,218,285 10 46,905 04 Other track material 3,330,172 07 3,769,153 66 438,981 59 Ballast 1,121,767 89 1,103,881 15 17,886 74 Track laying and surfacing 11,543,299 97 13,113,378 21 1,570,078 24 Right-of-way fences 270,013 88 307,318 41 37,304 53 Snow and sand fences and snowsheds 13,810 51 11,020 09 2,790 42 Crossings and signs 955,990 14 1,039,094 91 83,104 77 Station and office buildings 3,003,561 66 3,308,346 68 304,785 02 Station and office buildings—depreciation 225,919 80 223,216 33 2,703 47 Roadway buildings 362,262 49 390,418 54 28,156 05 Water stations 589,417 79 748,495 55 159,077 76 Fuel stations 248,068 96 293,939 05 45,870 09 Shops and enginehouses 2,026,522 50 2,295,305 40 268,782 90 Grain elevators 49,180 18 44,841 55 4,338 63 Storage warehouses 5,694 25 3,432 08 2,262 17 Wharves and docks 567,523 02 460,684 53 106,838 49 Wharves and docks—depreciation 9,582 36 14,529 84 4,947 48 Coal and ore wharves 217,717 68 240,781 16 23,063 48 Coal and ore wharves—depreciation 26,490 38 24,172 04 2,318 34 Gas producing plants 36 96 279 07 242 11 Telegraph and telephone lines 646,717 13 742,773 36 96,056 23 Signals and interlockers 4,611,668 41 4,637,064 86 25,396 45 Power plant buildings 110,054 79 133,976 00 23,921 21 Power substation buildings 15,467 01 22,596 21 7,129 20 Power transmission systems 98,348 07 134,383 49 36,035 42 Power distribution systems 482,286 69 450,501 20 31,785 49 Powrer line poles and fixtures 27,776 43 43,316 05 15,539 62 Underground conduits 19,974 64 13,350 96 6,623 68 Miscellaneous structures 12,878 26 8,390 OS 4,488 18 Paving 55,993 81 83,453 67 27,459 86 Roadway machines 562,198 69 460,517 OS 101,681 61 Small tools and supplies 711,591 49 818,877 49 107,286 00 Removing snow, ice and sand 744,888 33 1,063,371 46 318,483 13 Assessments for public improvements 41,520 19 34,864 64 6,655 55 Injuries to persons 349,932 54 687,178 20 337,245 66 Insurance 443,335 28 300,581 72 142,753 56 Stationery and printing 74,829 79 87,297 17 12,467 38 Other expenses 58,153 82 53,743 90 4,409 92 Maintaining joint tracks, yards and other facilities--Dr. 1,524,144 54 1,188,424 12 335,720 42 Maintaining joint tracks, yards and other facilities--Cr. 3,176,091 20 3,738,423 92 562,332 72

Total $50,974,509 60 $54,277,070 93 $3,302,561 33 38

Annual Report

DETAIL OF RAILWAY OPERATING EXPENSES (continued)

INCLUDING BOSTON AND ALBANY RAILHOAD AND THE OHIO CENTRAL LINES

MAINTENANCE OF EQUIPMENT 1928 1927 Increase Decrease Superintendence $2,595,425 98 $2,622,141 50 $26,715 52 Shop machinery 1,636,216 10 1,851,900 46 215,684 36 Power plant machinery 568,575 54 484,659 30 $83,916 24 Power substation apparatus 432,840 36 231,862 96 200,977 40 Steam locomotives—repairs 24,387,948 46 26,055,550 19 1,667,601 73 Steam locomotives—depreciation 4,127,676 08 3,964,177 07 163,499 01 Steam locomotives—retirements 733,509 80 636,364 12 97,145 68 Electric locomotives—repairs 673,373 09 548,224 45 125,148 64 Electric locomotives—depreciation 177,365 84 167,990 50 9,375 34 Freight-train cars—repairs 23,147,050 48 21,426,759 64 1,720,290 84 Freight-train cars—depreciation 7,448,030 43 7,243,893 49 204,136 94 Freight-train cars—retirements 1,131,844 85 1,353,297 69 221,452 84 Passenger-train cars—repairs 7,957,103 84 6,397,092 64 1,560,011 20 Passenger-train cars—depreciation 2,172,498 44 1,957,227 31 215,271 13 Passenger-train cars—retirements 206,451 44 110,868 22 95,583 22 Motor equipment of cars—repairs 331,805 90 317,191 17 14,614 73 Motor equipment of cars—depreciation 71,341 98 67,785 23 3,556 75 Floating equipment—repairs 1,098,703 49 1,076,901 80 21,801 69 Floating equipment—depreciation 358,245 56 328,977 53 29,268 03 Floating equipment—retirements 27,251 04 11,386 39 15,864 65 Work equipment—repairs 1,177,474 17 997,893 55 179,580 62 Work equipment—depreciation 444,841 26 433,646 38 11,194 88 Work equipment—retirements 105,208 96 163,269 01 58,060 05 Miscellaneous equipment—repairs 32,557 36 33,665 83 1,108 47 Miscellaneous equipment—depreciation 32,998 80 42,656 72 9,657 92 Miscellaneous equipment—retirements 9,488 54 7,046 84 2,441 70 Injuries to persons 405,968 78 668,791 30 262,822 52 Insurance 577,581 14 384,354 41 193,226 73 Stationery and printing 107,428 49 117,058 06 9,629 57 Other expenses 17,789 88 116,898 06 99,108 18 Maintaining joint equipment at terminals—Dr. 215,075 55 226,840 23 11,764 68 Maintaining joint equipment at terminals—Cr. 461,877 90 432,092 09 29,785 81

Total $81,947,793 73 $79,614,279 96 $2,333,513 77

TRAFFIC EXPENSES Superintendence $2,158,971 57 $2,111,140 52 $47,831 05 Outside agencies 1,832,358 60 1,668,002 85 164,355 75 Advertising 612,803 80 592,772 79 20,031 01 Traffic associations 163,174 21 145,548 48 17,625 73 Fast freight lines 2,448 54 5,577 86 $3,129 32 Industrial and immigration bureaus 78,716 70 82,825 16 4,108 46 Insurance 3,822 55 3,125 84 696 71 Stationery and printing 573,199 64 541,728 43 31,471 21 Other expenses 1,038 57 201 69 836 88

Total $5,426,534 18 $5,150,923 62 $275,610 56 39

The New York Central Railroad Company

DETAIL OF RAILWAY OPERATING EXPENSES (continued)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

TRANSPORTATION EXPENSES 1928 1927 Increase Decrease Superintendence $4,461,736 96 $4,471,394 78 $9,657 82 Dispatching trains 1,081,478 45 1,326,416 61 244,938 16 Station employees 22,559,854 32 22,729,128 40 169,274 08 Weighing, inspection and demurrage bureaus 154,589 42 ' 185,012 57 30,423 15 Coal and ore wharves • 878,317 19 900,370 11 22,052 92 Station supplies and expenses 1,755,278 42 1,800,956 72 45,678 30 Yardmasters and yard clerks 4,638,454 96 4,690,173 96 51,719 00 Yard conductors and brakemen 10,257,724 56 10,164,891 69 $92,832 87 Yard switch and signal tenders 1,902,036 76 1,922,544 13 20,507 37 Yard enginemen 6,690,296 14 6,460,392 12 229,904 02 Yard motormen 364,054 14 331,444 45 32,609 69 Fuel for yard locomotives 3,265,495 85 3,593,004 28 327,508 43 Yard switching power produced 102,273 85 105,497 60 3,223 75 Water for yard locomotives 246,258 67 291,209 29 44,950 62 Lubricants for yard locomotives 58,996 58 78,281 34 19,284 76 Other supplies for yard locomotives 82,875 48 86,175 66 3,300 18 Enginehouse expenses—yard 2,208,971 78 2,322,581 24 113,609 46 Yard supplies and expenses 345,848 08 338,092 73 7,755 35 Operating joint yards and terminals--Dr. 1,987,666 93 1,950,101 16 37,565 77 Operating joint yards and terminals--Cr. 3,380,179 52 3,604,310 65 224,131 13 Train enginemen 13,077,867 14 12,952,759 25 125,107 89 Train motormen 517,736 04 456,605 23 61,130 81 Fuel for train locomotives 14,174,381 40 15,282,199 55 1,107,818 15 Train power produced 629,378 17 581,156 42 48,221 75 Train power purchased 2,035 21 2,028 46 6 75 Water for train locomotives 1,316,748 63 1,272,317 72 44,430 91 Lubricants for train locomotives 434,540 67 483,765 06 49,224 39 Other supplies for train locomotives 332,015 00 353,122 28 21,107 28 -Enginehouse expenses—train 4,942,528 57 5,032,911 82 90,383 25 Trainmen 15,706,638 66 15,948,551 67 241,913 01 Train supplies and expenses 5,502,459 54 5,624,757 05 122,297 51 Signal and interlocker operation 3,251,344 80 3,096,426 66 154,918 14 Crossing protection 1,485,675 48 1,562,727 31 77,051 83 Drawbridge operation 151,234 93 147,140 09 4,094 84 Telegraph and telephone operation 436,956 13 446,357 01 9,400 88 Operating floating equipment 4,504,184 41 4,948,113 33 443,928 92 Stationery and printing 887,848 80 933,403 42 45,554 62 Other expenses 2,113,512 61 1,533,893 50 579,619 11 Operating joint tracks and facilities— Dr. 863,038 15 823,506 02 39,532 13 Operating joint tracks and facilities— Cr. 1,311,044 11 1,382,266 19 71,222 08 Insurance 258,935 05 194,225 92 64,709 13 Clearing wrecks 377,004 31 380,839 77 3,835 46 Damage to property 202,031 45 247,858 80 45,827 35 Damage to live stock on right of way 16,102 62 16,330 87 228 25 Loss and damage—freight 1,888,573 22 1,776,766 68 111,806 54 Loss and damage—baggage 114,727 76 117,562 66 2,834 90 Injuries to persons 1,692,895 43 1,639,027 57 53,867 86

Total $133,231,379 09 $134,615,446 12 $1,384,067 03 40

Annual Report

DETAIL OF RAILWAY OPERATING EXPENSES (concluded)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

MISCELLANEOUS OPERATIONS 1928 1927 Increase Decrease Dining and buffet service $5,239,763 33 $4,855,890 48 $383,872 85 Station restaurant 135,826 33 161,330 28 $25,503 95 Grain elevators 274,650 20 300,031 80 25,381 60 Producing power sold 633,808 46 477,878 08 155,930 38 Other miscellaneous operations 22,692 75 19,532 16 3,460 59

Total $6,306,741 07 $5,814,662 80 $492,078 27

GENERAL EXPENSES Salaries and expenses of general officers $1,005,795 28 $967,518 76 $38,276 52 Salaries and expenses of clerks and attendants 6,095,450 68 6,220,047 95 $124,597 27 General office supplies and expenses 524,302 87 574,595 61 50,292 74 Law expenses 783,509 84 855,386 58 71,876 74 Insurance 19,600 97 21,407 06 1,806 09 Pensions* 1,004,472 32 4,080,887 58 3,076,415 26 Stationery and printing 298,390 28 313,842 82 15,452 54 Valuation expenses 647,531 48 806,800 96 159,269 48 Other expenses 339,287 54 362,614 02 23,326 48 General joint facilities—Dr. 9,845 59 10,087 41 241 82 General joint facilities—Cr. 19,330 28 20,135 38 805 10

Total $10,708,856 57 $14,193,053 37 $3,484,196 80

TRANSPORTATION FOR INVESTMENT—CR. $345,611 04 $265,600 55 $80,010 49

Total railway operating expenses $288,250,203 20 $293,399,836 25 $5,149,633 05

* See page 7

RATIO OF RAILWAY OPERATING EXPENSES, BY GROUPS, TO RAILWAY OPERATING REVENUES

1928 1927 Maintenance of way and structures 13-35 14-16 Maintenance of equipment 21-47 20-77 Traffic expenses 1-42 1-34 Transportation expenses 34-90 35-11 Miscellaneous operations 1-65 1-52 General expenses 2-81 3-70 Transportation for investment—Cr. •09 •07

Total 75-51 76-53

SEPARATELY OPERATED PROPERTIES

Pittsburgh McKeesport and Youghiogheny Railroad, this company's proportion, one-half, of profit $625,521 14 Raquette Lake Railway, loss 52,899 70

Net profit on separately operated properties $572,621 44 41

The New York Central Railroad Company

RAILWAY TAXES ACCRUED ON CAPITAL .STOCK State of New York 1928 1927 Comparison New York Central Railroad Company 8434,092 51 $363,178 38 $70,914 13 Inc New Y'ork & Harlem Railroad Company 24,945 00 17,819 64 7,125 36 Inc West Shore Railroad Company 6,492 49 35 25* 6,527 74 Inc Hudson River Bridge Company at Albany 1,143 25 10 00 1,133 25 Inc Wnllkill Valley Railroad Company 1,006 23 10 00 996 23 Inc Troy & Greenbush Railroad Association 481 25 481 25 St Lawrence & Adirondack'Railway Company 443 42 10 00 433 42 Inc Hudson River Connecting Railroad Corporation 250 00 10 00 240 00 Inc Total $468,854 15 $381,484 02 $87,370 13 Inc

Commonwealth of Pennsylvania New Y'ork Central Railroad Company $304,588 71 $258,887 44 $45,701 27 Inc Beech Creek Railroad Company 24,000 00 12,000 00 12,000 00 Inc Beech Creek Extension Railroad Company 2,527 00 2,339 50 187 50 Inc Shenango Valley Railroad Company 300 00 300 00 Stewart Railroad Company 17 66* 128 39* 110 73 Inc Total 8331,398 05 $273,398 55 $57,999 50 Inc

State of Illinois New York Central Railroad Company $3,133 96 $3,122 85 $11 11 Inc

Commonwealth of Massachusetts Boston & Albany Railroad Company $34,566 44 $32,053 26 $2,513 18 Inc

State of West Virginia Kanawrha & Michigan Railway Company $1,840 02 $1,840 00 $0 02 Inc Kanawha & West Virginia Railroad Company 940 02 940 00 02 Inc Point Pleasant Bridge Company 340 02 340 00 02 Inc Total $3,120 06 $3,120 00 $0 06 Inc Total capital stock taxes $841,072 66 $693,178 68 $147,893 98 Inc

ON GROSS EARNINGS State of New York $367,741 69 $374,479 15 $6,737 46 Dec State of Ohio 401,182 32 476,185 22 75,002 90 Dec Commonwealth of Pennsylvania 18,873 84 23,393 10 4,519 26 Dec State of West Virginia 5,550 78 5,932 95 382 17 Dec Total $793,348 63 $879,990 42 $86,641 79 Dec

RAILROAD COMMISSIONERS' ASSESSMENTS State of Ohio $5,513 87 $6,318 82 $804 95 Dae State of West Virginia 1,200 00 1,317 50 117 50 DM: Total $6,713 87 $7,636 32 $922 45 Dec

CANADIAN PROVINCIAL St Lawrence & Adirondack Railway Company $1,567 72 $1,593 68 $25 96 Dec Ottawa & New York Railway Company 852 30 852 30 Total $2,420 02 $2,445 98 $25 96 Dec CANADIAN GOVERNMENT INCOME TAX $32,535 02 812,013 21 $20,521 81 Inc

FEDERAL GOVERNMENT TAXES Income tax $7,308,109 58 $4,580,200 71 $2,727,908 87 Inc Capital stock 99,995 00 99,995 00 Inc Total $7,408,104 58 $4,580,200 71 $2,827,903 87 Inc

ON THE VALUE OF REAL AND PERSONAL PROPERTY (including leased lines) $18,332,554 36 $17,374,822 70 $957,731 60 Inc ON SPECIAL FRANCHISES (including leased lines) $1,720,154 26 $1,643,491 86 $70,662 40 Inc Total railway taxes accrued $29,136,903 40 $25,193,779 94 $3,943,123 46 Inc

* Credit 42

Annual Report

JOINT FACILITY RENT ACCOUNT

1928 1927 Comparison Amount received for use of facilities maintained by this company $5,045,914 82 $5,022,948 52 $22,966 30 Inc Amount paid for use of facilities maintained by other companies 1,956,426 40 2,045,319 56 88,893 16 Dec

Net credit $3,089,488 42 $2,977,628 96 $111,859 46 Inc

HIRE OF EQUIPMENT ACCOUNT PAID 1928 1927 Comparison Locomotives $157,462 29 $129,203 19 $28,259 10 Inc Passenger-train cars 1,596,719 85 1,515,070 35 81,649 50 Inc Freight-train cars 23,671,465 69 25,769,404 69* 2,097,939 00 Dec Floating equipment 161,751 00 183,420 75 21,669 75 Dec Work equipment 34,122 62 37,120 78 2,998 16 Dec

Total $25,621,521 45 $27,634,219 76 $2,012,698 31 Dec

RECEIVED Locomotives $272,585 96 8355,799 85 $83,213 89 Dec Passenger-train cars 1,154,953 72 1,151,698 30 3,255 42 Inc Freight-train cars 19,006,877 41 20,182,058 91* 1,175,181 50 Dec Floating equipment 7,057 40 8,019 59 962 19 Dec Work equipment 97,086 66 105,263 17 8,176 51 Dec

Total $20,538,561 15 $21,802,839 82 $1,264,278 67 Dec

Net debit balance $5,082,960 30 $5,831,379 94 $748,419 64 Dec

* Restated for comparative purposes by elimination of certain inter-road transactions

DEDUCTIONS FROM GROSS INCOME Interest on funded debt MORTGAGE BONDS Carthage & Adirondack Railway Co first mortgage bonds 4% $44,000 00 Carthage Watertown & Sackets Harbor Railroad Co consolidated mortgage bonds 5% 15,000 00 Chicago Indiana & Southern Railroad Co fifty-year gold bonds 4% 606,000 00 Cleveland Short Line Railway Co first mortgage bonds 41% 531,000 00 Gouverneur & Oswegatchie Railroad Co first mortgage bonds 5% 15,000 00 Indiana Illinois & Iowa Railroad Co first mortgage bonds 4% 194,000 00 Jamestown Franklin & Clearfield Railroad Co first mortgage bonds 4% 440,000 00 Kalamazoo & White Pigeon Railroad Co first mortgage bonds 5% 20,000 00 Lake Shore & Michigan Southern Railway Co gold mortgage bonds 31% 1,750,000 00 Lake Shore & Michigan Southern Railway Co twenty-five year gold bonds of 1903 4% 1,333,333 34 Lake Shore & Michigan Southern Railway Co twenty-five year gold bonds of 1906 4% 2,000,000 00 Little Falls & Dolgeville Railroad Co first mortgage bonds 3% 7,500 00 Mohawk & Malone Railway Co consolidated mortgage bonds 31% 136,500 00 Mohawk & Malone Railway Co first mortgage bonds 4% 100,000 00 N Y C R R Co consolidation mortgage bonds, series A 4% 2,718,510 57 NYC&HRRRCo gold debentures of 1904 4% 1,920,000 00 NYC&HRRRCo gold debentures of 1912 4% 367,520 00 NYC&HRRRCo gold mortgage bonds 31% 3,290,000 00 NYC&HRRR Co—Lake Shore collateral gold bondsf 31% 791,140 00 NYC&HRRR Co—Michigan Central collateral gold bonds 31% 676,760 00 NYC&HRRR Co refunding and improvement mortgage bonds, series A 41% 1,800,000 00 NYCRR Co—N YC&HRRRCo refunding and improvement bonds, series C 5% 4,250,000 00 NYC&HRRR Co—Spuyten Duyvil & Port Morris first mortgage bonds 31% 87,500 00 New York & Putnam Railroad Co first consolidated mortgage bonds 4% 159,480 00 Pine Creek Railway Co first mortgage bonds 6% 210,000 00 Sturgis Goshen & St Louis Railway Co first mortgage bonds 3% 9,660 00

Carried forward $23,472,903 91 t Interest accrued only on amount actually outstanding 43

The New York Central Railroad Company

DEDUCTIONS FROM GROSS INCOME (continued) Interest on funded debt (concluded) Brought forward $23,472,903 91 DEBENTURE BONDS NYCEECo twenty-year 6% convertible of 1915 6% $723,612 00 NYC&HRRR Co of 1900 31% 192,500 00 916,112 00

EQUIPMENT TRUST OBLIGATIONS Equipment trust certificates of 1917 4i% $201,060 00 Equipment trust notes of January 15, 1920 6% 389,840 50 Equipment trust certificates of April 15, 1920 7% 588,595 86 Equipment trust certificates of June 1, 1922 5% 269,316 67 Equipment trust certificates of September 1, 1922 44% 247,515 00 Equipment trust certificates of June 1, 1923 5% 240,625 00 Equipment trust certificates of June 1, 1924 5% 561,129 16 Equipment trust certificates of September 15, 1924 ±Wo 446,790 00 Equipment trust certificates of May 15, 1925 41% 408,746 25 3,353,618 44

MISCELLANEOUS FUNDED OBLIGATIONS Interest at 5% on mortgage $16,000 00 on real estate, New York City $800 00 Interest at 6% on mortgage 21,000 00 on real estate, New York City 1,260 00 2,060 00

Total interest on funded debt $27,744,694 35 Rent for leased roads BATTLE CREEK AND STURGIS RAILWAY Interest at 3% on $79,000 First mortgage bonds $2,370 00

BEECH CREEK RAILROAD Interest at 4% on $5,000,000 First mortgage bonds $200,000 00 Interest at 5% on $1,000,000 Second mortgage bonds 50,000 00 Dividend at 4% on 120,000 shares of capital stock ($50 per share) 240,000 00 490,000 00

BEECH CREEK EXTENSION RAILROAD Interest at 3?% on $3,500,000 First mortgage bonds $122,500 00 Interest at 4 % on $3,964,000 Consolidated mortgage gold bonds 158,560 00 281,060 00

BOSTON AND ALBANY RAILROAD Interest at 3i% on $3,858,000 Refunding bonds of 1902 $135,030 00 Interest at 5 % on $3,627,000 Refunding bonds of 1913 181,350 00 Interest at 3|% on $1,000,000 Terminal bonds 35,000 00 Interest at 4 % on $7,000,000 Improvement bonds of 1908 280,000 00 Interest at 4 % on $4,500,000 Improvement bonds of 1909 180,000 00 Interest at 4 % on $2,000,000 Improvement bonds of 1910 80,000 00 Interest at 4|% on $1,000,000 Improvement bonds of 1912 45,000 00 Interest at 5 % on $2,015,000 Improvement bonds of 1913 100,750 00 Interest at 5 % on $1,000,000 Improvement bonds of 1917 50,000 00 Cash rental 2,000,000 00 Organization expenses 10,000 00 $3,097,130 00

NORTH BROOKFIELD RAILROAD Cash rental 3,000 00

PlTTSFLELD AND NORTH ADAMS RAILROAD Cash rental $22,500 00 Organization expenses 167 00 22,667 00

WARE RIVER RAILROAD Dividend at 7% on 7,500 shares of capital stock $52,500 00 Organization expenses 177 46 52,677 46

CHESTER AND BECKET RAILROAD Interest at 5% on $50,000 First mortgage bonds $2,500 00 Interest at 5% on $33,845.43 Notes 1,692 27 4,192 27

PROVIDENCE WEBSTER AND SPRINGFIELD RAILROAD 25% of the gross earnings for the year ended December 31, 1928 9,706 37

Total rent for Boston and Albany and its leased roads 3,189,373 10

Carried forward $3,962,803 10 44

Annual Report

DEDUCTIONS FROM GROSS INCOME (continued)

Rent for leased roads (continued)

Brought forward $3,962,803 10 DETROIT HILLSDALE AND SOUTH WESTERN RAILROAD Dividend at 4% on 13,500 shares of capital stock $54,000 00 Organization expenses 500 00 54,500 00

ERIE AND KALAMAZOO RAILROAD Cash rental 30,000 00

FORT WAYNE AND JACKSON RAILROAD Cash rental $126,027 88 Organization expenses 1,500 00 127,527 88

HUDSON RIVER CONNECTING RAILROAD Cash rental equal to Dividend at 6% on 2,500 shares of capital stock $15,000 00 Interest at 6% on non-negotiable debt 1,475,134 43 1,490,134 43

KALAMAZOO ALLEGAN AND GRAND RAPIDS RAILROAD Interest at 5% on S840,000 First mortgage bonds $42,000 00 Dividend at 6% on 6,100 shares of capital stock 36,600 00 78,600 00

LAKE ERIE ALLIANCE & WHEELING RAILROAD Dividend at 4% on 30,000 shares of capital stock 120,000 00

LAKE ERIE AND PITTSBURGH RAILWAY Interest at 4$% on $1,770,000 First mortgage bonds $79,650 00 Interest at 5 % on $71,000 First mortgage bonds 3,550 00 Dividend at 5% on 21,500 shares of capital stock 107,500 00 190,700 00

MAHONING COAL RAILROAD 40% of the gross earnings for the year ended December 31, 1928 1,700,185 92

NEW JERSEY JUNCTION RAILROAD Interest at 4% on $1,700,000 First mortgage bonds 68,000 00

NEW YORK AND HARLEM RAILROAD Interest at 3|% on $12,000,000 Gold mortgage bonds $420,000 00 Dividend at 10% on 200,000 shares of capital stock ($50 per share) 1,000,000 00 1,420,000 00

TOLEDO AND OHIO CENTRAL RAILWAY Interest at 5% on $3,000,000 First mortgage bonds $150,000 00 Interest at 5% on $2,500,000 First mortgage bonds, Western Division 125,000 00 Interest at 5% on $2,000,000 General mortgage bonds 100,000 00 Interest at 4% on $500,000 First mortgage bonds, St Marys Division 20,000 00 Interest at 6% on equipment trust notes of January 15, 1920 61,178 00 Interest at 7% on equipment trust certificates of April 15, 1920 612 66 Interest on non-negotiable debt to affiliated companies 526,950 60 Interest on T & O C Extension Railroad Co bonds 9,000 00 Cash rental 808,000 00 $1,800,741 26

ZANESVILLE AND WESTERN RAILWAY Interest at 4% on $2,000,000 First mortgage bonds _ $80,000 00 Interest on non-negotiable debt to affiliated companies 3,600 00 83,600 00

KANAWHA & MICHIGAN RAILWAY Interest at 4% on $2,469,000 First mortgage bonds $98,760 00 Interest at 6% on equipment trust notes of January 15, 1920 29,152 50 Interest at 6% on notes to Gauley Coal Land Corporation 17,771 17 Interest on non-negotiable debt to affiliated companies 31,200 00 Cash rental 540.000 00 Rental of Middleport and Northeastern Railway 3,821 23 720,704 90

KANAWHA AND WEST VIRGINIA RAILROAD Interest at 5% on $2,067,000 First mortgage bonds 103,350 00

Total rent for the Ohio Central Lines 2,708,396 16 Carried forward $11,950,847 49 45

The New York Central Railroad Company

DEDUCTIONS FROM GROSS INCOME {concluded)

Rent for leased roads (concluded)

Brought forward $11,950,847 49 ST LAWRENCE A. ADIRONDACK RAILWAY Interest at 5% on $800,000 First mortgage bonds $40,000 00 Interest at 6% On §400,000 Second mortgage bonds 24,000 00 Cash rental for line leased from Canadian National Railway Co 10,000 00 74,000 00 TROY AND GREENBUSH RAILROAD Rental at 7% on 5.500 shares of capital stock ($50 per share) 19,250 00 WALLKILL VALLEY RAILROAD

Dividend at 314% on 3,300 shares of capital stock 11,550 00

WEST SHORE RAILROAD 1,994,556 89 Interest at 4% on First mortgage bonds fluctuating from $49,871,500 to $49,7S3,500 67,372 52* VARIOUS COMPANIES for siding, team and yard tracks Total rent for leased roads $14,117,576 90 * Includes $10,541.06 account of Ohio Central Lines NOTE: The company received a return of 15,255,749.70 representing dividends and interest on its holdings of securities of lessor companies

MISCELLANEOUS TAXES

TAXES CHARGED TO MISCELLANEOUS OPERATIONS On the value of real and personal property $38,164 32 $41,299 74 $3,135 42 Dec Federal Government income tax 2,667 67* 7,030 15 9,697 82 Dec Total $35,496 65 $48,329 89 $12,833 24 Dec

MISCELLANEOUS TAX ACCRUALS On miscellaneous physical $1,721,031 82 $247,739 95 $1,473,291 87 Inc On income from securities 17,935 15 18,665 61 730 46 Dec Total 81,738,966 97 $266,405 56 $1,472,561 41 Inc

EQUIPMENT OWNED OR LEASED BY THE NEW YORK CENTRAL RAILROAD COMPANY NOT USED IN ITS OWN SERVICE

LOCOMOTIVES At beginning At end of Road of year Retired year C C C & St L Ry 40 5 35 Michigan Central K R _10 10 Total 40 10 45

FREIGHT TRAIN CARS

BOX CARS Chicago River & Indiana R H 1,295 460 835 Indiana Harbor Belt R R 991 311 680 Total 2,2-6 771 1,515

COAL CARS C C C & St L Ry 2,543 1 2,542 Chicago River & Indiana it R 157 108 49 E I & T II Ry 351 250. 101

Total 3,051 359 2,692

REFRIGERATOR CARS Merchants Despatch, Inc 8,831 174 8,657

CONTAINER CARS L C L Corporation 50 50

PASSENGER TRAIN CARS

REFRIGERATOR Merchants Despatch, Inc 144 46

Annual Report

EQUIPMENT IN SERVICE

(INCLUDING EQUIPMENT ON BOSTON AND ALBANY RAILROAD AND OHIO CENTRAL LINES)

INCREASE DECREASE DECEMBER 31, 1928 DEC. 31, Number By trans• Number By trans• Number Number 1927 added fer or retired fer or held under held under Grand to in• change from in• change Grand Number equipment other form Locomotives total vestment of class vestment of class total owned trusts of title For freight service 1,883 46 39 1,798 1,302 391 105 For passenger service 725 2-7 3-5 47 1 739 672 61 6 For switching service 907 24 883 649 205 29 Electric locomotives 93 3- - - 96 86 10 - Dummy engines 10 - - 10 10 - Inspection engines 6 - - -1 - 5 5 - - Totals 3,624 3-0 3-5 118 4-0 3,531 2,724 66-7 140

Freight-train cars Box cars 69,138 1,057 853 93 69,249 51,969 16,403 877 Container cars 504 152 1 50 605 105 500 - Flat cars 5,241 2-4 39 51 5,175 5.099 76 Stock cars 3,615 - 2 3.613 2,923 69-0 - Coal cars 61,352 50-0 - 1,363 187- 60,302 35,216 14,081 11,005 Caboose cars 1,713 - 16 1,697 1,516 48 133 Totals 141,563 1,581- 15-2 2,274 3S-1 140,641 96,828 31,722 12,091

Passenger-train cars Coaches 1,444 26 49 28 1,393 933 445 15 Coaches, electric motor 304 10 - 314 240 74 - Coaches, automotive 7 - - 7 7 - Combination passenger cars 185 3 -1 -8 -2 179 132 47 - Combination passenger cars, electric motor 14 14 14 - Combination passenger cars, automotive 8 15 - - - 23 23 - - Other combination cars 973 12 -1 -5 -4 977 662 30-6 9 Other combination cars, electric motor 8 1 - 9 9 - Other combination cars, automotive 1 - - - 1 1 - Dining cars 108 6 114 59 55------Postal cars 73 - - - - 73 73 - Other passenger-train cars 462 52 9- 30 -4 489 277 212 - Totals 3,587 125 11 92 38 3,593 2,430 1,139 24

Company service equipment Officers' and pay cars 27 4 2 29 28 1 Ballast cars 1,772 2 4 1,770 1,571 199 Derrick cars 112 4- 1 6 -1 110 103 - 7 Steam shovels 32 1 3 30 28 - 2 Wrecking cars 189 -6 10 - 185 179 - 6 Other company service cars 7,528 90- 244 340 -7 7,515 7,223 - 292 Totals 9,660 99 253 363 10 9,639 9,132 - 507

Company service floating equipment _ Tug, dredge, pile drivers and scows 6 1 1 1 7 7

DEC. 31, DEC. 31, Average Marine Department 1927 1928 Capacity capacity Ferry boats 9 9 Tugs, steel 29 - - - - 29 Steam-lighters _ _ _ 350 tons 6 _- - - 6 2,100 tons Hoisting-barges 39 _ _ _ 1 38 9,550 tons 251 too Barges, scows and grainboats 181 - _ 6 _ 175 55,820 tons 319 tons Car floats 64 1 _ 2 _ 63 838 cars 133 cars Oil storage barges for company use 4 4 20,000 bbls 5,000 bot Coal and pumping barge 1 - - - - 1 150 tons - - - - Totals (owned) 333 1 - 8 1 325 47

The New York Central Railroad Company

TABLE OF TRACKS

MILES OF MAIN TRA CK Yards and MAIN LINE OWNED State First Second Third Fourth sidings Total New York Central Railroad New York 1462' \V of State Line sta N.Y. 499-84 499 83 430-40 449-69* 953-98 2,833 74 W of State Line sta. . 10846' E of Conneaut Penn 43-96 43-96 43-96 43 95 7619 252 02 E of Conneaut 16462' W of Edgerton Ohio 242 96 242-85 208-41 15609 501-45 1,351-76 W of Edgerton 4311' E of East Side Ind 152-56 152-55 48-71 25-75 228-74 608-31 E of East Side Chicago 111 14 00 14-01 6-51 6-46 84-31 125-29 Total main line owned 953-32 953-20 737-99 681-94* 1,844-67 5,17112 BRANCHES OWNED 30th Street Branch Spuyten Duyvil St John's Park N.Y. 12-37 12-37 _ _ 6718 91 92 Putnam Branch Sedgwick Ave, New York Putnam Jet 53-49 9-13 _ _ 20-21 82-83 Yonkers Branch Van Cortlandt.. . .Getty Square, Yonkers 310 310 •13 6-33 Mahopac Falls Branch 205 - - •34 2-39 Schenectady Detour Branch Carman South Schenectadv 4-60 3-67- - - •58 8-85 Troy & Schenectady Branch Schenectady Troy u 20-91 - - 1291 33-82 Hoffman's Connection Branch Hoffman's Rotterdam Junction H 2-44 2-1-0 _- _- 4-54 Dolgeville Branch Little Falls Salisbury Center 12-78 2-74- 15-52 Adirondack Branch Herkimer Malone Junction 173-25 _- _- _- 50-74 22399 Hinckley Branch Prospect Junction Hineklev 2-84 213 4-97 Saranac Branch Lake Clear Junction Saranac Lake * 5-89 - - - _ _ _ 1-61 7-50 Ottawa Branch Tupper Lake International Boundary 68-86 _ _ 8-90 77-70 Ogdensburg Branch Utica Ogdensburg 134-30 10-02 52-94 197-26 Clayton Branch Rivergate Clayton 15-84 - - 4-06 19-90 Rome Branch 45-31 4-36- - - 38-20 87-87 Syracuse Junction Branch 8-31 8-31 8-36_ 7-57_ 13-76 4631 Watertown Branch 160-93 52-53 118-29 331 75 « _ _ Phoenix Branch 15-84 •21 _ _ 5-87 21-92 Ontario Branch Pulaski , , . Suspension Bridge 175-29 2-41 _ _ 98-76 276-46 Rochester Branch Windsor Beach , State St, Rochester 7-27 _ 409 11-36 Sackets Harbor Branch _ _ Watertown Junction Sackets Harbor 11-43 _ _ 10-99 22-42 Cape Vincent Branch Watertown Junction Cape Vincent 24-10 _ 10-54 34 64 Dexter Branch _ _ Dexter Junction Dexter 1-19 _ _ _ 1-42 261 Carthage Branch Watertown Newton Falls 63-39 _ 1718 80-57 Sanfords Branch Main St, Watertown 5-21 - - Roots _ _ 5-11 10-62 Oswegatchie Branch G & 0 Junction Edwards 1301 _ 3-97 16-98 DeKalb Branch _ DeKalb Junction Ogdensburg 19-10 _ _ 3-63 22-73 Auburn Branch Syracuse Junction Brighton, Rochester 96-90 - 62 09 158-99 Cananciaigua Branch 50-36 - _ - - _ 12-94 63-30 Lyons-New berry Branch Lyons 205' S of Lawreneeville 85-73 82-4-3 - 8692 255 08 S of Lawreneeville , . Newberrv Junction Penn 95-33 37-20 _ -_ 51-41 183-94 Penn Yan Branch Dresden Penn Yan N.Y. 6-55 _ _ _ 3-92 10-47 Corning Branch Corning Junction Corning •75 •72 _ 11-85 13-32 Cowanesque Valley Branch C V Junction Ulysses Penn 39-85 _ 6-20 46 05 Antrim Branch Wellsboro Junction 10-65 - _ _ _ _ 707 23-72 Falls Branch Ames St Jet. Roch . , .Suspension Bridge N.Y. 7401 7381 _ _ 108-37 256 19 Charlotte Branch Jay St Jet, Rochester Charlotte 7-24 6-92 10-70 24-86 Cambria Branch _ _ Pekin 3-65 _ _ _ •68 4-33 Attica Branch Batavia Attica 10-67 _ _ _ 1-36 1203 Tonawanda Branch Batavia North Tonawanda 34-97 1-77 _ _ 8-81 45-55 Gardenville Branch " 12-96 12-78 _ 9317 118-91 Buffalo Belt Branch u 7-23 7-22 _ _ 31-53 45-98 Niagara Branch Seneca St, Buffalo Lewiston a 30-52 25-23 2-66 118 80-55 14014 Wonalancet Branch North Buffalo Junction Harriet 4-34 _ _ 12-89 17-23 Dupont Branch Wonalancet Branch Industries •71 _ 2-33 304 Lockport Branch _ North Tonawanda Lockport Junction 11-12 _ _ 4-89 1601 Valley Branch Dunkirk 650' S of Fentonville * 42-26 _- _ _ 8-62 50-88 S of Fentonville Titusville Penn 48-25 _ _ _ 10-22 58-47 Youngstown Branch Ashtabula Harbor Andover Ohio 26-90 1408 2-47 _ 109 01 152 46 Oil City Branch 3582' E of Simons 6-14 •09 _ 2-62 8-85 E of Simons Oil City Penn 5500 11-08 _ _ 32-40 98-48 Clearfield Branch Polk Junction Rose Siding 6100 _ _ 1506 76-12 Belmar Branch _ 5-99 _ _ _ 1-27 7-26 Low Grade Line Carson Mann Ohio 18-10 18-10 - - 10-48 46-6S Carried forward 1,91634 399-64 13-49 8-75 1,343-94 3,68216

Includes: 2 44 fifth track on the Hudson-electric division 244 sixth track on the Hudson-electric division 827 fifth track on the Mohawk division •58 fifth track on the Syracuse division 615 west-bound faBt freight tracks in De Witt yard 3-55 compromise track in Buffalo 48

Annual Report

TABLE OF TRACKS (continued)

MILES OF MAIN THACK Yards and State First Third Fourth siding Total BRANCHES OWNED {concluded) Brought forward 1,916-34 399-64 13-49 8-75 1,343-94 3,682* Cleveland Short Line Collinwood Belt Junction Ohio 20-32 20-18 80-42 120-92 Nonvalk Branch Elyria Junction Millbury Junction " 78-75 25-83 104-5S Detroit Branch Air Line Junction 4352' N of Alexis " 7- 42 6-38 2508 3855 N of Alexis D & M Junction, Detroit Mich 5143 07 49-11 10061 Old Road Air Line Junction Vulcan Ohio 2- 75 1-00 119 Palmyra 6965' E of Vistula Mich 101-96 39-90 141-S E of Vistula Elkhart Ind 14-70 2- 31 1701 Monroe Branch Lenawee Junction Monroe Mich 29-50 715 36-65 Fayette Branch Grosvenor 12063' W of Morenci " 20-56 210 2266 W of Morenci Fayette Ohio 4-66 •73 5-38 Jackson Branch Lenawee Junction Jackson Mich 4210 9-91 52 01 Lansing Branch Jonesville North Lansing " 6134 18-61 7M Grand Rapids Branch White Pigeon Kalamazoo " 36-54 14-86 5140 Mishawaka Branch Elkhart Mishawaka lnd 12-10 9-39 214) Goshen Branch Goshen 12458' N of Twin Lake " 25-56 1-51 2707 N of Twin Lake Sturgis Mich 3- 36 •61 3« Kankakee Branch South Bend 38'E of Illinoi lnd 8216 53-57 13573 E of Illinoi Seatonville Junction 111 10951 67-89 177-40 Ladd Junction NYC Junction " •47 •94 141 Danville Branch Indiana Harbor 7524' S of Allison lnd 100-78 5564 16502 321-44 S of Allison Danville III 8- 49 8-49 •38 17-36 M C Connecting Branch At South Bend lnd 1-93 3- 29 5-2 Dune Park Branch Gibson Ivanhoe " 1- 52 216 •12 3-80 Ivanhoe G & W Junction " 7- 53 5 04 12-57 G & W Junction Dune Park " 8- 14 12-41 20-55 Churchill Branch Ladd Churchill 111 2- 79 119 3* Bradley Branch Kankakee Bradley " 1-35 •30 1-65 Depue Branch Depue Junction Depue " 1-27 •77 204 26« Connections and wyes Various places N.Y. 10-34 9-71 •9f Various places Penn •96 Total branches owned 2,772-63 503-27 13-49 8-75 1.943-57 5,24171 1 Total main line and branches owned 3,725-95 1,456-47 751-48 690 69" 3,788-24 10412* PROPRIETARY LINES Bailey Run, Sugar Creek & Athens Ry Kanawha & Michigan Ry near Chauncey Sundry Mines Ohio 7-88 LEASED LINES - - Battle Creek & Sturgis Railway Sturgis Findley Mich 719 _ •75 7-94 Beech Creek Railroad 2 main lines Penn 120-37 - - 95-63 225* 19 branches " 20-09 71 - 76-32 9772 Connections and wyes " 109 1- 09 Beech Creek Extension Railroad 5 main lines " 110-55 6-46 _ _ 42-24 159-25 4 branches " 20-21 - - 25-80 460! Connections and wyes " 2- 09 1-20 _ - 3-29 Boston & Albany Railroad Boston State Line Mass 161-42 161-42 64-28 25-16 27496- 68721 State Line Rensselaer N.Y. 37-85 37-85 13-87 30-90 1204: Newton Highlands Branch Brookline Jet Riverside Mass 9-89 9-89 - 7-58 2736 Grand Junction Branch Beacon Park East Boston " 9-50 8-72 - 37-93 56-15 Newton Lower Falls Branch Riverside Newton Lower Falls " 1- 35 - •67 2- 02 Saxonville Branch Xatick Saxonville " 3- 89 - 2-75 0 169 Milford Branch Framingham Milford " 11-98 - - 4-66 Millbury Branch Millbury Jet Millbury " 3-28 1-35 463 Spencer Branch South Spencer Spencer " 2- 26 - _ 1-38 3« Athol Branch Athol Jet Athol " 45-21 - _ S19 53-40 Hudson and Chatham Branch Chatham Hudson N.Y. 17- 12 •95 - 9-74 27-81 Selkirk line Niverville Post Road " 2-78 2-74 5- 52 Chester & Becket Railroad Chester Quarry Mass 5-34 6- 1! North Brookfield Railroad East Brookfield North Brookfield " 416 5-05 Pittsfield & North Adams R R North Adams Jet North Adams " 18- 54 30-77 Providence W & S Railroad Webster Jet Webster " 1098 12* East Village Branch Webster Mills East Village " 1-28 1-73 Ware River Railroad Palmer Winchendon " 49-48 56-72 Detroit Hillsdale & South Western RR Bankers Ypsilanti Mich 64-71 71-31 Detroit Toledo & Milwaukee R R Tecumseh Moscow " 30-57 33-11 Erie & Kalamazoo Railroad Vulcan 7040' W of Sylvania Ohio 7-61 W of Sylvania Palmyra Mich 14-21 Fort Wayne & Jackson Railroad Fort Wayne 539' N of Ray Ind 53-30 N of Ray Jackson Mich 44-06 •02 Genesee Falls Railway NYCRR Industries, Rochester N.Y. Hudson River Connecting Railroad Stuyvesant Unionville " 17-24 15-92 6-00 298t 2 branches and connections " 7-22 4-29 Kalamazoo Allegan & G R R R Kalamazoo Grand Rapids Mich 58-45 Lake Erie Alliance & W Railroad Phalanx Dillonvale Ohio 87-67 Carried forward 1,063-54 25946 84-15 28-14 885-43 * See note on previous page t Eastbound fast freight track at Unionville 43/100tha of a mile included 4';)

The New York Central Railroad Company

TABLE OF TRACKS [continued)

MILES OF MAIN TRA CK Yards and State First Second Third Fourth sidings Total LEASED LINES {concluded) Brought forward 1,063-54 259 46 8415 28-14 S85-43 2,320-72 Lake Erie & Pittsburg Railway Marcy Brady Lake Junction Ohio 27-76 10-71 38-47 At South Lorain - - - 2-94 2-94 Mahoning Coal Railroad Andover Yroungstown 38-24- 11 0-4 8-82- - 62 46 120-56 Mann Brookfield 24-49 24-41 - 5-13 5403 Mahoning & Shenango Valley Ry Doughton Junction E of Bentley u 601 - - 501 11 02 Shenango Valley Railroad Bentley Sharon Penn 1-83 - - - 2-31 4-14 Stewart Railroad At Sharon - - - 403 403 New Jersey Junction Railroad Weehawken P R R Jet N.J. 4-44- 4-34- - - 12-27 2105 New York & Harlem Railroad Grand Central Terminal Chatham N.Y 127-36 54-83 13-26- 13-53-* 126-77 335-75 2 branches 901 •51 11-29 20-81 Connections and wyes •30 -24 •0-8 - •62 Titusville & Cambridge Springs R R Titusville Penn - •4-5 •45 Toledo & Ohio Central Railway Toledo via Bucyrus Bremen Ohio 160-0S- 770- - 149 83 317-61 Stanley via Columbus Thurston 157-14 5-32 - - 94-89 257-35 New Lexington Corning 12-33 - - 10-54 22-87 Corning Chauncey - - - 22-78 22-78 At Carrington - - - - •72 •72 St Marys Branch Peoria St Marys 58-87- - - 13-34 72-21 East Columbus Branch Truro East Columbus 418 - - - 2-40 6-58 Green Run Branch Doty Mine 24 •92 - - - 1-22 214 Zanesville & Western Railway Thurston. . .via Muskingum Cannelville 42-90 - - - 14-36 57-26 Fultonham Drakes 26-29 - - - 15-24 41-53 Carrington Shawnee 2-90 - - - •50 3-40 East Columbus. .Woodland Ave, Columbus 2-43 - - - •84 3-27 Mine 24 Modoc 2-29 - - - 2-94 5-23 Glouster Carrington it - - 3-33 3-33 Zanesville Terminal Railroad Muskingum Spangler 1-42- - - - •94 2-36 In Zanesville •29 - - - •70 -99 Sunday Creek Railroad Sayre San Toy 4-26 - - - 2-66 6-92 Kanawha & Michigan Railway Corning Hobson Junction 56-62 547- - - 43 00 105 09 Kanauga State line a 1-85 - - _ 2-57 4-42 State line Gauley Bridge WVa 94-85 3-95- - 76-69 175-49 Drakes Carrington Ohio 2-92 - -_ 2-92 Buckingham Branch Glouster Drakes 8-20 - - - 8-20 Smithers Creek Branch Smithers Marting WVa 4-36 - _- - 3-35 7-71 Middleport & Northeastern Ry Rockville Calvin Ohio - - 306 306 Kanawha & West Virginia R R Charleston Hitop WVa 3410- - - - 7-45 41-55 Gauley Bridge Swiss 9-69 - - - 1-37 1106 Troy & Greenbush Railroad Rensselaer .Madison St, Troy N.Y. 5-56 5-51- - - 12-11 2318 Wallkill Valley Railroad Kingston Montgomery " 32-88 - - 5-40 38-28 West Shore Railroad Weehawken 1313' S of Tappan N.J. 18-83 18-83- 11-28 11-27- 120-95 181-16 S of Tappan Buffalo N.Y. 404-79 394-22 25-72 2-61 31004 1,137-38 3 branches 55-38 1-81 15-92 73-11 Connections and wyes 9-75 4-77 - - 14-52 St Lawrence & Adirondack Ry Malone Jet International Boundary a 10-23 - - 10-8-6 21-09 International Boundary Valleyheld Pof Q 2017 - - - 6-94 27-11 Beauharnois Adirondack Junction 13-27 - - - 4-93 18-20 Canadian National Railways Valleyfield Beauharnois « 12-70 - - - 3-25 15-95 Ottawa & New York Railway International Boundary Ottawa Pof 0 56-82 - - - 11-88 68-70 Total leased lines 2,632-25 802-1 L 143 3-1 55-55- 2,105-80 5,739-32 LINES OPERATED UNDER TRACKAGE RIGHTS Baltimore & Ohio Railroad Ravenna Junction Niles Junction Ohio 23-06 22-93 45-99 At Athens •34 •34 Buckeye Philo 617 - - - 118- 7-35 Boston & Maine Railroad At Athol Mass •13 - - - •13 At Winchendon a •13 - - - - •13 Boston Terminal Company South Station, Boston a •46 •4-6 - - - •92 Buffalo Creek Railroad In Buffalo NY. 3-56 3-48 •9-5 - - 7-99 Buffalo Roch & Pittsburgh Ry Falls Creek Clearfield Penn 30-64 4-89 - - 3553 Rossiter C & M Jet " 18-33 14-88 - - - 33-21 C C C & St L Railway Cleveland, .used as tracks 5 and 6. .Berea Ohio - 25-70- - 25-70 Danville Lyons 111 6-49- 4-25 - - 10-74 Canadian National Railways In Ottawa Pof 0 •81 - - - •81 Canadian Pacific Railway In Ottawa " 114 - - - - 1-14 Adirondack Junction Montreal Pof Q 8-77 8-77- - - - 17-54 South Junction Outremont 5-35 5-35 - - - 10-70 C T & Dixonville Railroad Cherry Tree ldamar Penn 36-70 - - 25-59- 62-29 At Manver (Cambria & Indiana R R) 1-14 - - - 1-14 Chicago B & Quincy Railroad NYC Junction Zearing 111 6-63 - - - 4-46 11-09 Chicago & Northwestern Ry Seatonville Junction Ladd 1-97 - - - - 1-97 Carried forward 151-82 65 0-1 •95- 25-70- 31-23 274-71 * Includes -27 mile of 5th track 50

Annual Report

TABLE OF TRACKS (concluded)

MILES OF MAIN TRA CK Yards and First Second Third Fourth sidings Toui LINES OPERATED UNDER TRACKAGE RIGHTS (concluded) Brought forward 15182 6501 •95 25-70 31-23 274-71 Delaware & Hudson Company Livingstone Ave, Albany River St, Troy N.Y. 7-08 708 14-11 Saranac Lake Lake Placid 10 08 - - 10-Oi Kenwood Junction Albany " 1-71 •7-0 - - 241 Dillonvale & Smithfield Ry Dillonvale Smithfield Ohio 4-42 - - 5-35- 97! Erie Railroad Montgomery Campbell Hall N.Y. 4-78 - - - 4-7S \ At Dunkirk • - -5-7 - - •5i LawTenceville Blossburg Penn 25S1- - - - 25-81 Blossburg Morris Run " 3-31 - - - - 3-31 Sharpsville West Middlesex " 10-28 - - - - 10-25 Hocking Valley Railway Rockwell Jet Walbridge Ohio 1-67 1-55- - - - 3-2! Beaumont Schiller St, Columbus " 07-30 38-44 - - 1310- 11SS4 Armitage Athens " 1-32 - - 1-83 3-15 Pomeroy Gallipolis " 17-70 - - - 7-95 25-6 Indiana Harbor Belt Railroad At Gibson Yard Ind - - - 11-93 11-9 Lake Erie & Eastern Railroad Girard Struthers Ohio 8-31- 8-28- -_ - 7-49 2408 Michigan Central Railroad Alexis N of Alexis " •92 - « N of Alexis Detroit Mich - 4S-13 4-6-9 - - 52-82 At Ypsilanti " •38 - - •31 Haires Jackson " 4-11- - - - 4-11 Vinewood St Beaubien St, Detroit " - 2-90 - - 2-9* At Jackson " •2-2 •18 - - - -4! At Kalamazoo " •26 1-7 - - •4! N Y Chicago & St Louis R R At Fort Wayne Ind - - 316- 316 N Y Ontario & Western Ry Fulton East First, Oswego N.Y. 12-9-6 - - - 12-96 Pennsylvania Railroad Rose Siding Falls Creek Penn 20-91 - - 20-11 McElhattan Keating " 4500 44-77- - - _- 89-77 Mahaffey Junction Patton " 2085 - - 208) Beeeh Creek R R Sundry mines " 719 - - - - 7-1! Beech Creek Ext R R Sundry mines "* 1203 1-60- - - 13-63 Brady Lake Jet M V Junction Ohio 2-84 2-87 - - 571 M V Junction Minerva Junction " 33-70 30-77 - - - 6447 M V Junction Ravenna Junction " 114 1-06 - - - n Niles Junction Girard " 8-12 801 - - 1613 Bremen New Lexington " 11-25 - - 3-37- 14-62 Woodland Ave C A & C Jet, Columbus " •92 - - - •12 H _ Spangler Zanesville 2-23 - - - 1-62 3-8i Pittsburgh & Lake Erie Railroad Struthers Youngstown " 5-47 4-22 •83 -23 11-23 21K - - Reading Company Newberry Junction Williamsport Penn 3-71 3-71 _ _ 7-4! Rutland Railroad Norwood Malone Junction N.Y. 38-20 38-21 At Moira " •39 - - - - •!! Troy Union Railroad Madison St, Troy River St, Troy " 203 2-0-0 - 1-97- « Toledo Terminal Railroad Walbridge Stanley Ohio 1-23 1-23 - - •72 3-1! Wheeling & Lake Erie Railway At Cleveland " 6-56 - - 6'.* Zanesville Terminal Railroad At Spangler " -15 - - - •7-4 •8) Industrial track At Adrian Mich - - - •09 * Total trackage rights 55307- 277-80- 7-21 25-93 101-78 96.V7' Total operated mileage 6,911-27 2,536-68 902 00 77217* 6,003-70 17,12j£ * See note on page 47

RECAPITULATION

Otherwise operated 1st track All tracks 1st track All tracks 1st track All tracks 1st track STATE OR PROVINCE miles miles miles miles miles miles miles New Yrork 2,059-25 5,839-92 737-47 1,998-08 80-79 97-54 2,877-51 7,97 Pennsylvania 367-05 747-02 276-83 541-27 235-90 331-34 879-78 1.61?'' Ohio 408-00 1,834-46 737-67 1,337-69 203-90 405-52 1,349-57 3,577o. Indiana 406-98 1,173-19 53-30 72-19 1509 460-28 1,2604 Illinois 137-88 329-13 1509- 23-80 152-97 352? Michigan 346-79 489-11 21919- 258-90 •60 6113 566-58 809" West Virginia 14300 235-81 14300 235* Massachusetts - - 338-56 97109 •7-2 1-18- 339-28 972-" New Jersey - - 23-27 202-21 23-27 202-- Province of Quebec - - 46-14 61-26 1412- 28-24- 60-26 Province of Ontario - - 56-82 68-70 1-95 1-95 58-77 Totals 3,725-95 10,412-83 2,632-25 5,747-20 553-07 965-79 6,911-27

In addition to the mileage shown above the company owns the following piece of line which it does not operate St Joseph Junction to Benton Harbor, Michigan, leased to Michigan Central Railroad Co 1-61 miles 51

The New York Central Railroad Company

TRAFFIC STATISTICS

INCLUDING BOSTON A NO ALBANY RAILROAD AND THE OHIO CENTRAL LINES

TRAIN, LOCOMOTIVE AND CAR MILEAGE STATISTICS

TRAIN MILKAGE REVENUE SERVICE 1928 1927 Increase Decrease Freight train-miles 26,363,479 26,333,996 29,483 Passenger train-miles 34,505,156 34,108,645 396,511 Milk train-miles 1,612,258 1,636,857 24,599 Other passenger train-miles 4,889,475 4,866,638 22,837 Mixed train-miles 300,327 207,033 93,294 Special train-miles 10,802 13,945 3,143 Total revenue train mileage 67,681,497 67,167,114 514,383 Non-revenue train-miles 2,220,038 2,333,268 113,230 Total train mileage 69,901,535 69,500,382 401,153

LOCOMOTIVE MILEAGE REVENUE SERVICE Freight locomotive-miles—steam 31,520,117 31,737,636 217,519 Freight locomotive-miles—electric 80,060 51,137 29,823 Passenger locomotive-miles—steam 39,698,583 39,721,754 23,171 Passenger locomotive-miles—electric 1,697,154 1,631,313 65.S41 Mixed locomotive-miles—steam 307,940 212,951 94,989 Special locomotive-miles—steam 13,444 16,844 3,400 Special locomotive-miles—electric 33 33 Switching locomotive-miles—steam 26,409,414 26,647,697 238,283 Switching locomotive-miles—electric 1,139,527 1,054,783 84,744 Total revenue locomotive-miles—steam 97,949,498 98,336,882 387,384 Total revenue locomotive-miles—electric 2,917,641 2,737,266 180,375 Total revenue locomotive mileage 100,867,139 101,074,148 207,009 Non-revenue locomotive-miles—steam 2,289,662 2,420,880 131,218 Non-revenue locomotive-miles—electric 5,525 3,084 2,441 Total non-revenue locomotive mileage 2,295,187 2,423,964 128,777 Total locomotive-miles—steam 100,239,160 100.757,762 518,602 Total locomotive-miles—electric 2,923,166 2,740,350 182,816 Total locomotive mileage 103.162,326 103,498,112 335,786

CAR MILEAGE REVENUE SERVICE Freight car-miles, in freight and mixed trains Loaded 994,494,082 975,509,540 18,984,542 Empty 617,825,589 596,438,654 21,386.935 Caboose 27,099,862 27,024,182 75,680 Total freight car-miles 1,639,419,533 1,598,972,376 40,447,157 Passenger car-miles, in passenger and mixed trains Passenger 86,340,609 86,112,034 228,575 Sleeping, parlor and observation 126,085,473 118,874,918 7,210,555 Dining 11,497,435 10,526,250 971,185 Milk 28,309,877 27,584,300 725,577 Other passenger-train cars 93,400,886 89,984,115 3,416,771 Total passenger car-miles 345,634,280 333,081,617 12,552,663 Special car-miles Freight—loaded 179,125 226,097 46,972 Caboose 10,802 12,962 2,160 Passenger 58,937 76,963 18,026 Sleeping, parlor and observation 5,142 5,142 Dining 460 460 Other passenger-train cars 847 3,472 2,625 Total special car-miles 249,711 325,096 75,385 Total revenue car mileage 1,985,303,524 1,932,379,089 52,924,435 Non-revenue car-miles 6,223,229 6,839,740 616,511 Total car mileage 1,991,526,753 1,939,218,829 52,307,924 52

Annual Report

TRAFFIC STATISTICS (continued)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

DESCRIPTION OF REVENUE FREIGHT MOVED IN 1928

(NEW CLASSIFICATION EFFECTIVE FOR 1928 MAKES COMPARISON WITH 1927 IMPRACTICABLE)

COMMODITY NUMBER OF NUMBER OF CARLOADS TONS PRODUCTS OF AGRICULTURE (2,000 pounds) Wheat 18,783 807,388 Corn 18,131 652,252 Oats 14,016 433,786 Barley and rye 7,145 270,840 Rice 299 7,008 Grain, N. O. S. 718 18,709 Flour, wheat 45,034 - 1,222,619 Meal, corn 378 9,541 Flour and meal, edible, N. o. s. 1,938 45,297 Cereal food preparations, edible, N. o. s. 6,097 91,249 Mill products, N. o. s. 49,800 1,104,925 Hay and alfalfa 27,472 331,378 Straw 3,598 43,137 Tobacco, leaf 608 6,533 Cotton in bales 4,932 56,206 Cotton linters, noils and regins 3,160 57,855 Cottonseed 15 278 Cottonseed meal and cake 1,375 31,833 Oranges and grapefruit 5,964 104,543 Lemons, limes and citrus fruits, N. o. a. 1,391 20,092 Apples, fresh 14,378 210,836 Bananas 9,934 103,640 Berries, fresh 753 10,507 Cantaloupes and melons, N. o. s, 1,954 22,948 Grapes, fresh 12,057 184,169 Peaches, fresh 3,204 34,136 Watermelons 719 9,824 Fruits, fresh, domestic, N. o. S. 3,537 48,421 Fruits, fresh, tropical, N. o. s. 365 4,487 Potatoes, other than sweet 13,908 261,303 Cabbage 6,847 88,204 Onions 7,892 104,237 Tomatoes 1,841 19,986 Vegetables, fresh, N. o. s. 15,122 176,597 Beans and peas, dried 2,125 46,766 Fruits, dried or evaporated 1,706 34,413 Vegetables, dry, N. o. s. 994 13,567 Vegetable-oil cake and meal, except cottonseed 1,706 41,188 Peanuts 281 4,392 Flaxseed 324 13,114 Sugar beets 1,517 54,074 Products of agriculture, N. o. S. 13,431 259,112

TOTAL 325,479 7,061,390

N. o. s.— Not otherwise specified 53

The New York Central Railroad Company

TRAFFIC STATISTICS (continued)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

DESCRIPTION OF REVENUE FREIGHT MOVED IN 1928 (continued)

(NEW CLASSIFICATION EFFECTIVE FOR 1928 MAKES COMPARISON WITH 1927 IMPRACTICABLE)

COMMODITY NUMBER OF NUMBER OF CARLOADS TONS ANIMALS AND PRODUCTS (2,000 pounds) Horses, mules, ponies and asses 1,402 16,211 Cattle and calves, single-deck 18,315 208,414 Calves, double-deck 1,091 13,690 Sheep and goats, single-deck 1,074 7,958 Sheep and goats, double-deck 4,263 42,456 Hogs, single-deck 3,844 36,566 Hogs, double-deck 30,262 371,607 Fresh meats, N. o. s. 57,724 693,043 Meats, cured, dried or smoked 10,983 171,900 Butterine and margarine 355 4,440 Packing-house products, edible, N. o. S., not including canned meats 9,550 169,021 Poultry, live 8,110 74,013 Poultry, dressed 9,386 112,583 Eggs 13,854 158,915 Butter 8,336 101,388 Cheese 2,555 29,936 Wool 8,627 106,518 Hides, green 3,781 70,778 Leather 1,148 18,554 Fish or sea-animal oil 278 6,323 Animals, live, N. o. s. 140 1,658 Animal products, x. o. s. (other than fertilizers and fertilizer materials) 8,711 164,604

TOTAL 203,789 2,580,576

PRODUCTS OF MINES Anthracite coal 139,423 6,650,117 Bituminous coal 707,692 38,686,245 Coke 42,007 1,444,604 Iron ore 70,698 5,343.638 Copper ore and concentrates 11 381 Lead ore and concentrates 55 1,891 Zinc ore and concentrates 1,101 45,442 Ores and concentrates, N. o. S. 4,851 234,037 Gravel and sand (other than glass or molding) 48,673 2,689,809 Stone, broken, ground or crushed 49,640 2,775,339 Stone, rough, N. o. s. 10,297 349,581 Stone, finished, N. o. S. 4,028 123,521 Petroleum, crude 213 6,185 Asphalt (natural, bv-produet or petroleum) 7,516 239,330 Salt 9,386 291,713 Phosphate rock, crude (ground or not ground) 730 29,872 Sulphur (brimstone) 1,382 48,874 Products of mines, N.

TOTAL 1,174,114 62,562,266

N. o. s.— Not otherwise specified 54

Annual Report

TRAFFIC STATISTICS (continued)

INCLUDING BOSTON AND ALBANY EAILROAD AND THE OHIO CENTRAL LINES

DESCRIPTION OF REVENUE FREIGHT MOVED IN 1928 (continued)

(NEW CLASSIFICATION EFFECTIVE FOR 1928 MAKES COMPARISON WITH 1927 IMPRACTICABLE)

COMMODITY NUMBER OF NUMBER OF CARLOADS TONS PRODUCTS OF FORESTS (2,000 pounds) Logs 7,004 190,665 Posts, poles, and piling 4,782 128,421 Wood (fuel) 837 24,381 Ties, railroad 4,196 131,626 Pulp wood 17,944 474,997 Lumber, shingles and lath 87,326 2,192,124 Box, crate, and cooperage materials 6,995 150,765 Veneer and built-up wood 736 15,359 Rosin 1,252 31,125 Turpentine 158 3,789 Crude rubber (not reclaimed) 2,777 74,440 Products of forests, N. o. s. 8,422 126,679

TOTAL 142,429 3,544,371

MANUFACTURES AND MISCELLANEOUS Petroleum oils, refined, and all other gasolines 75,041 2,142,038 Fuel, road and petroleum residual oils, N. o. s. 15,000 459,919 Lubricating oils and greases 15,812 357,002 Petroleum products, N. o. S. 1,167 26,824 Cottonseed oil 538 12,681 Linseed oil 1,648 41,621 Vegetable oils, N. o. S. 1,780 48,760 Sugar (beet or cane) 11,529 290,041 Table simps and edible molasses 1,537 40,823 Molasses, blackstrap and beet residual 439 17,484 Iron, pig 10,500 571,404 Iron and steel, rated 6th class in official classification, N. O.s . 6,477 321,518 Rails, fastenings, frogs and switches 3,272 117,501 Cast-iron pipe and fittings 5,180 111,680 Iron and steel pipe and fittings, N. o. s. 21,376 637,110 Iron and steel: Nails and wire, not woven 13,504 310,388 Iron and steel, rated 5th class in official classification, N. o.s . (also tin and terne plate) 109,103 3,195,071 Copper: Ingot, matte and pig 1,894 78,594 Copper, brass and bronze: Bar, sheet and pipe 3,168 62,216 Lead and zinc: Ingot, pig or bar 4,652 175,552 Aluminum: Ingot, pig or slab 1,800 47,562 Machinery and boilers 31,498 522,723 Cement, natural or Portland (building) 62,329 2,346,614 Brick, common 19,354 935,840 Brick, N. o. s., and building tile 35,267 1,304,906 Artificial stone, N. o. S. 6,719 176,784 Lime, common (quick or slaked) 23,181 508,959

Carried forward 483,765 14,861,615 N. o. a.—Not otherwise specified 55

The New York Central Railroad Company

TRAFFIC STATISTICS [continued)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

DESCRIPTION OF REVENUE FREIGHT MOVED IN 1928 {concluded)

(NEW CLASSIFICATION EFFECTIVE FOR 1928 MAKES COMPARISON WITH 1927 IMPRACTICABLE)

COMMODITY NUMBER OF NUMBER OF CARLOADS TONS MANUFACTURES AND MISCELLANEOUS {concluded) (2,000 pounds) Brought forward 483,765 14,861,615 Plaster (stucco or wall) and dry kalsomine 38,631 1,007,945 Sewer pipe and drain tile (not metal) 11,435 196,823 Agricultural implements and parts, N. O. S. 7,705 120,594 Vehicles, horse-drawn, and parts, N. O. s. 487 5,550 Tractors and parts 1,646 21,979 Railway car wheels, axles and trucks 1,341 38,753 Automobiles (passenger) 125,806 756,704 Autotrucks 7,616 65,723 Automobiles and autotrucks, knocked down, and parts, N. O. S. 36,922 612,896 Automobile and autotruck tires 6,061 78,201 Furniture, metal 3,150 39,177 Furniture, other than metal 11,201 88,614 Beverages 5,769 102,431 Ice 4,517 134,484 Fertilizers, N. O. S. 21,206 515,650 Newsprint paper 29,274 722,540 Printing paper, N. 0. s. 16,201 385,747 Alcohol, denatured or wood 1,798 39,076 Sulphuric acid 1,684 68,623 Explosives, N. O. S. 1,171 17,185 Cotton cloth and cotton fabrics, N. O. S. 3,873 37,635 Bagging and bags, burlap, gunny or jute 3,784 67,159 Canned food products, N. O. S. 29,584 628,534 Tobacco, manufactured products 329 5,349 Paints in oil and varnishes 3,129 60,321 Furnace slag 11,878 638,055 Scrap iron and scrap steel 22,430 875,058 Paper bags and wrapping paper 11,757 255,904 Paperboard, pulpboard and wallboard (paper) 29,092 618,938 Building paper and prepared roofing materials 10,374 227,930 Building woodwork (millwork) 3,292 59,573 Soap and washing compounds 6,729 129,929 Glass, fiat, other than plate 1,468 37,646 Glass: Bottles, jars and jelly glasses 11,561 212.196 Manufactures and miscellaneous, N. O. S. 417,488 8,129,022

TOTAL 1,384,154 31,863,559

GRAND TOTAL, CARLOAD TRAFFIC 3,229,965 107,612,162

All L. C. L. freight 3,868,611

GRAND TOTAL, CARLOAD AND L. C. L. TRAFFIC 111,480,773

N. o. s.—Not otherwise specified 56

Annual Report

TRAFFIC STATISTICS (concluded)

INCLUDING BOSTON AND ALBANY RAILROAD AND THE OHIO CENTRAL LINES

FREIGHT 1928 1927 Increase Decrease Tons of revenue freight carried U1,4S0,773 111,717,008 236,235 Tons of company freight carried 12,230,591 13,521,845 1,291,254 Total tons of freight carried 123.711,304 125,238,853 1,527,489 Tons of revenue freight carried one mile 22,201,880,378 22,300,002,220* 98,115,842 Tons of company freight carried one mile 2,695,041,487 3,013,026,907 * 317,985,420 Total tons of freight carried one mile 24,896,927,865 25,313,029,127* 416,101,262 Miles of road operated in freight service o,su:.a:; 6,859-97 5 06 Tons of revenue freight carried one mile per mile of road 3,234,055 3,250,743 16,688 Tons all freight carried one mile per mile of road 3,626,631 3,689,962* 63,331 Average distance haul of one ton of revenue freight miles 19915 miles 199-61 mile '46 Average distance haul of one ton of all freight miles 201-25 miles 202-12* mile -87 Average number of tons of revenue freight per train mile® 832-67 840-21 7-54 Average number of tons of all freight per train mile® 933-73 953-73* 2000 Average number of tons revenue freight per loaded car mile 22-32 22-86 •54 Average number of tons of all freight per loaded car mile 25 03 25-95* •92 Average number of freight cars per train mile® 61-48 60-21 1-27 Average number of loaded cars per train mile® 37-30 36-75 •55 Average number of empty cars per train mile® 2317 22-47 •70 Total freight revenue $234,617,642.06 $234,381,108.95 $236,533.11 Average amount received for each ton of freight $2.10 $2.10 Average revenue per ton per mile cents 1-057 cents 1-051 cent -006 Average revenue per mile of road $34,175.76 $34,166.49 $9.27 Average revenue per train mile® $8.80 $8.83 $0.03

PASSENGER Number of interline passengers carried 3,351,724 3,499,529 147,805 Number of local passengers carried 18,873,453 20,056,082 1,182,629 Number of commutation passengers carried 49,113,665 47,540,097 1,573,568 Total number of revenue passengers carried 71,338,842 71,095,708 243,134 Total number of revenue passengers carried one mile 3,220,754,514 3,273,593,747 52,839,233 Miles of road operated in passenger service 6,088-52 6,112-24 23-72 Revenue passengers carried one mile per mile of road 528,988 535,580 6,592 Average distance each revenue passenger carried miles 45*15 miles 4604 mile 89 Average number of passengers per train mile© 93 95 2 Average number of passengers per car mile 1516 15-97 •81 Average number of passenger-carrying cars per train mile® 6-49 6-31 IS Average number of cars in passenger trains 8-37 819 18 Average number of passenger cars in mixed trains 1-34 1-38 •04 Total passenger revenue $96,917,043.14 $99,105,313.67 $2,188,270.53 Average amount received from each passenger $1.36 $1.39 $0.03 Average revenue per passenger per mile cents 3-009 cents 3027 cent -018 Total passenger service train revenue $127,102,683.71 $128,444,658.18 $1,341,974.47 Average passenger service train revenue per mile of road , $20,875.79 $21,014.33 $138.51 Average passenger service train revenue per train mile® $3.08 $3.16 $0.08

TOTAL TRAFFIC Operating revenues $381,733,244 32 $383,377,311 19 $1,644,066 87 Operating expenses 288,250,203 20 293,399.836 25 5,149,633 05 Net operating revenue $93,483,041 12 $89,977,474 94 $3,505,506 18 Average mileage of road operated 6,911-27 6,906-21 506 Operating revenues per mile of road $55,233 44 $55,511 97 $278 53 Operating expenses per mile of road 41,707 27 42,483 48 776 21 Net operating revenue per mile of road $13,526 17 $13,028 49 ¥497 OS

®"Freight train miles" includes total "mixed train miles" ©"Passenger train miles" includes total "mixed train miles" * liestated for comparative purposis 57

The New York Central Railroad Company

STATEMENT OF INCOME ACCOUNT FOR THE YEAR

SEPARATED TO SHOW FIGURES FOR

NEW YORK CENTRA!/ RAILROAD (excluding Ohio Central Lines and Boston and Albany Railroad)

THE OHIO CENTRAL LINES

AND

BOSTON AND ALBANY RAILROAD

The New York New York Central Boston and Albany Ohio Central Central Railroad Railroad Railroad Lines Company 5,71117 407-10© 802-30® 6,911-27 OPERATING INCOME miles operated miles operated mile* operated miles operated RAILWAY OPERATIONS Railway operating revenues i 335,485,978 09 $30,817,962 11 817,997,552 77 $381,733,244 32 Railway operating expenses 252,560,379 29 24,498,773 88 13,796,514 60 288,250,203 20

NET REVENUE FROM RAILWAY OPERATIONS $82,925,598 80 $6,319,188 23 $4,201,038 17 $93,483,041 12

Percentage of expenses to revenues (75-28) (79-50) (76-66) (75-51) Railway tax accruals 126,556,334 32 $1,726,658 44 $853,910 64 $29,136,903 40 Uncollectible railway revenues 129,814 10 82 99* 812 77 130,543 88

RAILWAY OPERATING INCOME $56,239,450 38 $4,592,612 78 $3,346,314 76 $64,215,593 84

Equipment rents, net debit $3,073,826 08 $757,388 49 $1,280,473 33 $5,082,960 30 Joint facility rents, net credit 3,404,296 59 282,483 05* 32,325 12* 3,089,488 42

NET RAILWAY OPERATING INCOME $56,569,920 89 $3,552,741 24 $2,033,516 31 $62,222,121 96

MISCELLANEOUS OPERATIONS Revenues $806,434 21 — — $806,434 21 Expenses and taxes 771,857 88 771,857 88

MISCELLANEOUS OPERATING INCOME 834,570 33 — — $34,576 33

TOTAL OPERATING INCOME $56,604,497 22 $3,552,741 24 $2,033,516 31 $62,256,698 29

NON-OPERATING INCOME Income from lease of road $280,171 70 $121,460 21 Miscellaneous rent income 4,393,198 29 $276,417 15 $8,525 61 4,678,141 05 Miscellaneous non-operating physical property 1,667,301 56 770 81 2,375 73 1,070,448 10 Separately operated properties—profit 625,521 14 625,521 14 Dividend income 19,156,992 20 447,400 00 19,604,392 20 Income from funded securities 3,118,056 59 133,526 23 3,251,582 82 Income from unfunded securities and accounts 4,648,862 09 86,584 72 16,251 57 4,330,899 54 Income from sinking and other reserve funds 187,460 62 212 50 187,673 12 Miscellaneous income 104,203 42 13,721 31 6,697 72 124,622 45

TOTAL NON-OPERATING INCOME $34,181,767 61 $377,706 49 $614,776 86 $34,594,740 63

GROSS INCOME $90,786,284 83 $3,930,447 73 $2,648,293 17 $96,851,438 92

DEDUCTIONS FROM GROSS INCOME Rent for leased roads $8,209,266 58 $3,348,084 59 $2,718,937 22 $14,117,576 90 Miscellaneous rents 1,373,885 70 6,000 00 2,074 19 1,381,959 89 Miscellaneous tax accruals 1,736.582 24 2,384 73 1,738,966 97 Separately operated properties—loss 52,899 70 52,899 70 Interest on funded debt 27,744,694 35 27,744,694 35 Interest on unfunded debt 748,846 11 421,821 36 2,143 85 752,012 48 Amortization of discount on funded debt 456,381 85 456,381 85 Maintenance of investment organization 3,777 75 3,777 75 Miscellaneous income charges 260,124 38 8,559 55 268,683 93

TOTAL DEDUCTIONS FROM GROSS INCOME $40,586,458 66 $3,775,905 95 $2,734,099 54 $46,516,953 82

NET INCOME $50,199,806 17 $154,541 78 $85,806 37D $50,334,485 10

NOTE: In adding across the first three columns above it will be found that they do not produce, in respect to some items, the totals in the last column, because of certain inter-road transactions * Debit ©Includes 3-13 miles of trackage rights over the New York Central Railroad o Deficit ©InoludeB 0-17 miles also operated by the New York Central Railroad 0 Credit