The Michigan Central Railroad Company
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The Michigan Central Railroad Company Report of the Board of Directors to the Stockholders for the year ended December 31, 1929 DETROIT MICHIGAN ORGANIZATION OF THE MICHIGAN CENTRAL RAILROAD COMPANY DECEMBER 31, 1929 DIRECTORS FREDERICK W. VANDERBILT EDWARD S. HABKNESS WARREN S. HAYDKN GEORGE F. BAKER ALBERT H. HAKRIS BERTRAM CUTLER WILLIAM K, VANDEHBILT EDMOND D. BRONNER PATRICK E. CROWLEY HAROLD S. VANDEHBILT JACKSON E. REYNOLDS CHARLES B. SKGER FREDERIC J. FISHER The annual meeting of stockholders for the election of directors is held in the city of Detroit, Michigan, on the Thursday after the first Wednesday in May EXECUTIVE COMMITTEE ALBERT II. HARRIS, Chairman GEORGE F- BAKER - CHARLES B. SEGKR WILLIAM K. VANDERBILT JACKSON E. REYNOLDS HAROLD S. VAKDERBILT PATRICK E. CROWLEY CORPORATE OFFICERS President PATRICE E. CROWLEY New York Assistant to President HOWARD L. INQERSOLL New York Executive Assistant to President MARTIN J. ALGER New York Assistant to PresidenL FRANK II. HARDIN New York Engineering Assistant to President RICHARD E. DOUGHERTY New York Vice President ALBERT H. HARRIS New York Vice President GEORGE H. INGALLS New York Vice President EEMOMD D. BRONNKR Detroit Vice President CHARLES C. PAULDING New York Vice President JOHN G, WALBER New York Vice President JAMES H. Htrsns New York Vice President MALCOLM R. CONKELL New York Assistant Vice President. CHARLES J. BRISTEH Chicago Assistant Vice President JOHN K. GRAVES New York Assistant Vice President EDWARD HUNCERFORD New York Assistant Vice President and General Manager HBNRY SHEARER Detroit General Counsel FRANK E. ROBSON Detroit. Secretary- EDWARD F. STEPHENSON New York Assistant Secretary JOSEPH M. O'MAHONEY New York General Treasurer HARRY G. SNELLINQ New York Assistant General Treasurer HENRY A. STAEIL New York Assistant General Treasurer RUSH N. HARRT New York Treasurer WALTER E. HACKETT Detroit Comptroller WILLIAM C. WISHABT New York Assistant Comptroller LEROT V. PORTER New York Assistant Comptroller FREDERICK H. MEEDEB. New York Ctntrtd Treasurer, 4G6 Lexir\$i$n ^wenu*, JVeic York, transfers stack, [jays divide ad* on stock, transfers bands and pays interest on bonds C&ifrat flanovtr ffanfe and Trusi Co- registers stock at 80 Broadway, New York REPORT To the Stockholders of THE MICHIGAN CENTRAL RAILROAD COMPANY: The Board of Directors herewith submits its report for the year ended December 31, 1929, with statements showing the income account for the year and the financial condition of the company. Road operated The following is a comparative table of the mileage operated: 1'J2<J 1928 Increase Decrease Miles Miles Miles. Miles Main line and branches owned 1,181'86 1.18VHG 2-50 Line jointly owned 70 '70 Leased lines 576 13 57613 Liues operated under trackage rights 9935 9lV93 242 • Total road operated 1,858'34 1,858-42 OS The decrease of 2 50 miles in main line and branches is the net result of the sale of 2 70 miles of the Dearborn Branch, the retirement, of 01 mile of the North Midland Branch and the extension of line at Detroit in connection with improvement*. The increase of 2-42 miles of trackage is due to the use of New York Central tracks »o reach the new passenger terminal at Buffalo. The year's business During 1929, the company moved 32,792,343 tons of revenue freight, an increase as compared with 1928 of 691,446 tons, largely the result, of a heavier movement of coal, coke and manufactured articles. Revenue passengers carried were 3,563,176, an increase of 42,637. Interline pas• sengers decreased 21,963, while local and commutation passengers increased 64,600. Annual Report INCOME ACCOUNT FOR THE YEAR Year ended Year ended Dec. 31,1029 Dec. 31, 1928 Increase Decrease 06 mile OPERATING IXCOUE l.SSB 31 miln 1.85S-W miirt opcraltd RAILWAY OPERATION $93,217,493 20 51,501,473 32 Railway oppranng revenue* SW.71S.966 52 2,221,459 45 Hiulivay operating expenses 64,865,394 5G 02.643.935 11 $719,986 13 NET REYEXTJV FAOM BAILWAT OPERATIONS S29,S53,571 96 830,573,558 09 CI-28) Pcrctntoge of exptnws to remtues C68-4S) CC7-201 $6,302,709 81 56.327.936 69 894,773 15 Railway tare accruals 26,064 20 S9.&85 96 Uncollectibl* railway revenues 15,373 24 $775,073 32 RAILWAY OPERATING INCOME S23.445.4S3 HS 824.220.5fi7 20 $404,769 65 Equipment rents, net debit S916.123 40 551,234 13 77,747 78 Joim facility reni*. net debit 625,081 91 51,257,690 75 NET RAILWAY orBRATma INCOME S21.S9S.376 51 $23,155.067 20 MlHCBLLAJOSOUS OPERATIONS 30,022 44 $397,209 51 3103.831 95 Revenues 342.773 39 342,445 30 1328 00 Expense.* and taxes $6,950 53 Mwcm-umom OPERATING INCOME 354.436 32 561.386 65 Sl.2fi4.54t 28 TOTAL OPERATING INCOME ttl.052.Sl2 63 S23.217.353 01 XON-OPERATINO INCOME 528 69 $249 33 $27* 04 Income from lease of road 38,333 64 290.S29 00 327,663 24 Miscellaneous rent income 52.W9 24 73.525 G2 20,536 38 Miscellaneous non-operating physical property 1,752.487 57 811,029 99 8041.457 58 Dividend income 299.S47 47 323,999 33 24,151 So Income from funded securities 705.984 96 4.30,712 61 225.242 35 Income from unfunded nccuritiefl And ArfOUCtfi 12.404 50 15,125 89 2.721 39 Miscellaneous income TOTAL NON-OPERATING INCOME $3.114.792 69 §2,032,364 72 $1,082,427 97 8182,113 31 GROM .NCOUE 525.067.605 32 $25,249,718 53 DEDTCCTOVS moM finoss INCOME 52,693 94 42,733,S94 44 $2,736,593 35 Rent for leaded roads 6.417 23 4,158 76 82.258 47 Miscellaneous rents 64,361 92 17,216 59 Miscellaneous tax accrual* 81,577 51 2,890,543 66 142.474 05 Intr?r«it «HI funded debt 2,748,069 01 9,600 92 Interest on unfunded debt 23,795 63 14,194 71 10,460 97 Amortisation of discount on funded debt 131,088 63 141,549 60 201 45 Maintenance nf investment organization 2,081 04 1.SS3 19 [.450 54 Miscellaneous income charges 5,563 00 7.013 54 $5,860,298 76 8127,80$ 07 TOTAL DEDCCTIONS FROM onoaa INCOMK 35,732.490 69 $54,305 24 NET INCOME 810,335,111 03 $19,389,419 87 (-SIQ Per ornf to capital tlntk outstanding (103 20) (108-49) DISPOSITION or NET INCOME $7,494,560 00 Dividends declared; 40 per cent each year 57,491,560 00 511,840,551 03 Si 1,804,859 87 $54,305-24 SrJRPLfft ml* TIlF. VEAR CARRIED TO PROFIT AND LOSS The Michigan Central Railroad Company Profit and Loss account blllaxce to credit os profit axe loss, dece.ubes 31, 1928 $93,731,606 99 ADDITIONS: Surplus for the year 1Q29 8ll,S40,.W4 63 Profit on property sold »ils,r,.!3 37 Unrafundable overcharges 33,171 0*i 12.7U.-Ht> 06 *106,474,04r, 95 DBMJCTIOHB: Dividend appropriations of aurpluH 818,736.400 00 Depreciation prior to July 1, 1907, on equipment retired during the year 87,782 59 Lost on property retired 119,430 59 Miscellaneous items and adjuatmentj (net) 103,212 59 19.0+6.834 77 Ralawce to chboit op prosit and lose, December 31, 1929 887,427,212 18 Operating revenues Freight revenue amounted to $64,484,363.45, an increase of 3386,219-78. Passenger revenue was $19,883,089.83, an increase of $90,523.06. Mail revenue was §1,653,641.35, an increase of 8538,110.23. Express revenue was $4,314,357.55, an increase of $274,729.14. Switching revenue amounted to 31,802,695.86, an increase of $133,919.79. Other transportation, incidental and joint facility revenues increased $77,971.32, Operating expenses The following table shows the operating expenses by groups: Croup Amount Increase Maintenance of way and structures S10,060,35S 74 $06,806 80 Maintenance of equipment 19,798,575 -II 1,309,163 45 Truffle 1,657,201 53 57,702 86 Transportation 29,916,401 02 501,503 33 Miscellaneous 1,137,396 73 1131,981 14 General 2,092,332 22 90,799 65 Transportation for investment—credit P6.961 09 S2G.5S7 Total 86-1,865,394 50 92,221,459 45 The principal outlay contributing to the increase in expense for maintenance of way and structures is for the removal of snow and ice, the result of the severe weathor in December, 1929. There were partially offsetting decreases in charges for application of track materia] and for maintenance of bridges, trestles and culverts. The increase of $1,369,163.45 in expense for maintenance of equipment is largely in freight car repairs. The number of freight cars repaired increased from 698,672 in 1928 to 787,483 in 1929. Traffic expenses increased $57,702.S6, chiefly in expense of off line representation. Annual Report Transportation expenses veto $501,503.33 more than for 1928, mainly due to the handling of a larger volume of traffic. , The increase of $101,981.1-1 in expense* for miscellaneous operations is chiefly due to additional dining cars operated in regular and special service. The increase of §90,799.55 in general expenses is mainly the result of larger charges lo the pension account and for valuation work prescribed by the Interstate Commerce Commission. Railway tax accruals Railway tax accruals were $6,392,709,84, an increase of $64,773.15, largely the result of under accruals in former years.