The New York Central Railroad Company
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The New York Central Railroad Company Report of the Board of Directors to the Stockholders for the year ended December 31, 1930 NEW YORK CENTRAL BUILDING 230 Park Avenue New York ORGANIZATION OF THE NEW YORK CENTRAL RAILROAD COMPANY DECEMBER 31, 1930 DIRECTORS FREDERICK W. VANDERBILT ALBERT H. HARRIS PATRICK E. CROWLEY GEORGE F. BAKER BERTRAM CUTLER MYRON C. TAYLOR WILLIAM K. VANDERBILT WILLIAM COOPER PROCTER CHARLES B. SEGER HAROLD S. VANDERBILT WARREN S. HAYDEN JAMES SIMPSON EDWARD S. HARKNESS JACKSON E. REYNOLDS GORDON ABBOTT The annual meeting of the stockholders for the election of directors is held in the city of Albany, New York, on the fourth Wednesday in January EXECUTIVE COMMITTEE ALBERT H. HARRIS, Chairman GEORGE F. BAKER JACKSON E. REYNOLDS WILLIAM K. VANDERBILT CHARLES B. SEGER HAROLD S. VANDERBILT PATRICK E. CROWLEY OFFICERS President PATRICK E. CROWLEY Vice President, Finance and Corporate Relations ALBERT H. HARRIS Vice President, Traffic GEORGE H. INGALLS Vice President, Freight Traffic CHARLES J. BRISTER Vice President, Passenger Traffic IJOREN F. VOSBURGH Vice President, Law and Public Relations CHARLES C. PAULDING Vice President, Personnel JOHN G. WALBER Vice President, Improvements and Development RICHARD E. DOUGHERTY Vice President, Accounting WILLIAM C. WISHART Vice President, Purchases and Stores WILLIAM C. BOWER Resident Vice President, Cincinnati HARRY A. WORCESTER Vice President in charge of New York Central Railroad RAYMOND D. STARBUCK Vice President in charge of Boston & Albany Railroad HOWARD M. BISCOE Vice President and General Manager in charge of Michigan Central Lines HENRY SHEARER Vice President and General Manager in charge of C C C & St L Lines CHARLES S. MILLARD Secretary EDWARD F. STEPHENSON General Treasurer HARRY G. SNELLING Treasurer EDWARD L. ROSSITER Comptroller LEROY V. PORTER General Treasurer, 466 Lexington Avenue, New York, transfers stock; pays dividends on stock registered in New York City; transfers registered bonds; pays interest on coupon and registered bonds Central Hanover Bank and Trust Co. registers stock in New York City Messrs. Morgan, Grenfell & Company, 23 Great Winchester Street, London, E. C, England {London fiscal agents), transfer stock registered in England; pay dividends on stock registered in England National Provincial Bank, Limited, London, registers stock in England REPORT To the Stockholders of THE NEW YORK CENTRAL RAILROAD COMPANY: The Board of Directors herewith submits its report for the year ended December 31, 1930, with statements showing the income account and the financial condition of the company. Leases of lines of controlled companies Under indentures dated January 2, 1930, effective February 1, 1930, the company leased for 99 years the lines and properties of The Cleveland Cincinnati Chicago and St Louis Railway Company, The Michigan Central Railroad Company, the Chicago Kala• mazoo and Saginaw Railway Company and the lessor companies' leased lines, including in the case of The Cleveland Cincinnati Chicago and St Louis Railway Company the lines and properties which by similar indentures for like terms had been leased to it by The Cincinnati Northern Railroad Company and Evansville Indianapolis and Terre Haute Railway Company. The additional mileage acquired by the company for operation under these leases, stated as of December 31, 1929, is as follows: Trackage (Inter-company Owned Leased mileage eliminated) Total Road miles miles miles miles C C C & St L Ily 1,698-17 529-81 119-59 2,347-57 Michigan Central R R 1,182-56 576-43 00-52 1,819-51 CK&SRv 45-91 45-91 Cincinnati Northern R R 205-14 205 14 E I & T H Ry 139 01 3-50 142-51 Totals 3,27079 1,106-24 183-61 4,560-64 3 4 Annual Report The total mileage operated by the company at the end of the year compared with the same lines stated as of December 31, 1929, was as follows: 1930 1929 Increase Decrease Miles Miles Miles Miles Main line and branches 3,731'52 3,727-05 4-47 Leased lines and lines operated under contract 6,963-78 7,03r82 68-04 Trackage rights 726-25 726-31 -06 Totals 11,421-55 11,485-18 6363 Of the increase of 447 miles of main line and branches, -27 mile resulted from change of line at Mott Haven Junction, and 4-25 miles from construction of the St Joseph Lead Branch, Emeryville to Balmat, N. Y., and there was a reduction of -05 mile due to re- measurements and adjustments. The decrease of 68-04 miles of leased lines is accounted for as follows: there was a decrease of 5873 miles, resulting from reclassification of first main track as second and third tracks, principally by reason of the parallelism of the Toledo-Detroit lines of this company and The Michigan Central Railroad Company, a decrease of 401 miles caused by relocation of West Shore Railroad tracks at Syracuse, a decrease of 5-34 miles incident to the abandonment of tracks of the West Shore Railroad at Utica and Syracuse, formerly used in connection with the operation of the New York State Railways between those points, and there was an increase of -04 mile due to remeasurements and adjustments. Miles operated under trackage rights decreased -06 mile as the result of sundry remeasurements and adjustments. Restatement of accounts for January, 1930, to reflect lease basis for entire year—comparisons with 1929 For the purpose of comparisons on an annual basis, the figures for the lines leased as of February 1, 1930, have been included for the entire year 1930 in making up the income account as it is set forth on page 6 and in statements of tonnage and traffic. For the same reason, where comparisons with the year 1929 are shown the figures for that year for the leased lines referred to have been included. The actual income account for 1930 is stated on page 56. 5 The New York Central Railroad Company The year's business The general recession in business which commenced in the latter part of 1929 and which continued throughout 1930 is reflected in the heavy decrease as compared with 1929, in freight and passenger traffic and the revenues therefrom. Operating revenues were $478,918,347.55, a decrease of $111,090,275.99. Revenue freight amounted to 150,046,279 tons, a decrease of 53,146,925 tons (26-16%), the revenue therefrom being $307,177,575.29, a decrease of $74,803,799.89 (19-58%). As shown by the appended statement of commodities handled (pp. 52-55), decreases in tonnage were general throughout the list, there having been only a few increases and these of relatively minor importance. Some of the commodities in which major decreases took place, with accompanying serious losses in revenue, are listed in the following table: Commodities Tons Decrease Revenue Decrease Automobiles and autotrucks, tires, accessories, etc. 1,916,309 2,065,514 $15,086,076 $12,890,802 Bituminous coal 59,449,342 21,744,844 67,003,287 11,179,215 Iron and steel, rated 5th class, N. O. S. 3,652,593 2,626,914 10,750,080 6,221,327 Lumber, shingles and lath 2,414,941 2,247,862 5,750,235 3,897,755 Products of mines—other 3,781,331 2,199,097 4,277,203 1,914,633 Iron ore 4,944,058 2,174,238 2,618,559 1,298,661 Gravel, sand and crushed stone 7,836,598 2,807,957 5,478,424 1,947,654 Machinery and boilers 704,725 367,657 3,043,965 1,028,970 Scrap iron and scrap steel 971,875 761,602 1,646,623 1,028,693 The company carried 72,951,015 revenue passengers, a decrease of 6,264,077, these losses being distributed: interline passengers 2,816,809, local passengers 2,665,520, and commutation passengers 781,748. Comparison with interline and local passengers carried in 1929 is, however, affected by the fact that for 1930 all passengers traveling between points on the lines operated by the company are classified as local, while for 1929 passengers traveling between points on the New York Central Railroad and points on lines leased by the company in 1930 were classified as interline passengers. The revenue received from passenger business amounted to $111,184,744.82, a decrease of $19,877,¬ 511.80. Net railway operating income was $57,235,527.37, a decrease of $46,467,252.38. Net income amounted to $35,981,791.87, a decrease of $41,446,791.90, the decrease in net rail• way operating income being partly offset by an increase of $5,594,969.32 in non-operating income. G Annual Report INCOME ACCOUNT FOR THE YEAR INCLUDING BOSTON * ALBANY RAILROAD, OHIO CENTRAL LINES, MICHIGAN CENTRAL LINES, AND BIG FOUR LINES. (RESULTS FOR JANUARY, 1930, AS TO THE ROADS COVERED BY THE LEASES EFFECTIVE FEBRUARY 1, 1930, ARE INCLUDED FOR PURPOSES OF COMPARISON. FIGURES FOR 1929 HAVE BEEN REVISED BY INCLUDING THE FIGURES FOR ROADS COVERED BY LEASES EFFECTIVE FEBRUARY 1, 1930) Year ended Year ended 31, 1930 Dec. 31, 1929 Increase Decrease OPERATING INCOME Dec. 11,421-55 miles 11,485 18 miles 63-63 milei RAILWAY OPERATIONS operated operated Railway operating revenues $478,918,347 55 $590,008,623 54 8111,090,275 99 Railway operating expenses 376,729,417 97 441,245,593 33 64,516,175 36 NET REVENUE FROM RAILWAY OPERATIONS $102,188,929 58 3148,703,030 21 846.574,100 63 Percentage of expenses to revenues (78-66) (74-781 (3-88) Railway tax accruals $34,009,020 80 $39,709,413 55 85,760,392 75 Uncollectible railway revenues 125,750 30 135,087 82 9,937 52 RAILWAY OPERATING INCOME 808,054,158 48 S 108,857,928 84 840,803,770 36 Equipment rents, net debit $10,288,151 34 80,749,251 41 $3,538,899 93 Joint facility rents, net debit 530,479 77 Cr 1,594,102 32 2,124,5S2 09 NET RAILWAY OPERATING INCOME 857,235,527 37 8103.702.779 75 $46,467,252 38 MISCELLANEOUS OPERATIONS Revenues $999,418 80 81,111,025 30 8111,606