FORTY-FOURTH ANNUAL REPORT

OF THE BOARD OF DIRECTORS

OF

THE NEW YORK CENTRAL

AND

HUDSON RIVER RAILROAD COMPANY

TO THE STOCKHOLDERS

FOR THE YEAR ENDED

DECEMBER 31 1912

I

GRAND CENTRAL TERMINAL

NEW YORK ORGANIZATION OF

THE NEW YORK CENTRAL AND HUDSON RIVER RAILROAD COMPANY

DECEMBER 31, 1912

DIRECTORS Elected ;it the annua] meeting of stockholders held at Albany, New York, April 17, 1912 CHAUNCEY M. DEPEW, Chairman WILLIAM K. VANDERBILT WILLIAM H. NEWMAN FREDERICK W. VANDERBILT GEORGE F. BAKER WILLIAM C. BROWN GEORGE S. BOWDOIN J. PIERPONT MORGAN WILLIAM ROCKEFELLER JAMES STILLMAN MARVIN HI'GIUTT WILLIAM K. VANDERBILT, JR LEWIS CASS LEDYARD

FINANCE COMMITTEE

WILLIAM K. VANDERBILT WILLIAM ROCKEFELLER J. PIERPONT MORGAN GEORGE F. BAKER LEWIS CASS LLDYAED

on mats President WILLIAM C. BBOWN New York Vice President WILLIAM K. VANDERBILT, JK New York Vice President JOHN' CARSTEXSEN New York Vice President ALFRED H. SMITH New York Vice President IRA A. PLACE New York Vice President CHARLES F, DALY New. York Vice President JAMES H. HUSTIS Boston Assistant Vice President ABRAHAM T. HARDIN New York [Secretary DwiGHT W. PARDEE New York Treasurer EDWARD L. ROSSITER New York General Auditor RICHARD A. WHITE New York Auditor CHARLES H. CHAMBERS New York General Counsel ALBERT H. HARRIS New York General Solicitor CLYDE BROWN New York General Attorney ALEXANDER S. LYMAN New York General Claims Attorney FRANK V. WHITING New York General Land and Tax Agent OSCAR G. GETZEN-DANNER New York Genera] Manager PATRICK E. CROWLEY New York Chief Engineer GEORGE W. KITTREDGE New York Superintendent Motive Power JOHN HOWARD New York Superintendent Rolling Stock FREDERICK W. BRAZIER New York Superintendent Electric Equipment CHARLES H. QUEREAU New York Chief Mechanical Engineer ROSCOE B. KENDIG New York Manager Marine Department WALTER B. POLLOCK New York General Purchasing Agent SYDNEY B. WIGHT New York Purchasing Agent WILLIAM C. BOWER New York Freight Traffic Manager FRANCIS LA BAU New York General Freight Agent IRA H. HUBBEL New York Coal Traffic Manager FRANK E. HERRIMAN New York General Passenger Agent LOREN F. VOSBURGH New York REPORT

To the Stockholders of

THE NEW YOKE CENTRAL AND HUDSON RIVER RAILROAD COMPANY:

The Board of Directors herewith submits its report for the year ended December 31, 1912, with statements showing the results for the year and the financial condition of the company. The mileage embraced in the operation of the road is as follows:

.Main line and brandies owned 80549 Proprietary lines 3-06 Lines leased* 2,026 13 Lines operated under contract 8L70 Trackage rights 274'27

Total road operated 3,790'65

Of the total road operated,, 290'7J miles arc operated in freight service only and 14'96 miles arc operated in passenger service only. The decrease of mileage of leased lines is due to abandonment of part of the Pardee branch of the Beech Creek Railroad and a change of alinement of the main line of the same railroad. The difference in the reported mileage of road operated under trackage rights is caused by a careful revision of previously reported figures by the engineering authorities of the various railroads interested. A statement showing the total miles of road and track operated will be found on another page.

The standard form of income account promulgated by the Interstate Commerce Com• mission was adopted by this company on July 1, 1912. No revision of figures for the previous year nor for the first six months of the year covered by this report has been made and, therefore, some of the comparisons between the years 1911 and 1912 are somewhat distorted. The accounts principally affected by this change of form are "taxes accrued," part of the taxes which were previously charged to this account being now shown in 'miscellaneous tax accruals" in the "deductions from gross corporate income" and •'miscellaneous income" from which have been transferred to "miscellaneous rents" the amounts receivable as rental of property not used in the operation of the road.

•The Dunkirk Allegheny Valley am! l'ittsburgh Railroad, 1HV51 miles, is also leased by this company, but in mileage and operations are not included in this report. Separate accounts arc kept and independent return-* prepared in LIS behalf

3 1

Annual Report

The capital stock authorized is $250,000,000 00 of which there is issued and outstanding 222,729,300 00 leaving a balance authorized but not issued of $27,270,700 00 The mortgage, bonded and secured debt outstanding on December 31, 1911 was $299,870,008 18

This has been added to as follows: Gold mortgage bonds, bearing interest at the rate of three and one-half per cent per annum $5,000,000 00 Gold debentures of 1912, bearing interest at the rate of four per cent per annum 9,150,000 00 Three year gold notes due May 1, 1915, bearing interest at the rate of four and one-half per i-enl per annum 20,000,000 00 This company's pro rata liability in connection with the equipment trust certificates of J 912, bearing interest at (lie rate of four and one-half per cent per annum 7,150,711 50 Equipment trust certificates on account of the Boston & Albany Railroad, bearing interest at the rate of four and one-half per cent per annum (see page 10) 5,220,000 00 Mortgage on real estate in the city of New York, bearing interest at the rate of three and one-half per cent pet- annum 1,000,000 00 Mortgage on real estate in the city of Utica, bearing interest at the rate of six per cent per annum 2,500 00 47,535,241 50 $347,405,849 08 and has been decreased as follows: Payments of installments falling due during the year on this company's pro rata liability in connection with the certificates issued under equip• ment trust agreements, as follows: Trust of 1907, installment due November, 1912 $793,000 12 Trust of 1910, installment due January, 1912 433,964 42 Payment of mortgage on real estate in the city of New York 150,000 00 1,377,024 54 Outstanding, as shown on the balance sheet of December 31, 1912 $346,028,225 14

In accordance with the consent of the Public Service Commission of the Second District of the State of New York, there have been acquired out of the proceeds of the issue of securities specially authorized for the purpose, 100,786 shares of common stock and 22,181 shares of preferred stock of the New York and Harlem Railroad Company of a par value of $6,148,350, at a cost of $21,493,053.10; 80,081 shares of stock of the Rome Watertown and Ogdensburg Railroad Company of a par value of $8,008,100, at a Cost of $10,250,368; and 9,322 shares of the stock of the Utica and Black River Railroad Company of a par value of $932,200, at a cost of $1,077,960. 5

The New York Central and Hudson Bilker Railroad Company

SUMMARY OF FINANCIAL OPERATIONS AFFECTING INCOME

OPERATING INCOME 1912 1911 INCREASE 3,790-23 miles operated 0-42 mile* Revenues $109,900,016 57 1103,954,862 81 $5,945,152 70 Expenses 81,311,153 31 7... 7011.2112 78t 5,610,950 53

188,888,862 26 §2s.25i,ooo 03 " $334,202 23

(73-99%) (1-17%) AUXILIARY OPERATIONS Revenues $5,202,572 62 $376,511 27 Expenses 5,255,057 55 4,881,090 79 373,960 70

NET REVENUE I-'li [ MI TSIDH H'EKATIuNS $324,026~34 $321,475 83 §2,550 51

FROM ALL IPRRATIONS (28,912,888 60 §28,570.135 86 §330,752 7 1 5,902,521 17 5,447,759 13 151,702 111

H'I;I;AI i M; IXITIMK $23,010,307 43 $23,128,376 73 si 18,009 30 OTHER Joint facilities rents $1 929 498 22 81,754,125 34 $175,372 8S Miscellaneous rents 406,368 82 309,679 61 90,789 21 Net profit from in vestmei •Gical property 62,073 02 02,073 02 Divider 12.791.SS9 '.HI 11,049,589 23 1,142,300 117 Interest on fu 508,829 12 189,986 73 18,842 39 1,785,987 82 1,010,730 54 109,251 28 Miscellaneous income

TOTAL OTHER INCOME

rjROSB CORPORATE INCOME 139,364,556 08 $1,520,403 36

DEDUCTIONS FROM i Rentals of leased lines §10,055,192 32 §10,030,832 20 $18,300 12 Hire of equipment 1,980,095 34 1,151,064 87 829,030 47 Joint facilities rents 824,602 85 556,020 51 08,570 34 Miscellaneous rents 838,920 77 565,593 90 273,320 SI Miscellaneous tax accruals 15,901 73 15,901 73 Separately operated properties—loss 340,012 72 210,093 02 135,919 70 Interest on bonds 9,001,003 05 9,102,019 58 4 99,583 17 Interest on three year gold notes of 1911 and 1912 1,903,125 00 1,085,039 99 818,085 01 Interest on equipment trust certificates 1,031,538 04 * 742,979 81 288,658 83 Otlier interest 337,420 34^ 76,749 90 260,676 38 Transfer of income to other companies 35,800 80 35,800 80 St L & A Railway: interest, rental, etc 74,000 00 138,000 00 $04,000 00 N Y it Ottawa Railway: interest on bonds 58,240 no 58,240 00 Other deductions 48.003 13 276.267 74 228.264 Gl

TOTAL DEDUCTIONS FROM GROSS CORPORATE INCOME $27,011,122 69 $24,060,107 64+ 82.951.015 05

NOT CORPORATE INCOME $13,879,837 35 §15.304,440 01 $1,424,011 09 DIVIDENDS, four each year at five per cent per annum 11,130.405 00 11,130,405 INI

SURPLUS FOR THE TEAR $2,743,372 35 §4,107,984 04 $1,424,011 09 Appropriation to cover replacement value of abandoned property including buildings at Grand Central Terminal, etc 2,500,000 00 2.51111.01111 110

BALANCE Fon YEAR CARRIED TO PROFIT AND LOSS $2,743,372 35 $1,667,984 04 §1.075.3S8 31

Balance to credit of profit and loss (free surplus) December 31, 1911 §13. I iv,-,s Surplus for the year 1912 2,743,372 35 Additions for the year: Adjustments of sundry accounts 203,994 51 $10,390,035 19 Deductions for the year: Commissions and expanses, X icnt trust, 1912 $110,524 38 Discount, and commissions, go 625,000 00 Discount and commissions, de 453,357 50 Discount and commissions, th 200.000 00 Discount and commissions, on 51,3(Hi 00 Clearfield Bituminous Coal Coi crest, taxes, etc 307.307 01 Tian-lVr to special account, ca •ofit on sale of parts of 265,673 20 Transfer to approp iated surp equipment of 1912 made 751.308 .50 Account of abandoned facilitic ramus places 130,291 24 Sundry uncollectible accounts adjustments 309.794 32 3,210.022 15

BALANCE TO CREDIT OF PROFIT AND LOSS (FREE SURPLUS) DECEMBER 31, 1912 $13,185,413 04 6

Annual Report

For the year covered by this report the revenue from transportation was $108,454,633.07, an increase of $5,903,734.81; revenue from operations other than trans• portation was $1,445,382.50, an increase of §41,417.95; revenue from auxiliary operations (connected with, but in addition to transportation by rail) was $5,579,083.89, an increase of $376,511.27. The total gross revenue from all operations was $115,479,099.46, an increase of $6,321,664.03. Freight revenue was $65,101,509.99, an increase of $3,968,200.07. The revenue freight carried amounted In 5I.901.1S2 tons, an increase of 3,650,647 tons over last year. Products of agriculture show an increase of 441,275 tons, chief of which are grain 208,196 tons, (lour and other mill products 139,868 tons and cotton 42,703 tons. Products of animals show an added tonnage of 59,677; live stock, dressed meats and other packing house products show a decrease of 49,028 tons; wool, hides and leather an increase of 48,150 tons; milk increased 26,537 tons while dairy products fell off 4,876 tons. Products of mines show an increase of 1,815,306 tons, of which bituminous coal yielded S30,830 tons, anthracite coal 62,856 tons, coke 151,120 tons, ores 403,119 tons, and stone, sand and other articles 367,381 tons. Products of forests increased 287,711 tons. Manufactured articles increased 1,264,861 tons; cement, brick and lime showing 355,583 tons over last year's movement; metal productions increased 375,920 tons: bar and sheet metal show an increase of 154,342 tons; iron and steel rails declined to the extent of 34,367 tons. Com• modities not classifiable decreased 218,183 tons. There have been practically no changes in freight rates during the year, but owing to the large increase in medium and low class commodities transported the average revenue per ton fell from $1.27 in 1911 to $1.25 in the year 1912 and the rate per ton per mile declined from 6*33 mills to 626 mills. The revenue from passengers amounted to $33,134,508.72, an increase of $1,375,270.74. There was an increase of 992,801 in the number of local passengers and of 1,158,715 in the number of commutation passengers, but the number of interline passengers decreased 100,885. The average amount received from each passenger showed a slight increase, but owing to the increased volume of commutation business, the average rate per passenger per mile showed a very small decrease. The special service train revenue shows an apparent decrease of $133,298.25 due mainly to a revised method of accounting, a large part of the revenue which was formerly credited to this account now being credited to ordinary passenger revenue. The actual decrease is explained by the military movements to and from Pine Camp during the previous year, there being no corresponding source of revenue in 1912. The total revenue of all passenger-train transportation wras $41,566,413.41, an increase of $1,927,884.98 over the year 1911. Of this amount the revenue from express traffic w'as $4,736,754.97, an increase of $533,977.55, due to an enlarged volume of business. The expenses of rail operations amounted to $81,311,153.31, an increase cf $5,610,950.53. The ratio of rail operating expenses to the total revenues for the year was 73"99%, an increase of 1*17% over the ratio for the year 1911. Of the total increase of 7

The New York Central mid Hudson River Itailroad Company

$5,610,950.53 the larger part was occasioned by increased expenditures in the upkeep of the road and equipment, the total increases being as follows: For maintenance of way, structures and equipment $3,283,255.34, for expenses of securing and transporting traffic and of general administration $2,327,695.19.

The operating expenses, by groups, were: Maintenance of way and structures $14,705,288 99 an increase of $981,579 79 Maintenance of equipment 20,440,446 48 an increase of 2,301,675 55 Traffic expenses 2,316,426 51 an increase of 136,220 02 Transportation expenses 41,052,202 08 an increase of 2,117,171 14 General expenses 2,796,789 25 an increase of 74,304 03 Auxiliary operations 5,255,057 55 an increase of 373,960 76 In the maintenance of way and structures the repairs of roadway and track cost $201,918.42 more than in 1911 and the maintenance and repairs of buildings, fixtures and grounds increased $393,867.78. Removal of snow, sand and ice necessitated an increased expenditure of $198,535.88. Improvements to signal apparatus increased $133,206.97.

In the maintenance of equipment the repairs of locomotives and cars increased $1,716,257.86, while the charges for renewals and depreciation of equipment increased $461,370.80.

Transportation expenses show large increases in the cost of labor, partly accounted for by the increase in the rates of pay of the engineers as explained in a subsequent part of this report. Other increases were consequent on the enlarged volume of business trans• acted.

Efficiency of operation of equipment is clearly indicated by the statistics of mileage of locomotives, trains and cars. Freight locomotive mileage decreased 686,021 miles, freight train mileage decreased 378,799 miles, while loaded freight car mileage increased 19,574,385 miles. Empty car mileage decreased 11,942,275 miles, due to heavy west-bound traffic, and caboose mileage decreased 72,653 miles. Passenger locomotive mileage increased 147,158 miles, passenger train mileage increased 212,520 miles and passenger car mileage increased 3,351,872 miles.

The average load per freight train mile increased 35'49 tons (over 8%) and the load per car mile increased seven-tenths of a ton. The consumption of fuel per mile run by freight locomotives increased three-quarters of a pound, and by passenger locomotives decreased over a pound and a half. The average cost of coal increased six cents a ton and the average cost of fuel per locomotive mile increased 86/100ths of a cent.

In the operation of the Pension Department 135 employees were retired and placed upon the pension rolls. Of these retirements, 70 were authorized because of the attain• ment of seventy years of age and 65 because of total and permanent physical disability. Sixty-two pensioners died during 1912 and at the close of the year 700 retired employees were carried upon the pension rolls. The average monthly pension allowance to these men was $24.19 and the total amount paid in pension allowances during the year was $201,530.31. 8

Annual Report

Auxiliary operations show an increase in the net revenue of $2,550.51. All the accounts under this head produced increases except harbor terminal transfers with a decrease of $117,531.09 and dining and special car service which decreased $37,622.79. The amount of taxes accrued during the year was $5,918,482.90, equal to 5' 13% of the gross operating revenues of the year. The increase was $470,723.77, or 8'64%, due to a general raising of the tax rates assessed on real estate. The Federal Government tax on income of corporations amounted to $128,245.84, a very small decrease from that paid in 1911. As in previous years, a large portion of this amount was paid under protest. Of the suits that were instituted to recover the amounts paid on account of lessor companies under the claim that they are not liable to this tax, those in behalf of the West Shore Railroad Company and the Mohawk and Malone Railway Company, selected as test cases, were tried in the city of New York and the judgment of the court was in favor of the two companies. The Federal Government has taken the whole question involved to the Supreme Court where arguments have been heard and final judgment is expected early in 1913. In deductions from gross corporate income, rentals of leased lines have increased $18,360.12. The rental of the Boston and Albany Railroad was larger by $22,500.00, the amount of interest on Improvement bonds issued in 1912. The rental of the Dunkirk Allegheny Valley and Pittsburgh Railroad decreased $6,041.68 due to the refunding of its bonded debt at a lower rate of interest during the year 1911. In other income an increase of $1,142,300.67 is reported in the income derived from capital stock held by this company, due to the acquisition during the year of shares of the New York and Harlem Railroad Company, Rome Watertown and Ogdensburg Railroad Company and the Utica and Black River Railroad Company as stated in a previous paragraph. Interest on the funded obligations of this company increased $1,606,227.31, made up of interest on securities issued during the year as follows: Gold mortgage bonds, $175,000.00: Gold debentures of 1912, $324,583.47: Three year gojd notes of 1912, $553,125.00: Equip• ment trust of 1912, $288,558.83 and an increase of $264,960.01 in the interest on three year gold notes of 1911, the difference between nine months' interest charged in 1911 and a whole year's interest charged in 1912. Separately operated properties resulted in a loss of $346,612.72, being the amount of this company's proportion of the annual guarantee to the Merchants Despatch Transporta• tion Company, $369,080.04, less the profit from the operation of the Dunkirk Allegheny Valley and Pittsburgh Railroad $22,467.32, the net result being an increase of $135,919.70 in the deductions from gross corporate income. No dividend was paid on the capital stock of the St Lawrence & Adirondack Railway Company for this year, reducing the amount of this company's income from investments $64,600.00 and reducing deductions from gross corporate income by the same amount. The rate of dividend on the capital stock of The New York Central and Hudson River Railroad Company for the year was five per cent, being the same as for the previous year. The surplus for the year, after paying dividends, amounted to $2,743,372.35 a decrease as compared with the year 1911 of $1,424,611.69. 9

The New York Central and Hudson Hirer Railroad Company

Several very extensive and important projects for the improvement of facilities have been carried on during the year, chief of which are the following:— Improvements at Utica, consisting of a new brick and stone passenger station, elimination of grade crossing at Genesee Street, a new engine terminal, increase of terminal yard tracks and the installation of new signal apparatus, for which has been expended during the year the sum of $1,353,057.24. Improvements at Rochester, comprising a new stone passenger station, extension and reconstruction of several bridges, the closing of Joiner Street, placing additional tracks, the building of a new power house for heating the passenger station and other buildings and the erection of several auxiliary buildings, involving during the year an expenditure of $690,991.40. Four-tracking the Hudson division through Poughkeepsie: between Hyde Park and Barrytown: from Storm King to Chelsea: between Tivoli and Germantown and at Stock• port. Included in this plan are new passenger stations at Staatsburgh and Rhinecliff. The charges on account of this improvement reached the total of $2,594,608.15 during the year. Four-tracking from Spuyten Duyvil to Peekskill and the electrification of line from Spuyten Duyvil to Croton, including the consequent changes in bridges, stations and signals, cost during the year $2,156,276.27. In this is included the development of a new terminal of the Electric division at Harmon and an important and comprehensive plan of improvements at Yonkers, consisting of the elevation of tracks and the construc• tion of additional main tracks, a new passenger station, new freight station, a new freight yard layout and a new passenger station at Glenwood. The construction of a connection between this company's main line and the West Shore Railroad at Harbor, east of Utica, has cost during the year $325,012.31, of which amount $31,346.03 has been charged to the West Shore Railroad Company as advances for new construction. The changing of grade crossings in the city of Buffalo, which has been in progress for many years, has been continued at a cost of $208,177.04 for the work done during the year. The changes in the accounts relating to the property of this company during the year were: Expenditures on road account $10,196,570 08 Additional trust equipment 7,672,796 85 $17,869,366 93

Credit value of equipment retired $4,843,288 80 Amount to equal equipment trust installments 1,748,240 66

$6,591,529 46 Expenditures on equipment account 5,806,061 87 785,467 59 making a net addition to this company's property account of $17,083,899 34

Expenditures on account of construction work on leased lines amounted to $12,229,631.31, making a grand total of extraordinary expenditures during the year of $29,313,530.65, details of which are shown on subsequent pages. ill

Antiiinl Report

Under date of October 1, 1912, The New York Central and Hudson River Railroad Company became party to an agreement establishing the Boston and Albany Equipment Trust of 1912, under which, and subsequent leases, certain equipment will be acquired for use upon the Boston and Albany Railroad. The agreement provides that the total amount of trust certificates to be issued thereunder shall not exceed $7,500,000, or 90% of the cost of the equipment to be furnished. The certificates bear interest at the rate of 4J% per annum, and are to be paid in fifteen annual installments, the first being payable October 1, 1913. Of the certificates authorized $5,220,000 have been issued, covering not to exceed 90% of the cost of 21 locomotives, 31 passenger cars, 5,200 freight cars and 100 ballast cars. The New York Central and Hudson River Railroad Company and the New York New Haven and Hartford Railroad Company have entered into an agreement by which the New Haven Company assumes one-half of the payments under this equipment trust and becomes entitled to a one-half interest in the equipment, which, however, during the life of the trust, continues assigned to Boston and Albany Railroad use. On November 20, 1912, the Board of Directors authorized The New York Central and Hudson River Railroad Company, together with The Lake Shore and Michigan Southern Railway Company, The Michigan Central Railroad Company, The Cleveland Cincinnati Chicago and St Louis Railway Company, The Pittsburgh and Lake Erie Railroad Company and The Toledo and Ohio Central Railway Company to enter into an equipment trust agreement, to be dated January 1, 1913, for the purpose of establishing the New York Central Lines Equipment Trust of 1913. This agreement will provide for an issue of $24,000,000 of equipment trust certificates, bearing interest at the rate of 4J% per annum; being not to exceed 90%, of the total cost of the equipment to be furnished under the terms of the said agreement. The certificates are to be paid in fifteen annual install• ments, the first being payable January 1, 1914. Out of the $24,000,000 of certificates authorized there will be issued, early in 1913, $12,540,000. The cost of the equipment to be assigned to this company in connection with the issue of these latter certificates will be approximately $5,079,000, and the pro rata amount of the certificates, representing not to exceed 90% of the cost, will be approximately $4,436,000. Full particulars as to the character of the equipment to be acquired will be set forth in the report to the stock• holders for the year 1913. On another page will be found details with respect to the New' York Central Lines Equipment Trust of 1912, showing the locomotives and cars acquired thereunder and the certificates outstanding. The operation of the Boston and Albany Railroad under the agreement between The New York Central and Hudson River Railroad Company and the New York New Haven and Hartford Railroad Company, which became effective on July 1, 1911 and was out• lined in last year's report, has resulted in a surplus of $71,601.60 during the year coveretl by this report, one-half of which amount is shown in deductions from income under the title "Transfer of income to other companies." A special committee, appointed by the Board of Directors of the Merchants Despatch Transportation Company, recommended the sale by that company to The New York Central and Hudson River Railroad Company and The Lake Shore and Michigan Southern 11

Tlie New York Central and Hudson River Railroad Company

Railway Company of all its refrigerator equipment, consisting of 5,388 cars and also 1,000 cars covered by the Merchants Despatch Equipment Trust of 1911, in proportion to the holdings of the two companies of the capital stock of the Merchants Despatch Transportation Company. On November 13, 1912, the Board of Directors authorized the cancellation of the agreement for the use of refrigerator cars dated November 1, 1907, between the Merchants Despatch Transportation Company, The New York Central and Hudson River Railroad Company, The Lake Shore and Michigan Southern Railway Company, The Michigan Central Railroad Company, The Cleveland Cincinnati Chicago and St Louis Railway Company, The Pittsburgh and Lake Erie Railroad Company, the Peoria and Eastern Railway Company, the Rutland Railroad Company, the Lake Erie and Western Railroad Company and the Chicago Indiana and Southern Railroad Com• pany, and on the same date authorized the purchase by this company of 2,868 refrigerator cars at cost, less depreciation: and 532 refrigerator cars covered by the Merchants Despatch Equipment Trust of 1911, this company to pay the Merchants Despatch Trans• portation Company 532/1000ths of the amount already paid by it on account of the 1,000 cars, less depreciation, and to assume 532/1000ths of all future payments to be made under the agreement and lease known as the Merchants Despatch Equipment Trust of 1911, the cars to be transferred to this company on January 1, 1913.

Early in January the General Chairmen's Association of the Brotherhood of Loco• motive Engineers, representing the engineers on fifty-two railroads in the Eastern Sec• tion of the United States, formulated demands for a general increase in wages and for certain modifications in the rules governing their employment; and these demands were submitted to the various roads on January 22nd. On March 14th, 15th and 25th conferences were held between the representatives of the Brotherhood of Locomotive Engineers and a Conference Committee of Managers authorized to conduct the negotiations for all of the roads concerned; the Committee of Managers declined to grant the requests either in whole or in part. A vote of the engineers was taken, resulting almost unanimously in favor of a strike, whereupon the Honorable Martin A. Knapp, Presiding Judge of the United States Commerce Court, and the Honorable Charles P. Neill, United States Commissioner of Labor, first tendered mediation and when this failed, urged arbitration; both in accord• ance with the Erdman Act. The engineers and the Railroad Managers agreed to the principle of arbitration but declined to arbitrate under the provisions of the Erdman Act. It was finally agreed, on April 30th, to submit the matters in dispute to a Board of Arbitration to consist of seven members—one to be named by the railroads, one by the engineers, and these two to agree upon five others; or, failing to so agree within fifteen days, the Chief Justice of the Supreme Court of the United States, the Presiding Judge of the Commerce Court and the United States Commissioner of Labor should name the five other members. The railroads selected Mr. Daniel Willard, President of the Baltimore and Ohio Rail• road Company, and the engineers selected Mr. P. H. Morrissey, former Grand Master of the Brotherhood of Railroad Trainmen; these two representatives having failed to agree, the five other arbitrators were appointed by the Chief Justice of the Supreme Court of 12

Anmml Report the United States, the Presiding Judge of the Commerce Court and the Commissioner of Labor, as follows: Hon. Oscar S. Straus, New York, Dr. Charles R. Van Hise, Madison, Wisconsin, Mr. Frederick N. Judson, St Louis, Missouri, Dr. Albert Shaw, New York, Mr. Otto M. Eidlitz, New York.

The Board so constituted held its first meeting in New York city, Friday, July 12th, 1912, electing the Honorable Oscar S. Straus chairman. Hearings were held at the Oriental Hotel, Manhattan Beach, from July loth to 27th; Grand Chief Engineer Warren S. Stone represented the Brotherhood of Locomotive Engineers and handled the case with marked ability. The evidence of a large number of witnesses on both sides was taken and a most exhaustive investigation of the question in all its details was made. The Board finally published its award on November 25th.

The Commission appointed by the Chief Justice of the Supreme Court, the Presiding Judge of the Commerce Court and the Commissioner of Labor was composed of men of high character and wide experience. Months of patient, painstaking investigation and labor were given to the consideration of the subject, and the conclusions reached, as well as recommendations submitted, are worthy of the most careful consideration. The statement that "there is a growing realization that labor difficulties upon rail• roads should not be settled by war," is too self-evident to require discussion. A com• plete suspension of service, as was threatened by the engineers on the railroads involved in this controversy, would, in less than one week, impose suffering, almost beyond com• prehension, on a vast number of people. The principle of arbitration in some form has been accepted by both sides, and it is safe to say that neither the railroads nor any organization of employees would precipitate a strike in the face of an offer to arbitrate the question at issue. The Arbitration Commission, recognizing this, has suggested permanent commissions, both National and State, to consider and decide all controversies of this character. The Commission recognized the fact that under existing methods the findings of commissions selected to consider each case, with no data save that submitted at the time, are almost always in the nature of a compromise to secure a settlement of that particular controversy, rather than a thorough, painstaking investigation to ascertain the real merits of the case.

In speaking of the Erdman Act, the Commission states, as follows:

" That the Erdman Act marks a great advance in the settlement of railroad labor disputes is shown by the increased frequency with which the Act has been invoked. Within a year after the passage of the Act a fruitless attempt was made to utilize its provisions, but nearly eight years elapsed before another case occurred. In contrast with this, during the past live years the Act has been invoked in forty-six cases, of which only eleven were arbitrations. Thus the method of mediation has been much more frequently used. "Since the law was passed there has been no case of a great railroad strike; and, although the merits of the Erdman Act are great, indeed, certain defects in it have become apparent. L3

The New York Central and Hudson River Railroad Company

"In the cases of mediation there is no attempt on the part of the mediators to make a judicial decision wholly upon the basis of equity ami justice. The primary purpose is to bring the parties together and avert a strike. This is accom• plished by getting the parties sufficiently near together that suggestions may be made to which both agree. While whenever mediation is successful a strike is averted, the adjustments cannot always be regarded as based solely upon the merits of the case. Where the case is one of arbitration under the Erdman Act, the results in the above respects are usually very similar to those of mediation. The arbitrators are three in number. Each side is represented by one arbitrator. It rests, therefore, upon the thin! arbitrator to bring the other two arbitrators as nearly as possible together, anil if lie cannot do so, he must decide between them. This is accomplished by splitting differences, and the case may be adjusted without adequate inves• tigation of the facts involved, in consequence of which the award may not rest upon a basis of equity.

"This method of splitting differences is very unsatisfactory, but it is an inevitable result of mediation or arbitration under the Erdman Act. Feeling in advance that a mediation or arbitration will result in giving only a part of what they ask, the men make maximum demands regarding compensation, rules of service, etc., with the expectation that these demands will not be fully awarded. Upon the other hand, the railroad officers, appreciating the tendency of mediators and arbitrators to split differences, make only minimum concessions, or none at all.

"By the above statements it is not meant to assert that the awards that have been made under the Erdman Act have not been reasonably fair, but that in regard to this matter the Board do not have, nor is it possible for them to obtain, adequate knowledge upon which to formulate a judgment. Cases before the Interstate Commerce Commission, no more complicated than those which have come before the mediators or arbitrators under the Erdman Act, have required a year or more before a decision was made; while the Erdman arbitrators are compelled to make a finding in thirty days, and this, notwithstanding the fact that the Interstate Commerce Commissioners have a large expert staff, including a number of examiners who act for them in taking evidence."

The recommendation of the Commission summarized is as follows:

"Instead of having a board for each case, whose members have other duties and wholly inadequate time in which to perform the work, there would be a continuous board, the members of which give their entire time to the adjustment of wages. This board would have a corps of experts and statisticians; it would be allowed sufficient time to investigate a case fully. Thus an award would be made upon the basis of merit instead of the basis of securing a settlement. If desirable, that feature of the Erdman Act and Canadian Industrial Disputes Act might be added, which provides for one representative from each party to the controversy. If this were done, and the board consisted of five or more members, it would have a permanent majority and a shifting minority. It can be urged in favor of this feature that each representative would inti• mately know the facts regarding his side of the case and the point of view of those represented. A board thus constituted would have a permanent controlling center interested in securing equity, which might l>e assisted in its work by representatives of each of the parties to the controversy.

"Above all, the wage commissions proposed would represent the public. They would work in co-operation with the Interstate Commerce Commission and thus secure to railway employees just wages; and this without regard to whether the employees are fully organized, Under the existing situation, well organized railway labor, illustrated by engineers, firemen, conductors, trainmen, etc., receive consideration from railroads not accorded to the classes of labor that arc not so well organized.

" It does not follow from the above that advances in pay to organized labor have been too frequent or too large, but merely that the question of an advance for a given class of labor engaged in work upon the public utilities should not depend upon organization, but upon justice. Especially for the public utilities is it important that labor should have a just wage, and if the existing wages arc not adequate they should be increased. If a just increase in wages places the public utilities in a position that does not enable them to secure a fair return upon capital invested and maintain a proper reserve, they should be allowed to increase their rates until they are in that position. In short, the public utilities should not impose an undue burden upon the public by paying higher wages than are reasonable, nor should the public receive services from the railroads at a rate so low that labor does not receive fair compensation and capital its fair return. How important this statement is will I>e understood when it is appreciated that, of the grass earnings of the railroads of the United States as a whole, over 42 per cent goes to labor (excluding officials) and on the fifty-two railroads involved in this controversy, over 45 per cent.

"If the arguments above presented are sound, there seems to be no way to obtain justice for the three parties concerned —the railway companies, the railway employees and the public—except through a permanent, board which shall have con• tinually before them the problem of the adjustment of wages."

In concluding a singularly exhaustive and able report, the Board states:

"It is well understood by the Board that the problem for which the above plan is a suggested solution is a complex and difficult one. The suggestion, however, grows out of a profound conviction that the food and clothing of our people, the industries and general welfare of the nation, cannot be permitted to depend upon the policies and the dictates of any par• ticular group of men, whether employers or employees, nor upon the determination of a group of employers and employees combined. The public utilities of the nation are of such fundamental importance to the whole people that their operation must not be interrupted, and means must be worked out which will guarantee this result." 14

Annual Report

Compulsory arbitration of course means that the railroads must submit the question of compensation and conditions of service of all employees to a commission having no interest in, nor responsibility for, the financial result of the operations of the properties. For the employee it involves the surrender to some extent of his liberty of action in deciding whether the wage he receives and the conditions under which he works are satisfactory or not. The proposition is not an attractive one for either the employer or the employee, but it is doubtful if in the long run it will not be better for both than the conditions which may arise without some such arrangement for settling controversies. Whether by a permanent commission, or by mediation or arbitration provided in each case as it arises, there can be little doubt that future controversies between the railroads and their employees regarding compensation, conditions of service, etc., will be settled by some form of arbitration.

It is to be feared that the result of this will be a gradual increase in compensation of railroad employees. What this increase has been during the past seven years is shown by the following figures: In the year 1905 the gross earnings of the New York Central road were $86,095,692. Of this amount, $36,570,212, or 42'47%, was paid in wages. In 1912 gross earnings were $115,479,099, of which amount $54,115,761, or 46'86% was paid in wages. Making due allowance for the additional force in service this company paid its employees in 1912, $9,500,000 more than if the rates of pay of 1905 had been in effect. This increased payment on account of the higher level of wages was equivalent to 4"27% on the outstanding stock of the company.

For the year ended December 31, 1912, the New York Central handled the largest volume of traffic, both passenger and freight, in its history. The year was singularly favorable for handling the traffic at a moderate cost, with no casualties of a serious or unusually expensive character.

In October and November 1911, contract was made by the New York Central Lines for 1912 delivery of 14,500 standard steel underframe 40-ton capacity box cars at an average cost of $790 each. The best price obtainable for these cars for delivery in 1913 is $1,075, an increase of $285 per car, or 36 per cent, which would have made an increase in the cost of these cars of $4,132,500. Two thousand five hundred standard 50-ton steel self-clearing hopper cars were con• tracted for at the same time at $810 each. The price of the same cars contracted for in December 1912, for delivery in 1913, was $1,113 each, an increase of $303 per car, or 37 per cent. Eighty Pacific type freight locomotives contracted for in December 1911, cost $22,456 each; the price of locomotives, identical in every way, in December 1912, for delivery in 1913, was $26,030, an increase of $3,574 per engine. Twenty Pacific type passenger engines for 1912 delivery cost $24,780 each; the price for 1913 delivery is $26,315 per engine, an increase of $1,535 each. 15

The New York Central and Hudson River Railroad Company

The aggregate increase in the cost of this equipment, if purchased in December 1912, compared with the actual prices paid in the latter part of 1911, would amount to $5,206,000 or 33 per cent. During the period covered by this report, every detail of operation has been watched constantly and intelligently, and no expense incurred not absolutely essential to maintain the property in that high state of efficiency necessary to render safe and satisfactory service to the public. Notwithstanding the favorable conditions under which the business was conducted and the large gross earnings, the road earned five per cent on its stock, with a surplus of only $2,743,372.35—or about 114 Per cent on stock—a slender margin from which to provide against less favorable years and to put something back into the property from earnings, which should, if possible, be done every year. The Engineers' Arbitration Commission stated: "If a just increase in wages places the public utilities in a position that does not enable them to secure a fair return upon capital invested and maintain a proper reserve, they should be allowed to increase their rates until they are in that position." In the light of conditions present and immediately prospective it does not seem that an application to the Interstate Commerce Commission for permission to make some increase in freight rates can be long deferred. The preparation for electrical operation of all passenger trains to Harmon on the Hudson River is practically completed and it is expected that the entire Electric Division will be put in full operation in March, 1913. The concourse and waiting room on the express level of the new Grand Central Terminal main station building were opened for use on February 2, 1913, while this report was in process of compilation, thus placing in service the major, portion of the facilities for the handling of passenger traffic in and out of New York city, work on which was begun in 1903. The suburban concourse was opened for partial use on October 27, 1912. Changes in the scope of the plan have delayed the completion of the cross streets and an extension of time wTas obtained: the whole of this work will be finished during 1913. The Adams Express building on Lexington Avenue was completed and occupied early in the year. Vanderbilt Avenue has been reconstructed and is now open for traffic. Work on the arrival station and the new hotel is progressing satisfactorily. The demoli• tion of the hospital building, Lexington Avenue between 42nd and 43rd Streets, and of the old Grand Central Palace is now in process. The entire work of reconstruction of the Terminal has progressed without interruption of train service, and the prompt handling of the heavy traffic without a single serious acci• dent to a passenger from the construction, excavation and blasting necessarily incident to the carrying on of an improvement of this magnitude, is most gratifying. The press and public have been unanimous in their approval of the result as embodied in the ap• pointments and arrangement of the station facilities from a practical as well as an artistic standpoint. I desire to express the appreciation of the management of the unremitting efforts and loyal co-operation of the officers and employees of the Construction and Operating 16

Annual Report

Departments whose efficiency and devotion to duty have accomplished these very grati• fying results. Also to the public, whose patience in overlooking many discomforts and inconveniences incident to the reconstruction period has immeasurably aided in the safe and rapid conduct of the work. Appreciative acknowledgement is made to the Public Service Commission of the State of New York, the Massachusetts Board of Railroad Commissioners and the Inter• state Commerce Commission for helpful co-operation in improving the service and in maintaining friendly and cordial relations between the road and the public. Especial obligation is felt for the timely and efficient efforts of the Interstate Com• merce Commission in expediting the movement and preventing the abuse of cars. The freedom with which an unprecedented volume of traffic has been moved and the absence of any serious car shortage or congestion is due in no small measure to this wise and helpful co-operation. An amendment to the by-laws of the company abolished the Executive Committee as a standing committee and constituted a Finance Committee of which the following directors were made the members: William K. Vanderbilt, J. Pierpont Morgan, William Rockefeller, George F. Baker and Lewis Cass Ledyard. The following changes in Executive officers were made during the year: March 7th, William K. Vanderbilt, Jr, Assistant to the President, was made a Vice President of the Company and of all the New York Central Lines; April 3rd, Alfred H. Smith, Vice President and General Manager of The New York Central and Hudson River Railroad Company was made a Vice President of all the New York Central Lines, re• linquishing his duties as General Manager; April 15th, Abraham T. Hardin was made Assistant Vice President of The New York Central and Hudson River Railroad Company. The following appointments, all being promotions, were made during the year: February 23rd, George W. Porter, Paymaster, to be Assistant Treasurer to succeed Milton S. Barger, who was appointed Treasurer of the New York Central Lines West, succeeding Charles F. Cox, deceased. April 15th, Patrick E. Crowley, General Manager; Howard L. Ingersoll, Assistant General Manager; William J. Fripp, Assistant General Manager. October 1st, Stephen R. Payne, Assistant to the General Manager. Grateful acknowledgement is made of the faithful, efficient performance of duty of employees in every department of the service during the year.

WILLIAM C. BROWN, President. 17

The New York Central and Hudson River Railroad Company

DETAIL OF OPERATING REVENUES

REVENUES FROM TRANSPORTATION

1912 1911 Increase

Freight revenue 365,101,509 99 §61,133,309 92 $3,968,200 07

Passenger revenue 33,134,508 72 31,759,237 98 1,375,270 74

Excess baggage revenue 284,223 78 309,439 04 $25,215 26

Parlor and chair ear revenue 25,230 48 9,633 37

Mail revenue 2,535,408 47 2,556,430 77 21,022 30

Express revenue 4,736,754 97 4,202,777 42 533,977 55

Milk revenue (on passenger trains) 118,867 47 110,134 81 8,732 66

Other passenger train revenue 731,419 52 690,875 04 40,544 48

Switching revenue 1,627,044 38 1,482,638 15 144,406 23

Special service train revenue 60,718 15 194,016 40 133,298 25

Miscellaneous transportation revenue 98,947 14 102,405 36 3,458 22

Total transportation revenues 1108,454,633 07 §102,550,898 26 $5,903,734 81

REVENUES FROM OPERATIONS OTHER THAN TRANSPORTATION

Station and train privileges $240,414 79 $216,196 13 $24,218 66

Parcel room receipts 101,474 82 98,653 20 2,821 62

Storage—freight 93,658 13 87,631 63 6,026 50

Storage—baggage 51,024 85 51,558 20 $533 35

Car service 431,592 82 364,884 28 66,708 54

Telegraph and telephone service 2,665 11 3,427 75 762 64

Rents of buildings and other property 449,275 94 532,886 32 83,610 38

Miscellaneous 233,807 92 144,674 70 89,133 22

Joint facilities revenue—Dr. 225,052 06 156,052 93 68,999 13

Joint facilities revenue—Cr. 66,520 18 60,105 27 6,414 91

Total non-transportation revenues $1,445,382 50 $1,403,964 55

Total operating revenues $109,900,015 57 $103,954,862 81 $5,945,152 76 IS

Annual Report

OPERATING EXPENSES IN DETAIL

{Rail operations only)

MAINTENANCE OF WAS AND STRUCTURES

1912 1911 Increase Decrease Superintendence $827,224 34 $827,914 12 $689 78 Ballast 440,140 46 346,832 87 $93,307 59 Ties 1,693,534 27 1,724,090 00 30,555 79 Rails 1,143,277 40 1,260,955 23 117,677 83 Other track material 784.051 60 892,340 93 108,289 33 Roadway and track 4,638,886 20 4,436,907 78 201,918 42 Removal of snow, sand and ice 404,715 02 206,179 14 198,535 88 Tunnels SI,037 90 51,583 22 29,454 68 Bridges, trestles and culverts 808,920 48 690,549 08 118,371 40 Over and under grade crossings 124,513 16 93,809 69 30,703 47 Grade crossings, fences, cattle guards and signs 229,560 20 223,080 83 6,479 37 Snow and sand fences and snowsheds 2,690 63 1,616 70 1,073 93 Signals and interlocking plants 1,339,079 54 1,205,872 57 133,206 97 Telegraph and telephone lines 167,922 40 140,667 67 27,254 73 Electric power transmission 78,115 89 95,187 28 17,071 39 Buildings, fixtures and grounds 2,009,199 12 1,615,331 34 393,807 78 Docks and wharves 104,565 29 96,639 18 7,926 11 Roadway tools, and supplies 166,884 05 160,898 55 5,985 50 Injuries to persons 183,212 28 126,685 45 56,526 83 Stationery and printing 41.157 97 35,151 77 6,006 20 Other expenses 11,765 86 19,863 29 8,097 43 Maintaining joint tracks, yards and other facilities—Dr. 272,893 47 369,997 77 97,104 30 Maintaining joint tracks, yards and other facilities—Cr. 848,058 54 898,505 32 50,446 78

Totals $14,705,288 99 $13,723,709 20 $981,579 79

MAINTENANCE OF EQUIPMENT

Superintendence $514,976 52. $480,712 87 $34,263 65 Steam locomotives—repairs 6,776,432 (12 5,358,231 36 1,418,200 66 Steam locomotives—renewals and depreciation 1,799,015 21 1,405,809 81* 393,145 40 Electric locomotives—repairs 47,701 03 / 41,582 94 6,118 09 Passenger-train cars—repairs 1,923,009 43] 1,709,632 22 213,377 21 Passu tiger-train cars—renewals and depreciation 270,445 93j 279,902 01* $9,456 08 Freight-train cars—repairs 5,815,717 97 5,757,801 64 57,916 33 Freight-train cars—renewals and depreciation 2,003,336 1,919,653 60* 83,682 45 Electric equipment of cars—repairs 19,133 2r 18,800 74 332 47 Work equipment—repairs 156,229 72 135,916 62 20,313 10 Work equipment—renewals and depreciation 250,450 66 256,451 63 0,000 97 Shop machinery and tools 523,003 64 451,341 23 71,662 41 Power plant equipment 112,442 10 39,877 60 72,564 50 Injuries to persons 173,756 72 127,444 92 46,311 80 Stationery and printing 52,819 46 42,532 01 10,287 45 Other expenses 11,277 39 122,081 74 110,804 35 Maintaining joint equipment at terminals—Dr. 430 72 45 40 385 32 Maintaining joint equipment at terminals—Cr. 9,731 30 9,107 41 623 89

Totals $20,440,446 48 $18,138,770 93* $2,301,675 55

'Revised for purposes of comparison 19

The New York Central and Hudson River Railroad Company

OPERATING EXPENSES IN DETAIL (continued)

(Hail operations only)

TRAFFIC EXPENSES

1912 1911 Increase Decrease Superintendence $461,638 73 1458,340 99 $3,297 74 (Hitside agencies 597,032 41 649,647 95 $52,615 54 Advertising 330,567 80 305,030 20 25,537 60 Traffic associations 106,326 19 107,407 00 1,080 81 Fast freight lines 637,619 97 490,654 76 146,965 21 Industrial and immigration bureaus 24,107 19 24,556 36 449 17 Stationery and printing 138,919 01 131,898 85 7,020 16 Other expenses 20,215 21 12,670 38 7,544 83

Totals $2,316,426 51 $2,180,206 49 $136,220 02

TRANSPORTATION EXPENSES

Superintendence $987,641 18 $1,071,751 67 $84,110 49 Despatching trains 448,433 75 490,082 96 41,649 21 Station employees 6,170,358 66 5,781 650 93 $388,707 73 Weighing and car-service associations 2,283 64 2,019 09 264 55 Coal and ore docks 51,687 06 51,687 06 Station supplies and expenses 696,687 10 706,930 54 10,243 44 Yardmasters and their clerks 671,725 40 649,887 59 21,837 81 Yard conductors and brakemen 2,290,654 18 2,064,076 63 226,577 55 Yard switch and signal tenders 386,616 07 407,254 75 20,638 68 Y'ard supplies and expenses 87,513 79 100,800 21 13,286 42 Yard enginemen 1,655,085 78 1,499.682 77 155,403 01 Enginehouse expenses—yard 464,872 36 419,986 63 44,885 73 Fuel for yard locomotives 1,342,519 61 1,235,859 60 106,660 01 Water for yard locomotives 97,141 13 89,811 70 7,329 43 Lubricants for yard locomotives 31,417 56 22,945 48 8,472 08 Other supplies for yard locomotives 27,322 19 19,596 25 7,725 94 Operating joint yards and terminals—Dr. 380,561 20 491,908 20 111,347 00 Operating joint yards and terminals—Cr. 952,776 59 882,633 55 70,143 04 Mntormen 131,530 45 131,458 54 71 91 Road enginemen 4,802,021 30 4.592,248 17 210,373 13 Enginehouse ex|)en.ses—road 1,623,836 67 1,549,385 97 74,450 70 Fuel for road locomotives 7,374,073 99 7,054,681 94 319,392 05 Water for road locomotives 523,274 20 482,023 98 41,250 22 Lubricants for road locomotives 171,421 17 132,983 16 38,438 01 Other supplies for road locomotives 155,711 47 130,535 41 25,176 06 Operating power plants 257,166 84 242,997 43 14,169 41 Purchased power 5,109 14 2,662 58 2,446 56 Road trainmen 5,070,115 76 4,873,697 56 196,418 20 Train supplies and expenses 1,547,035 25 1,507,196 04 39,839 21 Interlocker, block and other signal operation 1,191,820 65 1,191,758 00 62 65 Crossing flagmen and gatemen 439,363 45 447,081 23 7,717 78 Drawbridge operation 44,967 66 41,089 94 3,877 72 Clearing wrecks 161,761 85 122,916 92 38,844 93 Telegraph and telephone operation 113,789 38 108,769 38 5,020 00

Carried forward $38,453,343 30 $36,783,097 70 20

Annual Report

OPERATING EXPENSES IN DETAIL (concluded) (Rail operations only)

TRANSPORTATION EXPENSES (concluded)

1912 1911 Increase Decrease Brought forward $38,453,343 30 $36,783,097 70 Stationery and printing 346.501 74 285,761 28 $60,740 46 Other expenses 99,036 05 56,761 77 42,274 28 Loss and damage—freight 1,062,992 57 781,670 58 281,321 99 Loss and damage—baggage 16,359 00 19,439 51 $3,080 51 Damage to property 217,652 82 294,388 30 76,735 48 Damage to stock on right of way 36,623 96 47,657 42 11,033 46 Injuries to persons 1,030,087 36 904,699 41 125,387 95 Operating joint tracks and facilities—Dr. 117,223 80 123,505 12 6,281 32 Operating joint tracks and facilities—Cr. 327,618 52 361,950 15 34,331 63

Totals $41,052,202 08 $38,935,030 94 $2,117,171 14

GENERAL EXPENSES

Salaries and expenses of general officers $276,743 41 $263,458 73 . $13,284 68 Salaries and expenses of clerks and attendants 1,255,836 51 1,181,078 77 74,757 74 General office supplies and expenses 164,477 14 113,280 94 51,196 20 Law expenses 459,449 39 450,315 69 9,133 70 Insurance 233,442 28 252,578 98 $19,136 70 Pensions 206,705 01 178,692 22 28,012 79 Stationery and printing 122,975 71 95,229 69 27,746 02 Other expenses 115,998 19 196,383 18 80,384 99 (Jeneral administration joint tracks, yards and ter• minals^—Dr. 6,606 28 5,423 44 1,182 84 General administration joint tracks, yards and ter• minals—Cr. 45,444 67 13,956 42 31,488 25

Totals $2,796,789 25 $2,722,485 22 $74,304 03

PERCENTAGE OF RAIL OPERATING EXPENSES TO REVENUE FROM RAIL OPERATIONS BY GROUPS

1912 1911 Maintenance of way and structures 1338 1320 Maintenance of equipment I860 1745 Traffic expenses 211 210 Transportation expenses 3735 3745 General expenses 2'55 262

Totals 73 99 7282 21

The New York Central and Hudson River Railroad Company

DETAIL OF AUXILIARY OPERATIONS

Increase in Decrease in earnings or earnings or decrease in increase in 1912 1911 cost cost FERRY LINES Revenues $533,669 57 $458,409 91 $75,259 66 Expenses 545,655 65 502,200 25 $43,455 40

Deficit $11,986 08 $43,790 34 $31,804 26

HARBOR TERMINAL TRANSFERS Revenues $2,030,966 43 $1,985,044 28 $45,922 15 Expenses 2,357,068 91 2,193,015 67 $163,453 24

Deficit $326,102 48 $208,571 39 $117,531 09

DINING AND SPECIAL CAR SERVICE Revenues $1,074,995 26 $1,024,515 89 $50,479 37 Expenses 1,248,288 36 1,160,180 20 $88,102 16

Deficit $173,293 10 $135,070 31 $37,022 79

ELECTRIC LIGHT AND POWER PLANTS Revenues $269,705 16 $223,336 61 $46,368 55 Expenses 125,016 03 108,982 18 $10,033 85

Net revenue $144,689 13 $114,354 43 $30,334 70

GAS PRODUCING PLANTS Re venues 533,552 08 $28,836 93 $4,715 15 Expenses 14,013 65 14,148 85 135 20

Net revenue $19,538 43 $14,088 08 $4,850 35

GRAIN ELEVATORS Revenues $439,093 80 $367,163 40 $71,930 40 Expenses 217,147 78 183,318 92 $33,828 86

Net revenue $221,946 02 $183,844 4S $38,101 54

STOCK YARDS Revenues $656,392 56 $6.50,020 03 $6,371 93 Expenses 355,014 88 357,468 75 2,453 87

Net revenue $301,377 68 $292,551 88 $8,825 80

STATION RESTAURANTS Revenues $353,502 57 $316,223 60 $37,278 97 Expenses 302,438 71 275,551 99 $26,886 72

Net revenue $51,063 80 $40,671 01 $10,392 25

FREIGHT STORAGE PLANTS Revenues $184,191 79 $145,899 46 $38,292 33 Expenses 86,736 79 74,523 08 $12,213 71

Net revenue $97,455 00 $71,376 38 $26,078 62

DEMONSTRATION FARMS Revenues $3,014 67* $3,121 91 $107 24 Expenses 3,676 79* 11,100 90 $7,424 11

Deficit $062 12* $7,978 99 $7,316 87

GR-ND TOTAIS Revenues $5,579,083 89 $5,202,572 02 $376,511 27 Expenses 5,255,057 55 4,881,090 79 $373,900 76

Net revenue $324,026 34 $321,475 83 $2,550 51

•6 months to June 30, 1012 22

Annual Report

•TAXES ACCRUED

ON CAPITAL STOCK Stale of New York New York Central & Hudson River Railroad Co $291,988 87 New York & Harlem Railroad Co 37,684 58 Rome Watertown & Ogdensburg Railroad Co 19,027 68 Mohawk ci Mnlone Railway Co 7,500 00 Boston & Albany Railroad Co 7,418 91 West Shore Railroad Co 6,314 45 Geneva Corning' iv Southern Railroad Co 4,920 00 New Y'ork (fe Putnam Railroad Co 4,875 00 Spuyten Duvvil & Port Morris Railroad Co 1,978 00 Utica & Black River Railroad Co 1,930 25 Carthage Watertown & Sackets Harbor Railroad Co 992 57 New York & Ottawa Railway Co 900 00 St Lawrence & Adirondack Railway Co 659 25 Wallkill Valley Railroad Co 550 32 Troy & Greenbush Railroad Association 481 25 Niagara Falls Blanch Railroad Co 437 50 Carthage & Adirondack Railway Co 375 00 Gouverneur & Oswegatchie Railroad Co 262 50 Oswego tv Rome Railroad Co 168 75 Mahopac Falls Railroad Co 75 00 Tivoli Hollow Railroad Co 24 38 New York Central Niagara River Railroad Co 21 08 Buffalo Krie Basin Railroad Co 10 13

Commonwealth of Massachusetts Boston cc Albany Railroad Co and its leased lines

Commonwealth oj Pennsylvania Beech Creek Railroad Co S2S,600 00 Geneva Corning & Southern Railroad Co 22,498 04 Beech Creek Extension Railroad Co 2,247 50 New Y'ork Central & Hudson River Railroad Co 1,470 00 Chest Creek Railroad Co 10 00 Gallitzin Coal & Coke Co 5 00 54,830 54

Slate oj New Jersey New York & OttaWI Bridge Co and Cornwall Bridge Co 252 00

ON BONDED DEBT OF LEASED LINES 5,433 48 ON GROSS EARNINGS 186,938 16 ON REAL ESTATE (including leased lines) 4,259,880 79 ON SPECIAL FRANCHISES (including leased lines) 540,839 48 CANADIAN PROVINCIAL 1,692 71 RAILROAD COMMISSIONERS' ASSESSMENTS (Massachusetts) 16,782 71 FEDERAL GOVERNMENT INCOME TAX 128,245 84 COUNTY TAXES ON NEW MORTGAGES 75,000 00

Total railway taxes accrued $5,902,521 17 MISCELLANEOUS TAX ACCRUALS, FROM JULY 1, 1912 On income from securities owned 87,350 00 On physical property held as investment 8,611 73 15,961 73

Total of all taxes $5,918,482 90

DIVIDENDS

Four at 11% on 2,227,293 shares of capital stock, payable April 15, July 15, October 15, 1912, and January 15, 1913, aggregating 5% $11,136,465 00 2,1

The New York Central and Hudson River Railroad Company

DEDUCTIONS FROM INCOME

Interest on bonds

Interest at Si<~, on Gold mortgage bonds $3,290,000 00 Interest at i\cr, on Lake Shore collateral bonds 3,170,244 00 Interest at s\% on Michigan Central collateral bonds 676,775 58 Interest at 3Jr; on Debenture of 1900 192,500 00 Interest at 4 ri on Gold debentures of 1904 1,920,000 00 Interest at 4 % on Gold debentures of 1912 324,583 47 Interest at 3J% on Gold mortgage bond on Spuyten Duyvil & Port Morris Railroad 87,500 00

Total $9,661,603 05

Miscellaneous obligations

Interest at 4J% on three year gold notes of 1911 $1,350,000 00 Interest at 4K% on three year gold notes of 1912 553,125 00 Interest on equipment trust certificates 1907, 1910 and 1912 1,031,538 64 Interest on loans, notes and bills payable 336,275 64 Interest on real estate mortgages 1,150 70 On account of St Lawrence & Adirondack Railway Co: Interest at 5% on $800,000 first mortgage bonds $40,000 00 Interest at 69c on $400,000 Second mortgage bonds 24,000 00 Rental of leased line 10,000 00 74,000 00

On account of New York & Ottawa Railway Co: Interest at 4% on $1,456,000 First mortgage bonds 58,240 00

Total $3,404,329 98

Rentals of leased lines 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 3J',' on $3,500,1X10 First mortgage bonds $122,500 00 Interest at 4 % on $3,964,000 Consolidated mortgage gold bonds 158,560 00 281,060 00

CARTHAGE AND ADIRONDACK RAILWAY Interest at 4% on $1,100,000 First mortgage bonds 44,000 00

DUNKIRK ALLEGHENY VALLEY AND PITTSBURGH RAILROAD Interest at *i% on 12,900,000 First mortgage bonds $130,500 00 Dividend at 1J% on 13,000 shares of capital stock 19,500 00 Organization expenses 500 00 150,500 00

GENEVA CORNING AND SOUTHERN" RAILROAD Interest at 6% on $3,500,000 Fine Creek First mortgage bonds $210,000 00 Dividend at Si^'c on 23,250 shares of common capital stock 81,375 00 Dividend at 4% on 50,000 shares of preferred capital stock 200,000 00 491,375 00

Carried forward $1,456,935 00 24

Annual Report

DEDUCTIONS FROM INCOME—{continued)

Rentals of leased lines—(continued)

Brought forward $1,456,935 00

GOUVERNEUR AND OSWEGATCHIE RAILROAD Interest at 5% on $300,000 First mortgage bonds 15,000 00

MOHAWK AND MA LONE RAILWAY Interest at 4 % on $2,500,000 First mortgage gold bonds $100,000 00 • Interest at 3J% on $3,900,000 Consolidated mortgage bonds 136,500 00 Dividend at 4% on 50,000 shares of capital stock 200,000 00

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

NEW YORK AND HARLEM RAILROAD Interest at 3J% 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

NEW YORK AND PUTNAM RAILROAD Interest at 5% on $1,200,000 New York & Northern First mortgage bonds $60,000 00 Interest at 4% on $4,025,000 New York & Putnam First consolidated mortgage bonds 161,000 00 221,000 00

ROME WATERTOWN AND OGD ENS BURG RAILROAD Organization expenses $7,000 00 Interest at 5 % on $9,076,000 R W & O First consolidated mortgage bonds si.">:;.S(ii) 00 Interest at 4 % on $419,000 R W & O First consolidated mortgage bonds 16,760 00 Interest at 31% on $500,000 R W & O First consolidated mortgage bonds 17,500 00 Interest ;it 5 % on $375,000 R W & O Terminal bonds 18,750 00 Interest at 6 % on $100,000 Oswego Railroad Bridge bonds 6,000 00 Interest at 6 % on $175,000 Syracuse Plnenix & Oswego bonds 10,500 00 Interest ;vl 5 % on $130,000 Norwood & Montreal bonds 6,500 00 529,810 00

Dividend at 5 % on 100,000 shares of capital stock 500,000 00 Rental of Niagara Falls Branch Railroad Dividend at 7% on 2,500 shares of capital stock 17,500 00 Rental of Oswego & Rome Railroad Interest at 7% on $350,000 First mortgage bonds $24,500 00 Interest at 5% on $400,000 Second mortgage bonds 20,000 00 44,500 00

Rental of Utica & Black River Railroad Organization expenses $4,500 00 Interest at 4% on $1,950,000 First mortgage bonds 78,000 00 Dividend at 7r, on 11,030 shares of capital stock 77,210 00 159,710 00

Rental of Carthage Watertown & Sackets Harbor Railroad 371% of gross earnings for year ended December 31, 1912 70,898 70 1,329,4IS 70

Carried forward $4,946,853 70 25

The New York Central and Hudson River Railroad Company

DEDUCTIONS FROM INCOME—(concluded)

Rentals of leased lines—(concluded)

Brought forward $4,946,853 70

SPUYTEN DUYVIL AND PORT MORRIS RAILROAD Dividend at 8^ on 9,890 shares of capital stock 79,120 00

TROY AND GREENBUSH RAILROAD Rental at 7% on 5,500 shares of capital stock ($50 per share) 19,250 00

WALLKILL VALLEY RAILROAD Interest at 3$% on $250,000 First mortgage bonds $8,750 00 Interest at 3j% on $330,000 Second mortgage bonds 11,550 00 Dividend at 3j% on 3,300 shares of capital stock 11,550 00 31,850 00

WEST SHORE RAILROAD Interest at 4% on $50,000,000 First mortgage bonds 2,000,000 00

BOSTON AND ALBANY RAILROAD Cash rental $2,000,000 00 Interest at 3J% on $3,858,000 Refunding bonds 135,030 00 Interest at 4 % on $3,627,000 bonds of 1893 145,080 00 Interest at 3J% 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 4J% on $1,000,000 Improvement bonds of 1912 22,500 00 Organization expenses 10,000 00 Rental of Pittsfield & North Adams Railroad Dividend at 5% on 4,500 shares of capital stock 22,500 00 Rental of Ware River Railroad Dividend at 7% on 7,500 shares of capital stock 52,500 00 Cash rental of North Brookfield Railroad 3,000 00 Rental of Providence Webster & Springfield Railroad 25% of gross earnings for year ended December 31, 1912 12,508 62 2,978,118 62

Total rentals of leased lines $10,055,192 32 26

Annual Report

DETAIL OF EXPENDITURES FOR IMPROVEMENTS TO PROPERTY

New construction Connection between West Shore Railroad and X Y C main line east of Utica Improvements in station, yard and terminal facilities Utica SI,353,057 24 New passenger statin and other improvements, Rochester 690,991 40 West Albany shops 21(),62.S SU New yard between State Fair grounds and Belle Isle, Syracuse 33,716 33 New creosoting plant. Home, completion of work 10,301 71 Additional freight house, etc. Little Falls, completion of work 10,884 93 New water supply from Casper Creek. Clinton Point, completion of work 37,760 13 New passenger station and other improvements, Poughkeepsie N2.S12 33 Improvements at various places 207,422 22 2,637,575 IS

Roadway and bridge improvements Four-tracking. Spuytcn Duyvil to Peekskill: Track work and grading $631,117 13 Right of way and station grounds 85,380 15 Bridges, trestles and culverts 19,767 46 Crossings and signs 36.173 15 Station improvements 203,930 99 Signals 163,278 98 Engine houses, shops and turntables 102,681 87 Miscellaneous work 100,537 51 11,342,867 24

Four-tracking, Hudson division 2,594,608 15 Revising grade and third-tracking, Syracuse Junction branch 361,922 44 Fifth track. .Minna to Sullivan, completion of work 5,034 77 Double-tracking, Albion to Medina, completion of work 12,268 66 Tracks and sidings, various places 378,447 75 Interlocking and automatic signal apparatus 395,309 27 Electrification of lines, Spuyten Duyvil to Croton 813,409 03 Change of line, account barge canal crossing U & M V R R at Rome 42,258 94 Interchange tracks at Salina 32,947 50 Other improvements 11,274 62 5,990,34S 37

Change of grade crossings, Buffalo 1208,177 04 Change of grade crossings, various places 218,369 32

Land at various places 1,056,610 93

Net increase 1 road account

New equipment TRUST EQUIPMENT ADDED Locomotives and appliances, trust of 1907 $44,356 54 Passenger and freight cars, " " 32,743 70 Locomotives and appliances, trust of 1910 56,871 63 Passenger and freight cars, " 25,139 98 50 steam locomotives, trust of 1912 1,226.780 00 5,850 freight train cars. " * " 5,022.29.-, (III 70 passenger train cars, " " " 1,070.180 00 150 pieces of work equipment, trust of 1912 194.430 00

Equipment replacement fund EQUIPMENT RETIRED 175 locomotives $2,701,046 47 20 passenger train cars 187,222 27 2,270 freight train cars 1.557,656 84 624 pieces of work equipment 310,063 22 5 pieces of floating equipment 84.300 00 $4,843,288 80

Credit to equal the amount required for trust installments 1,748,240 66

80.591.529 46 EQUIPMENT ADDED On account steam locomotives $4,205,196 97 On account electric locomotives 24,628 00 On account passenger-train cars 503,582 51 On account freight-train cars 583,602 37 On account work equipment 49,059 24 On account marine equipment 439,992 78 5,806,061 87 785,467 59

Net increase in equipment account

Net increase in road and equipment accounts 27

The New York Central and Hudson River Railroad Company

DETAIL OF EXPENDITURES FOR IMPROVEMENTS TO PROPERTY

AMOUNTS EXPEND*;!) FOR CONSTRUCTION ON LEASED LINES

Grand Central Terminal Improvement $7,119,741 60

New York & Harlem Railroad Four-tracking, New York to North White Plains' Right of way and station grounds $303,582 94 Bridges, trestles and culverts 6,462 18 Track work and grading 51,612 50 Station improvements 8,470 59 Signal, telephone and other items 15,823 07 $.185,951 28

Electrification, New York to North White Plains 29,229 54 Substation 50th Street, changes and new machinery 144,206 58 Station and other improvements 78,529 50 Tracks anil sidings at various places 43,816 12 Miscellaneous improvements 60,011 29

TTesf Shore Railroad Grade revision, L'tica to Central Junction $457,751 00 Enlarging engine house and repair shop, Ravena 65,6 . 73 Interlocking signal apparatus, etc 96,249 65 Tracks ami sidings at various places 131,142 96 New pier, Weehawken 52,869 16 Abolition of grade crossings, New Durham 17,848 26 Tunnel improvements, Haverstraw. Congers and Cazenovia 21,195 71 Bridge and drawbridge improvements 54,436 00 Yard improvements at various places 48,757 20 Detour at Harbor SI,346 03 Station and other improvements 72,588 79 Land at various places 119,978 45

$1,169,854 94 Less sundry c ml its 32,339 49 1,137,515 45

Boston

Spuyten Duyvil & Port Morris Railroad Four-tracking and signal improvements $147,936 13 Improvements at various points 9,140 47

Carried forward 28

Annual Report

DETAIL OF EXPENDITURES FOR IMPROVEMENTS TO PROPERTY

AMOUNTS EXPENDED FOB CONSTBUCTION ON LEASED LINES (concluded) Brought forward $10,912,529 So Rome Watertown & Ogiknsburg Railroad Double-tracking 3,490 06 Tracks and sidings at various places 7,321 21 Passing sidings and storage tracks 8,571 10 Improvement in freight facilities, LeRoy Street yard, Watertown 9,361 41 New passenger station, Watertown, balance 4,203 67 New passenger and freight station, Potsdam 9,259 95 Station improvements 0,755 77 Bridge improvements .1,826 47 Signal improvements 0,058 75 Engine house improvements ;2,696 61 Land at Fulton 4,441 70 Sundry small improvements 6,687 71

Utica & Black River Railroad Tracks and sidings at various places $31,706 28 Land and premises, various places 30,144 43 Yard improvement, Lowville 15,943 79 Various small improvements and adjustments 7,321 82

New York A Putnam Railroad Double-tracking and passing sidings $65,269 00 Elimination of grade crossing, Kings!,ridge Road and 230th Street 50,506 50 Tracks and sidings at various places 12,124 35

Beech Creek Railroad Boiler shop, Avis $71,403 84 Additional yard facilities, Avis 21 156 62 Improvements to shops, engine houses, etc., various places 33,017 65 Various small improvements ami adjustments 15,241 96

?I40.N2(| 117 Leas transfer to Beech Creek Extension Railroad Co 15,517 50

Geneva Corning ct* Southern Railroad Converting locomotive shop into repair shop, Corning $13,651 68 Track and sidings at various places 33,377 04 Improvements at stations 22,092 18 Various small improvements 9,033 78

Troy & Greenbush Railroad Land in Troy $85,543 83 12,164 87 Various small improvements

Various roads Bridge strengthening, track improvement, adjustments and completion of work at sundry places 69,256 93 Beech Creek Extension Railroad 10,243 30 Carthage & Adirondack Railway 21,066 27 Carthage Watertown & Saekets Harbor Railroad 2,143 77 Gouverneur & Oswegatchic Railroad 25,045 65 Mohawk tfc Malone Railway 16,550 23 New Jersey Junction Railroad 13,589 44 Niagara Falls Branch Railroad 33,799 97 Oswego & Rome Railroad 1,233 49 Tivoli Hollow Railroad 6,965 13 Tonawanda Island Bridge 44,350 75 Wallkill Valley Railroad Net amount charged to leased lines construction $12,229,631 31 29

The New York Central and Hudson River Railroad Company

CAPITALIZATION Capital stock Number of shares authorized 2,500.000 Total par value authorized 1250,000,000 00 Number of shares issued 2,227,244 Total par value outstanding $222,724,400 00 Consolidation certificates not converted 49 Consolidation certificates outstanding 4,900 00 Total number of shares outstanding 2.227,293 Total par value outstanding $222,729,300 QO Far value per share $100.00 Dividend for the year five per cent Amount of capital stock per mile of road owned (805*49 miles) $276,514.05 Mortgage, bonded and secured debt •ate of Date of Amount of Amount [Hmii-ii mid Rate of Payable on th* now outHtanttiui interest fir at Uar of MORTGAGE BONDS authorized l.Bue / January Gold mortgage 1897 July $100,000,000 00 94,000,000 00 31% \ and July COLLATERAL TRUST BONDS Gold bonds, Lake \ / February 1898 Feb. 100,000,000 00 90,57S,400 00 3J% Shore collateral 1 and August Gold bonds, Michigan / February 1898 Feb. 21,550,000 00 19,336,445 00 31% Central collateral \ and August PLAIN BONDS, DEBENTURE! AND NOT / January 1900 July 5,500,000 00 5,500,000 00 31% Debenture \ and July / May and 1904 May 50,000,000 00 48,000,000 00 4% Cold debentures 1 November /January 1912 Jan. 50,000,000 00 9,156,000 00 4% Gold debentures \ and July / / March and 1911 Mar. 30,000,000 00 30,000,000 00 41% Three year gold notes \ September ? / May and 1912 May HO ,000.000 00 20,000,000 00 41%' Three year gold notes \ November :ONS EQUIPMENT TRUST OHUOA' / May and Equi 1907 Nov. 11,904,901 78 7,936,601 18 5% Ti ifii 1 November Equipment trust 1 J January 1910 Jan. 6,509 30 ,641 46 certifirates } ,4136 5 ,537 *j% \ and July Equipment trust ) / January 1912 Jan. 7,156,741 50 7,156,741 50 certificates 41% \ and July Equipment trust ] / April and certificates (Boston \ 1912 Oct. 7,500,000 00 5,220,000 00 41% \ October & Albany Railroad) J MISCELLANEOUS, FUNDED OBILIGATION S Spuyten Duyvil and / June and Port Morris Railroad 1909 June 20,000,000 00 2,500,000 00 31% \ December first mortgage Mortgage on real 19th day of estate in citv of New 1912 July 1,000,000 (X) 1,000,000 00 31% Mar., June, York Sept., Dec. Mortgage on real [ 18th day of estate in city of 1911 May 2,500 00 2,500 00 6% { May and Utica [ November Total amount of funded debt outstanding $346,028,225 14 .

Amount per mile of road owned (805"49 miles), excluding Lake Shore and Michigan Central collaterals, Debenture of 1900, and Spuyten Duyvil and Port, Morris first mortgage bonds, $283,198.27 London fiscal agents MKSSKS MORGAN, GHBNPELL A COMPANY, 22 Old Broad Street, London, E. C, England f Transfers stock Treasurer New York Pays dividends on stock issued in America Transfers registered bonds Pays interest on coupon and registered bonds Union Trust Company of New York IRegisters stock issued in America

3 f Transfer stock issued in England Messrs Morgan, Grenfell a- Company, London \ Pay dividends on stock issued in England Union of London and Smith's Bank, Limited Registers stock issued in England 30

Annual Report

CONDENSED GENERAL BALANCE SHEET, DECEMBER 31, 1912

ASSETS

PROPERTY OWNED AS INVESTMENT Physical property owned Road and equipment to June 30, 1907 Road Equipment $214,313,267 48

Road and equip men! since June 30, 1907 Road $31,041,476 34 Equipment 8,746,516 62 General expenditures 389.558 71 Trust equipment 28,260,447 01 8,437,998 68

Less Equipment replacement fund $807,638 41 Amount equalling trust installments 2,975,865 20 3.783.503 til l>4,654,495 07 $27N,9

Securities owned Securities of controlled companies, pledged : stork $110,295,970 00 Security of proprietary, affiliated and controlled companies, unpledged: Stock $44,911,919 37 Funded debt 9,839,904 49 54,751,823 86

Other permanent investments Physical property S4,253.755 44 Grand Central Terminal Improvement 29,960,582 01 New York & Harlem Railroad Company 20,103,508 21 Securities 7,007,586 98 61,325,432 64

Total property owned as investment $505,340,989 05 WORKING ASSETS Cash $6,955,383 77 Marketable securities Stock $27,211,110 .81 Funded debt 28,886,772 67

Loans and bills receivable New York State Realty & Terminal Company 823,370.000 00 Cleveland Cincinnati Chicago & SI Louis Railway Company 2,500,000 oo Oneida Railway Company 603.000 00 Terminal Railway of Buffalo 990,000 00 Clearfield bituminous Coal ('orporation 700,000 00 New Jersey Shore Line Railroad Company 496,000 00 New York Slate Railways 400,000 00 Rutland Railroad Company 203,000 00 Syracuse Rapid Transit Company 175,000 00 Fair Land Realty Company 150,000 00 Mutual Terminal Company of Buffalo 170,000 00 Miscellaneous 249,680 13 30,006,680 13

Net traffic, car mileage and per diem balance 5,405,033 11 Net balance due from agents and conductors 3,846,838 79 Miscellaneous accounts receivable 8,043,821 69 Materials and supplies 8.731,957 74 Unmatured interest, dividends and rents receivable 3,542,608 92 95,419,096 S2

DEFERRED DEBIT ITEMS Advances Temporary advances to affiliated companies $11,418 01 Working funds 181.527 53 Other advances West Shore Railroad Company $11,585,499 42 Geneva Corning & Southern Railroad Company 3,032,102 13 Rome Watertown & Ogdensburg Railroad Company 3.0.50,978 74 Beech Creek Railroad Company 1,276,727 68 Other companies 2,905,953 20 21,851,261 17

Insurance premiums paitl in advance 2,647 82 Special deposits 5.572,832 61 Cash in redemption fund 1,000 00 Items in suspense 3,715.128 24

$632,095,901 25 31

The New York Central and Hudson River Railroad Company

CONDENSED GENERAL BALANCE SHEET, DECEMBER 31, 1912

LIABILITIES

Capital stock, i 5222,724,400 00 Consolidation certificates 4,900 00 5222,729,300 00

MOKTOAGK, BONDED AND SECURED DEBT

Funded debt Mortgage bonds Gold mortgage bonds $91,(100,000 00 Collateral trust bonds Lake Sliore collateral S90.o78.400 00 Michigan Central collateral 19,336,445 00 109,914,845 00'

Debentures and notes Debenture of 1900 $5,500,000 00 Gold debentures of 1904 48,000,000 00 Gold debentures of 1912 9.150,000 00 Three year gold notes of 1911 30.000,000 00 Three year gold notes of 1912 20,000.000 00

Equipment trust obligations Equipment trust certificates 1907 $7,936,601 18 Equipment trust certificates 1910 5,641,537 46 Equipment trust certificates 1912 7.156.741 50 Boston & Albany equipment trust certificates 1912 5,220,000 00 » Miscellaneous Spuyten Duyvil & Port Morris Railroad mortgage bonds $2,500,000 00 Mortgages on real estate 1,002,500 00 3,502,500 00 346,028,225 14 .

Won KING LIABILITIES Loans and bills payable 514.190.600 00 Net traffic, car mileage and per diem balance 6,410,800 54 Audited vouchers and wages unpaid 9.772.091 61 Matured dividends, interest and rents unpaid 4,267,952 82 Matured mortgage, bonded and secured debts unpaid 10,790 00 Working advances due tn other companies Boston & Albany Railroad Company $1,257,208 55 Rome Watertown A Ogdensburg Railroad Company 112.999 39 Geneva Corning A Southern Railroad Company 544,542 92 West Shore Railroad Company 92.154 46 Carthago A Adirondack Railway Company 25,402 44 Wallkill Valley Railroad Company 59,349 37

Other working liabilities 4.835 60 36,748,727 70

Dividends declared and interest and rents accrued, not due $6,491,775 73 Taxes accrued 521,954 65

DEFERRED CREDIT ITEMS Unextinguished premiums on outstanding funded debt $17,940 00 Operating reserves Reserves for replacement of property 651,159 82 669,099 82

APPROPRIATED SURPLUS

Additions to property through income since June 30, 1907 S5.0OS.735 49 Invested in other reserve funds 112,669 68 5,721,405 17

FREE SURPLUS Profit and loss 13,185,413 04

$632,095,901 25 32

Annual Report

STOCK AND BONDS OWNED OR ACQUIRED UNDER LEASE

Stock

No of nhures Par value Albany Southern Railroad Co 36 $3,000 00 American Express Co 30,000 3,000,000 00 % Beech Creek Extension Railroad Co 51,790 5,179,000 00 *V Beech Creek Railroad Co 25 1,250 00 Boston Terminal Company 1,000 100,000 00 * Buffalo Erie Basin Railroad Co 200 13,503 19 New York State Railways common 130,043 13,604,300 00 New York State Realty & Terminal Co 1,000 100,000 00 ! Niagara Falls Branch Railroad Co 2,500 250,000 00 Oswego & Rome Railroad Co 2,022 202.2(H) 00 Pennsylvania Coal & Coke Co 11,250 502,500 00 Pennsylvania & Western Railroad Co 2,000 100.0(H) 00 ^'ittsfield & North Adams Railroad Co 722 72,200 00 Queenston Suspension Bridge Co (£25 each) 336} 40,000 00 *Rome Watertown & Ogdensburg Railroad Co 80.081 8,008,UH) 00 Rutland Railroad Co preferred 23,520* 2,352,050 00 tf^St Lawrence & Adirondack Railway Co 16,150 1,015,000 00

Carried forward $138,210,631 19 33

The New York Central and Hudson River Railroad Company

STOCK AND BONDS OWNED OR ACQUIRED UNDER LEASE (concluded)

Stork— (continued)

Par value Brought forward S13S.210.631 19 Duyvil & Port Morris Railroad Co 989.000 00 State Line & Stony Point Railroad Co (ten per cent paid) 185 18,500 00 wTerminal Railway of Buffalo 5,000 500,000 00 *TivoK Hollow Railroad Co 325 32,500 00 Aonawanda Island Bridge Co 2,000 50,000 00 Woronto Hamilton & Buffalo Railway Co 12,999 1,299,900 00 Troy Union Railroad Co 150 15,000 00 WUtica & Black River Railroad Co 20,522 2,052,200 00 «/VYallkiU Valley Railroad Co 3,300 330,000 00 West Branch Coal Co 2,000 200,000 00 ^/Western Transit Co 10,000 1,000,000 00 Wfeet Shore Railroad Co 100,000 10,000,000 00 Miscellaneous 346,303 00

Total par value of Stock 155,044,034 19

Bonds

Total amount held Mieech Creek Railroad Co $500,000 00 Mieeeh Creek Extension Railroad Co 3,964,000 00 Cherry Tree & Dixonville Railroad Co Debenture certificates 564,909 25 ^Chester & Becket Railroad Co 50,000 00 Clearfield Bituminous Coal Corporation 275,000 00 Clearfield Bituminous Coal Corporation Mortgage gold bonds 750,000 00 ^Dunkirk Allegheny Valley & Pittsburgh Railroatl Co 2,900,000 00 Mfeff York & Ottawa Railway Co 1,456,000 00 J^'ew York & Putnam Railroad Co 38,000 00 ijNcw York Central & Hudson River Railroad Co Lake Shore collateral 10,000 00 ^Tsew York Central & Hudson River Railroad Co Michigan Central collatei 445 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 ^v.yracusc Geneva & Corning Railway Co Second mortgage 600,000 00 ^Terminal Railway of Buffalo 500,000 00 •^Toronto Hamilton A Buffalo Railway Co Second mortgage 372,000 00 MVallkill Vallev Railroad Co First mortgage 250,000 00 I Wallkill Valley Railroad Co Second mortgage 330,000 00 Miscellaneous 181,916 28

Total par value of lionds $13,369,570 53

Grand total par value of stock anil bonds $168,413,604 72

The securities held by the company are carried i: «.ks at a total value of $200,942,153.51 34

Annual Report

NEW YORK CENTRAL LINES EQUIPMENT TRUSTS

The following statement shows the character of the equipment acquired under the terms of the New

York Central Lines Equipment Trust Agreements and Leases of 1907,1010 and 1012, together with the total amount of certificates issued and the amount now outstanding:

EQUIPMENT TRUST OF 1907

Company Freight Certificate"1 ii ut"t audit, K Road redeemed Dec. 31, lliu NYC4HRRR 447 88 4,000 $11,904,901 78 $3,968,300 60 $7,936,601 18

L S 4 M S Ry 125 25 4,000 200 6,708,392 73 2,236,130 90 4,472,261 83

CI4SRR 2 8 3,400 150 3.779,976 60 1.259,992 20 2,519,984 40

JICltR 5 15 3,500 200 3,906,381 73 1,302,127 25 2.604,254 48

C C C 4 St L Ry 112 17 1,525 100 3,700,347 16 1,233,449 05 2.460,898 11

Totals 691 153 16,425 650 830.000,000 00 810,000,000 00 $20,000,000 00

EQUIPMENT TRUST OF 1910

Certificates tssned Hula nee r<.r'..> per rent i-f certttifiiieft Freight mini- li.-.innu iini'i-i'st Certificates nutatau-lliiic Road iaottVM ""aw'6 at *<4 per cent redeemed Doc. ai, wis N Y C 4 H R R R 127 30 4,000 $6,509,466 30 $867,928 84 $5,641,537 40 tSiJISlij 75 60 12,500 250 13,337,243 10 1,778,299 08 11,558,944 02

CI 4 S R R 31 2 1,000 1,638,607 50 218,481 00 1,420,120 50

M C R R 112 34 3,300 5,520,295 80 736,039 44 4,784,250 30

C C C 4 St L Ry 80 6 1,600 2,994,387 30 399,251 64 2,595,135 66

Totals 425 132 22,400 250 $30,000,000 00 $4,000,000 00 $20,000,000 00

EQUIPMENT TRUST OF 1912

CartUUatM iwmed Company Puaenrer FreiB.it viilin- lirarinn interest Road X Y C * H R R R at) 70 6,350 150 $7,156,741 50

L S 4 M S Ry 3,750 2,974,961 25

CI 4S R R 250 194,280 75

H C R R 20 2,500 2,275,663 50

C C C 4 St L Ry 48 25 1,500 2,398.353 00

Totals 118 95 14,350 150 $15,000,000 00 35

The New York Central and Hudson River Railroad Company

MILEAGE STATISTICS

LOCOMOTIVE MILEAGE

REVENUE SERVICE 1912 1911 Increase Decrease Freight locomotive-miles 25,733.032 26,419,053 686,021 Passenger locomotive-miles 27,459,923 27,312,765 147,158 Mixed locomotive-miles 311,379 57,151 254,228 Special locomotive-miles 40,278 94,420 54,142 Switching locomotive-miles 16.022,931 14,474,544 1,548,387

Total revenue locomotive mileage 69,567,543 68,357,933 1,209,610 Non-revenue locomotive mileage 3.362,115 2,777,571 584,544

Total locomotive mileage 72,929,658 71.135,504 1,794,154

TRAIN MILEAGE REVENUE SERVICE Freight train-miles 22,039,634 22.418,433 378,799 Passenger train-miles 26,484,032 26,271,512 212,520 Mixed train-miles 299.925 55,251 244,674 Special train-miles 33.668 78,710 45,042

Total revenue train mileage 48,857,259 48,823,900 33,353 Non-revenue train mileage 2,717,030 2,274,507 442,523

Total train mileage 51,574,289 51,098,413 475,876

CAR MILEAGE REVENUE SERVICE Freight car-miles Loaded 586,716,741 507,142,356 19,574,385 Empty 267,834,025 279.776,300 11,942,275 Caboose 22,688,433 22,761.086 72,653

Total freight car-miles 877.239,199 869,679,742 7,559,457

Passenger car-miles 05,583.153 64,269,873 1,313,280 Sleeping, parlor and observation 48.407,950 45,070,126 3,337,824 Other passenger-train cars 50.082.304 51,381,536 1,299,232

Total passenger car-miles 104.073,407 160,721,535 3,351,872

Special car-miles Freight—loaded 261,037 294,714 33,677 Freight—empty 8,684 9,132 448 Caboose 15.999 17,394 1,395 Passenger 47,903 318,123 270,220 Sleeping, parlor and observation 12,663 11,574 1,089 Other passenger-train cars 21,233 119,760 98,527

Total special car-miles 367,519 770.697 403.178

Total revenue car mileage 1,041,080,125 1,031,171,974 10,608,151 Non-revenue car mileage 10,311.182 6,285,388 4,025,794

Total car mileage 1,051,991,307 1,037,457,362 14,533,945 36

Annual Report

TRAFFIC STATISTICS

DESCRIPTION OF FREIGHT MOVED

PRODUCTS OF AGRICULTURE 1912 1911 Increase Tons Tons Tone Tons Grain 2,661,219 2,453,023 208,196 Flour 936,595 873,146 63,449 Other mill products 904,260 827,841 76,419 Hay 608,798 610,747 1,949 Tobacco 13,953 13,533 420 Cotton 166,566 123,863 42,703 Fruit and vegetables 1,130,318 1,121,956 8,362 Other articles 241,430 197,755 43,675

Totals 6,063,139 0.221..SO! 1 11.275 PRODUCTS OF ANIMALS

Live stock 537,150 573,060 35,910 Dressed meats 343,752 355,078 11.326 Other packing house products 338,417 340.209 1,792 Poultry, game anti fish 93,290 86,750 6,540 Wool 112,124 96.655 15,469 Hides and leather 165,731 133,050 32,681 Milk 416,782 390.245 26,537 Dairy products 198405 203,281 4,876 Other articles 173.000 140,646 32,354

Totals 2,378,051 2,318.974 59.677 PRODUCTS OF MIXES

Anthracite coal 6,4.50.013 6,387,157 62,856 Bituminous coal 12,513,455 11,082,025 830,830 Coke 884,590 733.470 151,120 OreB 816.065 412.946 403,119 Stone, sand and other like articles 3.068,223 2,771,844 296,379 Other articles 426,962 355.900 71.002

Totals 24,159.308 22.31 1.002 1,815,306 PRODUCTS OF FORESTS

Lumber 1,003,407 1,611,930 51,477 Other articles 1,633.860 1,397,626 236,234

Totals 3,297,207 3,009.556 287,711 MANUFACTURES

Petroleum and other oils 599,050 529,516 69,534 Sugar 337,905 327,448 10,517 Naval stores 75,533 116,687 41.154 Iron: pig and bloom 755,373 645,816 109,557 Iron and steel rails 164,763 199.130 34,367 Other castings and machinery 1,226,627 1,080,239 146,388 Bar and sheet metal 1,212,119 1.067,7771 154,342 Cement, brick and lime 2,517,194 2,161,611t 355,583 Agricultural implements 119,387 125,517 6,130 181,222 164,581 16,641 Wines, liquors and lieers 416,979 388,002 28,977 Household goods and furniture 181,899 168,896 13,003 Other articles 6.702.S25 6,260,855 441,970

Totals 14,490,936 13,226,075 1,204,861 MISCELLANEOUS

Commodities not previously mentioned Totals 911,881 1,130,064 218,183

TOTALS 51,901,182 48,250,535 3,650,647 t Correcting lypoaxnphiciil error in I 111 1 report 37

The New York Central and Hudson River Railroad Company

TRAFFIC STATISTICS (concluded)

FEEIGHT 1912 1911 Increase Decrease Tons of revenue freight carried 51.901,182 48,250,535 3,650,647 Tons of company freight carried 7,903.607 7,751,641 151.966 Total tons of freight carried 59,804,789 5ti.IMI2.176 3,802.613 Tons of revenue freight carried one mile 10,395,676,370 9.660.523,OSS 735,152.682 Tons of company freight carried one mile 1.243.287.462 1,316,028,414 72,740.952 Total tons of freight carried one mile 11.638.963.832 10.976..552,102 662,411,730 Miles of road operated in freight service 3,775 69 3,775-27 -42 Tons of revenue freight carried one mile per mile of road 2,753,318 2,558,896 194,422 Tons all freight carried one mile per mile of road 3,082,606 2,907,488 175,118 Average distance haul of one ton of revenue freight 20030 20022 08 Average distance haul of one ton of all freight 194 62 196 00 1*88 Average number of tons of revenue freight per train mile 465 35 429 86 3549 Average number of tons all freight per train mile 521 -00 488 42 32-58 Average number of tons of revenue freight per loaded car i uile 17-72 17 03 •69 Average number of tons all freight per loaded car mile 19'84 19-35 •49 Average number of freight cars per train mile 39-27 38 70 •57 Average number of loaded cars per train mile 2626 25-24 102 Average number of empty ears per train mile 1199 12-4.5 -46

Total freight revenue $65,101,509.99 $61,133,309.92 $3,968,200.07 Average amount received for each ton of freight $1.25 $1.27 $0.02 Average revenue per ton per mile mills 6 26 mills 6*33 mills 007 Average revenue per mile of road $17,242.28 $16,193.10 $1,049.18 Average revenue per train mile $2.91 $2.72 $0.19

PASSENGER Number of interline passengers carried 3,126,315 3.227,200 100,885 Number of local passengers carried 31,827,757 30,834,956 992,801 16,409,666 15.250,951 1.1.58,71.5 Total numlier of revenue passengers carried 51,363,738 49,313,107 2.0.50,631 Total number of revenue passengers carried one mile 1,876,025.020 1,795,954,782 80,070,238 Miles of road operated in passenger service 3,499 94 3,497 26 1'68- Number of revenue passengers carried one mile per mile of road .536,016 513,532 22,484 Average distance each revenue passenger carried 36 52 36 42 •10 Average number of passengers per train mile 70 68 2 Average number of passengers per car mile 16 16 Average number of passenger cars per train mile 6 6

Total passenger revenue $33,134,508.72 $31,759,237.98 $1,375,270.74 Average amount received from each passenger cents 64,51 cents 64 40 cents 011 Average revenue j>er passenger per miie cents 1 '766 cents 1768 cents 0 002 Total passenger service train revenue $41,566,413.41 $39,638,528.43 $1,927,884.98 Average passenger service train revenue per mile of road $11,876.32 $11,334.17 $542.15 Average passenger service train revenue per train mile $1.55 $1.51 $0.04

TOTAL TRAFFIC Operating revenues $109,900,015 57 $103,954,862 81 $5,945,152 76 Operating expenses 81,311,153 31 75,700,202 78 f 5,610.9.50 53 Net operating revenue $28,588,862 26 $28.2.54,660 03 $334,202 23 Operating revenues per mile of road $28,992 39 $27,427 00 $1,565 33 Operating expenses per mite of road 21,1.50 45 19,972 45t 1.478 00 Net operating revenue per mile of road $7,541 94 $7,454 61 $87 33 Operating revenues per train mile $2 25 $2 13 . tO 12 Operating expenses per train mile 1 66 1 5.51 0 11 Net operating revenue per train mile $0 59 $0 58 .80 01 t Reviseil tor purposes (,f romp arisen 38

Annual Report

TABLE OF TRACKS

MAIN LINE OWNED Miles track track track* Siding a Total New York to Buffalo 440-66 440-66 340'16 35476 892'13 2,468-37

BRANCHES OWNED Syracuse to Rochester 96-29 58-14 154-43 Troy to Schenectady 20-91 1474 35-65 East Syracuse to Syracuse Junction 831 8-31 7-25 2387 Lyons to Geneva 1408 12-67 27-14 53-89 Rochester to Niagara Falls 75-61 55-68 108 06 '239-35 Rochester Junction to Ontario Beach 7-43 6-92 10-26 24-61 Batavia to Attica 10-67 1-32 11-99 Canandaigua to North Tonawanda 85-80 1-66 23 23 11069 Lockport Junction to North Tonawanda 1117 4-80 15-97 East Buffalo to North Buffalo 7-23 7-22 25-73 4018 Buffalo to Niagara Falls 21-82 21-53 51-59 94-94 Suspension Bridge to Lewiston 551 297 848 Total branches 364-83 113-99 33523 81405 Total main line and brandies 805-49 554-65 340 16 354-76* 1,227-36 3.282-42

PROPRIETARY LINES Buffalo Erie Basin Railroad •25 •25 New York Central Niagara River Railroad1 2-81 2-81 Total proprietary lines 306 306 Main LEASED LINES line Beech Creek Railroad 112-31 52-20 164-51 11-52 152 00 328 03 Beech Creek Extension Railroad 108-34 22-78 13112 3-91 5279 187-82 Boston & Albany Railroad 199-23 104-5S 30381 21817 78-85 23-32 360-91 985116 North Brookfield Railroad 400 400 1 23 5-23 Ware River Railroad 49-35 49-35 804 57-39 - Pittsfield & North Adams Railroad 1,856 18-56 1798 36-54 Providence Webster & Springfield K R 11-23 11-23 404 15-27 Chester & Becket Railroad 5-27 5'27 117 6-44 Carthage & Adirondack Railway —1 45-86 45-86 1S-86 6472 Geneva Corning & Southern Railroad 166-94 64-75 231-69 9903 145-61 476-33 Mohawk & Malone Railway —173-33 8-85 1S2-1S 52-71 234-89 New Jersey Junction Railroad 4-44 •34 4-78 4-34 5-74 14-86 \ew York"& Harlem Railroad 127-45 903 136-48 56-34 12-55 12-55 122-98 3401)0 New York & Ottawa Railway — 69-45 69-45 7-68 7713 Ottawa & New York Railway 56-90 56-90 808 64-98 New York & Putnam Railroad — 53-73 310 - 56-83 11-85 22-84 91-52 Mahopac Falls Railroad l 2 05 > 205 •26 2-31 Rome Watertown 414-SS 5234 236 73 703-95 Carthage Watertown & Sackets Harbor U R—28-96 . 28'96 11-25 40-21 Niagara Falls Branch Railroad >. 858 . 858 4-69 13-27 Oswego & Rome Railroad 26-62 26-62 4-24 10-93 4179 Utica & Black River Railroad , 134-31 15-85 15016 1002 7302 233-20 Spuyten Duvvil & Port .Morris Railroad 531 , 531 5-31 4-52 4-34 1358 3306 Troy & Gree'nbush Railroad 5-56 5'56 5'56 1219 23-31 Wallkill Valley Railroad 32-88 32-88 776 40-64 West Shore Railroad 423-67 55-44 479-11 42363 8-39 43673 1,347-86 Total leased lines 2,626 13 906-26 104-31 40-21 1,789-80 5,46671 39

The New York Central and Hudson River Railroad Company

TABLE OF TRACKS—(concluded)

F LINES OPERATED UNDER CONTRACT Miles Sgjgf ™*£ t?2J*i sidlnai Total Gouverneur & Oswegatehie Railroad ^ 13 07 404 17-11 Terminal Railway of Buffalo 11-02 11*02 24-71 4675 Tivoli Hollow Railroad — 1-24 103 2-27 St. Lawrence & Adirondack Railway and leased line 56*37 15*3S 7175

Total lines operated under contract 81 70 11 02 ' 45 16 137*88

TRACKAGE RIGHTS

In Buffalo Buffalo Creek Railroad Co 3*66 3-4S -95 7-99 Clearfield to Curwensville Buffalo Koch & Pitts Ry Co 041 6*41 In Ottawa Canadian Pacific Railway Co P14 P14 Adirondack Jet to Montreal " " " " 8-80 8*80 Cherry Tree to Dixonville Cherry Tree & D'ville R It Co 38 95 3895 Albany to Troy Delaware & Hudson Co 7*34 7 34 1468 Kenwood Junction to Albany " " " 171 70 2*41 Blossburg to Morris Run " Erie Railroad Co 358 3-58 Lawrenceville to Blossburg " " " 25'50 26*50 Montgomery to Campbell Hall " " " 4'78 4-7^ In Ottawa Grand Trunk Railway System 80 -80 Fulton to Oswego N V Ontario Pennsylvania Railroad Co 45 01 45*01 90*02 Mahaffey to Patton " " " 20*85 20*85 Main line to sundry mines " " *' 19*31 19-31 McGees Jet to Hossiter Jet " " " 11*18 11*18 Irvona to Amsbry '* '* " 20*30 20*30 Newbury Jet to Willirmsport Philadelphia & Reading Ry Co 3 54 3*54 ~708 Norwood to Malone Junction Rutland Railroad Co 37-10 3710 At Moira " " " 15 .^5 In Troy Troy I'nion Railroad Co 2*03 200 4-03

Total trackage rights 274*27 6207 95 337-29

Total mileage operated 3,790*65 1,534*00 445*42 394*97* 3,062-32 9,227*36

Gauge of track, 4 feet 8J inches; weight of rail per yard, 06 to 141 pounds

Recapitulation according to States

__ . _ , Otherwise Owjied Proprietary Leased operated Total New York 80549 306 1,76020 104 48 2,67323 New Jersey 23 61 2361 Pennsylvania 448-41 19463 643 04 Massachusetts 337-01 337-01 Dominion of Canada 5690 5686 11376

805-49 300 2.626 13 355-97 3,790 65 10

Annual Report

EQUIPMENT IN SERVICE

(INCLUDING EQUIPMENT OF LEASED LINKS)

INCREASE UECilEA.SE Dee. Ill Number OhMM nf Numlwr ('h.m(r|> o Dec. :i| Locomotives 1911 added BtaM retired class For passenger service 483 12 471 Electric locomotives 35 35 For freight service 062 147 150 1 958 For switching service 309 1 13 297 Dummy engines 9 9 Inspection engines 7 7

1,805 '147 1 175 1 1,777

Cars in passenger service

Passenger coaches 805 7 35 763 Passenger coaches, steel 49 49 Passenger coaches, steel underframe 99 99 Klcetric motor passenger coaches, steel 87 87 Club or chair cars in suburban service 4 4 Smoking cars 198 16 2 6 206 Electric motor smoking cars, steel 38 38 Combination passenger anil baggage cars 140 1 20 121 Combination passenger and baggage cars, , Electric motor combination passenger and 6 6 Combination passenger and baggage ears. 4 10 14 Combination passenger, baggage and mail 11 3 8 Combination passenger, baggage and mail 2 2 Immigrant and excursion cars 31 6 25 Dining cars 17 3 14 Dining cars, steel Dining eats, steel untlerframe 11 3 14 Cafe dining coaches 13 2 11 Cafe dining coaches, steel untlerframe 2 2 Buffet anti cafe cars 15 9 6 Buffet and cafe cars, steel 9 9 Buffet and cafe ctirs, steel untlerframe 2 3 Mail cars 48 11 37fi Mail cars, steel 25 25 Mail cars, steel underframe 10 8 12 12 Mail and baggage ears 46 22 24 Mail arid baggage ears, steel tunlerframe 21 21 Baggage antl express cars 339 21 6 19 335 Baggage and express cars, steel 56 15 71 Baggage and express cars, steel underframe 1 Electric motor, mail, express and baggage cars, ; 6 6 Special horse cars 41 I 42 Milk cars 215 16 5 226

2,327 93 20 148 2,289

Cars in freight service

Box cars 27,485 1,329 2,236 23,921 Box cars, steel underframe 3,096 1 1,921 7 5,011 Box automobile cars, steel underframe 1,990 1 4 1,987 Flat can- 3,038 50 4 127 35 2,930 Flat cars, steel underframe 640 15 10 645 Stock cars 777 63 714 Coal and coke cars 17,649 655 1 686 15.308 Coal and coke cars, steel 3,600 3 3,597 Coal and coke cars, steel underframe 616 1,267 2 1,881 Refrigerator produce cars 809 It 2 793 Refrigerator produce cars, steel underframe 500 1 501 Caboose cars 991 to 5 71 6 929 Caboose cars, steel underframe j/ 25 25 61.191 103 3,198 2,275 3,975 58,242 .11

The New York Central and Hudson River Railroad Company

EQUIPMENT IN SERVICE— (continued)

INCREASE DECREASE Dec. 31 S imber CSMUUM of Number h:m„<- of Dec.iil Equipment in Company's service 1911 dded class retired 1912 Officers- cars 2 1 1 Officers' cars, steel 1 1 Officers' cars, steel underframc 8 1 1 10

Air-brake instruction cars 1 1 Ballast cars 757 757 Derrick cars 42 7 49 Steam wrecking cranes 26 26 Cinder, push, gas ami oil transport cars 1,182 3 397 317 3 1,262 Other road cars 2,287 11 441 307 3 2,429

Totals 4,312 22 839 624 7 4,542

floating pile drivers for road department 3 3

1 1 DM. 31 Marine department KMI Added Retired 1913 Capacity capacity Ferry boats, side-wheel, single deck 5 5 Ferry boats, screw, double deck 4 1 5 21 4 51/ 3.000 tons 333 tons ing barges 10 4.450 445 " 25 4,800 192 " 112 27.9(H) 249 " 6 3,300 550 " 35 19.080 545 " 49 G32 cars 12'9 cars

LEASEU UNDER EyUICMKNT TRUSTS ADDED RETIRED Trusts New Trusts New . 1912 1912 Locomotives Trust Total For passenger service 179 Electric locomotives For Freight service For switching service

Cars in passenger service Passenger coaches Passengers coaches, steel Smokers, steel Combination passenger, baggage anil mail Mail cars, steel Mail and baggage cars Mail and baggage cars, steel Buffet and cafe cars Dining cars Dining cars, steel underframe

Cars in freight service Box cars 1,973 Box c iteel underframe 2.997 3,162 Box a lobile cars, steel underframe 1.0(H) Iteel underframe 500 500 1,497 oke cars, steel 2,785 3,784 24

Totals 14,429 Equipment in Com jinny's service Ballast ears, steel underframe 12

Annual Report

SUMMARY OF EQUIPMENT IN SERVICE

Number 1911 added retired Steam locomotives 2,332 202 175 Electric locomotives Electric motor passenger-train ears, steel Passenger-train cars, wood 2,015 16 42 20 136 steel 160 91 251 Bteel underframe 135 50 12 173 Freight-train cars. wood 52,746 61 9 2,263 3,965 46,588 steel 4,600 2,785 4 7,381 steel underframe 11,836 45 6,852 20 11 18,702 Company service cars, wood 4,303 21 838 624 7 4,531 steel 1 steel underframe 8 10 Floating pile drivers for road department 3 3 Vessels in Marine department freight service 261 267 ferry service 10 EQUIPMENT STATISTICS 1912 1911 Average mileage per locomotive 30,312 29,876 Cost of repairs per locomotive mile Steam locomotives cents 9'47 cents 7'07 Electric locomotives cents 3'53 cents 3'19 Total capacity of freight train cars, tons 2,711,097 2,504,460 Average capacity of freight train cars, tons 3731 3620 Seating capacity of passenger cars 106,469 103,258 Average seating capacity of passenger cars 66 64 Average mileage per passenger train car 46,705 48,756 Average cost of repairs per passenger train car mile cents L002 cents 1-472

MISCELLANEOUS STATISTICS

CONSUMPTION OF FUEL BY LOCOMOTIVES 1912 1911 Anthracite coal, inns 96,329 105,332 Bituminous coal, tons 4,010,058 4,486,579 Coke, tons 1,303

Total coal and coke, tons 4,713,690 4,591,911 Oil, gallons 4,003,673 3,260,136 equalling tons of coal in efficiency 28,341 23,077 Average pounds consumed per mile run by loi in freight service 186 24 185-46 Average pounds consumed per mile run by locoiimlhve s in passenger service 113-98 11551 Average cost of coal per ton $1.85 $1.79 Average cost of fuel oil per gallon cents 3'40 cents 2-29 Average cost of fuel per locomotive mile cents 12-40 cents 1154

NEW STEEL HAIL LAID DURING THE YEAR 1912 1911 1911 Weight of nil Total number of tons laid 141 pound rail 141 tons 04-9 tons $37.09 $45.80 100 pound rail 30.47 30.59 80 pound rail 21,370-5 tons 27,951-0 tons 29.60 29.95 70 pound rail 13 6 tons 28.04 65 pound rail '6 tons 38.73

NEW CROSS TIES LAID DURING THE YEAR 1912 1911

Treated Non-treated Total Treated Non-treated Total Oak 12,902 193,196 206,098 1,750 281,085 282,835 Yellow pine 805,503 551,434 1,356,997 699,589 678,621 1,378,210 Miscellaneous 5,697 523,354 529,051 9,231 403,390 412,627

Total 824,162 1,267,984 2,092,146 710,570 1,363,102 2,073,672 Average price at distributing points eents 74 8 cents 773